MBA 6601 Unit VII Case Study & MBA 6601 Unit VII Discussion Board

MBA/6601 Unit 7 Case Study

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?

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(( Solution Included ))

Page Length: 6 page(s) Total
Word Count: 1400 Words Case Study and 271 Words DQ

Writing Style: APA

Number of sources: 3 + 2