International Test 1

Where can you find exchange rate between the U.S. dollar and most foreign currencies?

Daily Major newspapers, Websites, OANDA.com, X-rates.com

Which approach provides detailed lengthy standards? Which approach provides less detailed guidance? Which approach requires more professional judgement application?

Detailed Lengthy Standards: Rule-Based, Less detailed Guidance: Principles Based, Requires more professional judgement application: Principles Based

List some of the evidential items indicating that accounting diversity exists between countries

Differences in Financial statements included in an annual report Differences in the format used to present individual financial statements Differences in the level of detail provided in the financial statements Terminology Disclosure Differences Recognition and measurement differences

Use wall street journal website to answer the following question. What is the direct forward exchange rate at which Japanese Yen can be settled to US Dollar three months from August 17, 2018?

Direct Exchange Rate: $0.90

Use onada website to answer the following two questions. What was the direct exchange rate to sell British Pound Sterling for US Dollars on August 17, 2018? If you had 1000 pounds on August 17, 2018, what is the equivalent US Dollars?

Direct Exchange Rate: 1 British pound = $1.27, 1000 British Pounds = $1,271.17

Using the x-rates.com website, what is the direct exchange for Euro on August 1, 2018? If you had 2,000 Euros on August 1, 2018, and sold them, how much in U.S. dollars would you receive?

Direct Exchange= 1.166782, 2,000 Euros Sold = $2,333.563757

Which is our textbook using exclusively, direct or indirect exchange rates?

Direct rates

How often does an asset or liability denominated in a foreign currency have to be remeasured?

Every Balance Sheet Date

What is a fair value exposure?

Exists if changes in exchange can affect the fair value of an asset or liability reported on the balance sheet.

What is a cash flow exposure?

Exists if changes in exchange rates can affect the amount of cash flows to be realized from a transaction, with changes in cash flow reflected in Net Income

What is foreign exchange risk?

Export Foreign Exchange Risk:The exporter is exposed to the risk that the foreign currency might decrease in value between the date of sale and the date of payment ,Import Foreign Exchange Risk:The Importer is exposed to the risk that the foreign currency might increase in price (appreciate) between the date of purchase and the date of payment, thereby increasing the amount of domestic currency the to be paid for the imported goods

Define balance sheet exposure to foreign currency.

Exposure to translation adjustment, Asset and liability converted from, foreign currency to domestic currency at the current rate at each balance sheet date will change in domestic currency

What are the two most common derivatives used to hedge foreign exchange risk?

Foreign Currency Forward Contracts, Foreign Currency Options

What does a negative translation adjustment indicate when in a positive net asset position?

Foreign Exchange Loss--> does Not reflect the change in the U.S. dollar value of the net investment. Depreciates.

What does a positive translation adjustment indicate when in a positive net asset position?

Foreign Exchange gain--> signal appreciation of the foreign currency will result in an increase in the US dollar value of future foreign currency

From what geographical areas do IASB members hail?

Four from Asia/Oceania Region Four from Europe Four from North America One from Africa One from South America Two appointed from any area, subject to maintaining an overall geographical balance

What are working groups found in the IASB structure?

Get created when needed Only last as long as needed For major agenda projects IASB appoints the Members Only used to a discussion

Define transaction exposure to foreign currency.

Gives rise foreign exchange gains and losses that are ultimately realized in cash

Is international trade (imports and exports) growing, staying stable, or decreasing across the world?

Growing

What must be included in the document prepared indicating the derivative is being used as a hedge.

Hedged Item, Hedging instrument, The nature of the risk being hedged,How the hedging Instrument effectiveness will be assessed, The risk management objective, Strategy of undertaking the hedge

What are the components of the IASB structure? (Note textbook list six components and a seventh component was added in 2013)

Monitoring Board IFRS Foundation IASB IFRS Advisory Council Accounting Standards Advisory Forum (ASAF) Working Groups IFRS Interpretations Committee

Who Enforces International Accounting Standards?

NOBODY

List the arguments against international convergence of financial reporting standards.

Nationalism, Arriving at principles that satisfy all the parties involved throughout the world seems an also impossible task, Unnecessary to force all companies worldwide to follow a common set of rules

Will both the buyer and seller have exposure to foreign exchange risk in an export sale or import purchase?

No, only the buyer or seller will be exposed to Foreign Exchange Risk

On what characteristics are IASB board members selected?

On the Basis of professional competence and practical experience

How long did it take for the restructuring of the IASC into the IASB?

