Meeting Dates (all on Monday)
Sept.
10
24
Oct.
1
8
15
22
Nov.
5
12
19
26
Dec.
3
10*
* Exam days
Lubin School of Business
Department of Accounting
29
International Accounting – ACC354
Charles Tang, Ph.D
Assoc. Professor of Accounting
Class Time: 6:00-8:45pm, Room E-304
Office: Rm. W-420; Tel.: (212) 618-6430; E-mail: ytang@pace.edu
Office Hours: 2:00pm-4:30pm Monday & Wednesday
Course Objective
The rapid internationalization of business and financial markets has created challenges for
accounting profession today. Because of these challenges, international accounting has become an
important part of accounting curriculum. This course is designed to prepare accounting major students to
meet these challenges and succeed in the international business environment.
The course first covers the issues uniquely confronted by companies involved in international
business. Students will learn accounting issues related to foreign currency transactions and risk
management, inflation, and multinational consolidations requiring the translation financial statements in
different currencies. The course then studies the accounting and financial reporting issues in today’s
globalized financial market. Students will gain appreciation for the pattern of international accounting
diversity and the environmental influences, such as the cultural, political, legal and business
environments, on a country’s accounting system. The course will review the convergence of the US
GAAP and International Financial Reporting Standards (IFRS) and underlying concepts across national
jurisdictions by major international alliances such as the International Accounting Standards Board
(IASB). The challenges in analyzing foreign financial reports are addressed along with the effects of
different sets of national GAAP on reported profits and shareholders' equity. At the end of this subject
you should understand:
 Accounting and financial reporting issues unique to multinational corporations
 International differences in accounting and financial reporting
 Social and economic conditions for international differences
 Progresses in international accounting convergence
 Major differences between US GAAP and IFRS
 Usefulness and limitations of the disclosures in countries of economic importance, and
 Implications for and impact on international financial analysis…
Page 1 of 7.
Course Materials
Required Textbook: International Accounting, by Doupnik & Perera, 3rd Edition, McGraw-Hill, 2012,
NY. ISBN# 978-0-07-811095-5
 The book is available at Pace bookstore or online at
http://catalogs.mhhe.com/mhhe/viewProductDetails.do?isbn=0078110955
 A digital version, eBook, is available at
http://www.coursesmart.com/IR/3050995/0077327624 at less than half of the hardcopy price.
You should understand the limitation of the eBook before purchase. Ebook can only be read
at Coursesmart website. It limits printing to about 10 pages at a time. It can’t be re-sold and
not transferable.
Online Learning Center: http://www.mhhe.com/doupnik3e. This is a free site offered by the publisher.
It provides Powerpoint presentations, extra exercise questions, and other helpful information.
Other Materials: Notes, articles, and cases will be distributed via Blackboard.
Assessment and Grading Policy
Evaluation
 Two exams (37% each). Both are closed-book, in-class exams. These examinations cover the
main concepts and methodologies in each chapter, and consist of a mixture of multiple-choice,
problem-solving, and essay questions. At least 25% of the exams questions are directly taken
from homework, quizzes, and cases, with minor modification.
 Group study and presentation (6%). Student will join a group which works as a team on
assigned papers and cases (see below). Each team will make presentation to class on their
assignment. The evaluation is based on the quality and style of the presentation, the handout, and
peer review. A peer review form is available on Blackboard to evaluate contribution by group
members.
 Homework, exercises and reports (13%). Submitted assignment will be recorded and each
assignment is worth about half One percent (≈1%) of overall course grade. Because the
assignments are usually reviewed in class on the due date, late submission does not receive
credits.
 Attendance (7%). Attendance will be taken every class. Students are expected to come to every
class and be on time. Each unauthorized absence will result in a one point reduction in the classparticipation points. Absence for four classes (≈1/3 of class meetings) or more will result in an
“F” grade, regardless of exam grades. Late arrivals and early departures are strongly
discouraged. Students are expected to study the assigned material in advance and participate in
class discussions. Discussions may involve both difficulties associated with the assigned material
and broader issues on how the assigned material relates to real-world business activities.
