[...]... development of international accounting standards It is also working toward the improvement and harmonization of accounting standards and procedures relating to the presentation and comparability of financial statements (or at least through enhanced disclosure, if differences are present) To date, it has developed a conceptual framework and issued a total of 32 International Accounting Standards (IAS)... Accounting Standards The diversity of accounting systems is an obstacle in the development of international trade and business and in the efficiency of the global capital markets Many concerted efforts have been made to reduce this diversity through the harmonization of accounting standards Also, as international business expands, there is a great need for international accounting standards that can help investors... on an international scale The agencies working toward the harmonization of accounting standards are: ACCOUNTS RECEIVABLE MANAGEMENT 7 D.1 The International Accounting Standards Committee (IASC) The IASC was founded in 1973 At that time, its members consisted of the accountancy bodies of Australia, Canada, France, Ireland, Japan, Mexico, the Netherlands, the United Kingdom, the United States, and West... transactions and the translation of financial statements require the knowledge of the exchange rates to be used and the accounting treatment of the resulting translation gains and losses 1 2 ACCOUNTING FOR MULTINATIONAL OPERATIONS The biggest mistake a company can make in international accounting is to not be aware of, or even worse, to ignore these realities It should know that differences in accounting standards,... its own accounting standards and practices Consequently, a foreign company operating within its borders must maintain its books and records and prepare its financial statements in the local language, use the local currency as a unit of measure, and be in accordance with local accounting standards and procedures In addition, the foreign company must comply with the local tax laws and government regulations... wide range of accounting issues It is currently working on a project concerned with the core standards in consultation with other international groups, especially the International Organization of Securities Commissions (IOSCO), to develop worldwide standards for all corporations to facilitate multilisting of foreign corporations on various stock exchanges D.2 The International Federation of Accountants... commission Finally, it must be issued by the Council of Ministers of the EEC, before it can be enforced on the members The most important directives in the harmonization of accounting standards among EEC members are: • The Fourth Directive (1978), regarding the layout and content of annual accounts, valuation methods, annual report, publicity, and audit of public and private company accounts; • The Seventh... in East Europe; establishment of a regulatory framework for securities markets in Indonesia, Jordan, and Sri Lanka; road construction and maintenance in Latin America and Southern Asia; and agricultural research and farm credits worldwide AID fields workers worldwide and AMERICAN DEPOSITORY RECEIPTS 11 administrative of cers in Washington, D.C identify worthy projects and then ask U.S industries to... terms are normally used in the interbank market of the U.K pound sterling, Australian dollar, New Zealand dollar, and Irish punt Sterling is quoted as the foreign currency price of one pound The relationship between American terms and European terms and between direct and indirect can be summarized as follows: American Terms U.S dollar price of one unit of foreign currency (e.g., U.S $0.00909/¥) A direct... rate of Won 1,277.49/$ This sales price is free of all Korean and U.S taxes and will be used as a terminal value ANALYSIS OF FOREIGN INVESTMENTS 15 Given the facts and stated assumptions, the beginning balance sheet is presented in Exhibit 3, while Exhibit 4 shows revenue and cost projections for Ko-tel over the expected five-year life of the project EXHIBIT 3 Beginning Balance Sheet Millions of Won . D.C. Encyclopedic Dictionary of International Finance and Banking Jae K. Shim Michael Constas St. Lucie Press Boca Raton London New York Washington, D.C. Encyclopedic Dictionary of International . WILL DO FOR YOU The Encyclopedic Dictionary of International Finance and Banking is written and compiled for working professionals engaged in the fields of international finance, global. Financial Of cer (CFO) of a Los Angeles–based multinational firm. Dr. Shim is a coauthor of Encyclopedic Dictionary of Accounting and Finance; Handbook of Financial Analysis, Forecasting, and Modeling;