国际会计第七版课后答案(第五章)作者：弗雷德里克

国际会计题答案《国际会计》第一章国际会计的形式与发展一、单项选择题1、国际会计成为一门新的会计学科，大致在（A）A 20世纪70年代B 20世纪60年代C20世纪90年代D20世纪50年代2、跨国公司兴起导致的独特的会计问题是（）A 国际物价变动影响的调整B 国际财务报表的合并C 外币报表的折算D 国际税务会计3、“四大”会计师事务所的业务扩展与委托人的联系使用的是（A）A 同一名称和同一语言B 不同名称和同一语言C 不同名称和不同语言D 同一名称和不同语言4、第一次国际会计师大会举行的时间、地点是（A ）A 1904年圣路易斯B 1952年伦敦C 1962年纽约D 1972年悉尼5、1977年于慕尼黑举行的第十一次国际会计师大会上创建的国际会计师联合会（IFAC）的前身是（A ）A 会计职业界国际协调委员会（ICCAP）B 国际会计准则委员会(IASC)C 国际审计事务委员会(IAPC)D 国际会计师大会技术委员会二、多项选择题1、国际会计的三大课题是（ABC ）A 国际物价变动影响的调整B 国际财务报表的合并C 外币报表的折算D 国际税务会计2、现有的国际性会计事务所（会计公司）中所谓的“四大”包括（A B C D ）A普华永道B毕马威国际C德勤D永安国际E安达信国际3、国内性质的会计师事务所为从事国际业务而进行的临时协作一般要通过哪些途径联系？（）A 国际性的职业届会议B 双方直接联系C 各国的执业会计师协会下设的国际联络委员会D 各国政府4、我国注册会计师考试的报考者的条件包括（AB ）A 具有大专或大专以上学历B 具有会计、审计、统计、经济中级或中级以上的专业技术职称C 有两年的会计师事务所工作经验D 必须是中国公民5、自1994年，我国已允许（ABCD）参加我国注册会计师统一考试。

A 我国大陆公民B 香港居民C 澳门居民3D 台湾居民E 外国籍公民（该国法律允许中国公民参加该国注册会计师考试）6、20世纪70年代国际会计的研究中，悲观主义者的“国别会计”观的主要观点包括（ABC ）A 各国会计的差异是各国不同的经济、政治、社会、法律、文化等环境影响所形成，不可能协调一致。

CHAPTER 5 THE MARKET FOR FOREIGN EXCHANGESUGGESTED ANSWERS AND SOLUTIONS TO END—OF-CHAPTERQUESTIONS AND PROBLEMSQUESTIONS1. Give a full definition of the market for foreign exchange。

Answer： Broadly defined， the foreign exchange (FX） market encompasses the conversion of purchasing power from one currency into another, bank deposits of foreign currency, the extension of credit denominated in a foreign currency， foreign trade financing, and trading in foreign currency options and futures contracts. 2。

What is the difference between the retail or client market and the wholesale or interbank market for foreign exchange?Answer：The market for foreign exchange can be viewed as a two—tier market。

One tier is the wholesale or interbank market and the other tier is the retail or client market。

International banks provide the core of the FX market。

国际会计课后习题答案国际会计课后习题答案在学习国际会计的过程中，课后习题是巩固知识和理解的重要环节。

通过解答习题，我们可以更好地掌握会计原理和方法，提高自己的会计思维和分析能力。

本文将为大家提供一些国际会计课后习题的答案，并对其中的一些重要概念进行解析和讨论。

1. 在国际会计准则体系中，资产的定义是什么？请举例说明。

答案：根据国际会计准则体系，资产是指企业拥有的具有经济利益并且能够被可靠计量的资源。

这些资源可以是物质的，如土地、建筑物、设备等；也可以是非物质的，如专利权、商标权等。

例如，一家公司拥有一座办公楼和一批生产设备，这些都可以被视为该公司的资产。

2. 什么是会计准则的重要特征？为什么会计准则的一致性很重要？答案：会计准则的重要特征包括可理解性、相关性、可靠性和比较性。

其中，一致性是指在同一会计期间内，企业在处理同类交易和事件时应采用相同的会计政策和方法。

一致性的重要性在于它可以确保企业的财务报表具有可比性，使用户能够更好地进行横向和纵向的比较分析，从而做出正确的决策。

3. 什么是财务报表的基本要素？请简要介绍每个要素的含义。

答案：财务报表的基本要素包括资产、负债、所有者权益、收入和费用。

资产是指企业拥有的具有经济利益的资源；负债是指企业对外部经济利益的现时义务；所有者权益是指企业所有者对企业净资产的权益；收入是指企业在经营活动中获得的经济利益的流入；费用是指企业在经营活动中为获取收入所支出的经济利益的流出。

4. 请解释会计准则中的“谨慎原则”和“实质重于形式”原则。

答案：谨慎原则是指在不确定性和风险存在的情况下，会计人员应该对企业的财务状况和经营成果进行保守估计，避免对企业的财务报表进行过度乐观的呈现。

实质重于形式原则是指在处理会计事务时，应该以事物的实质为依据，而不是仅仅根据其法律形式来决定其会计处理方式。

这两个原则都是为了保证财务报表的真实性和可靠性。

5. 请解释会计准则中的“货币计量原则”和“历史成本原则”。

第5章国际会计协调化■教学目的与要求一、教学目的通过本章和第6章的学习，既要求学生能深刻领会国际会计协调化的含义和当前的强劲趋势，也要求学生了解各种国际性政府间机构（如联合国会计和报告国际准则政府间专家工作组、经济合作与发展组织常设会计准则工作组）、区域性国家联盟（如欧洲联盟）、官方机构国际组织（如证券委员会国际组织）以及民间国际组织（特别是会计职业界的国际组织，如国际会计师联合会和国际会计准则委员会以及区域性会计师联合会）对国际会计协调化所作的努力和成果。

本章介绍除国际会计准则委员会（将在第6章介绍）以外的各主要国际组织的作用和成果。

二、学习要求1．深刻理解国际会计协调化的含义。

2．了解推动国际会计协调化的6个主要国际组织的性质。

3．在推动国际会计协调化的其他国际组织中，关注欧洲会计师联合会和亚太会计师联合会。

4．了解有助于国际会计协调化的其他国际组织。

5．理解联合国会计和报告国际准则政府间专家工作组现今的作用只是推动国际会计协调化的权威性国际论坛。

6．着重理解欧洲联盟是推动国际会计协调化最具成效的区域性国家联盟。

7．了解经济合作与发展组织国际投资和跨国企业委员会及其常设会计准则工作组的活动。

8．了解证券交易委员会国际组织（IOSCO）作为官方机构的国际组织在国际协调中的重要作用。

9．着重理解国际会计师联合会的活动及国际审计准则。

■教学要点、重点与难点一、教学要点（一）国际会计协调化的含义较深入的阐明：1．对国际会计协调化（即会计的国际协调化），至今尚无公认的严谨的定义。

综合各家之说（参见教本），可以把国际会计协调化理解为：（1）国际会计协调化是一个限制和缩小会计差异，形成一套可接受的准则（标准）和惯例的过程；（2）其目的在于促进各国（和地区）的会计实务和财务信息的可比性；（3）国际会计协调化的意图在于归纳不同的会计制度，把多样化的实务组合成能产生共同协作结果的有序结构。

2．国际会计协调化的作用在于：（1）有助于进行国际商贸和经济合作活动；（2）促进了外国企业在国际货币市场融资（特别是在国际资本市场发行证券）时需提供的财务报表的可比性；（3）有利于跨国投资，便于跨国公司合并其分布在世界各地的子公司的财务报表。

