Read the summary and the most important questions on International Financial Management - Custom Reader for Groningen | 9781121859630

• 1 lecture 1

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• Differences between IFRS and US GAAP 

  
  §inventory valuation;
  §revaluation of property, plant, and equipment;
  §depreciation;
  §capitalization of development costs;
  §measurement of impairment losses;
  §classification of leases,
  §measurement of goodwill,
  §capitalization of borrowing costs

• Sources of Accounting diversity

  1. legal system
  2. taxation
  3. providers of financing
  4. inflation
  5. political and economic ties

• Gray’s Accounting Values

  
  ›Professionalism vs. Statutory Control
  ›Uniformity vs. Flexibility
  ›Conservatism vs. Optimism
  ›Secrecy vs. Transparency

• IFRS primary goal

  provide information about financial position, performance, changes in financial position of entity.

• management control based on IFRS

  performance measurements in MNEs
  IFRS data for decision facilitiation and decision

• 1.1 tutorial 1

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• which is the greatest problem arising from worldwide accounting diversity

  lack of comparability of financial problems
  lack of high quality financial reporting in some countries

• which group is most affected by worldwide accounting diversity

  international investors, international lenders, MNCs

• which group can most easily deal with problems associated with accounting diversity

  MNCs have the internal information needed to reconcile their forein subsidiaries financial statements to a common GAAP, whereas investors and creditors generally do not have access to internal information to be able to make financial statements comparable or of higher quality

• which factor represents the greatest impediment to the international convergence of accounting?

  taxation when it have a strong influence on financial reporting and it is highly unlikely that the governments in those countries will separate taxation from financial reporting. 

• 2 lecture 2

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• china accounting principles and practice

  * computation of taxable income is of primary importance
  * conservatism is critized
  * lack of conservatism
  * lack of accounting infrastructure