CHAPTER 6 FOREIGN CURRENCY TRANSACTIONS AND HEDGING FOREIGN EXCHANGE RISK Chapter Outline I. There are a variety of exchange rate arrangements in use around the world. A majority of national currencies are allowed to fluctuate in value against other currencies over time. Some currencies are pegged in terms of another …
Read More »COMPARATIVE ACCOUNTING
CHAPTER 5 COMPARATIVE ACCOUNTING Chapter Outline China I. There are some unique features in the accounting profession in China. They include the following: A. Until the 1980s, those who carried out accounting work were not held in high regard in society, and this has had an adverse effect on the …
Read More »INTERNATIONAL FINANCIAL REPORTING STANDARDS
CHAPTER 4 INTERNATIONAL FINANCIAL REPORTING STANDARDS Chapter Outline I. The International Accounting Standards Board (IASB) had 31 International Accounting Standards (IAS) and 6 International Financial Reporting Standards (IFRS) in force in May 2005. A. In 2002, the IASB and U.S. Financial Accounting Standards Board (FASB) agreed to work together to …
Read More »INTERNATIONAL HARMONIZATION OF FINANCIAL REPORTING
CHAPTER 3 INTERNATIONAL HARMONIZATION OF FINANCIAL REPORTING Chapter Outline I. Accounting harmonization is a process that reduces alternatives while retaining a high degree of flexibility in accounting practices. A. Harmonization is different from standardization (or uniformity) which implies the elimination of alternatives in accounting practices. B. The objective of accounting …
Read More »