Homework: Chapter 4 – Exercises 4, 5 and 10. 4. Analyze the five national accounting practice systems summarized in the chapter. Required: a. For each of the five countries treated in the chapter, select the most important financial accounting practice or principle at vari- ance with international norms. b. For each selection you make, briefly state your reasons for including it on your list. c. How does this variance affect reported earnings and the debt-to-asset ratio? d. How likely is it that an analyst could adjust for this variance to achieve an “apples to apples” comparison with companies from other countries?5. Refer to Exhibit 4-5. Required: Which country’s GAAP appears to be the most oriented toward equity investors? Which country’s GAAP appears to be the least oriented toward equity investors? Why do you say so?10. The following are financial ratios used by analysts: ⢠Liquidity: current ratio; cash flow from operations to current liabilities ⢠⢠Solvency: debt to equity; debt to assets Profitability: return on assets; return on equity Required: Assume that you are comparing the financial ratios of companies from two coun- tries discussed in this chapter. Discuss how the accounting practices identified in Exhibit 4-5 would affect your comparisons for each of the six ratios listed.EXHIBIT 4-5 Summary of Significant Accounting Practices United States Purchase Capitalize and impairments test Equity method Historical cost Economic based Permitted Accrued Capitalized Accrued No Mexico Purchase Capitalize and impairments test Equity method Historical costa Economic based Not used Accrued Capitalized Accrued No Japan Purchase Capitalize and amortize; and impairments test Equity method Historical cost Tax influenced Permittedb Accrued Capitalized Accrued No China Purchase Capitalize and impairments test Equity method Historical cost Economic based Not permitted Accrued Capitalized Accrued No India 1. Business combinations: purchase or pooling 2. Goodwill 3. Associates 4. Asset valuation 5. Depreciation charges 6. LIFO inventory valuation 7. Probable losses 8. Finance leases 9. Deferred taxes 10. Reserves for income smoothing Both Capitalize and amortize; and impairments test Equity method Historical cost and fair value Economic based Not permitted Accrued Capitalized Accrued Some aPrice-level adjus
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.