WEEK 102 QUESTIONS

FOR QUESTIONS 1 AND 2

Required Resources

Text

Doupnik, T. S., & Perera, H. (2015). International accounting (4th ed.). New York, NY:McGraw-Hill Education.

• Chapter 9: Guidance Strategies

• Chapter 10: Functional Assessment and Positive Behavior Support

Article

Skousen, M. (2011, November 29). Beyond GDP: Get ready for a new way to measure the economy - Forbes. Retrieved

from http://www.forbes.com/sites/realspin/2013/11/29/beyond-gdp-get-ready-for-a-new-way-to-measure-theeconomy .

1). Converting from GDP CLOs: 1,3. Review the following article: Beyond GDP: Get Ready For A New Way To Measure The Economy.

With the possible conversion to Gross Output (GO), describe three of the most significant accounting issues that will be involved with converting from GDP.

2). Managing Currency Risk CLOs: 2,4,5. 1st Post Due by Day 3. If you work for a publically traded company, download the company’s annual report. If you don’t work for a publically traded company, download the annual report of one of your favorite products (e.g. Apple or Dell). Search through the report and look for the section regarding “Managing risk” (it may be under a different name, but it is in there). Describe how this company uses hedges or contracts to manage currency risk.

FOR QUESTIONS 3 AND 4

Required Resources

Text

Doupnik, T. S., & Perera, H. (2015). International accounting (4th ed.). New York, NY:McGraw-Hill Education.

• Chapter 6: Comparative Accounting

• Chapter 7: Foreign Currency Translations and Hedging Foreign Exchange Risk

Article

Skousen, M. (2011, November 29). Beyond GDP: Get ready for a new way to measure the economy - Forbes. Retrieved from http://www.forbes.com/sites/realspin/2013/11/29/beyond-gdp-get-ready-for-a-new-way-to-measure-theeconomy .

3). Hedging Net Investments CLOs: 4,5. As described in the text, gains and losses on foreign currency borrowings can be used to hedge the net investment in a foreign subsidiary. How are these reported in the consolidated financial statements? In addition, what other techniques may a company use to hedge net investments?

Develop a 200 – 300 word analysis supporting your position.

4). Inflation CLOs: 4,5.Describe the impact inflation has on financial accounting. Should financial statements be adjusted for inflation? In what ways do International Accounting standards (IFRS) address the issue of accounting for changing prices (inflation)?

Develop a 200 – 300 word explanation supporting your position.