Gray International Accounting and Transnational Decisions

1. Auflage 2014
ISBN: 978-1-4831-3568-7
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 512 Seiten, Web PDF

International Accounting and Transnational Decisions explores a wide range of significant international accounting issues with special reference to the comparative development of national systems of accounting, international accounting standards, transnational financial reporting issues and financial planning and control in the multinational corporation. The book is organized into five parts. Part I discusses the international dimensions of accounting including both the financial reporting and managerial decision-making perspectives. The second part is concerned with the comparative international aspects of accounting. The Part III presents developments and questions relating to international accounting standards. The fourth part considers a number of selected transnational financial reporting issues of concern both to managers and financial statement users. The last part takes a managerial perspective in its coverage of important problems of transnational financial decision making and control. Accountants and students of accounting will find the book useful.

Autoren/Hrsg.

Gray, S. J.

Inhaltsverzeichnis

1;Front Cover;1
2;International Accounting and Transnational Decisions;4
3;Copyright Page;5
4;Table of Contents;10
5;Preface;6
6;Contributors;8
7;Introduction;14
8;PART I: The international dimensions of accounting;20
8.1;CHAPTER 1. Some international aspects of accounting;22
8.1.1;The historical reason;22
8.1.2;The multinational reason;24
8.1.3;The comparative reason;26
8.1.4;The European reason;29
8.1.5;Conclusion;30
8.1.6;References;30
8.2;CHAPTER 2. Multinational challenges for managerial accountants;32
8.2.1;MULTINATIONAL COMPANY AND MANAGEMENT ACCOUNTING;32
8.2.2;INTERNATIONAL FINANCIAL MANAGEMENT;33
8.2.3;FOREIGN EXCHANGE RISKS;34
8.2.4;CONSOLIDATION ISSUES;36
8.2.5;FINANCIAL PLANNING;38
8.2.6;EXTERNAL SOURCING;39
8.2.7;INTERNATIONAL TAXATION;41
8.2.8;CONCLUSIONS;46
8.2.9;FOOTNOTES;47
9;PART II: Comparative international accounting;50
9.1;CHAPTER 3. Environmental factors influencing the development of accounting objectives, standards and practices in Peru;52
9.1.1;A CONCEPTUAL FRAMEWORK;53
9.1.2;PLAN CONTABLE GENERAL;64
9.1.3;SUMMARY;67
9.2;CHAPTER 4. Accounting principles generally accepted in the United States versus those generally accepted elsewhere;70
9.2.1;ECONOMIC AND BUSINESS ENVIRONMENTS DIFFER AMONG VARIOUS COUNTRIES;71
9.2.2;ACCOUNTING AND THE ECONOMIC/BUSINESS ENVIRONMENT;74
9.2.3;THE ISSUE OF DIFFERENT ACCOUNTING PRINCIPLES;75
9.2.4;ENVIRONMENTAL CIRCUMSTANCES AND APPROPRIATE ACCOUNTING PRINCIPLES;76
9.2.5;SOME EXAMPLES;79
9.2.6;CHANGE IN ACCOUNTING PRINCIPLES;80
9.2.7;CONCLUSIONS;81
9.3;CHAPTER 5. The impact of disclosure and measurement practices on international accounting classifications;83
9.3.1;I. COUNTRY GROUPINGS;84
9.3.2;II. ASSOCIATION OF ECONOMIC AND CULTURAL VARIABLES WITH GROUPINGS;94
9.3.3;III. LIMITATIONS;101
9.3.4;IV. SUMMARY AND CONCLUSIONS;105
9.3.5;REFERENCES;106
9.4;CHAPTER 6. The impact of international accounting differences from a security-analysis perspective: some European evidence;108
9.4.1;Criteria for Comparison: A "Conservatism" Index;109
9.4.2;Profits-Measurement Behavior: A Comparative Analysis;111
9.4.3;Explanations;114