Over 5 Years

Define foreign direct investment (FDI).

Ownership and Control of the foreign asset for a foreign currency

The textbook provides a nice summary (found below) of the relationship between fluctuations in exchange rates and foreign exchange gains and losses:

PAge 408

Describe the problems caused by accounting diversity between countries.

Preparation of consolidated financial statements Access to foreign Capital markets Comparability of financial statements Lack of high quality accounting information

Which approach (rule-based or principle based) does the IASB use when developing IFRS?

Principles Based

Which approach produces accounting standards more adoptable by a wide range of diverse countries?

Principles Based

Define rule-based approach and principles-based approach of accounting standards.

Principles Based approach:Focus on establishing general principles derived from the IASB Framework, providing recognition, measurement, and reporting requirements for the transactions covered by the standard. Rule Based Approach:Gives a rule, tells you how to prepare a set of financial statementsOften called a checked the box.

What is the Accounting Standards Advisory Forum (ASAF)? Who appoints its members? When did this IASB component start? How many members does it have? What is it purpose?

Provide standard setters input into technical projects IFRS Foundation 2013 12 members Purpose is to better gather input from national accounting standard setting bodies so that new IFRS are high quality and readily acceptable.

21. What is the IFRS Advisory Council? Who appoints its members? What are members' term length? How many members does it have? What is it purpose and responsibilities?

Provides a forum for participation by organizations and individuals with an interest in international financial reporting, having a diverse Geographical and functional backgrounds Members are appointed by the IFRS Foundation 3 years Currently has about 40 members Purpose and Responsibilities: Advising the IASB on agenda decisions and priorities in the IASB's work. Informing the IASB of the views of the organizations and individuals on the council on major standards-setting projects Giving other advice to the IASB or the Trustees.

What are direct quotes or direct exchange rates?

The U.S. dollar price for one unit of foreign currency, 1FC=?LCU <-Local, FCU X Direct Exchange Rate =LCU; LCU/Direct Exchange rate = FCU

If a current rate is used to convert all assets and liabilities to the domestic currency amounts and the historical rates were used to convert all equity to domestic currency amounts, what does the difference between the net asset and equity, the translation adjustment, represent?

The change in exchange rate from its historical value, The amount of gain or loss if sold today

Why might a single set of accounting standards not be possible?

The culture differences Audience may be different Some countries believe they are the best way Political reasons The Legal systems are different

What are the three requirements in US GAAP that must be met to use hedge accounting?

The derivative is used to hedge either a fair value exposure or cash flow exposure to foreign exchange risk, The derivative is highly effective in offsetting changes in the fair value or cash flows related to the hedged item, The derivative is properly documented as a hedged item

What is the most important difference (also the most difficult to compensate for difference) when comparing financial statements from different countries?

The differences in recognition and measurement rules employed to value assets and liabilities and to calculate income. Timing.

What is the historical exchange rate?

The exchange rates that existed when the assets and liabilities were acquired

Define hedge accounting.

Companies would like to account for hedges in such a way that the gain or loss from the hedge is recognized in net income in the same period of the loss or gain on the risk being hedged

What would be the advantages of having a single set of accounting standards used worldwide?

Avoid Conversion Less work in converting statements Easier to compare companies

Do some research, what are the large stock exchanges worldwide

1) New York Stock exchange (NYSE) 2) NASDAQ? 3) London Stock Exchange (LSE) 4) Tokyo Stock Exchange (TSE) 5) Shanghai Stock Exchange (SSE) 6) Euronext 7) Hong Kong Stock Exchange (HKEX) 8) Shenzhen Stock Exchange (SZSE) 9) Toronto Stock Exchange (TSX) 10) Bombay Stock Exchange (BSE)

Define a Multinational Corporation. Are there a few or many? What three countries or collection of countries conduct the majority of international trade and investments?

A company's headquarters is in one country and it has operations in other countries. There are many United States, Japan, and Europe

Why would an entity want to hedge against changes in foreign currency exchange rates?

A entity may want to hedge against changes in foreign currency exchange rates because of the uncertainty if NOT knowing exactly how much domestic currency will be received on this export sale is of great concern.

IAS39 Financial Statements: Recognition and Measurement, issued in 1999, provides two general principles with respect to accounting for derivatives. What are the two general principles?