Make-up and Deferrals:
 There will be no make-up examinations. Unauthorized absence will result in a zero grade.
 If student miss the exam due to extremely rare circumstances and submit acceptable written
evidences within TWO week of the exam, we could assign a makeup exam. Extremely rare
circumstances usually mean medical emergencies that require medical attention. Acceptable
written evidences usually refer to hospital bill and/or doctor’s notes.
 Makeup midterm exam must be taken within two weeks of the original midterm date.
 Makeup final exam is administered by the Academic Test Center who will communicate with
students regarding the exam date. Approval form must be filed before the end of semester with
the Student Account and Registrar Services. The deferral is subject to a $30 fee.
Page 2 of 7.
Academic Honesty:
Students are expected to bear individual responsibility for their work and to uphold the ideals of
academic integrity. Cheating, forgery, plagiarism and other dishonest acts undermine the school’s
educational mission and the student’s personal intellectual growth. Any student who attempts to
compromise the academic process will be sanctioned. Any form of cheating in exams will be
reported to the Dean Office and will result in failure in the course and possible suspension from
the school.
Other Exam Related Issues:
 Both exams must be taken. If a student misses any one of the exams, the student will fail the
course regardless her performance on the other exam.
 The weights in the “Exams and Evaluations” above, are identical for everyone. It is not
possible to make up poor performance by doing extra work.
 We do not e-mail or phone students to discuss grades or exams.
Rules of Professional Conduct
The Lubin School of Business prepares students for careers as business professionals. As part of that
preparation we expect all students to behave as a professional throughout studies at the school.
Following is a list of the specific rules of conduct that we expect students to observe in this course.
 Please do not talk to others, eat, put feet up on seats or table, comb hair, put on makeup, loudly
chew gum, or engage in any other non-professional conduct during the class periods. Students
who persist in disrupting the learning environment will be asked to leave the class.
 Students are expected to come to every class, to arrive on time, and to stay through the entire
class. If you miss a class, or miss part of class due to late arrival or early departure, it is your
responsibility to find out what you may have missed from a fellow-student. We will not respond
to e-mails requesting such information because of unauthorized absence, late arrival or early
departure.
 Students are expected to engage in sufficient self-study before approaching instructor, TA and
tutor for help outside class. We will help you on your specific problems or questions. We can’t
repeat the lecture for the entire chapter or topic with you alone.
Homework
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Assigned homework problems in the class schedule must be prepared in writing and in good
accounting format. Submitted homework will be recorded and each set worth about half a percent
(≈1%) of overall course grade.
Homework and quiz problems are designed for students to practice which is an important part
of learning process. Before the instructor reviews these problems in class, it is your
responsibility to try hard in order to solve these problems independently. Please do not email
the instructor requesting solution to homework and quiz problems before they are reviewed in
class.
As time permits, some assigned problems will be reviewed and discussed.
Use standard letter size paper (8.5*11 inches) for all assignments. Write on only one side of the
paper. Do not submit paper with ragged edges. Staple each assignment. Place full name (print,
please), set number, chapter number, and date at the top portion of the first sheet, and page
numbers on the bottom line of every sheet.
Page 3 of 7.
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Although the solutions to the homework problems will be made available, students are expected
to work diligently through each problem before consulting its solution. Do not be misled into
thinking that because you understand the solution you have mastered the material.
The homework assignments represent a minimum. Instructors might require additional exercises
or quizzes. Students are strongly advised to work through as many of the exercises and
problems at the end of each chapter as possible.
E-Mail Etiquette
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E-mail should be used for questions that require short responses. Questions for concepts and
theories usually require long explanations. Textbook, lectures, and/or a face-to-face discussion
can do a better job than what instructor can do in an email. If you have difficulty understanding
the book, you would be better served by speaking with instructor before or after class or visit/call
instructor in office during office hours.
