Auditor oversight bodies have recently been established in several countries discussed in this chapter. Identify the auditor oversight bodies discussed in the chapter. What is the reason for this recent trend?
> Is Mattel using an undifferentiated, concentrated, or differentiated strategy for targeting? How do you know?
> What factors do you think were particularly influential in Mattel’s decision to select Hispanic-American mothers as a target market?
> Identify the categories of variables used by Mattel to segment the market for Max Steel action figures. Can you suggest additional variables that Mattel might use in this market?
> Why are Baby Boomers such a lucrative market?
> How have stores used marketing research findings to tailor their stores and products to appeal to Baby Boomers?
> What are the four variables of the marketing mix? Why are these elements known as variables?
> How has the marketing research process been used to understand how Baby Boomers shop and interact in stores?
> How does marketing research in other countries differ from marketing research in the United States?
> How can marketers use online services and the Internet to obtain information for decision making?
> What is big data? Why is it important to marketing research?
> Define a database. What is its purpose, and what does it include?
> If a survey of all homes with listed telephone numbers is conducted, what sampling design should be used?
> What is the difference between defining a research problem and developing a hypothesis?
> Describe the five steps in the marketing research process.
> What is a marketing information system, and what should it provide?
> Describe some marketing problems that could be solved through information gained from observation.
> Discuss the basic elements of the marketing concept. Which businesses in your area use this philosophy? Explain why.
> From a marketing perspective, why would people who work for the U.S. Department of Veteran Affairs be as interested in taking a Dale Carnegie course as people who work for American Express?
> What is corporate governance? Listed companies in some countries are required to disclose information about their corporate governance practices. Why might investors and analysts find such information useful?
> Why are forecasts of revenues and income relatively uncommon?
> From the perspective of a securities market regulator, is more required disclosure always better than less? Why or why not?
> What are the two broad objectives for investororiented markets? Which of these do you think is more important? Present reasons for your response.
> Do you expect to observe more or less voluntary disclosure by companies in emergingmarket countries than in developed countries? Why? Do you expect to observe more or less regulatory disclosure requirements in emerging-market countries than in developed
> What is triple-bottom-line reporting, and why is it a growing trend among large multinational corporations? There are now few requirements for this type of reporting. Is more regulation necessary? Why or why not?
> What is the difference between voluntary disclosure and mandatory disclosure? Provide at least two explanations for the differences in managers’ voluntary disclosure practices. Provide at least two explanations for the differences in managers’ mandatory
> Should foreign companies seeking to issue securities in the United States be required to disclose as much as U.S. companies issuing securities in the United States? Critically evaluate the arguments presented in this chapter.
> Tyler Poland is a stock picker responsible for recommending Mexican securities for his brokerage firm’s clients. He is often frustrated about the lack of credible information on companies in Mexico. “Everything is always so top secret,” he says. “Any tim
> O.J. Sanders works in the financial reporting section of a large U.S. pharmaceutical company. The company has recently committed to “go green” and O.J.’s boss wants to add some environmental disclosur
> Over time, national governments in many countries have sold shares in state-owned financial institutions to nongovernmental entities. Discuss how these privatizations might affect the capital markets as well as the accounting systems of these companies.
> The following are financial ratios used by analysts: • Liquidity: current ratio; cash flow from operations to current liabilities • Solvency: debt to equity; debt to assets • Profitability: return on
> Accounting standard setting in most countries involves a combination of private- and public-sector groups. The private sector includes the accounting profession and other groups affected by the financial reporting process, such as users and preparers of
> The following describes Chinese accounting in the late 1990s: Financial statements consist of the balance sheet, income statement, statement of changes in financial position (or cash flow statement), notes, and supporting schedules. Consolidated financia
> The following describes Japanese accounting before the Big Bang: The preparation of consolidated financial statements is based on the Securities and Exchange Law. Individual-company accounts are the basis for the consolidated statements, and normally th
> The United Kingdom and the United States have a common accounting heritage and are linked by history and language. The term Anglo-American accounting is sometimes used to denote their accounting styles because of the similarities in orientation, purpose,
> To Exhibit 4-5. Required: Which country’s GAAP appears to be the most oriented toward equity investors? Which country’s GAAP appears to be the least oriented toward equity investors? Why do you say so? EXHIBIT 4
> Analyze the five national accounting practice systems summarized in the chapter. Required: a. For each of the five countries treated in the chapter, select the most important financial accounting practice or principle at variance with international norm
> Reread Chapter 4 and its discussion questions. Required: a. As you go through this material, prepare a list of five expressions, terms, or short phrases unfamiliar or unusual in your home country. b. Write a concise definition or explanation of each ite
> The International Federation of Accountants (IFAC) is a worldwide organization of professional accounting bodies. IFAC’s Web site (www.ifac.org) has links to accounting bodies around the world. Required: Visit IFAC’s Web site. List the accounting organ
> This chapter provides synopses of national accounting practice systems in five countries. Required: For each country, list: a. The name of the national financial accounting standard-setting board or agency. b. The name of the agency, institute, or other
> Explain the term global capital markets. This chapter primarily discusses global equity markets. What other types of financial instruments are traded in these markets? How important are global capital markets in the world economy?