Chapter 4Comparative Accounting: The Americas and AsiaDiscussion Questions1. Public and private sector bodies are involved in regulating and enforcing financial reporting in the UnitedStates. The Financial Accounting Standards Board is a private sector body that determines U.S.generally accepted accounting principles. The Securities and Exchange Commission has the authority to determine U.S. GAAP for publicly held companies, but defers to the FASB. The FASB and SEChave a close working relationship that ensures that FASB standards are acceptable to the SEC. The SEC enforces financial reporting rules for publicly held companies. It actively reviews the filings thatcompanies make. Auditors are the enforcers for non-publicly held companies.Accounting standards in Mexico are issued by the Council for Research and Development of Financial Information Standards (CINIF), an independent public-private sector body patterned after the U.S.FASB. Its authority for issuing Mexican accounting standards is recognized by the National Bankingand Securities Commission, the government agency that regulates the Mexican Stock Exchange. The Commission is responsible for enforcing financial reporting standards for listed companies. However, it is unclear how proactive the Commission is in investigating filings that it receives. Enforcement offinancial reporting for non-listed companies effectively rests with auditors.Japanese accounting standards are set by a private sector body, the Accounting Standards Board of Japan. The establishment of the ASBJ is a recent development in Japan. Before, accounting standard setting was a government activity. Enforcement of financial reporting effectively rests with auditors. The stock exchange is regulated by the Financial Services Agency, a government body. However, it isunclear how proactive the FSA is in monitoring financial reporting by Japanese companies.Accounting standard setting is a government activity in China. The China Accounting StandardsCommittee is the authoritative body within the Ministry of Finance responsible for developingaccounting standards. The China Securities Regulatory Committee is the government agency thatregulates China 'tws o stock exchanges. The CSRC is also responsible for enforcing financial reporting for listed companies. Many question the effectiveness of the Chinese enforcement mechanism.The Institute of Chartered Accountants in India, a private sector professional body, developsaccounting standards in India. The Securities and Exchange Board of India, an agency of the Ministry of Finance, regulates India '22s stock exchanges and is responsible for enforcing financial reportingrules. However, it is unclear how proactive the board is in monitoring financial reporting by Indiancompanies.Overall, the five countries vary in terms of private versus public sector responsibility for regulating and enforcing financial reporting. Enforcement is questionable in several countries.The United States has the strongest mechanism for regulating and enforcing financial reporting of the five countries.2. The United States and India are common law countries that have fair presentation oriented financialreporting. Mexico also has fair presentation oriented financial reporting because of U.S.influence. In addition, Mexico has inflation-adjusted accounting, in contrast to the other four countries.Japan is a code law country and its accounting has traditionally been characterized as conservativeand tax-driven, just like other code law countries (such as France and Germany discussed in Chapter3.) However, it is moving to fair presentation because of its commitment to converge Japaneseaccounting standards with IFRS. China is likewise moving toward fair presentation oriented accountingby adopting IFRS as Chinese GAAP. Despite adopting fair presentation principles, one can questionwhether the Chinese achieve it in application. There is an acute shortage of trained accountants inChina and the profession remains undeveloped. The accounting profession is strong in the other fourdevelopin countries, including the of India and Mexico.3. The auditor oversight bodies discussed in this chapter are:a. Un ited States - Public Company Acco un ti ng Oversight Boardb. Japan - Certified PublicAccountant and Auditing Oversight BoardThe recent establishment of independent auditor oversight bodies in the United States and Japan is inresponse to recent worldwide accounting scandals. Both represent tightening control over auditors.4. Tax legislation pays a limited role in all five countries, with the exception of Japan. In the United States,financial and tax accounting are separate except for LIFO. Tax legislation has little influence onfinancial reporting practices in Mexico. For example, there are numerous differences between financialand tax accounting, such as the calculation of cost of sales, depreciation, and goodwill amortization.Tax legislation has traditionally been one side of the “triangularlegal system” in Japan, exerting aninfluence on Japanese accounting standards. However, the influence of taxation is declining with thealignment of Japanese accounting standards to IFRS. Several years ago, tax legislation had someinfluence in China, but this has waned as China develops a more complete set of financial reportingstandards. India, like other common law countries, separates financial and tax accounting.4.This question has been of interest in academia for quite some time. Is accounting expertise a necessaryprecondition for economic development, or can an economy advance without it? It would seem that aneconomy cannot advance very far without accounting expertise. But the relationship probably worksboth ways, just like demand creates supply and vice-versa.The example of China demonstrates the importance of developing accounting (standards, knowledge,etc.). Accounting is a part of the market reform packages in China, so the need has been recognizedfrom the start. Mexico and India have been market-oriented longer than China, and their accounting ismore developed. But again, it is apparent in these two countries that accounting supports economicdevelopment.6. U.K. standards (Chapter 3) and IFRS (Chapter 8) are said to reflect principles-based standards, whileU.S. standards (this chapter) are said to be rules-based. Generally speaking, principles- basedstandards set forth broad objectives and fundamentals and require professional judgment for theirimplementation. They are more flexible than rules-based standards and are likely to result in moredivergence in practice. Rules-based standards are more specific in their requirements and have moredetailed implementation guidance than principles-based standards. They are likely to result in morecomparability than principles-based standards, but are said tofoster a “checkthe box ”mentality. The chapter says that U.S. GAAP is “probablymorevoluminous than in the rest of the world combined and substantially more detailed than in any other country. ” Thus, one can argue that U.S. GAAP is r-ublae s ed.7. The U.K. and U.S. both follow fair presentation accounting, reflecting economic substance ratherthan legal form. Both the U.K. “ trueand fair ”and the U.S. “ presentsfairly r ”eflect fair presentation. However, the U.K. has a true and fair override -accounting standards can be overridden if necessary to achieve a true and fair view. In the U.S., presents fairly means that generally accepted accounting principles have been followed. 8. The most important reconciling item (i.e., the most significant difference between Mexican and U.S.accounting) relates to the use of general price level accounting in Mexico. Strict historical cost is used in the U.S. Two other differences noted in the chapter are (a) Mexico applies the equity method at 10 percent, whereas the U.S. applies it at 20 percent and (b) in Mexico development costs are capitalized and amortized after technological feasibility has been established; in the U.S., they are expensed. 9. The bursting of the Japanese bubble economy in the 1990s prompted a review of Japanesefinancial reporting standards. It became clear that many accounting practices hid how badly many Japanese companies were actually doing. The accounting was d “esbii g nbeadntgom ”ake thefinancial condition of Japanese companies more transparent and bring Japanese accounting more in line with international norms.Practice changes include the following:Requiring listed companies to report a statement of cash flows.Subsidiary companies are consolidated based on control rather than ownership.Affiliated companies are accounted for using the equity method based on influence ratherthan ownership. Investments in securities are valued at market rather than cost. Deferred taxes are fully provided. Pension and other retirement obligations are accrued in full.10. Full and complete disclosure of reliable, evenhanded information is necessary to develop a fair andefficient stock market. The “Anglo-Saxon ” model of accounting (discussed in Chapter 2),emphasizing a fair presentation of financial condition and results, and emphasizing stewardship, also fosters the development of a fair and efficient stock market. Countries with this accounting orientation (such as the U.S. and U.K.) have active, fair and efficient stock markets. There is also a legal structure and an effective enforcement of laws and accounting disclosures to make it all work.China is developing accounting standards with the stock market orientation discussed above. So China is on the right track here -the standards themselves will support the development of a stock market. In addition, investors must have confidence that the standards are being followed, i.e., that the information disseminated by companies is reliable. Thus, good auditing by well- trained accounting professionals is important. China may have difficulty developing ana. b. c. d. e. f.accounting profession, which would in turn be a hindrance to stock market development. China must also overcome the culture of secrecy developed under communism.11. The chapter mentions a number of examples where Chinese accounting standards are consistentwith world class practices. A selective list of the more important ones are the following:a. Comparative, consolidated financial statements including a balance sheet, incomestatement, cash flow statement, and notes. b. Accrual basis for recognizing revenues and expenses, matching, and consistency. c. Purchase method for business combinations with annual impairments test. d. Equity method for nonconsolidated affiliates.e. Use of historical cost.f. Finance leases capitalized. 12. The British influence on accounting in India is clear. India has a common law legal system and fair presentation accounting that accompanies it. Like Britain, financial statements must give a true and fair view and there is a strong self-regulated accounting profession. Professional accountants (auditors) are called chartered accountants in both countries. The financial reporting and accounting measurements described in this chapter for India are very similar to those described in Chapter 3 for the United Kingdom. Exercises 1. United States Financial Accounting Standards Board.Securities and Exchange Commission.a. b. Mexicoa. b. The Council for Research and Development of Financial Information Standards.There is no definitive enforcement agency. However, the National Banking and Securitiescommission regulates the Mexican Stock Exchange.Japana. b. The Accounting Standards Board of Japan.The Financial Services Agency for listed companies under the securities law and the Ministry of Justice, when company law is involved.Chinaa. b. The Chinese Accounting Standards Committee under the Ministry of Finance.The Chinese Institute of Certified Public Accountants, under the jurisdiction of the Ministry of Finance, regulates auditing. Indiaa. b. Institute of Chartered Accountants of India. Institute of Chartered Accountants of India.2.At the time of writing, the following organizations were linked to IFAC 's website:United StatesInstitute of Management AccountantsAmerican Institute of Certified Public AccountantsNational Association of State Boards of AccountancyMexicoInstituto Mexicano de Contadores P blicos uJapanJapanese Institute of Certified Public AccountantsChinaChinese Institute of Certified Public Accountants3.The question asked for five expressions, terms, or short phrases unfamiliar or unusual in the student's home country. Taking the United States as the home coyu,nhterre are twelve:a. Triangular legal system -A description of accounting regulation in Japan consisting of theinteracting Company Law, Securities and Exchange Law, and Corporate Income TaxLaw.b. Socialist market economy -Used in China to describe its planned economy with marketadaptations.c. Land and in dustrial prop erty rights - Still owned by the Chin ese gover nment, p rivatecompanies acquire the right to use these industrial assets.d. Pesos of current purchasing power -A term to describe general price level accounting inMexico.e. Tax complianee audit report - Mexican auditors must attest that no irregularities wereobserved regarding compliance with tax laws.f. Statement of changes in financial position - the financial statement in Mexico thatcorresponds to the statement of cash flow. However, the statement of changes in financialposition is prepared in constant pesos (adjusted for inflation), while the cash flowstatement uses historical cost.g. Seni ority p remiums - compen sati on p aid in Mexico at the term in ati on of employmentbased on how long the employee has worked.h. Keiretsu —n terlock ing gia nt con glomerates inJapan.i. Guanxi -Relationship culture in China that is based on mutuality and mutual duties.j. B-shares -Shares issued to foreig n in vestors by Chin ese listedcompanies.k. True and fair view -The requirement in India that financial statements present a true and fair view came from Britain.I. Amalgamaten -The term used in India for a merger.4. The most important financial accounting practice or principle at variance with international norms isprobably the following:Uni ted States -LIFO. Drive n by tax law con siderati ons, no other country