All derivatives should be reported on the balance sheet at fair value (off-balance-sheet treatment is NOT Acceptable), "Hedge Accounting" is acceptable for those derivatives used for hedging purposes provided by the hedging relationship is clearly defined, measurable, and actually effective, Page 350

When a new or major modification of an IFRS is issued, what must be included in the publication in addition to the new guidance?

Any Dissenting Opinions Basis of conclusion Explaining, among other things, the steps in the IASB's due process and how the IASB dealt with public comments on the exposure drafts

When did the IASB Become the authoritative body for issuing international accounting standards?

April 1, 2001

What is the basic accounting for a fair value hedge?

At each balance sheet date:The hedged asset or liability is adjusted to fair value according to changes in the spot exchange rate and a foreign exchange gain or loss is recognized in net income., The derivative hedging instrument is adjusted to fair value (resulting in an asset or liability reported on the balance sheet), with the counterpart recognized as a gain or loss in net income.

How does one determine a hedge is effective at inception? On an ongoing basis?

At inception, a foreign currency derivative can be considered an effective hedge if the critical terms of the hedging instrument match those of the hedged item, Assessing effectiveness on an outgoing basis can be accomplished using a cumulative dollar offset method.

What is the basic accounting for a cash flow hedge?

At inception: Record initial Transaction,Record the hedging instrument at fair value, Every Balance sheet Date: Adjust hedge item to fair value with the gain or loss going to net income, Adjust hedging instrument to fair value (Including discounting to present value) with the gains or loss going to OCI, Reclassify from OCI to Net income either ,The current period amortization of the discount or the premium on a forward contract, The change in time value of the option

How many IASB members must vote approval for a new or major modification of an IFRS to be issued? Out of how many members?

At least Nine out of 16 members

When must a derivative be designed as a hedge in order to use hedge accounting?

At the inception. The date a foreign currency forward contract is entered into or a foreign currency option is acquired. The data you get it

What is the average exchange rate?

Average spot rate over the period

Why is there a difference between the spot rate and the forward rate? Explain fully.

Because Exchange rates change, Also because different markets have different exchange rates

What is the current exchange rate?

The Spot change exchange rate on the balance sheet date

Under what independent body is the IASB organized? How many trustees on the body? What are the functions and responsibilities of the body? How is membership of the body split geographically? From what professions do members hail?

IFRS Foundation 22 trustees c. Functions and Responsibilities-Page 78 Appoint the members of the IASB and Establish their contracts of service and performance Criteria Appoint the members of the International Financial Reporting Interpretation Committee, the IFRS Advisory Council and Accounting Standards Advisory Forum. Review Annually the strategy of the IASC Foundation and the IASB and its effectiveness, including consideration, but not determination, of the IASB's Agenda Approve annually the budget of the IFRS Foundation and determine the basis for funding Review Strategic issues affecting accounting standards, promote the IASC Foundation and its work, and promote the objective of rigorous application of the International Accounting Standards and International Financial Reporting Standards Establish and Amend operating procedures, Consultative arrangements, and due process for the IASB, International Financial Reporting Interpretations committee, and the Standards Advisory Council. Review Compliance with the operating procedures, Consultative arrangements, and due process procedures Approve Amendments to the Constitution after following a due process Exercise all powers of the IFRS Foundation, except for those expressly reserved to the IASB, The IFRS Interpretations Committee, and IFRS Advisory Council. Foster and Review the Development of educational program and materials that are consistent with the IFRS Foundation's objectives Six from North America, Six from Europe, Six from Asia/Oceania region, Four from any area subject to establishing overall geographic balance

What does the textbook mean when it says "foreign currency appreciates"?

If foreign currency appreciates, the foreign currency asset increase in terms of domestic-currency value, and a foreign exchange gain arises., If the foreign currency appreciates the foreign currency liability increases in domestic-currency value and a foreign exchange gain arises

How does the United Nations measure the multinationality of a company?

In 2011 the United Nations measured the multinationality of companies by averaging three factors: the ratio of foreign sales to total sales, the ratio of foreign assets to total assets, and the ratio of foreign employees to total employees.

In general, how are unrealized gains and losses on hedges reported? Discuss fair value hedges and cash flow hedges separately.

In general gains and losses on fair value hedges are recognized immediately in net income, whereas gains and Losses on Cash flow Hedges are included in other comprehensive Income (OCI)

On what financial statement must an entity report unrealized foreign exchange gains/losses of remeasured foreign denominated assets or liabilities?