9.4.4;Implications;118
9.4.5;Summary and Conclusions;120
10;PART III: International accounting standards;122
10.1;CHAPTER 7. Harmonization of accounting within the European communities: the Fourth Directive on Company Law;124
10.1.1;CAUSES OF DIFFERENCES;124
10.1.2;MAIN DIFFERENCES;125
10.1.3;THE PURPOSES OF HARMONIZATION;128
10.1.4;HARMONIZATION OF ACCOUNTING;129
10.1.5;NEW BRITISH COMPANY LAW;133
10.1.6;OTHER DIRECTIVES AND REGULATIONS;136
10.1.7;SUMMARY;138
10.2;CHAPTER 8. Standardized accountancy and economic development;140
10.2.1;Standardization by functions;140
10.2.2;Other economic analyses;144
10.2.3;Standardization in a broader socioeconomic context;145
10.2.4;Existing standardization schemes;145
10.2.5;Conclusions and recommendations;146
10.2.6;Reference;147
10.3;CHAPTER 9. The international harmonization of accounting: a cultural dimension;148
10.3.1;PRESSURES FOR HARMONIZATION;149
10.3.2;THE INTERNATIONAL FEDERATION OF ACCOUNTANTS;151
10.3.3;ROLE OF NATIONAL INSTITUTES OF ACCOUNTANTS;152
10.3.4;A THEORY OF DISPARATE ACCOUNTING;153
10.3.5;ACCOUNTING FOR THE FIRM;154
10.3.6;LEGAL AND INSTITUTIONAL CONSTRAINTS;158
10.3.7;HARMONIZING ACCOUNTING PRACTICE IN THE CONTEXT OF DISPARATE OBJECTIVES;160
10.3.8;CONCLUSION;162
10.3.9;BIBLIOGRAPHY;162
10.4;CHAPTER 10. Accounting standards and multinational corporations;164
10.4.1;INTRODUCTION;164
10.4.2;SOME FUNDAMENTAL QUESTIONS;165
10.4.3;CONCLUSIONS;175
10.4.4;FOOTNOTES;177
10.4.5;REFERENCES;179
11;PART IV: Transnational financial reporting issues;182
11.1;SECTION I: GROUP ACCOUNTING;184
11.1.1;CHAPTER 11. Concepts of consolidation in the EEC;184
11.1.1.1;Harmonisation;190
11.1.1.2;Summary and conclusions;191
11.1.1.3;References;191
11.1.2;CHAPTER 12. International accounting compromises: the case of consolidation accounting;192
11.1.2.1;Authority of the IASC;192
11.1.2.2;Background to IAS3;193
11.1.2.3;The Function of Consolidated Reports;195
11.1.2.4;The Scope of Consolidated Statements;198
11.1.2.5;The Use of Equity Accounting;201
11.1.2.6;Compromise by Committee;203
11.1.2.7;Conclusion;204
11.1.2.8;REFERENCES;204
11.2;SECTION II: SEGMENTAL REPORTING;207
11.2.1;CHAPTER 13. Segment reporting and the EEC multinationals;207
11.2.1.1;1. The Extent of Disclosure: A Comparative Analysis;208
11.2.1.2;2. The Managerial Environment;211
11.2.1.3;3. The Legal and Political Environment;214
11.2.1.4;4. The Professional Environment;215
11.2.1.5;5. The Stock Market and Investment Environment;216
11.2.1.6;6. Summary and Conclusions;217
11.2.2;CHAPTER 14. Segmental disclosures by multlbusiness multinational companies: a proposal;219
11.2.2.1;Introduction;219
11.2.2.2;The need for segmental disclosure;219
11.2.2.3;Alternative bases for identifying segments;220
11.2.2.4;Materiality and segmental disclosure;223
11.2.2.5;A dual yardstick;223
11.2.2.6;Conclusion;227
11.3;SECTION III: FOREIGN CURRENCY ACCOUNTING;228
11.3.1;CHAPTER 15. A review of the translation debate;228
11.3.1.1;Consolidation and translation;228
11.3.1.2;Definitions and recent history of methods;228
11.3.1.3;The early use of the closing rate method;231
11.3.1.4;Arguments for and against the CNC and MNM methods;231
11.3.1.5;Arguments for the temporal principle;232
11.3.1.6;Arguments for and against the closing rate method;232
11.3.1.7;Recent developments in standard practice;234
11.3.1.8;Inflation and specific price changes;234
11.3.1.9;Purchasing power parities;234