uses LIFO to the exte nt found in the U.S. LIFO reduces reported earnings. Because older, lower costs of inventory are shown on the balance sheet, the debt to asset ratio will be higher. Companies using LIFO must report so-called LIFO reserves that enable an analyst to convert LIFO amounts to FIFO amounts.Mexico Tnflation adjustments. Most countries in the world value assets and related expenses at historical cost; few countries incorporate inflation adjustments. With inflation adjustments, earnings will be lower and the debt to asset ratio will probably be lower as well. It is unlikely that an analyst will be able to adjust Mexican accounts to historical cost. Of course, such an adjustment is unwise, given high inflation.Japan - Pooli ng of in terests method for bus in ess comb in ati ons where no p arty obta ins con trol over the other. The international norm is to treat all business combinations as a purchase.Compared to purchase accounting, pooling results in higher income and lower asset values.Therefore, the debt to asset ratio will be higher. An analyst will be unable to adjust for thisaccounting method.China -Show ing the right to use land and in dustrial property owned by the gover nment as an intangible asset. China is unusual in the extent to which the government owns land and industrial property. As long as these intangibles are fairly valued, there will be no effect on reported earnings or the debt to asset ratio. However, the analyst must realize that the intangible asset shown on a Chinese company' sbalance sheet is a tangible asset on the balance sheets of companies from other countries.In dia -Pooli ng of in terests method for amalgamati ons (mergers). As no ted above for Japan, the international norm is to treat all business combinations as a purchase. Compared to purchase accounting, pooling results in higher income and lower asset values. Therefore, the debt to asset ratio will be higher. An analyst will be unable to adjust for this accounting method.5. At the time of writing, the following numbers are reported by the World Federation of StockExchanges:The significant number of listed companies in India may be surprising. It may also be surprising that the number of listed Japanese companies matches the numbers for the United States. Ano ther poten tial sur prise is the fact that the Mexica n Stock Excha nge has more foreig n listed firms than domestic listed firms. Students will probably speculate that most of the foreig n listed firms in Mexico are from other Lat in America n coun tries, a stateme nt that is in fact true.The lack of foreig n listed firms in China and In dia has two p ossible explan ati ons -either the gover nment does not allow foreig n firms to list on domestic excha nges, or companies do not see these stock markets as an attractive place to raise cap ital. The latter explan ati on is why there are so few foreig n listed firms in Japan.5.A comparison of the countries in Exhibit 4-5 reveals few differences among the United States,Mexico, and China. Thus, all three coun tries can claim that their GAAP are comp arably orie nted toward equity in vestors. However, of the three coun tries, the Un ited States can p robably claim to have GAAP most orie nted toward equity in vestors. The cha pter no tes that the U.S. has the most voluminous and detailed accounting requirements in the world and that they are rigorously en forced. Thus, the nod goes to the Un ited States.India and Japan both allow pooling of interests accounting, an accounting treatment now at varia nee with in ter nati onal no rms. The treatme nt of goodwill in these two coun tries is also atvarianee with international norms. In addition, Japan ‘ s lee accounting treatment is at varianee with in ter nati onal no rms. Thus, Japan seems to be the country whose GAAP is least orie nted toward equity in vestors.6. At the time of writi ng, the followi ng companies are listed on the New York Stock Excha nge fromMexico, Japan, In dia, and China:MexicoAmerica MovilCemexCoca-Cola FEMSA Desarrolladora HomexEmpresas ICAFomento Economico Mexicano GRUMAGrupo Aeroportuario del PacificoGrupo Aeroportuario del SuresteGrupo Casa SabaGrupo Radio CentroGrupo TelevisaGrupo TMMIndustrias BachocoTelefonos de MexicoVitroJapanAdvantestCannonHitachiHonda MotorKonamiKubotaKyoceraMatsushita Electric IndustrialMitsubishi UFJ Financial GroupMizuho Financial GroupNidecNippon Telegraph and Telephone NIS Group Co.Nomura HoldingsNTT DoCoMoOrixSonyTDKToyota MotorIndiaDr. Reddy 's LaboratoriesHDFC BankICICI BankMahanagar Telephone Nigam Patni Computer Systems Satyam Computer Services Tata MotorsVidesh Sanchar NigamWiproWNS HoldingsChinaAluminum Corporation of China American Oriental Bioengineering China Eastern Airlines China Life InsuranceChina MobileChina Netcom GroupChina Petroleum and ChemicalChina Southern AirlinesChina TelecomChina UnicomGuangshen RailwayHuaneng Power InternationalMindray Medical InternationalNew Oriental Education and TechnologyPetroChinaSemiconductor Manufacturing InternationalSinopec Shanghai PetrochemicalSuntech Power HoldingsTrina SolarYanzhou Coal MiningMexico has 16 companies listed on the NYSE, ranking third after Brazil (35) and Chile (17). This is perhaps surprising given the strong economic links between the United States and Mexicodiscussed in the chapter. One would expect Mexico to have the most of any Latin Americancountry. Of the countries in the Asia-Pacific region, China has the most number of companies listed on the NYSE (20); Japan is second (19); and India is third (10). As discussed in the chapter, the economies of China and India are growing rapidly. The relatively large numbers of NYSE listed Chinese and Indian companies probably reflect a need for capital by their larger companies. That Japan has approximately the same number of NYSE listed companies as China is perhapssurprising. However, the chapter discusses how debt financing dominates equity financing inJapan.8. a. The two major areas of difference are asset valuation and accounting for goodwill. In the U.K.,assets may be valued at historical cost, current cost, or a mixture of the two. When fixedassets are revalued, depreciation and amortization must be calculated using the revaluedamounts. Only historical cost is allowed in the U.S. In the U.K., goodwill can beimpairments tested, as in the U.S., but may also be amortized over 20 years or less.Other differences between U.K. and U.S. GAAP relate to LIFO and the calculation of long-term deferred taxes. LIFO is rarely used in the U.K., but is relatively more common inthe U.S. In the U.K., long-term deferred taxes may be valued at discounted present value.Finally, opportunities for income smoothing are probably greater in the U.K. than in theU.S.b. Research has documented that U.S. GAAP earnings is systematically more conservativethan U.K. GAAP earnings (see, for example, P. Weetman and S.J. Gray, InternationalFinancial Analysis and Comparative Corporate Performance: The Impact of U.K. versusU.S. Accounting Principles on Earnings, Journal of International Financial Managementand Accounting (Summer & Autumn 1990), pp. 111-130). However, many of theaccounting principles on which this research study is based have now changed.Goodwill accounting should result in a more conservative income amount for U.K.companies if they systematically amortize it over 20 years. However, the occasionalimpairments write-downs that U.S. companies will have will result in a lower incomeamount in the year of write-down. The use of LIFO in the U.S. will result in moreconservatively measured U.S. income amount. However, U.K. companies will report lowerearnings if assets are revalued, because corresponding depreciation charges will behigher. The effects of U.K. smoothing activities are unclear, but it seems likely thatcompanies would be more inclined to smooth toward higher earnings rather than lower.On balance, we think that U.S. companies will have somewhat more conservative earningsamounts, but U.K and U.S. GAAP are converging.9. The chapter identifies the following major changes that have occurred since the Japanese“bigbang”:a. Large companies must prepare consolidated financial statements, not just listed ones.b. Listed companies must report a statement of cash flows.c. Consolidation is based on control rather than ownership.d. Use of the equity method is based on significant influence rather than ownership.e. Goodwill is calculated based on fair market value of net assets acquired rather than bookvalue.f. Goodwill is amortized over 20 years rather than 5 years. It is also impairments tested.g. Investments in securities are valued at fair market value rather than cost.h. Inventory is valued at the lower of cost or net realizable value rather than cost.i. Deferred taxes are now fully provided.Pension and other retirement obligations are now fully accrued.k. Research and development is now expensed rather than deferred in some cases.l. For foreign currency translation, revenues and expenses are now translated at the average rate (rather than a choice between year-end or average rates) and the translationadjustment is in stockholders ' equity (rather than shown as an asset or liability).10. The chapter identifies the following major changes that have occurred in Chinese accounting sincethe 1990s:a. The ASBE issued in 2006 represent a comprehensive set of Chinese accounting standardsthat are substantially in line with IFRS.b. The ASBE issued in 2006 also contains auditing standards similar to InternationalStandards on Auditing. All Chinese accounting firms and auditors are required to followthese audit standards.c. A cash flow statement is now required.d. Goodwill is impairments tested rather than amortized.e. Use of the equity method is based on influence rather than ownership percentage.f. Consolidation of subsidiary companies is based on control rather than ownershippercentage.Foreig n curre ncy tran slati on of overseas subsidiaries is based on the p rimary econo mic en vironment in which they op erate.Tan gible assets are dep reciated over their exp ected useful lives rather tha n based on tax law.Lower of cost or market is now used to value inven tory.LIFO is no Ion ger an acce ptable inven tory costi ng method.Finance leases are now cap italized.Deferred taxes are now p rovided in full for all temporary differe nces.Con ti ngent obligati ons are now p rovided for whe n they are both p robable and a reliableestimate can be made of their amount.Japan and In dia allows po oli ng, while the others do not. Pooli ng usually results in lower noncurre nt asset amounts and higher in come amoun ts. Goodwill and subseque nt amortization isalso excluded under pooling. To the extent that pooling is used byJapan ese and In dia n compani es, they are likely to have higher debt to equity and debt to assetratios. The nu merator (retur n) and the denomin ators (assets and equity) in the two p rofitabilityratios should all be higher, but the effect on the ratio is in determ in ate. Liquidity ratios should beunaffected.Japan and In dia both require goodwill to be cap italized and amortized. This should have noeffect on the either liquidity ratio. The amortizati on will result in a lower amount of in come goingto reta ined earnin gs. Thus, the debt to equity ratio will be higher tha n what it would be withoutamortizati on. The debt to asset ratio will also be higher. The effect on the p rofitability ratios is unclear. The nu merator (i ncome) will be lower tha n what it would be without amortization.However the denominators in each case (assets andequity) will also be lower.The equity method is used in all five coun tries, so there is no effect on comp arative ratios.g. h. i.k.l.m. b. c.11.12. a.Price-level adjusted accounting is practiced in Mexico and Indian companies may revalue their tangibleassets to current values. The result is higher asset values, higher equity, and lower income (because ofhigher depreciation and cost of goods sold charges), compared to historical cost. The current ratio will be higher, but cash flow from operations to current liabilities will be unaffected. Both solvency ratios will belower because their denominators (assets and equity) will be higher. Both profitability ratios will be lower. The numerator (income) will be lower and the denominators (assets and equity) will be higher.Depreciation in Japan is tax-based, which is normally higher than economics-based depreciation. This will reduce income and lower the profitability ratios. The more rapid write-off of fixed assets will cause lowertotal asset values. Thus, the debt to asset ratio should be higher. The debt to equity ratio and both liquidityratios should be unaffected.LIFO is used in the United States. It is permitted in Japan, but not widely used. Companies using LIFOshould have lower income, so lower profitability ratios. Inventory will probably be lower, causing the debt to asset ratio to increase and the current ratio to decrease. Cash flow to current liabilities will be unaffected.With less income going to retained earnings, the debt to equity ratio will be higher.Probable losses are accrued in all five countries, so there is no effect on comparative ratios.Not all finance leases are capitalized in Japan. Companies will report comparatively lower noncurrentliabilities and noncurrent assets. Income will also be affected, but the amount is probably immaterial. Theliquidity ratios should be unaffected. Both solvency ratios should be lower and return on assets will behigher. The effect on return on equity is probably immaterial.Deferred taxes are accrued in all five countries, so there is no effect on comparative ratios.Some opportunity for income smoothing exists in India. Income smoothing has an indeterminate effect on income in any given year. Therefore it is not possible to know how the profitability ratios are affected. The effect of creating reserves is to shift amounts that would otherwise be in retained earnings into the reserve accounts. Since both of these are in shareholders ' equity, this total is unaffected. Therefore, the solvencyratios are likely to be unaffected. The two liquidity ratios will be unaffected.d. e. f. g. h.i. j.。