Income Statement

What are indirect quotes or indirect exchange rates

Indicate the number of foreign currency units that can be purchased with one U.S. Dollar, 1LC=?FC, LCU X Indirect Exchange Rate = FCU

Use wall street journal website to answer the following two questions. What was the indirect exchange rate from Japanese Yen to US Dollar on August 17, 2018? If you had 100,000 Yen on August 17, 2018, what is the equivalent US Dollars?

Indirect Exchange rate: 110.50, 100,000 yen = $11,050,000

Use x-rates website to answer the following two questions. What was the direct exchange rate from Swiss Franc to US Dollar on August 17, 2018? If you had 1000 Swiss Francs on August 17, 2018, what is the equivalent US Dollars?

Indirect Exchange rate: 110.50,100,000 yen = $11,050,000

What is the relationship between the direct and indirect exchange rates?

Indirect Quotes are the inverse of direct quotes

Briefly explain the three phases of the life of the IASC

Initial Phase: Covering the first 15 years, the IASC's main activity was to issuance of the 26 generic International accounting standards (IASs), many of which allowed multiple options Second Phase: First, the 1989 publication of the framework for the preparation and representation of financial statements, the qualitative characteristics of financial info, definitions of the elements of the financial statements. The Second activity was the comparability of financial statements project, the purpose of which was to "eliminate most of the choices of accounting treatment currently permitted under international accounting standards". Final Phase: The development of a core set of international standards that could be endorsed by IOSCO for cross listing purposes

One type of hedge is a derivative, define a derivative.

Is a financial instrument whose value changes in response to the change in a specified interest rate, security price, commodity price, index of prices or rates, or other variable.

What is a spot exchange rate?

Is the price at which a foreign currency can be purchased or sold today

What is a forward exchange rate?

Is the price today at which foreign currency can be purchased or sold sometime in the future

What challenges did the IASC face during its existence?

Lack of legitimacy because they were all accountants Lack of legitimacy because they had very little support The IFAC was trying to take over jobs Standard setter from the UK, the U.S., Canada and Australia met quarterly to discuss the issues related to International standard setting

3. What are the five factors Influencing a country's financial reporting system? Describe each factor. Which country accounting system selection factors are correlated?

Legal System: 2 major legal systems: Common Law: In Common law Countries where there is likely to be a non-legislative organization developing accounting standards, much more detailed rules are developed. Codified Roman Law (Code Law): In Code law countries the accounting law tends to be rather general, does NOT provide much detail regarding specific accounting practices and may provide NO guidance at all in certain areas. These are Government ran. The Type of legal system in a country tends to determine whether the primary source of accounting rules is the government or nongovernmental organization. Taxation: In some countries, published financial statements form the basis for taxation whereas in other countries, financial statements are adjusted for tax purposes and submitted to the government separately from the reports sent to stockholders. Providers of Financing: The Major providers of financing for business enterprises are family members, banks, governments, and shareholders In countries in which company financing is denominated by families, banks, or the state, there will be less pressure for public accountability and information disclosure Inflation: Countries experiencing High chronic rates of inflation have found it necessary to adopt accounting rules that required the inflation adjustment of historical costs amounts. Political and Economic Ties: Accounting is a technology that can be relatively easily borrowed from or imposed on another country. Correlation of factors Common law countries tend to have greater numbers of domestic listed companies, relying more heavily on equity as a source of capital. Cod Law countries tend to link taxation to accounting statements and rely less on financing provided by shareholders. There is a high degree of correlation between legal system, Tax conformity, and Source of financing.

Why might a company make a foreign direct investment?

Reasons for Foreign Direct Investment (Figure 1.1 Page 5) Increase Sales and Profit International sales may be a source of higher profit margins or of additional profits through additional sales. Unique products or technological advantages may provide a comparative advantage that a company wishes to exploit by expanding sales in foreign Countries Enter Rapidly Growing or Emerging Markets Some international markets are growing much faster than others. Foreign direct investment is a means for gaining foothold rapidly growing or emerging market. The ultimate objective s to increase sales and profits. Reduce Cost A Company sometimes can reduce cost of providing goods and services to its customers through foreign direct investment. Significantly lower labor cost in some countries provide an opportunity to reduce the cost of production. If materials are in short supply or must be moved a long distance, it might be less expensive to locate production close to the source of supply rather than to import the materials. Transportation costs associated with making export sales to foreign customers can be reduced by locating production close to the customer Protect Domestic Markets To Weekend a potential international competitor and protect its domestic market, a company might enter the competitor's home market. The Rationale is that a potential competitor is less likely to enter a foreign market if it is preoccupied with protecting its own domestic market Protect Foreign Markets Additional investment in a foreign country is sometimes motivated by a need to protect that market from local competitors. Companies generating sales through exports to a particular country sometimes find it necessary to establish a stronger presence in that country overtime to protect their market Acquire Technological and Managerial Know-How In addition to conducting research and development at home, another way to acquire technological and managerial know=how is to set up an operation close to leading competitors. Through geographical proximity, companies find it easier to more closely monitor and learn from industry leaders and even hire experienced employees from the competition

