Costco Whole sale MNC

HOMEWORK ASSIGNMENTS: week 2

Questions PLEASE ANSWER THESE QUESTION TO HELP WITH THE PROJECT

· How does harmonization differ from convergence?

· Are you for or against convergence and why? Write a short, one-paragraph statement supporting your position.

I will provide a summary of your positions at the end of the week.

· MNC Assignment

· On what exchange(s) is(are) your MNC listed? What are its call letters?

· Look at your MNC’s most recent published annual report. Are the consolidate financial statements in conformity with U.S. GAAP? IFRS?

HOMEWORK: week3

There are two assignments this week…

Question

Select any two of the IAS or IFRS standards presented this week, identify which two you have selected and then discuss how your MNC handles the standards. Post your response in this week’s forum so that everyone can benefit from your posting and also provide their comments

ANSWER:

Discussion on IAS 1

IAS 1 describes the presentation of financial statements, which is usually closely accompanied by IAS 34, which is interim financial reporting, and IAS 7 that guides the Statement of cash flows. Financial statements comprise assets, liabilities, equity, income and expenses, cash flows, and notes to the financial statements. IAS 1 outlines what a financial statement should look like in terms of structure and utilization of concepts such as going concerned of an institution and differentiating short- and long-term assets or liabilities. IAS 1 ensures that financial statements are prepared and presented concerning International Financial Reporting Standards (IFRSs), which is essential for the users of financial information such as investors in making decisions about their investment.

How Costco handles IAS 1

Multinational corporations which include Costo utilize this standard because it is vital most in the preparation of their financial statements. Costco must obey the double entry concept in preparing the financial statements (Hoyle, J. B 2018).

Discussion on IAS 24.

1.             IAS 24 Related Party Disclosures tries to outline when a person or entity is related to an entity preparing its financial statements. Disclosures are done concerning related party relationships and transactions, commitments done between entities and related parties, identifying circumstances when disclosure of related party is required, and determining related party transactions. Additionally, IAS 24 is attached to IAS 8 is an essential part of disclosures. It provides transparency on financial statement issues whereby it guides on selecting accounting policies, accounting for changes, dealing with changes in accounting estimates, and correcting errors. IAS 24 is also attached to IAS 10, which outlines when an entity should conduct changes to the financial statement after the balance sheet date with the necessary disclosures that are required to be made.

1. How Costco handles IAS 24

1.  A multinational corporation like Costco needs to make all the reacted party transactions according to IAS 24 to ensure transparency to the various stakeholders this is done by disclosing the facts of the value of assets in a company. (Ignat, I 2019).

1. Accounting diversity refers to the differences in bookkeeping and financial statements whereby different countries hold different principles; hence it varies from one country to another. Due to accounting diversity, it isn't easy to interpret different financial statements due to the different legislation by parliaments of those countries. Legal systems are one of the factors that result in accounting diversity due to complicated legal systems encountered.

1. Part two of Homework week 3

1. Answer this questions pick two.

1. There are six major reasons for accounting diversity throughout the world:

1. Legal systems

1. Taxation

1. Sources of financing

1. Inflation

1. Political and economic ties

1. Culture

Two additional factors to consider

1. Level of economic development

1. Education

Select which one factor has exerted the greatest influence on the development of accounting (in general you are not focusing on a specific country) in your opinion and why. Again, post your homework in this week’s forum. Once everyone has submitted their response, I will post a summary of your opinions and also include my own along with previous author’s opinions.

Homework Assignment week 4 part 1

Question

Research your MNC and report on any accounting issues covered in this chapter related to foreign currency transactions and hedging activities. Post your report in this week’s discussion area by nlt Saturday evening. By the end of Week 4, you are required to also respond to at least one other post. If someone asks a question of you, please take the time to also respond to those questions

Answer

.Costco wholesale is an international business enterprise that operates internationally. Being a global organization, the organization has issues when it comes to financial statement disclosures. It is brought about by different use of currencies in other continents. Presentation of financial statements becomes an issue since all financial statements must be computed in one economic value. In this case, if the organization is to use the dollar as the means of disclosing financial statements, all other branches have to publish their financial comments in dollar form. It means that they have to exchange their values for the dollar to ensure the financial statements' consistency. The result is that currency value keeps changing with time and is not essential for organizations operating in different economic zones. An increase in the value of a foreign currency will result in a foreign exchange gain on a foreign currency receivable and a loss on a payable. The vice versa is also true (Kim 2017).

Homework Assignment week 4 part two

question

Read up and research this new standard and write a paragraph or two (in your words) on any issue that you find interesting or intriguing. Please cite your source(s). You should also include reflection on your MNC and the impact, if any, it will have. Post your report in this week’s discussion area by nlt Saturday evening under the Foreign Currency Exposure & Revenue Recognition topic.

The new rule will provide direction applicable to accounting for revenue for an entity that arises from an agreement with a client to transference goods and agreements to handover non-financial assets, except those contracts are within the scope of other guidance. In the case study, this will help acknowledge the transfer of goods from the organization to the customer. It is based on the principle that a reporting entity should distinguish revenue to portray the handover of goods promised to customers in an amount that replicates the deliberation to which the wholesale expects to be entitled in exchange for goods.  For this new rule, it is essential to note that all organizations that contract with clients to allocate goods will be impacted in some way by the new administration, except the agreement is expected explicitly from application to the revenue standard. It means that Costco Wholesale will be affected in a way, and they should look at ways to advance on their reporting issues (Dixon, Odoner & Alterbaum 2017).