国际会计第七版课后答案（第五章）作者：弗雷德里克Chapter 5Reporting and DisclosureDiscussion Questions1. Accounting measurement is the process of assigning numerical symbols to eventsor objects. Disclosure, on the other hand, is the communication of accounting measurements to intended users. Advances in financial disclosure are likely to outpace those related to accounting measurement for a number of reasons.First, many would argue that financial disclosure is a less controversial area than accounting measurement. Second, changes in disclosure requirements are more rapidly implemented than changes in accounting measurement rules.Finally, whereas a single set of accounting measurement rules may not serve users equally well under different social, economic and legal systems, a company can disclose without necessarily sacrificing its accounting measurement system.2.Four reasons why multinational corporations are increasingly being heldaccountable to constituencies other than traditional investor groups:a.The development and growth of the influence of trade unions.b.The growing recognition of the view that those who are significantlyaffected by decisions made by institutions in general must be given theopportunity to influence those decisions.c.The rejection by many governments of classical economic premises such asthe belief that the regulated pursuit of private gain maximizessociety’s welfare.d.The increasing concern over the social and economic impact ofmultinational corporations in host countries.3.Arguments in favor of equal disclosure include:a.The absence of equal disclosure would create an unfair playing field forU.S. companies. Non-U.S. companies would have a competitive advantagein that they would not have to disclose the same information and sowould not incur the costs involved in generating and publishing it.b.Investors in non-U.S. companies have the same information needs as thosewho invest in U.S. companies. A market concerned with investorprotection would make sure that investors have timely and materialinformation on all listed companies, not just those domiciled in theUnited States.c.Unequal disclosure might impede cross-company comparisons involving U.S.and non-U.S. companies.Possible reasons against equal disclosure include:a.The high cost of meeting equal disclosure requirements may deter foreignissuers from listing in the United States.b.The extra costs involved work against the benefits of listing to theforeign companies.Evaluation of arguments:All of these arguments have merit. There is no unambiguously correct answer as to what disclosure requirements should be imposed on foreign issuers, and there has been a contentious debate on this subject in the U.S. in recent years. In practice, fairness arguments often carry great weight in public debate, even when objective economic analysis does not support them.4.Managers in Continental Europe and in Japan have for many years stronglyobjected to disclosing information about business segment financial results.These managers have argued that the information can be used by their competitors. In addition, Continental Europe and Japan have had traditions of low disclosure.Requirements for disclosure about segment results have become more stringent in Japan, France, and Germany in response to strong investor and analyst demand for the information. More generally, the three countries are striving to improve the quality of their financial reporting standards in order to improve the reputation and credibility of their capital markets.5.The simple answer is that mandatory disclosures are corporate disclosures madein response to regulatory requirements (for example, rules issued by national regulators or stock exchanges), and thatvoluntary disclosures are purely discretionary in nature. The distinction between mandatory and voluntary disclosures can be ambiguous in some settings, however. For example, the requirement that U.S. companies must file Form 10-Ks with the U.S. Securities and Exchange Commission is straightforward. However, measurement and disclosure approaches for some of the items in the Form 10-K are not.Similarly, there are widely divergent views concerning what types of press announcements are mandatory versus voluntary.Two possible explanations for differences in managers’ voluntary disclosure practices are: (1) Managers in highly competitive industries may be less forthcoming than managers in less competitive industries due to the expected cost of releasing information of potential use to their competitors. (2) Managers are expected to be more forthcoming when there is good news to disclose, than when there is bad news, particularly when the news can be expected to affect share prices.Two explanations for differences in managers’ mandatory disclosure practices are: (1) Cross-jurisdictional differences in disclosure requirements. (2) Differences in the extent of compliance with disclosure rules due to cross-jurisdictional differences in enforcement.6. Triple bottom line reporting refers to reporting on a company’s ec onomic,social, and environmental performance. It is a form of social responsibility reporting designed to demonstrate good corporate citizenship. So-called “sustainability” reports are an increasingly popular means of triple bottom line reporting. There is substantial variation in social reporting today.More regulation would improve comparability, but it might also stifle reporting innovations. The usefulness of social reporting to outside parties, particularly investors, needs to be demonstrated before implementing more regulation for it.6.Often we expect to observe less voluntary disclosure by companies in emergingmarket countries than by those in developed countries:a.Equity markets are relatively less developed in many emerging marketcountries, resulting in lower total demand for company information byinvestors and analysts.b.In many emerging market countries, most financing is supplied by banksand insiders such as family groups. This also leads to less demand fortimely, credible public disclosure, and in these markets enhanceddisclosure may have limited benefits.8. In general, for the same reasons as in Discussion Question 7, we expect toobserve fewer regulatory disclosure requirements in emerging market countries than in developed countries. The equity markets and disclosure requirements in many emerging market countries are not yet well developed, and accounting and auditing systems in emerging market countries are less well developed than in more developed market countries.9. The two broad objectives of investor-oriented equity markets are investorprotection and market quality. In the absence of investorprotection, investors will not be willing to participate in a market. However, in the absence of market quality, markets will not function satisfactorily. Many would consider the objectives equally important.10. It certainly is possible that more required disclosure will further encourageinvestor participation in capital markets by providing more and better information on which to base investment decisions. Benefits of increasedinvestor participation include increased liquidity, reduced transaction costs, and more accurate and efficient market pricing.。

