江西财经大学国际会计期末考试试卷 A

江西财经大学

09－10第二学期期末考试试卷

试卷代码：02502A 授课课时：32

课程名称：国际会计适用对象：本科

试卷命题人王宏试卷审核人：__________

ⅠMultiple Choice Questions (20 points)

1. Which of the following is not an environmental factor affecting accounting?

a. Level of enforcement of regulations

b. Nature of capital markets

c. Type of legal system

d. Language

e. Level of inflation

2. Companies in which country produce annual reports to attract potential investors:

a. Germany

b. Switzerland

c. United States

d. Japan

e. France

3. Which of the following organizations is directly involved with developing, publishing, and

advocating the use of international auditing standards?

a. International Accounting Standards Board.

b. Institute of Chartered Accountants of England and Wales.

c. United Nations.

d. Asean Federation of Accountants.

e. International Federation of Accountants.

4. Which of the following organizations is directly involved with harmonizing accounting and

auditing standards?

a. International Accounting Standards Board.

b. Securities and Exchange Commission.

c. American Accounting Association.

d. International Federation of Accountants.

e. Both (a) and (d).

5. Under the monetary/non-monetary method of foreign currency translation, depreciation

expense is translated at the:

a. Current rate

b. Weighted average rate

c. Historical rate

d. None of the above

6. Under the temporal method, translation gains and losses appear in:

a. the stockholders' equity section

b. the income statement as a normal operating item

c. the income statement as an extraordinary item

d. None of the above

7. The Graz Company's historical cost balance sheet showed equipment (at cost) of 20 million

schillings on December 31, 2000 and 24 million schillings on December 31, 2001. The equipment was being depreciated over a five year period on a straight line basis. Equipment costing 4 million schillings was acquired on January 1, 2001. A full year's depreciation was taken in the year of purchase. The December 31, 2000 balance of equipment (at cost) restated to reflect December 31, 2001 purchasing power was 25 million schillings. What amount of equipment should be shown in the general price level adjusted (GPLA) income statement if the general price level index was 120 at December 31, 2000 and 144 at December 31, 2001?

a. 29.00 million schillings

b. 29.80 million schillings

c. 28.80 million schillings

d. 25.00 million schillings

e. None of the above.

8. The Graz Company's historical cost balance sheet showed equipment (at cost) of 20 million

schillings on December 31, 2000 and 24 million schillings on December 31, 2001. The equipment was being depreciated over a five year period on a straight line basis. Equipment costing 4 million schillings was acquired on January 1, 2001. A full year's depreciation was taken in the year of purchase. The December 31, 2000 balance of equipment (at cost) restated to reflect December 31, 2001 purchasing power was 25 million schillings. What amount of depreciation expense should be shown in the general price level adjusted (GPLA) income statement if the general price level index was 120 at December 31, 2000 and 144 at December 31, 2001?

a. 5.96 million schillings

b. 5.80 million schillings

c. 5.76 million schillings

d. 5.00 million schillings

e. None of the above.

9. In a typical universal secondary statement, a company

a. translates the annual report into English.

b. translates the accounting principles into that of the foreign reader's country.

c. translates the currency into that of the foreign reader's country.

d. translates the accounting principles into international accounting standards.

e. Only (a) and (d) from above.

10. In the age of global capital markets, some companies send primary financial statements to some investors and secondary financial statements to others.

a. This is primarily done by U.S. companies.

b. This is inappropriate and is frowned upon by most regulators.

c. The primary financial statements are prepared in accordance with GAAP while the

secondary statements are prepared in accordance with the tax laws.

d. Secondary statements are a rational response when the additional cost of preparing them is

justified by the benefits they generate for the company.

e. This practice is very confusing for both institutional and individual investors.

ⅡTrue/False Questions (20 points)

1. In the United States, financial accounting information is directed primarily toward the needs of

investors and creditors, and decision usefulness is the main criterion for judging its quality.

2. Accounting in the United States is increasingly feeling the influence of Swiss accounting

standards, as more and more Swiss companies enter U.S. capital markets.

3. Politically it is easier for countries to adopt external standards promulgated by a supranational

organization such as the IASB rather than to adopt the standards of another country.

4. The World Bank and United Nations recently opined that the inconsistent application of

auditing standards around the world adversely affects the comparability of financial statements from one country to the next.

5. Under the one-transaction approach, the transaction is not considered to be completed until the

final settlement.

6. Under the two-transaction approach, a company's foreign currency receivable or payable are

considered a separate transaction distinct from the transaction to buy goods or services.

7. In times of inflation, one would experience monetary gains from holding monetary assets and

monetary losses from holding monetary liabilities.

8. Under the current cost adjusted (CCA) model, unrealized holding gains occur when physical

assets are consumed or sold.

9. In preparing country-specific secondary statements the company translates its domestic annual

report into the foreign user's language, currency, and accounting principles.

10. If Sony provided investors in the United States with an annual report that was in English, in

U.S. dollars, and in Japanese accounting principles that would be an example of a convenience translation.

ⅢCalculation (20 points)

Below is the consolidated balance sheet from Whilips Electrocnics’ (Netherlands) 1999 annual report. Assume that all assets were acquired on January 1, 1999.

General price-level index: January 1, 1999 100

Average for 1999 104

December 31, 1999 110

Using the information given above, adjust Whilips’ 1999 balance sheet for inflation using the GPLA model. What is Whilips’GPLA basis retained earnings balance in millions of Dutch guilders?

Consolidated Balance Sheet (in millions of Dutch guilders)

Year end Dec. 31, 1999

Assets Equity and liabilities

Cash and cash equivalents 2,500 Accounts payable 15,000 Accounts receivables 19,460 Accrued liability 8,250 Prepaid expenses 600 Bank loan payable 12,750 Inventory 10,280 Bonds payable 7,340 Supplies 300 Owner’s equity

Equipment 24,500 Paid-in capital 7,500 Less: Accumulated dep. (5000) Retained earnings 1,800

Total assets $ 2,640 Total Equity and liabilities $ 2,640

Ⅳ Case (20 points)

It was one o’clock in the morning, and Janet Greenley sat at her desk sipping her fourth cup of coffee. Janet’s assignment was to analyze three company annual reports from differing countries with the task of determining the most successful one. Assuming it was going to be easy, Janet waited until the night before it was due to begin the assignment. But there she sat staring blankly at the annual reports.

The problem Janet was having was that there was a lack of consistency in the annual reports. The three companies’reporting practices and policies differed, and even some of the same terms had different meanings. After having spent an hour flipping through the annual reports and accomplishing little, Janet decided that her best bet was to restate the foreign financial statements to her domestic GAAP and then doing a financial analysis. She figured that bringing the companies to

a common accounting base would provide a basis for her comparison across companies.

1)Do you agree with Janet’s method of comparing foreign companies with one another?

2)What are some factors that must be considered when conducting cross-country comparisons

among companies?

3)If you had Janet’s assignment, what might you do to identify the most attractive company?

Ⅴ Question (20 points)

What are the main challenges facing accounting globally? Give your opinions.