Questions from International Accounting


Q: Define control. When does control exist in accordance with IAS 27

Define control. When does control exist in accordance with IAS 27?

See Answer

Q: What are the different features of financial statements that a foreign company

What are the different features of financial statements that a foreign company might “translate” in a convenience translation?

See Answer

Q: Why should analysts be careful in comparing financial ratios across companies in

Why should analysts be careful in comparing financial ratios across companies in different countries?

See Answer

Q: How might differences in the extent to which countries apply the accounting

How might differences in the extent to which countries apply the accounting concept of conservatism (some countries are more conservative than others) affect profit margins, debt-to-equity ratios, and...

See Answer

Q: How might differences across countries in the extent to which debt versus

How might differences across countries in the extent to which debt versus equity is the major source of financing affect profit margins, debt-to-equity ratios, and return on equity?

See Answer

Q: A foreign company did not capitalize any interest in the current or

A foreign company did not capitalize any interest in the current or past years, although such capitalization is required under U.S. GAAP. Why does an adjustment to reconcile this item to U.S. GAAP aff...

See Answer

Q: What are potential problems in using commercial databases as the source of

What are potential problems in using commercial databases as the source of financial statement information for foreign companies?

See Answer

Q: Why should the fact that a foreign company presents its financial statements

Why should the fact that a foreign company presents its financial statements in a foreign currency present no significant problems in analyzing those statements?

See Answer

Q: A foreign company prepares its financial statements in a foreign language and

A foreign company prepares its financial statements in a foreign language and does not provide any convenience translations. How might this affect an analyst’s decision to invest in this company?

See Answer

Q: Which balance sheet accounts give rise to purchasing power gains, and

Which balance sheet accounts give rise to purchasing power gains, and which accounts give rise to purchasing power losses?

See Answer