国际会计课后题答案整理版第1章国际会计的形成与发展一、讨论题1.1 为什么说市场国际化，特别是货币市场和资本市场的国际化是会计国际化的主要推动力？国际贸易和国际经济技术合作，促使会计成为一种国际商业语言。

特别是国际货币市场和资本市场的兴起向进入市场的贷款人或筹资者提出了应提供在国际间可比且可靠的财务信息的要求（即国际财务报告趋同化的要求），更成为会计国际化的主要推动力。

1.2 跨国公司是否在百分之百地推动会计国际化？说明你的观点。

不是。

跨国公司对推动会计国际化有其两面性：一方面，基于其跨国经营和国际筹资的需要，他们希望通过会计国际化来缩小和协调国别差异；另一方面，他们又十分重视利用各国现存的会计差异来谋取财务利益。

后者也推动了各国会计模式和重要会计方法的国际比较研究。

（注意：“会计国际化”大体上与“会计的国际协调化”概念一致，而与国际会计研究中的“国别会计”观点对立）1.3 会计随商业活动的扩展而传播，你同意这种说法吗？从历史发展的进程谈谈你的看法。

同意。

可主要就前殖民帝国的会计向其原殖民地传播、工业革命后西方会计的发展及在世界范围内的广泛传播以及第二次世界大战以后美国会计的影响在一定程度上主宰着世界各地的会计发展等历史事实，加以讨论。

1.4 哪些特定会计方法具有国际性质？把外币交易和外币报表的折算引入会计领域，是会计国际化带来的独特问题。

它与由此引发的跨国企业合并和国际合并财务报表与外币折算相互关联和制约的问题，以及各国的物价变动影响在国际合并财务报表中如何处理和调整的问题，从20世纪70年代以来，就成为国际会计研究中既需协调一致但又矛盾重重的“三大难题”。

