Linköping University
Department of Management
and Engineering
Course Syllabus
INTERNATIONAL ACCOUNTING, 7.5 ECTS Credits
Course Category: International Course Module
1.
Course Code: 722G27
Objective
The course objective is to provide the students with knowledge about International
Accounting Standards (IAS/IFRS) and about accounting issues related to international
business activities in general and intangible assets in particular. Furthermore, the
contents of financial statements and analysis of financial reporting are discussed. The
course should provide students with an understanding of the causes of diversity in
financial reporting across countries and its effect on global capital flows. Develop
analytical capabilities for dealing with international financial reporting and
international accounting policy issues and provide an overview of the institutional
structures, which have evolved in response to international accounting issues.
2.
Learning outcomes
After the course, the student should be able to:
• Understand the nature and scope of international accounting
• Explain the problem caused by accounting diversity
• Describe the major environmental factors that influence national accounting systems
and lead to accounting diversity
• Describe the influence that culture is thought to have on financial reporting
• Identify the arguments for and against international harmonization of accounting
standards
• Discuss harmonization implications emanating from the Norwalk Agreement
(FASB/IASB)
• Describe potential problems in analyzing foreign financial statements
• Discuss the role of accounting in implementing multinational business strategy
3.
Contents
The course consists of six modules each covering a specific topic.
Module 1: Introduction to international accounting
This module provides an overview of the broadly defined area of international
accounting. The main focus is on accounting issues that multinational companies
engaged in overseas trade and in foreign direct investments deal with.
This first module also covers methodological issues related to term papers, field studies
and the work in multicultural teams.
Module 2: International harmonization of financial reporting
This module discusses the worldwide diversity in accounting practices and some of
the problems caused by such diversity. The module will bring to the fore the major
harmonization efforts, emphasizing the efforts taken by the International Accounting
Standards Board (IASB). The meaning of harmonization, what the arguments for and
against harmonization is, and efforts to converge different standards are discussed.
Module3: International financial reporting standards
In this module differences between International Financial Reporting Standards (IFRSs)
and U.S. GAAP with respect to recognition, measurement, presentation, disclosure, and
choice among alternatives are discussed. Since International Financial Reporting
Standards have been adopted as generally accepted accounting principles (GAAP) for
listed companies within the EU and in a number of countries around the world, and are
accepted for cross-listing purposes by most major stock exchange, the main focus is set
on IFRSs.
Module 4: Comparative accounting
This module describes the accounting environment in four countries: China, Germany,
Japan, and the United Kingdom. These countries are selected because they are
economically important and they represent different accounting systems. Furthermore,
their accounting systems reflect their unique historical and cultural backgrounds.
Module 5 Analysis of foreign financial statements
In making decisions to invest in the shares of foreign companies investors generally find
financial statement useful for such decisions. In this module several reasons for analyzing
foreign financial statements are discussed. Further, potential problems associated with
analyzing foreign financial statements are described and possible solutions to those
problems are discussed.
Module 6: Strategic accounting issues in multinational corporations
The accounting department within a multinational corporation plays an important role in
strategy formulation and implementation through the activities of capital budgeting,
operational budgeting, and performance evaluation. This module discusses issues related
to these activities for foreign investments and foreign operations, including issues related
to differences in culture and business environment that may exist across countries.
4.
Teaching
The course will be organized through a combination of lectures/class discussions, and
in-class assignments.
Participation in seminars and team work is mandatory. Students are responsible for
their own learning process, and lectures provide perspectives on the course content,
thus giving an opportunity for students to facilitate the process of structuring the
course content.
Students may have to prepare tasks and assignments for class discussions and team
work.
5.
Examination
The classes will be in the form of lectures and seminars. The students will, to a large
extent, work together in smaller groups with case studies and other tasks.
The course content will be examined through mandatory participation in class
discussions and team work, and an integrated examination at the end of the course.
The examination is based on a written exam as well as on an evaluation of the
performance from case studies and other tasks.
Students who have passed an examination may not retake it in order to improve
grading.
6.
Grading
Grades will be given according to the ECTS Scale: A, B, C, D, E, Fx or F. Swedish
students will also get grades Väl godkänd (Passed with Excellence), Godkänd
(Passed) and Underkänd (Not passed)
7.
Course literature
Information on course literature is provided by the Department of Management and
Engineering. Main textbook: International Accounting, Timothy Doupnik and Hector
Perera, McGraw-Hill International Edition, 2007.
Course Manager and Examiner: Stefan Schiller