Indicate whether each of the following types of items that can be hedged are a fair value exposure or a cash flow exposure or both.

Recognized foreign-currency-denominated asset: Both, Recognized foreign-currency-denominated liability: Both, Unrecognized foreign currency firm commitment: Both, Forecasted foreign-currency-denominated transaction:Cash Flow

In this chapter, four types of items that can be hedged are studied. Describe each of the below items that can be hedged.

Recognized foreign-currency-denominated asset:On A/R in foreign currency that you will collect in the future and change to U.S. Dollars, Recognized foreign-currency-denominated liability: A/P you will pay in foreign currency in the future,Unrecognized foreign currency firm commitment: A transaction that has not yet been completed but you have a contract that says you will complete, Forecasted foreign-currency-denominated transaction:A purchase you know you will have in the future

What is "International Convergence of accounting standards"?

Refers to both the goal and the process adopted to achieve it. All countries use the same standards

What does Harmonization of international accounting standards mean?

Refers to the reductions of alternatives while retaining a high degree of flexibility in accounting practices. Allows different countries to have different standards as long as the standards do NOT Conflict

List Situations where international accounting needs to be applied.

Sales to Foreign Customers Foreign Investments (Foreign Direct Investment) Hedges of Foreign Exchange risk Exchange Risk International Income Taxation International Transfer Pricing Transferring money between countries Borrowing in different currency

Now visit the OANDA website. Using the currency converter, determine the amount in U.S. dollars would you receive if you sold 2,000 Euros on August 1, 2018?

Sold 2,000 Euros = 2,341.70

IASB uses an eleven step process to issue new guidance (new accounting standard or major modifications of IFRS). The process is considered a due process procedure. What makes it a due process set of procedures? Which steps indicate due process?

Steps on page 79 everybody gets a chance to give their opinion on the new standard Step 5 because it is published for public comment Step 6 because the exposure drafts are published for public comment Step 8 they consider all comments Step 9 consider holding a public hearing

3. What are the three viewpoints on how to achieve the goal of "International Convergence of accounting standards"?

Strict Viewpoint: It refers to the enforcement of a single set of accepted standards by several regulatory bodies Soft Viewpoint: If refers to diminishing differences among accounting standards issued by several regulators A Situation where two or more jurisdictions agree on a core set of common standards, allowing varying interpretations regarding non-core issues

22. What is the IFRS Interpretation Committee? Who appoints its members? What are members' term length? How many members does it have? What is it purpose and responsibilities?

Takes the standards and writes interpretations Appointed by the IFRS Foundation For 3 years 14 Members Responsibilities To interpret the application of International Financial Reporting standards and provide timely guidance on financial reporting issues not specifically addressed in IFRS or IASs, in the context of the IASB's Framework, and undertake other tasks at the request of the board. To publish Draft Interpretations for public comment and consider comments made within a reasonable period before finalizing an Interpretation To report to the board and obtain board approval for final interpretations

What are the three approaches on how to implement "international convergence of accounting standards"?

The Aim could be to merge all standard-setting bodies in a unified "Global" Body The aim could be to recognize each of the existing standard-setting bodies as the sole authority in its respective jurisdiction The aim could also be to recognize that a national standard setting body can coexist with international coordination bodies.

How many board members are on the IASB? Are they full time or part time? What are the responsibilities and functions of the IASB?

The Board consist of 16 members 13 serve full time and not more than 3 serve part time Responsibilities and Functions Has sole responsibility for establishing International Financial Reporting Standards Develop and issue international Financial Reporting Standards and Exposure Drafts Approve interpretations developed by the international Financial reporting interpretations committee

How is the underlying currency of export sales and import purchases determined?

The Buyer and Seller Chooses what currency will be denominated, Negotiation

Why on the OANDA website is there a difference between the buy direct exchange rate and the sell direct exchange rate?

