江西财经大学09－10第二学期期末考试试卷试卷代码：02502C 授课课时：32课程名称：国际会计适用对象：本科试卷命题人王宏试卷审核人：__________ⅠMultiple Choice Questions (20 points)1. Among the factors affecting accounting development are the economic and political tiesbetween countries. Which of the following pairs of countries do not have such ties with each other?a. Philippines and the United Statesb. Singapore and the United Kingdomc. Malaysia and Argentinad. Indonesia and the Netherlandse. France and Germany2. The status of the accounting profession is a factor that affects accounting development incountries. In which of the following countries is accounting not regarded favorably as a career choice?a. United Statesb. New Zealandc. Russiad. Australiae. Canada3. The International Federation of Accountants (IFAC) is not involved in:a. harmonizing global auditing practices.b. providing ethical guidelines for auditors on issues such as integrity and objectivity.c. establishing public sector standards applicable to all levels of government.d. maintaining auditor independence in today's complex business environment.e. administering a worldwide uniform examination for auditors.4. The "world class issuer" approach to global accounting harmonization is not very promisingbecause:a. it is opposed by the U.S. Securities and Exchange Commission.b. there are difficulties in establishing and agreeing upon the criteria for inclusion.c. it faces strong opposition by U.S. companies.d. there are practical difficulties in implementation.e. of all of the above.5. Under SFAS No. 52, the current rate method of translation is used whena. the local currency is the functional currency.b. the local currency is the reporting currency.c. the parent's currency is the functional currency.d. the parent's currency is the reporting currency.6. Under SFAS No. 52, a hyperinflationary economy is defined as one that has inflation ofapproximately:a. 100 percent per yearb. 100 percent or more over a three year periodc. 25 percent per yeard. None of the above7. Sandvika Corp. acquired a warehouse at the start of the year 2003 - its first year of operation -for 10 million Norwegian kroner. The warehouse was to be depreciated over 20 years using the straight line method. At the end of 2003, an appraiser indicated that the replacement cost of the warehouse was 12 million Norwegian kroner. For the year 2003, Sandvika's realized and unrealized holding gains respectively related to the warehouse were:a. 100,000 kroner and 1,900,000 kroner.b. 100,000 kroner and 2,000,000 kronerc. 200,000 kroner and 22,000,000 kronerd. 200,000 kroner and 2,000,000 kronere. None of the above.8. Sandvika Corp. acquired a warehouse at the start of the year 2000 - its first year of operation -for 10 million Norwegian kroner. The warehouse was to be depreciated over 20 years using the straight line method. At the end of 2003, an appraiser indicated that the replacement cost of the warehouse was 12 million kroner. For the year 2003, Sandvika's realized and unrealized holding gains respectively related to the warehouse were:a. 100,000 kroner and 1,600,000 kronerb. 200,000 kroner and 1,600,000 kronerc. 100,000 kroner and 2,000,000 kronerd. 400,000 kroner and 2,000,000 kronere. None of the above.9. Companies doing business globally respond to foreign users of their financialstatements in a variety of ways. Which of the following statements is true?a. Most companies opt for limited restatements since they result in limited costs.b. Secondary financial statements are the least expensive of the alternatives available tocompanies.c. The do nothing approach is invariably the most sensible choice.d. Each approach can be appropriate for a company that uses it if the option chosen is a resultof a reasonable cost-benefit analysis by management.e. A convenience translation is almost always chosen by management because of itsconvenience.10. Research evidence reviewed in the chapter showed that financial statements of two companiesmay lack comparability even if they are prepared using the same accounting principles. This suggests that:a. global accounting harmonization efforts serve little purpose.b. ratio analysis should never be used in comparing countries from different countries.c. it is important to factor in the company's domestic business environment in conductingcross-country ratio analysis.d. it is best to use convenience statements in comparing companies from other countries withone's domestic companies.e. All of the above statements are false.ⅡTrue/False Questions (20 points)1. Whether a country's capital market is equity-oriented or debt-oriented has no impact on thefinancial reporting that develops in the country.2. In countries such as Germany, Japan, and Switzerland companies have traditionally turned tothe stock market as their primary source of capital.3. The Organization for Economic Cooperation and Development issues accounting directiveswhich have the full weight of law behind them.4. In international accounting, harmonization is a movement away from total diversity whilestandardization is a movement towards uniformity.5. In the foreign currency context, there is no distinction between the terms conversion andtranslation.6. Using the current exchange rate to translate current assets and liabilities (under thecurrent/non-current method) is based on the false premise that they are similarly affected by exchange rate changes.7. The revised IAS No. 9 requires that research costs be expensed immediately and thatdevelopment costs also be expensed as incurred unless they meet asset recognition criteria.8. The evidence from a number of research studies indicates a consensus that the geographicsegment disclosure provided in corporate annual reports is generally of a very high quality.9. Cost considerations and the need to tap capital providers in several countries sometimes resultsin companies providing country-specific rather than universal secondary statements.10. Research evidence shows that large U.K. and U.S. firms which tend to have more experience indealing with international capital markets are relatively less affected by accounting differences.ⅢCalculation (20 points)1. Important financial data for the British subsidiary of Millette Company (US) for the 2000 fiscal year is shown below:British pound sterling(millions)a) Net sales…………………. 2,056b) Gross profit………………1,203c) Income before taxes (669)d) Net income (481)Assume the following average exchange rates for the year (US dollar per British pound sterling):1. $1.712. $ 1.653. $ 1.694. $ 1.59Using each exchange rate, make a table converting a), b), c) and d) into US dollars. Determine which exchange rate produces the most favorable results in U.S. dollars. (10 points)2. Gator Corporation (U.S.) purchase equipment worth 2 million German marks from Holdstet (Germany) at the beginning of the year. The transaction was denominated in German marks. The exchange rate at that time was US $.65 = 1DM. However, due to a stronger economy, the German mark had strengthened against the U.S. dollar resulting in an exchange rate of US $.70 = 1DM at year end.a) Determine the transaction gain/loss that Gator Corporation will report in its year-end income statement. (5 points)b) Determine the transaction gain/loss Holdstet will report in its year-end income statement.(5 points)Ⅳ Case (20 points)DSM’s (Netherlands) 1998 corporate annual report included important financial data in both the Dutch Guilder (NGL) and the euro (EUR). Excerpts from the company’s ten-year summary figures for the year 1998 are shown below.Income Statementin NGL million in EUR millionNet sales 14018 6361Operating result 1290 586Financial income and expense (156 ) (71)Result from ordinary activities before taxation 1134 515Tax on result from ordinary activities (237) (108)Result of non-consolidated companies 42 19Result from ordinary activities after taxation 939 426 Extraordinary result after taxation (21) (9)Result after taxation 918 417Minority interests’ share in the result (4) (2)Net result 914 415Per ordinary share in NGL:Result from ordinary activities after taxation 27.19 12.34Net result 26.43 11.99Cash flow 57.55 26.12Questionsment on the differences resulting from DSM’s conversion to the euro for the 1998 fiscalyear.2.Referring to your answer above, how will the conversion to the euro affect DSM’s balance sheetfor the year?3.In your opinion, with the introduction of the euro, what is the management at DSM likely to useto measure operating performance (ie., NGL or EUR or both)? Support your answer.Ⅴ Question (20 points)What are the three characteristics of financial reporting were identified as being particularly relevant to ECMs? Explain each of them.。