Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.
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Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.
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- Do all transactions between US businesses and foreign parties need specific accounting processes on the side of the US businesses? Explain.What accounting issues arise for a company as a result of engaging in international trade (imports and exports)?What is the so-called Norwalk Agreement?a. An agreement between the FASB and SEC to allow foreign companies to use IFRS in their filing of financial statements with the SEC.b. An agreement between the U.S. FASB and the U.K. Accounting Standards Board to converge their respective accounting standards as soon as practicable.c. An agreement between the SEC chairman and the EU Internal Market commissioner to allow EU companies to list securities in the United States without providing a U.S. GAAP reconciliation.d. An agreement between the FASB and the IASB to make their existing standards compatible as soon as practicable and to work together to ensure compatibility in the future.
- What are the acceptable methods of accounting for business operations in a foreign country? Choose a publicly-traded company that operates internationally and identify the impact that the foreign operations have on the financial statements. Explain.From an accounting perspective, what effect does corporate inversion have on the financial statements and operations of the U.S. company that has relocated its legal domicile to a lower-tax country?How is U.S. GAAP accounting different from international accounting? What are the key differences? And what rationale drives these differences?
- Recognize the particular accounting challenges connected with combining a foreign subsidiary's activities with those of its parent business in the United States.Choose the correct. What is the so-called Norwalk Agreement?a. An agreement between the FASB and SEC to allow foreign companies to use IFRS in their filing of financial statements with the SEC.b. An agreement between the U.S. FASB and the U.K. Accounting Standards Board to converge their respective accounting standards as soon as practicable.c. An agreement between the SEC chairman and the EU Internal Market commissioner to allow EU companies to list securities in the United States without providing a U.S. GAAP reconciliation.d. An agreement between the FASB and the IASB to make their existing standards compatible as soon as practicable and to work together to ensure compatibility in the future.Choose the correct. Which of the following statements is not true under U.S. GAAP?a. Operating segments can be determined by looking at a company’s organization chart.b. Companies must combine individual foreign countries into geographic areas to comply with the geographic area disclosure requirements. c. Companies that define their operating segments by product lines must provide revenue and asset information for the domestic country, for all foreign countries in total, and for each material foreign country.d. Companies must disclose total assets, investment in equity method affiliates, and total expenditures for long-lived assets by operating segment.
- what are the the foreign exchange exposure of a multinational company with it's headquarters in Jamaica and how can the company plan to manage this exposure.What benefit does a country get out of remaining insularly and isolated in their accounting policies? (i.e. import policies, not following IFRS, etc.)Which of the following factors are related to an ADR? Factor -1: An ADR is a certificate that represents ownership of a foreign stock. An ADR is typically created by a U.S. bank who buys stock in foreign corporations in their domestic currencies and places them in its vault. Factor - 2: The major attraction to U.S. investors is that ADRs are claims to foreign companies that trade on domestic (U.S.) exchanges and in dollars. A. Only Factor 1 is correct B.Only Factor 2 is correct C.Both Factors are correct D-Neither Factor is correct.