International Accounting and Multinational Enterprises, 5th Edition

by Lee H. Radebaugh (Brigham Young Univ.); Sidney J. Gray (Univ. of New South Wales)

• ISBN13: 9780471319498
• ISBN10: 047131949X
• Edition: 5th
• Format: Hardcover
• Copyright: 2001-11-01
• Publisher: Wiley

Summary

International accounting has never been so exciting. Not only is the pace of international business, finance, and investment rapidly increasing, but we are also moving closer than ever before toward a convergence of accounting standards worldwide.

Author Biography

Ervin L. Black is an Associate Professor at Brigham Young University. Sidney J. Gray teaches and researches international business strategy, cross-cultural management, and international accounting at the University of Sydney, Australia, where he is a Professor and Head of the School of Business. Lee H. Radebaugh is the KPMG Professor in the School of Accountancy at Brigham Young University.

Table of Contents

International Accounting and International Business	1	(18)
Introduction	1	(1)
The International Development of the Accounting Discipline	2	(3)
National Differences in Accounting Systems	5	(1)
The Evolution and Significance of International Business	6	(8)
Accounting Aspects of International Business	14	(1)
The Field of International Accounting	15	(1)
Overview of the Text	16	(3)
Accounting Development in the Global Economy	19	(16)
Introduction	19	(1)
Environmental Influences on Business and Management	19	(1)
Environmental Influences on Accounting	20	(3)
Major Developmental Factors	23	(5)
Accountability and Multinational Enterprises	28	(1)
Culture and the Global Environment	29	(1)
International Pressures for Accounting Change	30	(3)
Summary	33	(2)
Comparative International Financial Accounting	35	(36)
Introduction	35	(1)
Purposes of International Classification	36	(1)
Classification of Accounting and Reporting Systems	36	(6)
Cultural Influences on Accounting Systems	42	(1)
Culture, Societal Values, and Accounting	42	(10)
Comparative Accounting Systems	52	(1)
Anglo-American Accounting	52	(3)
Nordic Accounting	55	(2)
Germanic Accounting	57	(2)
Latin Accounting	59	(3)
Asian Accounting	62	(3)
Summary	65	(6)
International Financial Statement Analysis	71	(33)
Introduction	71	(1)
International Accounting Differences and Financial Statement Analysis	72	(3)
Major Differences in Accounting Principles Around the World	75	(6)
The Impact of U.S.-U.K. Accounting Differences: A Quantitative Analysis	81	(4)
A Global Perspective on Earnings Measurement	85	(5)
A Comparative Global Analysis	90	(1)
International Accounting Differences and the Stock Market	90	(1)
Factors Influencing Measurement Differences	91	(1)
Global Accounting Harmonization	91	(1)
Summary	92	(12)
International Transparency and Disclosure	104	(26)
Introduction	104	(1)
Disclosure in Corporate Reports	105	(7)
International Disclosure Regulation	112	(4)
Reporting Trends	116	(8)
Frequency and Timeliness of Reporting	124	(1)
Growing Pressures for Transparency	125	(1)
Summary	125	(5)
Global Harmonization of Accounting and Reporting	130	(32)
Introduction	130	(2)
Governments	132	(13)
Trade Unions and Employees	145	(1)
Investors	146	(2)
Bankers and Lenders	148	(1)
Accountants and Auditors	149	(7)
The International Harmonization and Disclosure Debate	156	(2)
Summary	158	(4)
International Business Combinations, Goodwill and Intangibles	162	(34)
Introduction	163	(1)
Consolidated financial Statements	163	(7)
Funds and Cash Flow Statements	170	(2)
Joint Venture Accounting	172	(1)
Goodwill and Intangibles	173	(2)
Goodwill	175	(6)
Brands, Trademarks, Patents, and Related Intangibles	181	(4)
Research and Development	185	(3)
Summary	188	(8)
International Segment Reporting	196	(27)
Users and Uses of Segment Information	197	(1)
The Benefits of Segment Reporting	198	(1)
The Costs of Segment Reporting	199	(1)
International Accounting Standards	200	(2)
Regulations Around the World	202	(5)
Segment Reporting Problems	207	(10)
Summary	217	(6)
Foreign Currency Transactions	223	(30)
Introduction	223	(1)
Foreign Exchange	224	(12)
Foreign Currency Transactions	236	(11)
Summary	247	(6)
Foreign Currency Translation	253	(36)
Introduction	253	(1)
Key Definitions	254	(1)
Translation Methodologies: An Overview	255	(2)
International Accounting Standards	257	(1)
Historical Development in the United States	258	(2)
FASB Statement 52	260	(16)
Non-U.S. Translation Practices	276	(2)
Use of Derivatives to Hedge a Net Investment	278	(1)
Disclosure of Derivative Financial Instruments	279	(1)
Summary	279	(10)
International Accounting for Price Changes	289	(21)
Impact of Inflation on the Corporation	290	(1)
Accounting Measurement Alternatives	290	(3)
International Accounting Standards	293	(2)
Comparative National Regulation and Practice	295	(8)
Problems and Prospects	303	(1)
Summary	303	(7)
International Auditing Issues	310	(37)
Introduction	310	(1)
The Accounting and Auditing Profession	311	(1)
Global Audit Services and the International Auditing Challenge	312	(7)
Global Accounting Firms	319	(2)
Audit Standards	321	(17)
International Harmonization of Audit Standards	338	(3)
Summary	341	(6)
Management Organization and Control of Global Operations	347	(24)
Introduction	347	(1)
Organizational Structure	348	(4)
Centralization versus Decentralization	352	(2)
Firm Structure and the Accounting Function	354	(2)
Management Information Systems and the Global Firms	356	(3)
Internal Control and the Internal Audit	359	(5)
Summary	364	(7)
International Budgeting and Performance Evaluation	371	(38)
Introduction	371	(1)
The Strategic Control Process	372	(1)
Empirical Studies of Differences in Management Accounting and Control Practices Accross Nations	372	(8)
Challenges of Control in the Global Firm	380	(7)
Intra-Corporate Transfer Pricing	387	(4)
Costing	391	(2)
Quality	393	(1)
Performance Evaluation Issues	394	(2)
Economic Value Added	396	(1)
The Balanced Scorecard	397	(3)
Summary	400	(9)
International Taxation Issues	409	(28)
Introduction	409	(1)
Direct Taxes	410	(2)
Indirect Taxes	412	(1)
The Avoidance of Double Taxation of Foreign Source Income	413	(2)
U.S. Taxation of Foreign Sources Income	415	(4)
Tax Effects of Foreign Exchange Gains and Losses	419	(3)
Tax Incentives	422	(1)
Tax Dimensions of Expatriates	423	(1)
Intracorporate Transfer Pricing	424	(2)
Tax Planning in the International Environment	426	(2)
Summary	428	(9)
Name and Company Index	437	(8)
Subject Index	445