在世纪之交，金融工具（特别是衍生工具）的创新引发的会计处理问题，给传统的会计概念和实务带来了巨大的冲击，成为各国会计准则机构联合攻关、仍未妥善解决的难题。

此外，国际税务会计也是值得关注的课题。

1.5 你对会计国际化和国家化之间的矛盾及其消长有何看法？会计国际化和国家化的矛盾实际上反映了经济全球化与各国的国家利益之间的矛盾及其消长过程。

Chapter 3Comparative Accounting: EuropeDiscussion Questions1.Regulating and enforcing financial reporting is a government function in France. TheNational Accounting Board (CNC) and the Accounting Regulation committee (CRC) setaccounting standards under the jurisdiction of the Ministry of Economy and Finance. TheFinancial Markets Authority (AMF) ensures compliance with French accounting rules (forlisted companies). It is also a government agency.Public and private sector bodies are involved in the regulation and enforcement of financial reporting in Germany. The German Accounting Standards Board is a private sector body that develops German reporting standards for consolidated financial statements. However, German law (the HGB) governs financial statements at the individual company level. Enforcement also involves private and public sector bodies. The Financial Reporting Enforcement Panel is a private sector body that investigates compliance and relies on companies to voluntarily correct any problems that it finds. Matters that cannot be resolved are referred to the Federal Financial Supervisory Authority, a government agency, for final resolution.The regulation and enforcement of financial reporting is in the public sector in the Czech Republic. The Ministry of Finance is responsible for setting accounting principles and it also oversees the Czech Securities Commission which is responsible for enforcing compliance with Czech requirements. Some observers question the effectiveness of the Czech system.A private sector group is responsible for regulating financial reporting in the Netherlands. TheDutch Accounting Standards Board issues guidelines on acceptable accounting principles.Enforcement is handled by the Enterprise Chamber, a special accounting court. It rules on whether companies have used acceptable accounting practices, but only after an interested party has brought a complaint. The Financial Reporting Supervision Division of the Netherlands Authority for Financial Markets is responsible for enforcing reporting requirements for listed companies.Regulation of financial reporting is in the private sector in the United Kingdom. The Accounting Standards Board determines Financial Reporting Standards. The authority of the ASB is set out in the law. Two groups are responsible for enforcing financial reporting standards, one in the private sector and the other in the public sector. The Financial Reporting Review Panel (private sector) and the Department of Trade and Industry (public sector) can investigate complaints about departures from accounting standards. If necessary, they can go to court to force companies to revise its financial statements.2.Given the requirement that all EU listed companies must use International FinancialReporting Standards in their consolidated financial statements, all five countries follow fairpresentation principles for this group of companies’ financial statements. The differenceamong the countries comes with listed companies’ individu al financial statements and withnon-listed companies. The overall picture is quite confusing.At the individual company level, France and Germany require local accounting standards. Both can be characterized as legal compliance, conservative, and tax-driven. Individual companyfinancial statements in the Netherlands and United Kingdom may use either local requirements or IFRS. However, in either case the result is fair presentation financial statements. The Czech Republic requires IFRS in listed c ompanies’ individual company financial statements, so the result is that they are fair presentation. In all five countries, non-listed companies may use either IFRS or local accounting standards for their consolidated financial statements. As characterized above, the resulting financial statements will be quite different for German and French companies. Czech accounting standards are mostly fair presentation, but there is still some tax influence. Thus, the resulting financial statements can also be different depending on the choice that companies make. Finally, non-listed companies’ individual financial statements must be prepared under local accounting standards in the Czech Republic, France, and Germany. Local accounting standards or IFRS may be used by this group of companies in the Netherlands and United Kingdom.3.The recently established auditor oversight bodies discussed in this chapter are:a.France –Haut Conseil du Commissariat aux Comptes (High Council of ExternalAuditors)herlands – Netherlands Authority for Financial Marketsc.United Kingdom – Professional Oversight BoardThe oversight body in France is in a government agency, while the one in the U.K. is a private sector body. The Dutch body is an autonomous administrative authority under the Ministry of Finance. They are a response to recent accounting scandals and represent efforts to the tighten control over auditors.4. Tax legislation is a significant influence on local accounting requirements in France andGermany. It is unimportant in the Netherlands and United Kingdom. Tax legislation has limited influence in the Czech Republic. Given that Czech accounting is still evolving, tax law can be expected to fill in areas where accounting standards are missing.5. Consolidated financial statements are the statements of a group of companies under commonmanagement or control. Individual company financial statements are the statements of the separate legal entities (parent and subsidiaries) that make up the group. EU countries prohibit IFRS for individual company financial statements when these statements are the basis for taxation and dividend distributions. They are “legal compliance” countries (see Chapter 2) and individual company financial statements must comply with the law. Other countries permit or require IFRS for individual company financial statements because they are “fair presentation”countries (Chapter 2). Individual company financial statements are not the basis for taxation or dividends. Local accounting standards follow fair presentation principles.6. There is no conclusive evidence linking high levels of legal accounting and reportingrequirements in a country and corresponding high quality levels of financial reporting. It appears that high legal requirements (for example, in France and Germany) lead to a certain amount of professional or bureaucratic inertia and form over substance thinking in financial reporting. Indeed, countries with significant state regulation of accounting and accountants are generally not among the innovative accounting leadership countries. If anything, comparatively high levels of legal requirements appear to depress the overall quality of reporting.7.This quote paraphrases a statement in the preamble to the charter establishing the GermanAccounting Standards Committee. We agree. Private sector initiatives (self-regulation) havebeen more successful than governmental initiatives in developing financial reporting regulations for national and international capital markets.Two noteworthy examples are the Accounting Standards Board in the U.K. (discussed in Chapter 3) and the Financial Accounting Standards Board in the U.S. (discussed in Chapter 4).Both have been flexible and adaptable in developing reporting standards in response to new circumstances. They are arguably the premier national standard setting bodies in the world. It is also noteworthy that Germany and Japan (Chapter 4) have recently moved to establish private sector organizations.Chapter 8 discusses international harmonization and convergence. There, the work of the International Accounting Standards Board and the European Union are discussed. The EU was not effective in establishing standards for capital markets and has now endorsed the efforts of the IASB.8. Existing French companies’ legislation in the form of the Plan Comptable Général and Code deCommerce have the greatest influence on day-to-day French accounting practices. The two other authoritative sources of financial accounting standards and practices have comparatively modest or sporadic influence.9. The statement is true. The German Accounting Standards Board is a private-sector body likethe FASB (U.S.), ASB (U.K.), and IASB. The process for establishing standards is also similar.Working groups examine issues and make recommendations to the Board. These groups represent a broad constituency. GASB deliberations follow a due process and meetings are open.10.Accounting requirements in the Czech Republic are based on EU Directives. Examples noted inthe chapter are the following:a.True and fair view embodied in the Accountancy Act.b.Required audit.c.Statement of cash flows not a required financial statement (though it is required in thenotes).d.Disclosures of employee information and revenues by segment.e.Consolidated financial statements required.f.Abbreviated reporting requirements for small companies.g.Notes include accounting policies.h.Listed companies use IFRS in consolidated financial statements.The accounting measurements discussed are also consistent with EU Directives, for example, the requirement for the equity method.11.The Dutch Enterprise Chamber of the Court of Justice of Amsterdam helps ensure that filed orpublished Dutch financial statements conform to all applicable laws. Shareholders, employees, trade unions, or public prosecutors