Deck 12: International Accounting

Question 1

With harmonisation of accounting practices globally

A) International accounting differences have all but disappeared
B) Environmental and cultural factors still lead to diversity in practice
C) Financial reporting is becoming simpler
D) All of the above

Answer 1

B

Question 2

Which of the following is NOT a level that can be used to define international accounting?

A) Supranational
B) Company
C) Comparative
D) None of the above, i.e. they are all levels of international accounting.

Answer 2

D

Question 3

The SEC allows non-US companies listed on a US stock exchange to report using:

A) Their home country's standards
B) International Accounting Standards, with a reconciliation to US-GAAP
C) International Accounting Standards
D) None of the above, they must use US-GAAP only

Answer 3

C

Question 4

The international Accounting Standards Board's objective for International Accounting Standards would be best described as

A) Adoption
B) Harmonisation
C) Convergence
D) Adaption

Question 5

To what does International Accounting refer?

A) Descriptions of accounting practices in different countries
B) Comparison of accounting practices between countries
C) Accounting for international transactions
D) All of the above

Question 6

Which of the following is likely to influence accounting systems at a national level?

A) Tax system
B) Political system
C) Capital market structures
D) All of the above

Question 7

China's acceptance of international accounting standards would be best described as:

A) Adoption
B) Harmonisation
C) Convergence
D) Indifference

Question 8

One of Gray's accounting values is Professionalism versus Statutory Control. Which country would you expect to be closest to the Statutory Control end of the spectrum?

A) Australia
B) France
C) UK
D) USA

Question 9

Which of the following is NOT considered a challenge for international business operations when faced with accounting diversity?

A) It is costly to restate financial statements
B) It reduces access to international investments
C) National accounting regimes are inferior to international accounting
D) None of the above, i.e. they are all a challenge

Question 10

Transfer pricing has been identified as a major problem for multi-national entities. This refers to:

A) Setting up parent entities in tax havens
B) The pricing of goods and services exchanged within a corporate group
C) Paying local workers less than expatriate employees
D) Manufacturing cheaply in the third world to sell at high profit in the first world

Question 11

The accounting regulation is heavily influenced by the legal system in which is operates. In Australia laws are based on which legal system?

A) Civil Law
B) Common Law
C) Codified Roman Law
D) Case Law

Question 12

Gray adapted Hofstede's categories for accounting, which of the following is not one of his four accounting values?

A) Uniformity versus Flexibility
B) Secrecy versus Transparency
C) Conservatism versus Optimism
D) Short-term versus Long-term Orientation

Question 13

As of 2012 which US - IFRS convergence projects are a priority?

A) Leases
B) Accounting for Income Taxes
C) Emissions trading schemes
D) All of the above

Question 14

In Australia IFRSs are required to be used by:

A) All reporting entities
B) All listed entities
C) Consolidated entities only
D) Multinational Entities

Question 15

One significant barrier to the adoption of international accounting standards in Islamic countries has been:

A) The prohibition on charging interest
B) Refusal to compartmentalise religious and secular life
C) The requirement to pay zakat (a religious levy)
D) All of the above

Question 16

Which of the following elements or standards has been raised as a significant problem with the adoption of IFRS in certain countries?

A) Consolidation requirements
B) Fair value accounting
C) Profit focus
D) All of the above

Question 17

Which of the following is NOT an advantage to IFRS adoption?

A) It is a cost effective way to have a comprehensive set of standards
B) It makes financial statements more comparable
C) It makes accounting standard development more flexible
D) None of the above, i.e. they are all advantages

Question 18

In countries where finance is mainly provided by banks we would expect:

A) More lenient bankruptcy laws
B) Greater emphasis on the balance sheet
C) More public disclosure
D) All of the above

Question 19

The work of Hofstede has been very important to the study of international accounting, which of the following was NOT one of his cultural characteristics used to describe cultures around the world?

A) Masculinity versus Femininity
B) Organised versus laid-back
C) Individualism versus Collectivism
D) None of the above, i.e. they are all cultural characteristics

Question 20

Multinational entities

A) Are largely unaffected by the culture of individual countries
B) Operate independently of any national legal framework
C) Use IFRS exclusively
D) None of the above