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internatinoal
international josefy
49
Accounting
Graduate
01/08/2012

Additional Accounting Flashcards

 


 

Cards

Term
Italian city states in the 14th and 15th century
Definition
the genesis of accounting as we know it today
Term
reductions in national trade barriers and capital controls together with advances in information technology
Definition
Factors that are contributing to the growing importance of studied international accounting
Term
Italian city states
Definition
where did double entry accounting originate?
Term
Dutch
Definition
historically enhance income measurement.
Term
French
Definition
used accounting for governmental planning and control.
Term
Domestic accounting
Definition
an information specialty providing information about a firm to users of that information as a basis for economic decisions
Term
Measurement principles
Financial disclosure (corporate transparency)
Auditing practices
Definition
What Does International Accounting Diversity Entail?
Term
harmonization
Definition
Accounting diversity creates a demand for
Term
Consolidation of foreign accounts
Accounting for foreign currency fluctuations
Accounting for changing prices
International planning and control
Performance evaluation of foreign operations
Financial risk management
International taxation and transfer pricing
Definition
Reporting issues when business transcends national boundaries
Term
Identifying potential market risks
Quantifying trade-offs associated with alternative risk reduction strategies
Measuring risk exposures
Accounting for specific hedge products
Evaluating the effectiveness of hedging programs
Definition
Financial innovation
Term
Individualism vs. collectivism
Power distance – high vs. low
Uncertainty avoidance – high vs. low
Masculinity vs. femininity
Definition
Culture (Hofstede)
Term
Professionalism vs. statutory control
Uniformity vs. flexibility
Conservatism vs. optimism
Secrecy vs. transparency
Definition
Accounting values (Gray)
Term
Mueller 1967
Definition
who developed the four approaches to accounting development
Term
macroeconomic
microeconomics
independent discipline
uniform
Definition
Four approaches to accounting development
Term
macroeconomic
Definition
Accounting derived from and designed to enhance national goals.
Term
microeconomics approach
Definition
Accounting derived from microeconomics.
Maintaining physical capital
Separation of capital and income
Replacement costs
Term
Sweden
Definition
example of macroeconomic approach
Term
the Netherlands
Definition
example of microeconomic approach
Term
independent discipline approach
Definition
Accounting derived from business practices, judgment, and trial-and-error
Term
UK
US
Definition
example of independent discipline approach
Term
uniform approach
Definition
Accounting is standardized by central government and used as a tool for administrative control.
Term
France
Definition
example of uniform approach
Term
fair presentation
legal compliance
Definition
2 types of practice systems
Term
substance over form
Oriented toward decision needs of external investors
trend for consolidated financial statements
extensive disclosures
Definition
characteristics of fair presentation accounting
Term
Designed to satisfy government-imposed requirements
Conservative measurements
Income smoothing
Definition
characteristics of legal compliance accounting
Term
expensed
Definition
IFRS Research costs
Term
capitalized
Definition
IFRS development costs
Term
capitalized
Definition
IFRS Finance leases –
Term
expensed
Definition
IFRS operating leases –
Term
recognized in full, using the liability method, for temporary differences between the carrying amount and tax base
Definition
Deferred taxes –
Term
Must report results of environmental activities
Reports aimed at preventing bankruptcies
Social report
Definition
Unusual features of French financial reporting
Term
Germany
Definition
characterized by emphasis on creditor protection, reliance on statutes and court decisions, and tax law influnce
Term
Determination principle (Germany)
Definition
taxable income is determined by what is booked in a company’s financial records
Term
Auditor’s private report to board of directors and supervisory board on company’s future prospects
Definition
Unusual features of German financial reporting
Term
Until end of World War II – German influences
After World War II – Soviet influences
After 1989 – EU influences (market orientation)
Definition
influences in the czech republic
Term
Form over substance still applies in some cases
Still implementing accounting practices consistent with EU directives and IFRS
Definition
Unusual features of Czech financial reporting
Term
netherlands
Definition
Code law country whose accounting is oriented toward fair presentation
Term
judmenal and empirical
Definition
two types of accounting classification
Term
judgmental classification
Definition
rely on knowlee, intuion, and expeirence
Term
empirical classification
Definition
apply statistical methods to databases of accounting principles and practices around the world
Term
Financial statements may be in Dutch, French, German, or English
Other than consolidated financial statements of Dutch listed companies, financial statements may be based on Dutch guidelines, IFRS, or a combination
Flexible accounting measurements
Current values are permitted for tangible assets
Opportunities for income smoothing
Definition
Unusual features of Dutch financial reporting
Term
UK
Definition
First country to develop an accountancy profession
Term
FASB
Definition
Private-sector organization that determines accounting standards
Term
sec
Definition
underpins FASB’s authority
Term
mexico
Definition
Accounting is oriented toward fair presentation despite code law legal system
Term
company law
securities and exchange law
corporate income tax law
Definition
triangular legal system of Japan:
Term
investor protection
market quality
Definition
Twin objectives of investor oriented markets
Term
Segment disclosures
Definition
Disaggregated information about a firm’s industry and geographic operations and results
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