may bring proceedings to the Chamber by alleging that officially filed or published financial statements do not conform to applicable requirements.The Enterprise Chamber carries out its mission by determining whether the allegations of deficient financial reporting are true and how material such deficiencies are. Depending uponthe case, the Chamber may require that financial statements be modified or it may seekpenalties through the Court of Justice.The Chamber is composed of three judges and two Dutch RAs. There is no jury. Appeals of anyof the Chambers rulings are difficult, may only be lodged with the Dutch Supreme Court, andare restricted to points of law.12.Britis h financial statements must present a “true and fair view” of a company’s financial positionand results of operations. The intent is similar to the U.S. “presents fairly.” However, the “presents fairly” test in the United States is whether financial sta tements conform to U.S. GAAP.The “true and fair” test in the United Kingdom requires auditors to step back and see whether the financial statements –taken as a whole –result in a fair presentation. U.K. GAAP may be overridden if complying with them wo uld result in an “unfair” presentation. In other words, judgment is exercised in determining whether the financial statements are true and fair. Exercises1. Francea.The Conseil National de la Comptabilité, or CNC (National Accounting Board) throughthe latest Plan Comptable Général and the Comité de la Réglementation Comptable, orCRC (Accounting Regulation Committee). The CNC and CRC are attached to theMinistry of Economy and Finance.b.The Autoritédes Marches Financiers (AMF) for French listed firms. The Division ofCorporate Finance (SOIF) conducts a general review of legal and other filings with theAMF. The Accounting Division (SACF) verifies compliance with accounting standards.The Ministry of Justice is indirectly responsible for compliance with reportingrequirements by non-listed companies through its role in supervising statutory auditors.Germanya.The German Accounting Standards Board for consolidated financial statements.Parliamentary legislation for individual company financial statements.b.The Financial Reporting Enforcement Panel (FREP). Matters that FREP cannot resolveare referred to Federal Financial Supervisory Authority (BaFin).Czech Republica.The Ministry of Finance.b.The Ministry of Finance also has supervisory responsibilities. Audits are regulated by theAct on Auditors which established Chamber of Auditors to oversee the auditingprofession.The Netherlandsa.Dutch Accounting Standards Board.b.Dutch Enterprise Chamber of the Court of Justice in Amsterdam. Financial ReportingSupervision Division of the Netherlands Authority for Financial Markets for listed firms.United Kingdoma.Accounting Standards Board.b.Both the Department of Trade and Industry and the Financial Reporting Review Panel ofthe Financial Reporting Council can investigate complaints about departures fromaccounting standards and they can go to court if necessary to force compliance.2. Good arguments can be made that France and Germany have the most effective accounting andfinancial reporting supervision mechanism for publicly traded companies. In France, the Autoritédes Marches Financiers (AMF) is a government agency that supervises the stock market. It is the French equivalent of the U.S. Securities and Exchange Commission (SEC). Two divisions within the AMF enforce compliance with reporting rules. The Division of Corporate Finance (SOIF) conducts a general review of legal and other filings with the AMF (including the annual report).The Accounting Division (SACF) verifies compliance with accounting standards. The AMF has the power to force compliance with accounting requirements. Germany has a two-tiered system.A private sector body, the Financial Reporting Enforcement Panel (FREP) reviews suspectedirregular financial statements that come to its attention. It also conducts random review of financial statements. If companies do not voluntarily change their financial statements, FREP refers the matter to the Federal Financial Supervisory Authority (BaFin), a government agency that regulates the stock exchanges (and banking and insurance industries). In both countries, the agencies responsible for compliance are proactive. The responsibility in the Czech Republic is the Ministry of Finance, but there are many questions about its effectiveness. The responsibility in the Netherlands rests with the Enterprise Chamber. However, it isn’t proactive – cases must be brought to it first. The Financial Reporting Supervision Division of the Netherlands Authority for Financial Markets is new (2006) but it can be expected to be effective. In the United Kingdom, the Financial Reporting Review Panel and the Department of Trade and Industry investigate complaints about financial reporting practices. It isn’t clear how proactive either o ne is in enforcing reporting standards for publicly traded companies. The United Kingdom does not have the equivalent of the U.S. SEC. In our view the most effective way to enforce accounting and financial reporting rules for publicly traded companies is a through government agency that is proactive in insuring compliance.3. At the time of writing, the following accounting organizations discussed in this chapter werelinked to IFAC s website:FranceCompagnie Nationale des Commissaires aux ComptesConseil Supérieur de l’Ordre des Experts-ComptablesGermanyInstitut der Wirtschaftsprüfer in Deutschland e.v.WirtschaftsprüferkammerCzech RepublicChamber of Auditors of the Czech RepublicUnion of Accountants of the Czech RepublicThe NetherlandsKoninklijk Nederlands Instituut van Registeraccountants (Royal NIvRA)United KingdomChartered Institute of Management AccountantsInstitute of Chartered Accountants in England and WalesChartered Institute of Public Finance and AccountancyThe Association of Chartered Certified AccountantsInstitute of Chartered Accountants of Scotland4.The question asked for five expressions, terms, or short phrases unfamiliar or unusual in thestudent’s home country. Taking the United States as the home country, here are eighteen:a.Duality in individual company and consolidated statements — The idea that the two setsof financial statements may be based on different GAAP, as in France in Germany.b.Social report —Required in France for companies with 300 or more employees itdescribes, analyzes, and reports on matters of training, industrial relations, health andsafety conditions, wage levels, benefits, and other work conditions.panies Act — National law regulating, among other things, financial reporting anddisclosures by companies.d.True and fair override — The idea in the U.K. that professional judgment can override astandard if necessary to give a true and fair view.e.Provisions and reserves — Used to smooth income and often based on tax laws, such asin Germany.f.National chart of accounts — A formal chart of accounts designed for an entire economyand typically used for strong central economic control.g.Secret reserves —Undisclosed and deliberate understatements of assets oroverstatements of liabilities.h.Plan Comptable Général — French uniform national chart of accounts.i.Sworn book examiners — A class of statutory auditors legally sanctioned in Germany toconduct independent audit examinations of companies.j.Statutory auditors —Auditors who are required by law (statute) to audit a company’s financial statements.k.Enterprise Chamber of the Court of Justice of Amsterdam —A judicial institution receiving formal complaints of nonconformance with established Dutch accounting andreporting standards.l.Generally acceptable accounting principles — Accounting guidelines issued by the Dutch Accounting Standards Board in the Netherlands.m.Proportional consolidation —Consolidation technique often used for joint ventures where all assets and liabilities are prorated to the owners in strict proportion to theirrespective ownership interest percentages.n.Legal reserves — Appropriations of retained earnings required by law in most code law countries.o.Determination principle — German requirement for book/tax conformity.p.Parent company only statements —Unconsolidated financial statements of a company controlling other (subsidiary) companies.q.Coupon voucher privatization system - the method used by the Czech Republic to privatize large-scale, government-owned enterprises. Vouchers allowed CR citizens tobuy shares for a nominal price.r.Joint stock companies and limited liability companies - the terms used in the CR for corporations and limited liability partnerships, respectively. Joint stock companies issueshares while limited liability companies do not.5.For each country discussed in the chapter, there are several financial accounting practices orprinciples at variance with international norms. The items below are illustrative only.a.France –Liabilities for post-employment benefits do not have to be recognized andfinance leases do not have to be capitalized. Both accounting treatments are examples ofform over substance and violate fair presentation. The treatment of post-employmentbenefits will understate reported earnings and understate reported liabilities. The debt toasset ratio will be understated. It is unlikely that an analyst will be able to adjust for thisvariance. The treatment of leases understates assets and liabilities, and understates thedebt to asset ratio. The effect on income depends on how much lease payments differfrom the amount