accounts data bank

| August 14, 2017

1.
How does a multinational corporation differ from a
domestic firm involved in international business?

2.
Explain
the goal of harmonization of accounting systems.

3.
Why is the availability of comparable accounting
statements important to multinational firms?

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Chapter 9

4.
Why will the formation of the European Union (EU)
provide U.S. businesses with opportunities for growth?

5.
An issue that affects comparability between
multinational corporations is the treatment of transfer pricing. Provide a
description of transfer pricing and discuss the problems it creates.

6.
A Brazilian company has presented a set of financial
statements to your client, a U.S. bank. The Brazilian firm is seeking help in
financing a long-term lease. State three ways in which their statements will
differ from the U.S. statements of which your client is familiar.

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Chapter 9

7.
Describe some driving forces for the international
development of accounting.

8.
What are the two primary approaches to the
harmonization of accounting standards? Which method would be more beneficial,
and why?

9.
A common method of taxation is the value added tax
(VAT). Provide a description of how this tax is applied.

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Chapter 9

10.
Given the political nature of accounting standards
setting in the U.S., what approach would you suggest to convince a U.S. policy
maker of the need for international standards?

11.
U.S. accounting standards allow for several methods
of accounting for similar transactions. In many other countries, only one
method is allowed. Having discussed the various influences on accounting
standards around the world, why do you think the U.S. standards are more likely
to allow diversity?

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