The Difference between the buying and selling rates is spread through which banks and other foreign exchange brokers earn a profit on foreign exchange trades.

What is the Monitoring Board? What are its responsibilities and functions? Who sits on it?

The monitoring board comprises the relevant leaders of the European commission, the Japanese Financial Services Agency, The US Securities and Exchange Commission, the emerging Markets Committee if IOSCO, and the Technical Committee of IOSCO. Oversees the IFRS Foundation Trustees, participates in the Trustee nomination process and Approves appointments to the trustees. Responsibilities and Functions To enhance public Accountancy of the IASC Foundation To participates in the Trustee nomination process and approval of appointments to the trustees To carry out oversight responsibilities in relation to the Trustees and their oversight of the IASB's activities, in particular the agenda-setting process and the IASB's efforts to improve the accuracy and effectiveness of financial reporting and to protect investors.

What difference do you notice between the balance sheet of Vodafone (Exhibit 2.1 page 25) prepared under IFRS and Verizon (Exhibit 2.2 page 26) prepared under U.S. GAAP?

The order the assets are presented Equity accounts are shown before Liability accounts Called up capital share is the equivalent of common stock Share Premium account is the contributed capital in excess of par value Capital redemption reserve to indicate an appropriation of retained earnings Includes provisions which represent estimated liabilities related to restructuring, legal disputes, and asset retirements in both current and noncurrent liabilities these are not recorded under GAAP

What is a foreign currency exchange rate?

The price at which the foreign currency can be acquired

Define a foreign currency derivative.

The values changes in response to changes in foreign exchange rates

Why might a company want is stock listed on a stock exchange outside of its home country?

To obtain more capital; want to buy another company and do a stock swap

Under IFRS and U.S. GAAP, which approach, one-transaction or two-transaction perspective, is allowed to account for transactions denominated in a foreign currency?

Under IFRS and U.S. GAAP two-transaction approach is allowed to account for transactions denominated in a foreign currency

In Saudagaran and Biddle's Study of stock exchange financial statements disclosure requirements in eight major countries, which had the most requirements? Which had the second and most and third most requirements?

United States Canada United Kingdom

How important is international trade to the world economy?

Very Important

Once the derivative meets the three requirements for hedge accounting, hedge accounting can be applied. Accounting for hedges differs based on the following four factors:

What is being hedged? foreign-currency-denominated asset or liability,foreign currency firm commitment, forecasted foreign-currency-denominated transaction, Nature of hedged item -current or future asset or current or future liability, Hedging Instrument - forward contract or option contract, Nature of hedged risk - fair value exposure or cash flow exposure

What two questions must be addressed when converting foreign currency financial statements into domestic currency?

What is the appropriate exchange rate to be used in translating each financial statement Item? How should the translation adjustment that inherently arises from the translation process be reflected in the consolidated financial statements?

When does a company have a net asset balance sheet exposure?

When assets translated at the current exchange rate are greater in amount than liabilities translated at the current exchange rate, Net Assets= assets -Liabilities

Over time do exchange rate fluctuate?

Yes

What is International Accounting?

a. Can be defined at three different levels: i. First Level: 1) Is a supranational accounting, which denotes standards, standards, guidelines, and rules of accounting, auditing, and taxation issued by supranational organizations ii. Second Level: 1) The company level, can be viewed in terms of the standards, guidelines, and practices that a company follows related to its international business activities and foreign investments iii. Third Level: Broadcast level, can be viewed as the study of standards, guidelines, and rules of accounting, auditing and taxation that exist within each country as well as comparison of those items across countries.

Indicate who or what each acronym below represents. Also describe the group and their efforts toward global accounting harmonization

a. IOSCO: i. International Organization of Securities and Commissions ii. Leading organization for securities regulators around the world b. IFAC: i. International Federations of Accountants ii. It's mission is to serve the public interest and to strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting adherence to high quality professional standards on auditing, ethics, education, and training c. Eu: i. European Union ii. Aim has been to create a unified business environment d. IFAD: i. International Forum on accountancy Development ii. Its mission was to improve market security and transparency and financial stability on a global basis e. IASC: i. International Accounting Standards Committee ii. Formulates international accounting standards (1973-2001) f. IASB: i. Took over as the creator of international accounting standards (2001- Present)

What is a forward contract?

an informal agreement traded through a broker-dealer network to buy and sell specified assets, typically currency, at a specified price at a certain future date.