Questions from Financial Accounting

Q: Describe the accounting for a foreign investment that is not consolidated with

Describe the accounting for a foreign investment that is not consolidated with the U.S. company.

Q: Briefly discuss the International Accounting Standards Board (IASB). What is

Briefly discuss the International Accounting Standards Board (IASB). What is its mission? What is the composition of its membership and how long do members serve? Where is the IASB located?

Q: Describe the basic problem of eliminating intercompany transactions with a foreign affiliate

Describe the basic problem of eliminating intercompany transactions with a foreign affiliate.

Q: How widely used are IFRS? Can IFRS be used for listings

How widely used are IFRS? Can IFRS be used for listings on U.S. stock exchanges?

Q: What potential benefits might be achieved if U.S. firms

What potential benefits might be achieved if U.S. firms are allowed to use IFRS?

Q: Define the following terms: local currency unit recording currency

Define the following terms: local currency unit recording currency reporting currency

Q: What factors are used to determine a reporting entity’s functional currency?

What factors are used to determine a reporting entity’s functional currency? Provide at least one example for which a company’s local currency may not be its functional currency?

Q: Some accountants are seeking to harmonize international accounting standards. What is

Some accountants are seeking to harmonize international accounting standards. What is meant by the term harmonize? How might harmonization result in better financial reporting for a U.S. parent compa...

Q: Debra and Merina sell electronic equipment and supplies through their partnership.

Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra’s capital is $200,000, M...

Q: Eastwood, A. North, and M. West are manufacturers’

Eastwood, A. North, and M. West are manufacturers’ representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: Required:...