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--- Learning Objectives ---

INTERNATIONAL ACCOUNTING, 4/e
CHOI/FROST/MEEK


CHAPTER 1

After studying this chapter, you should be able to:
  1. Explain how international accounting is distinct from other areas of accounting.
  2. Identify and explain the three broad areas into which accounting can be divided.
  3. Understand in general terms the historic development of international accounting, and trends in national financial sector policy.
  4. Appreciate the role that accounting plays in business and global capital markets.
  5. Describe the three major equity market regions, and evaluate important recent developments in each region.
  6. Understand in particular the recent developments in European equity markets.


CHAPTER 2

After studying this chapter, you should be able to:
  1. Identify and understand the eight factors that have a significant influence on accounting development.
  2. Identify and explain four accounting value dimensions, and how each is likely to affect a nation's financial reporting practices.
  3. Understand the four approaches to accounting development found in market-oriented Western economies, and identify countries in which each is prevalent.
  4. Compare the various approaches to accounting classification.


CHAPTER 3

After studying this chapter, you should be able to:
  1. Understand how and why accounting practice may deviate from what accounting standards require.
  2. Define the fair presentation and legal compliance orientations of financial reporting, and identify nations in which each is prevalent.
  3. Know in general terms the financial accounting systems of six highly developed countries (France, Germany, Japan, the Netherlands, the United Kingdom, and the United States).
  4. Identify the key similarities and differences among the accounting systems of these six countries.


CHAPTER 4

After studying this chapter, you should be able to:
  1. Understand in general terms the financial accounting systems of four emerging countries (Czech Republic, People's Republic of China, Taiwan, and Mexico).
  2. Appreciate important similarities and differences among the accounting systems of these four countries.
  3. Contrast the accounting systems of the Czech Republic, China, Taiwan, and Mexico with the systems of the six developed countries studied in Chapter 3.


CHAPTER 5

After studying this chapter, you should be able to:
  1. Explain how national differences in accounting disclosure practices are influenced by national practices in corporate governance and finance.
  2. Understand the important (and sometimes conflicting) incentives that affect managers' decisions to make voluntary accounting disclosures.
  3. Identify the broad objectives of accounting disclosure systems in investor-oriented equity markets.
  4. Work with the reporting requirements for listed companies in the countries studied in Chapters 3 and 4.
  5. Understand the national differences in corporate financial disclosure practices.


CHAPTER 6

After studying this chapter, you should be able to:
  1. Differentiate between foreign currency translation and foreign currency conversion.
  2. Understand the nature of foreign currency transactions done in the spot, forward, and swap markets.
  3. Define foreign currency translation terms.
  4. Distinguish between translation gains and losses and transaction gains and losses.
  5. Describe the financial statement effects of alternative foreign currency translation methods.
  6. Evaluate which of the available foreign currency translation methods are best under which specific business and currency market conditions.
  7. Know the history and content of FAS No. 52 and its application.
  8. Understand the relationship between foreign currency translation and inflation.
  9. Understand how foreign currency translation is handled outside the United States.


CHAPTER 7

After studying this chapter, you should be able to:
  1. Determine why and how financial statements potentially are misleading during periods of changing prices.
  2. Define inflation accounting terms.
  3. Understand the effect of general price level adjustments on financial statement amounts.
  4. State two major ways in which the current cost accounting model differs from conventional accounting.
  5. Explain the different approaches to inflation accounting taken by the United States, the United Kingdom, and Brazil.
  6. Understand the contents of IAS 15 ("Information Reflecting the Effects of Changing Prices") and IAS 20 ("Financial Reporting in Hyperinflationary Economies).
  7. Discuss whether constant dollars or current costs better measure the effects of inflation.
  8. Define the "double dip" and explain why it must be dealt with in adjusting accounting amounts for changing prices.


CHAPTER 8

After studying this chapter, you should be able to:
  1. Understand the distinction between harmonization and standardization as they apply to accounting standards.
  2. Briefly state the pros and cons of international accounting standard harmonization.
  3. Understand what is meant by reconciliation and mutual recognition of different sets of accounting standards.
  4. Identify the six organizations that have leading roles in setting international accounting standards and in promoting international accounting harmonization, and understand their basic structure and functions.
  5. Distinguish among the principal similarities and differences among IAS, U.S. GAAP, and U.K. GAAP.


CHAPTER 9

After studying this chapter, you should be able to:
  1. Know the difficulties in doing international business strategy analysis, and basic strategies for information gathering.
  2. Describe the six steps involved in conducting an accounting analysis.
  3. Understand the impact of cross-country variations in accounting measurement, disclosure and auditing quality on accounting analysis.
  4. Identify several coping mechanisms available to deal with cross-country accounting principle differences.
  5. Explain the particular difficulties involved in doing an international prospective analysis.
  6. Know how to use the World Wide Web to obtain information for company research.


CHAPTER 10

After studying this chapter, you should be able to:
  1. State the four critical dimensions of business modeling.
  2. Differentiate between standard and Kaizen costing concepts.
  3. Measure expected returns of a foreign investment.
  4. Understand the computation of cost of capital in a multinational framework.
  5. Discuss the basic issues and complexities involved in designing multinational information and financial control systems.
  6. Conduct an exchange rate variance analysis.
  7. State the unique difficulties involved in designing and implementing performance evaluation systems in multinational enterprises.
  8. Understand the effects of inflation and exchange rate fluctuations on performance measurement of multinational enterprises.


CHAPTER 11

After studying this chapter, you should be able to:
  1. Identify the major components of international financial risk management.
  2. Account for foreign currency transaction gains and losses using the single-transaction perspective and the two-transaction perspective.
  3. State the four tasks involved in managing foreign exchange risk.
  4. Define and calculate translation exposure and transaction exposure.
  5. Understand the distinction between accounting exposure and economic exposure.
  6. Appreciate various exchange rate hedging (protection) strategies and their accounting treatments.
  7. Understand accounting and control issues associated with foreign exchange risk management.


CHAPTER 12

After studying this chapter, you should be able to:
  1. Define basic international taxation concepts.
  2. Understand concepts relating to the taxation of foreign source income.
  3. See the rationale of the foreign tax credit.
  4. Appreciate the international tax planning dimensions that multinational enterprises must consider.
  5. Understand the variables that complicate international transfer pricing.
  6. Know the basic issues involved in transfer pricing methodology.
  7. Describe various arm’s-length pricing methodologies acceptable to taxing authorities.



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