11.3.1.10;Economic effects;235
11.3.1.11;Summary;236
11.3.1.12;References;236
11.3.2;CHAPTER 16. Price-level adjustments and foreign currency translation: are they compatible?;239
11.3.2.1;GENERAL VERSUS SPECIFIC PRICE-LEVEL CHANGES;241
11.3.2.2;TRADITIONAL METHODS OF CURRENCY TRANSLATION;242
11.3.2.3;THE RESTATE-TRANSLATE PROPOSAL;242
11.3.2.4;THE TRANSLATE-RESTATE PROPOSAL;244
11.3.2.5;THE CONTROVERSY IN PERSPECTIVE;246
11.3.2.6;A NORMATIVE INVESTOR DECISION MODEL;247
11.3.2.7;A SUGGESTED ALTERNATIVE;249
11.3.2.8;LIMITATIONS OF THE MODEL;250
11.3.2.9;CONCLUSIONS AND RECOMMENDATIONS: ARE THEY COMPATIBLE?;251
11.3.2.10;SELECTED BIBLIOGRAPHY;252
11.3.2.11;APPENDIX: PRICE-LEVEL ADJUSTMENTS AND FOREIGN CURRENCY TRANSLATION — A CASE STUDY;254
11.4;SECTION IV: INFLATION ACCOUNTING;262
11.4.1;CHAPTER 17. A comparison of various international proposals on inflation accounting: a practitioner's view;262
11.4.1.1;INTRODUCTION;262
11.4.1.2;PRICE-LEVEL ACCOUNTING;262
11.4.1.3;CURRENT-COST ACCOUNTING;265
11.4.1.4;HYBRID METHODS;274
11.4.1.5;INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE;277
11.4.1.6;COMPARISON OF METHODS;277
11.4.1.7;CONCLUSION;281
11.4.2;CHAPTER 18. Accounting for the effects of changing prices;282
11.4.2.1;Accounting for the effects of changing prices;282
11.4.2.2;The evolution of accounting for changing prices in the UK;282
11.4.2.3;Content of SSAP 16;283
11.4.2.4;The gearing adjustment;285
11.4.2.5;Comparison of SSAP 16 with Statement no. 33;286
11.4.2.6;Some implications of the UK experience;289
11.4.2.7;References;290
11.5;SECTION V: SOCIAL REPORTING;291
11.5.1;CHAPTER 19. Employees and the corporate social report: the Dutch case;291
11.5.1.1;SECTION 1 CORPORATE SOCIAL REPORTING IN THE NETHERLANDS;292
11.5.1.2;SECTION 2 THE RESEARCH PROJECT: STRUCTURE AND METHODOLOGY;293
11.5.1.3;SECTION 3 AN ANALYSIS OF RESULTS;297
11.5.1.4;SECTION 4 CONCLUDING OBSERVATIONS;303
11.5.1.5;REFERENCES;304
11.5.2;CHAPTER 20. Management audit and social indicators: the MNC through the glasses of the LDC;306
11.5.2.1;ECONOMIC PERFORMANCE AND PRACTICES;308
11.5.2.2;EXTERNALITIES AND SOCIAL INDICATORS;314
11.5.2.3;CORPORATE CITIZENSHIP;315
11.5.2.4;THE MNC AS A CHANGE AGENT;318
11.5.2.5;THE CHALLENGE OF INTERNATIONAL ACCOUNTING;323
12;PART V: Transnational financial decisions and control;326
12.1;SECTION I: FOREIGN INVESTMENT DECISIONS;328
12.1.1;CHAPTER 21. A synthesis of foreign direct investment theories and theories of the multinational firm;328
12.1.1.1;INTRODUCTION;328
12.1.1.2;FOREIGN DIRECT INVESTMENT IN THE CONTEXT OF THE THEORY OF THE MARKET: THE MARKET IMPERFECTIONS PARADIGM;329
12.1.1.3;MULTINATIONAL ENTERPRISES IN THE CONTEXT OF THE THEORY OF THE FIRM;335
12.1.1.4;MARKETS AND HIERARCHIES: TOWARD A THEORY OF INTERNATIONAL BUSINESS;338
12.1.1.5;FUTURE RESEARCH IN INTERNATIONAL BUSINESS;343
12.1.1.6;FOOTNOTES;344
12.1.1.7;REFERENCES;345
12.2;SECTION II: CAPITAL BUDGETING AND LONG-TERM FINANCING;348
12.2.1;CHAPTER 22. Capital budgeting for the multinational corporation;348
12.2.1.1;Introduction;348
12.2.1.2;Parent vs. Project Cash Flows;348
12.2.1.3;Tax Treatment of Foreign Source Income;349
12.2.1.4;Political and Economic Risk Analysis;350
12.2.1.5;Expropriation;350
12.2.1.6;Blocked Funds;353
12.2.1.7;Exchange Rate Change and Inflation;354
12.2.1.8;Exchange Risk;354
12.2.1.9;Inflation;355
12.2.1.10;Capital Market Segmentation;356