> Compare and contrast the main features of financial reporting in the five countries discussed in this chapter.
> Compare and contrast the mechanisms for regulating and enforcing financial reporting in the five countries discussed in this chapter.
> What evidence is there of British influence on accounting in India?
> China’s aim is to develop accounting standards that are harmonized with international practices. Cite some examples indicating that Chinese accounting standards are consistent with “world class” practices.
> What important features of accounting and reporting are necessary to develop an efficient stock market with fair trading? How likely is it that China will develop such a stock market? Why do you say so?
> What was the reason for Japan’s Big Bang, and what changes in accounting practice have resulted from it?
> Mexican companies traditionally guarded their information and were secretive in their financial reporting. What evidence is there that Mexican companies are becoming less secretive?
> U.S. financial statements “present fairly,” while U.K. financial statements are “true and fair.” What is the difference between these two concepts?
> What is the difference between principlesbased and rules-based accounting standards? What evidence indicates that U.S. GAAP is rules-based?
> Identify several internal and external reporting issues that arise when business and investments transcend national borders.
> What conditions are necessary to develop an efficient stock market with fair trading? What role does accounting and financial reporting play in stock market development? Consider the case of China: Those Chinese who think of themselves as street-smart t
> Recent U.S. accounting scandals, such as Enron and WorldCom, have caused some to question whether current U.S. generally accepted accounting principles (GAAP) are really protecting investors. Critics, including the U.S. Securities and Exchange Commission
> Listed below are certain financial ratios used by analysts: • Liquidity: current ratio; cash flow from operations to current liabilities • Solvency: debt to equity; debt to assets • Profitability: return on assets; return on Equity Required: Assume th
> In most countries, accounting standard setting involves a combination of private- and publicsector groups. The private sector includes the accounting profession and other groups affected by the financial reporting process, such as users and preparers of
> Countries of the European Union are establishing oversight bodies to regulate the activities of statutory auditors. These national bodies are also coordinated at the EU level. Required: Find information on the European Group of Auditors’ Oversight Bodi
> The role of government in developing accounting and auditing standards differs in the five countries discussed in this chapter. Required: Compare the role of government in developing accounting and auditing standards in France, Germany, the Czech Repub
> To Exhibit 3-6. Required: Which country’s GAAP appears to be the most oriented toward equity investors? Which country’s GAAP appears to be the least oriented toward equity investors? Why do you say so? EXHIBIT 3
> Analyze the five national accounting practice systems summarized in this chapter. Required: a. For each of the five countries discussed in this chapter, select the most important financial accounting practice or principle at variance with international
> Reread Chapter 3 and its discussion questions. Required: a. As you go through this material, prepare a list of five expressions, terms, or short phrases that are unfamiliar or unusual in your home country. b. Write a concise definition or explanation o
> The International Federation of Accountants (IFAC) is a worldwide organization of professional accounting bodies. IFAC’s Web site (www.ifac.org) has links to a number of accounting bodies around the world. Required: Visit IFAC’s Web site. List the acco
> Why have international accounting issues grown in importance and complexity in recent years?
> Refer to your answer to Exercise 1. Required: Which country discussed in this chapter appears to have the most effective accounting and financial reporting supervision mechanism for companies whose securities are traded in public financial markets? Sho
> This chapter provides synopses of national accounting practice systems in five European countries. Required: For each country, list: a. the name of the national financial accounting standard-setting board or agency. b. the name of the agency, institute,
> Auditor oversight bodies have recently been established in several countries discussed in this chapter. Identify the auditor oversight bodies discussed in the chapter. What is the reason for this recent trend?
> Compare and contrast the main features of financial reporting in the five countries discussed in this chapter.
> Compare and contrast the mechanisms for regulating and enforcing financial reporting in the five countries discussed in this chapter.
> A feature of British accounting is the “true and fair override.” What is the meaning of this term? Why is the true and fair override found in the United Kingdom but almost nowhere else?
> The most novel feature of the Dutch accounting scene is the Enterprise Chapter of the Court of Justice of Amsterdam. What is the mission of the Enterprise Chamber? How is this mission carried out?
> How have accounting requirements and practices in the Czech Republic been influenced by European Union requirements?
> Consider the following statement: “The German Accounting Standards Committee is modeled on Anglo-American and international practice.” Do you agree? Why or why not?
