国际会计第七版英文版课后答案第八章培训资料.docx

1、国际会计第七版英文版课后答案第八章培训资料国际会计第七版英文版课后答案(第八章)Chapter 8Global Accounting and Auditing StandardsDiscussion Questions 1. Argument for measurement: Discrepancies in international measurement may produce accounting amounts that are vastly different (even where financial transactions and position are identical

2、), leading to incorrect comparisons. Here it doesnt matter what is disclosed; no reliable comparisons are possible anyway. Arguments for disclosure: If companies do not disclose complete information, they can hide losses or future problems from financial statement users. For example, losses can be h

3、idden by offsetting them against gains. Expected future problems related to loss contingencies can be hidden simply by not disclosing them. Thus, if disclosure is incomplete, even the application of similar measurement principles will lead to incorrect comparisons. Clearly, international accounting

4、convergence requires that both measurement and disclosure be made comparable. 2. The term convergence is associated with the International Accounting Standards Board. Before the IASB, harmonization was the commonly used term. Harmonization means that standards are compatible; they do not contain con

5、flicts. Harmonization was generally taken to mean the elimination of differences in existing accounting standards, in other words, finding a common ground among existing standards. Convergence means the gradual elimination of differences in national and international accounting standards. Thus, the

6、terms harmonization and convergence are closely aligned. However, convergence might also involve coming up with a new accounting treatment not in any current standards. 3.a. Reciprocity, or mutual recognition, exists when regulators outside of the home country accept a foreign firms financial statem

7、ents based on the home countrys principles, or perhaps IFRS. For example, the London Stock Exchange accepts U.S. GAAP-based financial statements in filings made by non-U.K. foreign companies. Reciprocity does not increase cross-country comparability of financial statements, and it can create an unle

8、vel playing field in that foreign companies may be allowed to apply standards that are less rigorous than those used by domestic companies.b. With reconciliation, foreign firms can prepare financial statements using the accounting standards of their home country or IFRS, but also must provide a reco

9、nciliation between accounting measures (such as net income and shareholders equity) of the home country and the country where the financial statements are being filed. Reconciliations are less costly than preparing a full set of financial statements under a different set of accounting principles, bu

10、t provide only a summary, not the full picture of the enterprise.c. International standards are a result of either international or political agreement, or voluntary (or professionally encouraged) compliance. When accounting standards are applied through political, legal, or regulatory procedures, s

11、tatutory rules typically govern the process. All other international standards efforts in accounting are voluntary in nature. 4. Key rationales supporting the development and widespread application of IFRS include:a. A growing body of evidence indicates that the goal of international convergence of

12、accounting, disclosure and auditing has been widely accepted.b. All dimensions of accounting are becoming converged worldwide.c. Increasing numbers of highly credible organizations strongly support the goals of the IASB.d. National differences in the underlying factors that lead to variation in acco

13、unting, disclosure, and auditing practices are narrowing as capital and product markets become more international.e. International standards will improve the comparability of international financial information.f. Time and money will be saved on international consolidations, the components of which

14、now are subject to different national laws and practices.g. There may be a tendency for accounting standards throughout the world to be raised to the highest possible level.h. Widespread application of IFRS might also result in: Improved managerial decision making within multinational enterprises. I

15、mproved allocations of corporate investment money worldwide. Better international understandability of financial statements. Cost reductions in accounting information processing and financial disclosure costs for multinational enterprises. Greater international credibility for published financial st

16、atements. 5. Key rationales against the development and widespread application of IFRS include: a. Accounting has built-in flexibility. Its ability to adapt to widely different situations is one of its most important features. Critics doubt that international standards can be flexible enough to hand

17、le differences in national backgrounds, traditions, and economic environments, and may be a politically unacceptable challenge to sovereignty. b. It is claimed that international accounting standard setting is a tactic of the large international accounting service firms to expand their market share.

18、 c. International standards may create standards overload for companies that do business internationally. d. National political concerns frequently intrude on accounting standards. International political influences would compromise international accounting standards. e. International standards are

19、not suitable for small and medium-sized companies, particularly unlisted ones with no public accountability. f. Risks of misinformation uniform standards may give the appearance of similarities when in fact countries and companies may be highly dissimilar. g. Political costs of the necessary interna

20、tional treaties on financial accounting and reporting which would have to be negotiated to enforce the use of IFRS. 6. Evidence indicating wide acceptance of IFRS around the world:a. Growing numbers of companies are adopting IFRS voluntarily and refer to their use of IFRS in their annual reports. b.

21、 Dozens of countries base their national accounting standards on IFRS. c. Some 7,000 EU listed companies now use IFRS in their consolidated financial statements.d. Many international organizations, such as IOSCO, endorse the use of IFRS. e. IFRS are used as an international benchmark in many major i

22、ndustrialized countries. f. IFRS are accepted by many stock exchanges and securities regulators. g. IFRS are recognized by the European Commission (EC) and other supranational bodies. h. Norwalk Agreement committed FASB and IASB to convergence. 7. The International Accounting Standards Board is over

23、seen by the International Accounting Standards Committee, consisting of 22 trustees: six from North America, six from Europe, six from the Asia-Pacific region, and four from any area. The trustees appoint the members of the IASB. The IASB receives advice from the Standards Advisory Council on its ag

24、enda and priorities. The SAC consists of around 30 members appointed by the IASC trustees and they represent a diversity of geographic and professional backgrounds. The IASB consists of 14 members, 12 full-time and two part-time. It follows a due process in setting accounting standards. For each sta

25、ndard, the board normally publishes a discussion paper that sets out the various possible requirements for the standard and the arguments for and against each one. Later, the board publishes an exposure draft for public comment, and it then examines the arguments put forward in the comment process.

26、A final standard is issued when nine of the 14 board members have voted in its favor. 8. Accounting harmonization in the EU is just one element of the overall project of harmonizing the legal and economic systems of the member states, and is part of the process of harmonizing company law. The Fourth

27、 Directive illustrates the concept of harmonization, and specifies accounting measurement (valuation) and disclosure requirements. It provides format rules for the balance sheet and the profit and loss account. The true and fair view is the overriding requirement and holds for footnote disclosures a

28、s well as the financial statements. The Fourth Directive also sets out the requirements for financial statement audits. The Seventh Directive addresses consolidated financial statements. It requires consolidations for groups of companies above a certain size, specifies disclosures and notes, and req

29、uires a directors report. When it was issued in 1983, consolidated financial statements were the exception rather than the rule in Europe. The Eighth Directive addressed various aspects of the qualifications of professionals authorized to carry out legally required (statutory) audits. Now referred t

30、o as the Statutory Audit Directive, it was substantially amended in 2006. The new directive tightens oversight of the audit profession and has standards for, among other points, auditor appointment and rotation, and continuing professional education. The EU abandoned its approach to harmonization to

31、 one favoring the IASB for practical and political reasons. The Fourth and Seventh Directives were incomplete and essentially remained as they were issued. Improvements to them proved difficult to achieve and the directives did not achieve the comparability expected. Some saw a set of Europe-wide st

32、andards as an unnecessary redundancy given the emergence of comprehensive IFRS. Others saw U.S. GAAP as a rival to IFRS. The EU cannot influence U.S. GAAP, but can influence IFRS. By putting its weight behind the IASB, the EU could serve as a counterweight to U.S. GAAP. 9. International accounting harmonization/convergence should address many, if not most, investor concerns about cross-national differences in accounting practices. The key issue here is comparability investors want to make “apples to apples” comparisons of financial state