ACCT 564 WK 1 Home Work

ACCT 564 International Accounting & Multinational Enterprises

(DeVry Keller)

Exercise 3

Required:

a)    Explain how Acme Brush of Brazil’s pretax income (in BRL) became a U.S.-dollar pretax loss.

b)    Discuss whether Cooper Grant should be paid a bonus or not.

Exercise 4

Required:

a)    Determine the number of foreign companies listed on the NYSE and the number of countries they represent.

b)    Determine the five countries with the largest number of foreign companies listed on the NYSE.

c)     Speculate as to why non-U.S. companies have gone to the effort to have their shares listed on the NYSE.

Case 1. Besserbrau AG

Required:

Discuss the various international accounting issues confronted by Besserbrau AG.

Exercise 7

Required:

Answer the following questions and provide explanations for your answers.

a)    Which is the greatest problem arising from worldwide accounting diversity?

b)    Which group is most affected by worldwide accounting diversity?

c)     Which group can most easily deal with the problems associated with accounting diversity?

Exercise 8

Required:

Consider each of the following factors that contribute to existing accounting diversity as described in this chapter:

• Legal system • Taxation • Providers of financing • Inflation • Political and economic ties • Culture

a)    Which factor do you believe represents the greatest impediment to the international convergence of accounting?

b)    Which factor do you believe creates the smallest impediment to convergence? Explain your reasoning.