> In France, financial accounting standards and practices originate primarily from three authoritative sources: (a) companies legislation (Plan Comptable Général and Code de Commerce), (b) professional opinions and recommendations (CNC, CRC, OEC, and CNC
> Given the international heritage of accounting, do you feel that efforts to harmonize global accounting standards are a good thing? Why or why not?
> Consider the following statement: “Experience shows that the needs of national and international markets, for international harmonization in particular, are better served by self-regulation and development than by government regulation.” Do you agree? Wh
> What is the difference between consolidated and individual company financial statements? Why do some EU countries prohibit IFRS in individual company financial statements while others permit or require IFRS at the individual company level?
> As an analyst for a securities firm, you are aware that accounting practices differ around the world. Yet you wonder whether these differences really have any material effect on companies’ financial statements. You also know that the SEC in the United St
> As an analyst for a securities firm, you are aware that accounting practices differ around the world. Yet you wonder whether these differences really have any material effect on companies’ financial statements. You also know that the SEC in the United St
> The ethical climate in the Czech Republic has improved since the early days, but we still have a long way to go,” said Josef Machinka, an economic adviser to the Ministry of Finance, while attending an investment seminar sponsored by the Prague Stock Exc
> Think ahead 10 years from now. Prepare a classification of accounting systems that you think will exist then. What factors motivate your classification?
> Consider the development factors in the following five countries: France, India, Japan, the United States, and the United Kingdom: Required: Based on the information provided in this chapter, prepare a profile of accounting in each of the countries.
> Many countries permit or require their domestic listed companies to use International Financial Reporting Standards (IFRS) in their consolidated financial statements for investor reporting. Required: Consider the following 10 countries: China, the Czec
> Refer to Exercise 6. Required: a. Go to Hofstede’s Web site (www.geerthofstede. com/hofstede_dimensions. php) and find the uncertainty avoidance scores for the same 10 countries. b. Characterize the uncertainty avoidance scores as high, medium, or low. c
> Gray proposed a framework linking culture and accounting. He predicts four accounting values (professionalism, uniformity, conservatism, and secrecy) based on Hofstede’s four cultural dimensions (individualism, uncertainty avoidance, po
> Describe in two short paragraphs how foreign direct investment activities differ from international trade and the implications of this difference for accounting.
> Refer to Exercise 4. In May 2004, the EU expanded to incorporate 10 Central and East European nations: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Bulgaria and Romania joined in January 2007. R
> The European Union (EU)—formerly known as the European Community and, at its start, as the European Common Market—was founded in 1957 and had 15 members at the end of 2003: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxe
> Go to the World Federation of Exchanges Web site (www.world-exchanges.org) and obtain the latest annual report. The market statistics section on equity markets has information on the numbers of domestic and foreign companies listed on member stock exchan
> Consider the following countries: (1) Belgium, (2) China, (3) the Czech Republic, (4) Gambia, (5) India, (6) Mexico, (7) Senegal, and (8) Taiwan. Required: Where would they be classified based on legal system? Where would they be classified bas
> The chapter identifies seven economic, historical, and/or institutional variables that influence accounting development: sources of finance, legal system, taxation, political and economic ties, inflation, level of economic development, and education leve
> How do cultural values influence accounting? Are there parallel influences between the factors identified in Question 1 and the cultural factors identified here?
> The chapter identifies seven economic, sociohistorical, and institutional factors believed to influence accounting development. Explain how each one affects accounting practice.
> What are the prospects of a convergence or harmonization of national systems of accounting and financial reporting? What factors might be influential in promoting or inhibiting change?
> The authors contend that a classification based on fair presentation vs. legal compliance describes accounting in the world today better than one based on common law and code law legal systems. Do you agree? Why or why not?
> Why does the chapter contend that many accounting distinctions at the national level are becoming blurred? Do you agree? Why or why not?
> What contemporary factors are contributing to the internationalization of the subject of accounting?
> What are the major accounting classifications in the world? What are the distinguishing features of each model?
> What is the purpose of classifying systems of accounting? What is the difference between a judgmental and an empirical classification of accounting?
> Countries that have relatively conservative measurement practices also tend to be secretive in disclosure, while countries that have less conservative measurement practices tend to be transparent in disclosure. Why is this so?
> The partial income statement of the Lund Manufacturing Company, a Swedish-based concern producing pharmaceutical products, is presented below: During the year, short-term interest rates in Sweden averaged 7 percent, while net operating assets averaged SE
> Lumet Corporation, a manufacturer of cellular telephones, wishes to invoice a sales affiliate located in Fontainebleau for an order of €10,000 units. Wanting to minimize its exchange risk, it invoices all intracompany transactions in euros. Relevant fact
> Drawing on the background facts in Exercises 6 and 7, assume that the manufacturing cost per unit, based on operations at full capacity of 10,000 units, is $60, and that the uncontrolled selling price of the unit in Country Ais $120. Costs to transport t
