International Accounting ACNE 4320

Course description:

International Accounting is the study of an entity reported aseither a multinational company or an entity whose reporting obligations to stakeholders arelocated in a country other than that of the reporting entity. A detailed investigation on theaccounting for foreign currency transactions and hedging foreign currency transaction serves as a foundation for this course. Also discussedare foreign currency financial statements translation, inflation accounting and international financialstatement analysis on a multinational reporting entity. Employing and critiquing the use ofglobal accounting and auditing standards will integrate the student’s existing skills withdomestic accounting standards.

Course Aims:

  • Examine the international dimension of accounting, financial reporting and analysis.
  • Explain major differences between countries in their approaches to financial reporting.
  • Understand foreign currency transaction and the impact of foreign exchange risk on income.
  • Explain the methods of hedging foreign currency risk, hedging instruments and hedged items.
  • How to record hedging transactions on the books.
  • Explain the translation methods of foreign financial statements for foreign subsidiaries.
  • Understand functional currencies.
  • Understand the effect of inflation on accounting measures, and how to restate income to inflation effects.
  • Discuss segment reporting for multinational corporations.

                Course outcomes:

                At the completion of the subject, students should be able to: 
                • Understand the accounting effects of multinational companies.
                • To know of the development of accounting in the global economy.
                • Analyze  foreign currency transactions and how to record it.
                • Understand hedging accounting, hedging instruments and hedged items.
                • How to disclose the effect of hedging in the financial reports.
                • Translate foreign financial statements of foreign subsidiaries.
                • How to deduct functional currency according to IAS21.
                • Analyze the effect of inflation on financial reports, and how to restate financial statements on hyperinflationary economies.
                • Apply segment reporting in multinational countries according to line of business or geographic areas.