12.2.1.11;Summary and Conclusions;357
12.2.1.12;References;357
12.2.2;CHAPTER 23. Financial structure and cost of capital in the multinational corporation;358
12.2.2.1;I. Introduction;358
12.2.2.2;II. The Weighted Cost of Capital—The Domestic Firm;358
12.2.2.3;III. The Multinational Firm;359
12.2.2.4;IV. Costing Various Sources of Funds;359
12.2.2.5;V. Computing with Weighted Cost of Capital;361
12.2.2.6;VI. Subsidiary Financial Structure;363
12.2.2.7;VII. Parent Company Guarantees and Consolidation;365
12.2.2.8;VIII. Tax and Regulatory Factors;366
12.2.2.9;IX. Riskiness of Foreign Operations;367
12.2.2.10;X. Political Risk;367
12.2.2.11;XI. Inflation and Exchange Risks;368
12.2.2.12;XII. Diversification;368
12.2.2.13;XIII. Investor Perceptions;370
12.2.2.14;XIV. Joint Ventures;370
12.2.2.15;XV. Summary and Conclusions;371
12.2.2.16;REFERENCES;372
12.3;SECTION III: FOREIGN EXCHANGE RISK MANAGEMENT;374
12.3.1;CHAPTER 24. Management of foreign exchange risk: a review article;374
12.3.1.1;INTRODUCTION;374
12.3.1.2;MANAGEMENT OF FOREIGN EXCHANGE RISK: WHOSE VIEW?;375
12.3.1.3;FORECASTING EXCHANGE RATES;376
12.3.1.4;MEASURING EXPOSURE TO FOREIGN EXCHANGE RISK;382
12.3.1.5;THE MANAGEMENT OF FOREIGN EXCHANGE RISK;385
12.3.1.6;FOREIGN EXCHANGE RISK MANAGEMENT AND THE MARKET EFFICIENCY HYPOTHESES;390
12.3.1.7;FOREIGN EXCHANGE RISK MANAGEMENT: DIRECTIONS FOR FURTHER RESEARCH;391
12.3.1.8;FOOTNOTES;392
12.3.1.9;REFERENCES;393
12.4;SECTION IV: INTERNATIONAL TAXATION;398
12.4.1;CHAPTER 25. American taxation of multinational firms;398
12.4.1.1;I. The Basic Model;399
12.4.1.2;II. The Impact of Changing U.S. Tax Policy;403
12.4.1.3;III. Conclusion;408
12.4.1.4;REFERENCES;409
12.4.1.5;APPENDIX;410
12.4.2;CHAPTER 26. Imputation systems of corporation tax within the EEC;412
12.4.2.1;Systems of corporation tax;412
12.4.2.2;The workings of the UK imputation system;413
12.4.2.3;Advance corporation tax;415
12.4.2.4;The French imputation system;415
12.4.2.5;The West German imputation system;416
12.4.2.6;The Meade Committee;417
12.4.2.7;Inflation;418
12.4.2.8;Harmonisation;418
12.4.2.9;Summary;421
12.4.2.10;Appendix: The restating of the UK imputation system to resemble a split-rate s y s t em;421
12.5;SECTION V: TRANSFER PRICING;423
12.5.1;CHAPTER 27. Transfer pricing by multinational manufacturing firms;423
12.5.1.1;I. Introduction;423
12.5.1.2;II. Determinants of Transfer-Pricing;424
12.5.1.3;III. Evidence on Intra-Firm Trade and Transfer-Pricing;432
12.5.1.4;IV Implications of Transfer-Pricing;438
12.5.1.5;REFERENCES;442
12.5.2;CHAPTER 28. Transfer pricing decisions in US multinational corporations;446
12.5.2.1;INTRODUCTION;446
12.5.2.2;RESEARCH PARTICIPANTS;447
12.5.2.3;INFLUENCES ON INTRACOMPANY PRICES;448
12.5.2.4;DATA ANALYSIS;450
12.5.2.5;CONCLUSIONS;462
12.5.2.6;FOOTNOTES;463
12.6;SECTION VI: PERFORMANCE EVALUATION AND CONTROL SYSTEMS;465
12.6.1;CHAPTER 29. Evaluation and control of foreign operations;465
12.6.1.1;INTRODUCTION;465
12.6.1.2;MEASUREMENT AND EVALUATION;466
12.6.1.3;REPORTING AND CONTROL SYSTEMS;480
12.6.1.4;CONCLUSIONS;486
12.6.2;CHAPTER 30. Currency changes and management control: resolving the centralization/decentralization dilemma;487
12.6.2.1;EXCHANGE RATES AND THE CONTROL PROCESS;488
12.6.2.2;SETTING INTERNAL FORWARD EXCHANGE RATES;493
12.6.2.3;ADJUSTING TO EXCHANGE RATE CHANGES WITHIN THE OPERATING CYCLE;495
12.6.2.4;SUMMARY;495
12.6.2.5;REFERENCES;496
13;Index;498