Complete both parts of this assignment and submit as
a single document.
Part One
Based upon recording balance of payment (BOP)
transactions, determine whether or not the following is a debit, credit, or no
entry to the U.S. Balance of Payment statement. Also determine what chart of
account is affected (i.e., CA, KA, or OSB):
1.U.S. resident
purchases Mercedes Benz C230,
2. U.S. resident
purchases Chevelot Impala,
3. foreigner purchases
GE dryer,
4. U.S. resident
purchases UK stock, and
5. U.S. resident
borrows funds from British broker to purchase stock.
Part Two
Read the case study, pp. 759-762, “H&M: The
Challenges of Global Expansion and the Move to Adopt International Financial
Reporting Standards.” Answer questions 19-3 and 19-4 at the end of the case
study and the questions listed below. Your response for all four questions
should be at least three pages in length and follow APA style guidelines.
·
What type of exposure could the CFO of
H&M in the U.S. be subjected to since H&M is based in Sweden and the
financial statements are prepared according to IFRS?
·
Payments or liabilities may also be
subjected to exposure. Explain the operational hedging strategies that may
offset exposure.
·
Questions
19-3.
If an investor wants to compare the financial
results of The Gap, Inditex, and H&M, what difference does it make that
their financial statements are prepared according to different GAAP? Would you expect there to be a big difference
between U.S. GAAP as used by The Gap and IFRS
as used by H&M and Inditex?
19-4.
What are the major sources of influence on H&M’s
accounting standards and practices?
MBA6601 Unit VII
Discussion Board
Locate the financial statements of a company
headquartered in Europe and one headquartered in the United States (the 10K
report in their annual report or a site such as yahoo finance will have this
information). Are these statements
comparable? What are the major
differences in accounting standards that one might want to be aware of when
trying to compare the financial results as reported by these two companies?