of depreciation that would be recognized had the leased property beencapitalized. It is unlikely that an analyst can adjust for this variance.b.Germany - Two different purchase methods are allowed, and goodwill can be treatedseveral ways. The effects on reported earnings and the debt to asset ratio are unclear andit is unlikely that an analyst can adjust for these variances.c.Czech Republic –Goodwill may be written off in the first year of consolidation orcapitalized and amortized over a maximum of 20 years. The international norm is now tocapitalize goodwill and impairments test it each year. If goodwill is written offimmediately, there will be no effect on income compared to the international norm,except in a year where an impairments write-down would occur. The debt to asset ratiowill be higher compared to the international norm. If goodwill is capitalized andamortized, reported earnings will be lower than what it would be under the internationalnorm. As goodwill gets amortized, the debt to asset ratio will increase compared to theinternational norm. Analysts should be able to adjust to achieve “apples to apples”comparisons as long as the effects of the goodwill accounting are disclosed by Czechcompanies.d.The Netherlands - Comprehensive current value accounting. Though only used by aminority of Dutch companies, this microeconomics approach to measurement isencouraged in the Netherlands to an extent not seen elsewhere. Expenses should behigher under current value accounting, especially for cost of goods sold and depreciation.This means that reported earnings will be lower. With higher asset values, the debt toasset ratio will decrease. Generally, the effects of applying current value accounting aredisclosed in footnotes, so analysts should be able to adjust for this variance.e.U.K. – Assets may be valued at historical cost, current cost, or a combination of the two.To the extent that current cost is used, the effects on reported earnings and the debt toasset ratio will be the same as described for Dutch current value accounting. Analystswill be able to adjust for this variance to the extent that the effects of using current costsare disclosed in the footnotes.6. At the time of writing, the following numbers are reported by the World Federation of Stocka Euronext is a merger of the Paris, Amsterdam, and Brussels Stock Exchanges.The London Stock Exchange is significantly larger than the other stock exchanges in terms of numbers of listed companies. It also has more foreign listed firms. However, Euronext has proportionately more foreign listed firms than the other exchanges. Students will probably speculate that most of the “foreign” listed firms on these exchanges are from other European countries, a statement that is in fact true. No data are reported by the Prague Stock Exchange. It is not a member of the World Federation of Stock Exchanges. However, the chapter notes that the Prague Stock Exchange is small.7. The country whose GAAP is most oriented toward equity investors appears to be the UnitedKingdom. Its GAAP is closest to IFRS, which is clearly aimed at equity investors. Under U.K.GAAP, goodwill may be capitalized and impairments tested, the IFRS treatment. LIFO is alsonot permitted, the IFRS treatment. The Netherlands comes in “second,” but Dutch GAAP differs with IFRS on these two issues. The country whose GAAP is least oriented toward equity investors appears to be Germany, with France a close second. Germany has the most differences with IFRS.8. At the time of writing, the following companies are listed on the New York Stock Exchange fromthe European countries discussed in this chapter:FranceAir France - KLMAlcatel-LucentAlstomAXACompagnie Generale Geophysique-VeritasFrance TelecomGroupe DanoneLafargePublicis GroupeRhodiaSanofi-SynthelaboSCOR GroupSodexho AllianceSuezTechnipThomsonTOTAL .Veolia EnvironmentGermanyAllianzAltanaBASFBayerDaimlerChryslerDeutsche BankDeutsche TelekomE.ONEpcosFresenius Medical CareInfineon TechnologiesPfeiffer Vacuum TechnologyQimondaSAPSGL CarbonSiemensCzech Republic – None.NetherlandsABN AMROAEGONAerCap HoldingsArcelor MittalBuhrmannChicago Bridge & Iron CompanyCNH GlobalCore LaboratoriesHeadING GroupJames Hardies IndustriesReed ElsevierRoyal AholdRoyal Dutch ShellRoyal KPNRoyal Philips ElectronicsTNTUnileverVan der Moolen Holding United KingdomAbbey NationalAMVESCAPAstraZeneca GroupBarclays BankBarclaysBG GroupBHP BillitonBPBritish AirwaysBritish Sky Broadcasting GroupBT GroupBunzlCadbury SchweppesCarnivalCorus GroupDiageoGallaher GroupGlaxoSmithKlineHansonHSBC HoldingImperial Chemical IndustryImperial Tobacco GroupInterContinental Hotels GroupInternational PowerLloyds TSB GroupNational GridNational Westminster BankPearsonPrudentialReed ElsevierRio TintoThe Royal Bank of Scotland GroupScottish PowerSignet GroupSmith & NephewSpirent CommunicationsTomkinsUnileverUnited UtilitiesVodafone GroupWOLSELEYThe United Kingdom and the Netherlands have the most listed companies from European countries. The United Kingdom has the most, reflecting a common language and financial reporting heritage with the United States. The Netherlands has the second most. The chapter talks about Dutch companies’ long history of international listings and the fact that the Amsterdam Stock Exchange has not been an important source of finance. It is not surprising that Dutch companies would look to the United States for finance. Dutch financial reporting is also aimed at fair presentation, just as the United States (and United Kingdom). There are no Czech companies listed on the NYSE, reflecting the fact that the Czech Republic has only recently become a market economy.9. The role of government in developing accounting and auditing standards is strongest in France.Government agencies are responsible for both activities and government involvement is all-encompassing. The private sector has little or no influence. The government plays the least role in the United Kingdom and the Netherlands. In both countries, the private sector is responsible for both accounting and auditing standards. Government influence is strong in Germany, but the German Accounting Standards Board is in the private sector and the German Institute is responsible for audit standards. The government is responsible for accounting standards in the Czech Republic (the Ministry of Finance), but auditing standards are developed by the Chamber of Auditors, a self-regulated professional body.10. The European Commission has set up the European Group of Auditors’ Oversight Bodies(EGAOB) to coordinate the new public oversight systems of statutory auditors and audit firms within the European Union. The EGAOB may also provide input to the Commission on issues such as endorsing International Standards on Auditing and assessing the public oversight systems in individual European countries. These public oversight systems have responsibility for overseeing:•The approval and registration of statutory auditors and audit firms•The adoption of standards on ethics, internal control of audit firms and auditing•Continuing education, quality assurance and investigative and disciplinary systems.At the time of writing, the EU Web site listed four EU countries with an auditing oversight body: •France (Le Haut Conseil du Commissariat aux Comptes)•Germany (Abschlussprüferaufsichtskommission – Auditor Oversight Commission)•Ireland (Irish Auditing & Accounting Supervisory Authority)•United Kingdom (Financial Reporting Council)12.a.All countries require the purchase method, so there is no effect on the ratios for thismethod.b.All countries require that goodwill be capitalized and amortized, so there is no effect onthe ratios for this method. Compared to the IFRS treatment (capitalize and impairmentstest), the general effect is: (1) liquidity ratios unaffected; (2) debt to equity ratiounaffected; debt to asset ratio will be higher; (3) both profitability ratios will be lower.c.The equity method is used in all five countries, so there is no effect on comparative ratios.d.Current cost revaluations are allowed in the Netherlands and U.K. This practice results inhigher asset values, higher equity, and lower income (because of higher depreciation andcost of goods sold charges). Both solvency ratios and both profitability ratios willdecrease. The liquidity ratios should be unaffected.e.German and French depreciation charges are tax-based, which are normally higher thaneconomics-based depreciation. This will reduce income and lower the profitability ratios.The more rapid write-off of fixed assets will cause lower total asset values. Thus, thedebt to asset ratio should increase. The debt to equity ratio and both liquidity ratiosshould be unaffected.f.LIFO is permitted in Germany and the Netherlands, but not widely used. Companiesusing LIFO should have lower income, so lower profitability ratios. Inventory willprobably be lower, causing the debt to asset ratio to increase and the current ratio todecrease. Cash flow to current liabilities will be unaffected.g.Probable losses are accrued in all five countries, so there is no effect on comparativeratios.h.Finance leases are not capitalized in France, Germany, and the Czech Republic.Companies will report comparatively lower noncurrent liabilities and noncurrent assets.Income will also be affected, but the amount is probably immaterial. The liquidity ratiosshould be unaffected. Both solvency ratios should be lower and return on assets will behigher. The effect on return on equity is probably immaterial.。