10 Jan Foreign Exchange Rates

Week 1 discussion

Country Index Fund

If you had a nontrivial sum of money to invest and decided to invest it in a country index fund, in which country would you invest your money? (Choose a country from those identified in Exhibit 1-7 on page 16 of your textbook.) What accounting issues would play a role in your decision?

As part of your final project, you will be asked to choose an industry, a U.S. firm, and a foreign firm. The foreign firm must be from the country you identify in this discussion. Post the industry you have chosen and the foreign firm to the discussion board. Post a substantial response to at least two of your classmates’ comments.

Week 2 discussion

Defining Accounting

In your textbook, the authors contend that a classification based on fair presentation versus 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? Keep your response to three paragraphs. Post a substantial response to at least two of your classmates’ comments.

Week 3 discussion

Self-Regulation or Government Regulation?

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 with the statement? Why or why not? Post a substantial response to at least two of your classmates’ comments.

Week 4 discussion

Principles-Based Versus Rules-Based Accounting

What is the difference between principles-based and rules-based accounting standards? What evidence indicates that the U.S. generally accepted accounting principles (GAAP) are rules-based? Post a substantial response to at least two of your classmates’ comments.

Week 5 discussion

Earnings

Examine the income statements of Modello, Vestel, and Infosys, referenced in Chapter 7 of your textbook. In your opinion, which earnings number provides the better earnings metric for an investment analyst? Why? Post a substantial response to at least two of your classmates’ comments.

Week 6 discussion

Analyzing Nondomestic Financial Statements

If you were asked to provide the five most important recommendations to others in order to analyze nondomestic financial statements, what would they be? Post a substantial response to at least two of your classmates’ comments.

Week 7 discussion

Foreign Exchange Rates

Foreign exchange rates are used to establish budgets and track actual performance. Of the various exchange rate combinations mentioned in Chapter 10, which do you favor? Why? Is your view the same when you add local inflation to the budgeting process? Post a substantial response to at least two of your classmates’ comments.

Week 8 discussion

Reflection

How has your understanding of international accounting changed throughout this course? What were the specific concepts that you found most interesting? After you watch the video in this module, think about the concepts covered in this course. Can you envision yourself working in international accounting? Why or why not?