Accounting Foundations: Global Finance and Accounting

Introduction

• Staying on top of global and accounting issues

1. Financial Reporting

• Financial reporting in China, Russia, and Kazakhstan
• FASB and IASB
• Similarities between IFRS and US GAAP
• Differences between IFRS and US GAAP
• Convergence of IFRS and US GAAP
• Samples of multinational financial reporting approaches

2. Currency Exchange Issues

• Salary paid in Kazakhstan tenge
• Selling goods or services in a foreign currency
• Buying goods or services in a foreign currency
• Accounting for a subsidiary in a foreign currency
• Hedging foreign exchange risk
• Impact of currency devaluations

3. Obtaining Financing

• Mismatch between operating currency and borrowing currency
• In what currencies do Disney and Coca-Cola borrow money?
• Where to list your equity shares?
• International differences in business regulation

4. International Tax Issues

• The size of the gray economy
• Income taxes: Strategic location of operations
• Income taxes: International transfer prices

5. Other Global Finance and Accounting Issues

• Impact on the cost of capital
• Supply chains across national borders
• Outsourcing of production and offshoring of labor services
• Data security and storage

Conclusion

• The dramatic globalization of business