Please do not send email requesting solutions and asking instructor to explain how to solve
homework/quiz questions before their due dates. These problems are designed for you to
practice which is an important part of the learning process. It is your responsibility to invest your
effort and apply what you learned to solve these problems on your own. These problems will be
reviewed in class and solutions will be offered. For remaining questions, you should speak to
instructor before and after class in classroom or in instructor’s office during office hours;
Students must include full name and section number on any e-mails and attachments send to
instructors. We will not reply to e-mails that lack this basic information.
Students must also write in the subject area a short description of e-mail (e.g., ACC204
question). Otherwise, it is likely that the e-mail will be deleted by system’s spam scanner or
deleted by instructor without being opened.
Do not use the e-mail list on Blackboard for any purpose unrelated to this course.
E-mails in the course are a form of business communication. We expect students to compose emails with the same attention to correct grammar and syntax, politeness and professional tone that
apply to all forms of business correspondence.
Page 4 of 7.
Tentative Teaching Schedule (Subject to change)
Date
1
Sept. 10
5
24
9
Oct. 1
13
8
15
22
2
29
3
Nov 5
4
12
10
19
11
26
12
14
Dec. 3
10
Topic
Reading
1. Introduction to International Accounting
Definition & scope
Internationalization and accounting
Handouts,
2. Accounting diversity & environmental factors Chapter 1,2
Accounting diversity
Environmental factors & acc. diversity
3. International accounting harmonization
Handout,
Harmonization vs. standardization
Chapter 3
Worldwide convergence of accounting
4. IFRS – Part I
Framework, Financial statements
Inventory
Handout,
PPE, Investment properties
Chpt3 p.80-92,
Intangible assets
Chapter 4
Leases
Accounting policy and changes
5. IFRS – Part II
Liabilities and classifications
Employee benefits
Handout.
Share-based payments
Chapter 5
Income taxes
Revenue recognition
Financial instruments
Review and Catch-ups
Midterm Exam (cover topic 1-5)
6. Accounting for international transactions
Handout,
One- vs. two-transaction approach
Chapter 6
Gain/loss on settled & unsettled transactions
7. Accounting for foreign currency hedging
Forward contract and options
Handout,
Fair value hedging
Chapter 7
Cash flow hedging
8. Translation of foreign currency fin. statements
Current-Rate Method/Temporal Method
Handout,
Monetary-Nonmonetary Method
Chapter 8
Current-Noncurrent Method
9. Accounting in Inflationary Environment
General purchase power accounting
Handout, DP
Current cost accounting
Chapter 9
Real value accounting
10. International fin. statement analysis – I,II
Framework of financial statement analysis
Assessing accounting quality
Handout, DP
Adjustable/Unadjustable differences
Chapters 5 & 9
American Depository Receipts
Form 20F reconciliation
Review and Catch-ups
Final Exam (cover topic 6-10)
Note: Q – Questions, E – Exercises, P – Page.
Page 5 of 7.
Homework
Set 1 and 2 on Blackboard
Set 3 on Blackboard
Set 4 Q4: 1-23, E4: 1-12
Set 5 E4: 15,27,32,36,37,39
Set 6:
Q5: 1-4,8-10,15-28,
E5: 1-13
Set 7:
E5: 16,22,26,27,29,31,38
Set 8 on Blackboard
Set 9:
Q6: 1,3,7,8,9,15,
E6: 1-8,14,15,
Case 6-1: Zorba (1,2,4)
Set 10 on Blackboard
Case: Global Enterprise, on
blackboard
Set 11 on Blackboard
Case: Kipon Corp. on
Blackboard
Set 10 on Blackboard
Case – Nisson Corp (on
Blackboard)
Case – Star & Paterson
Case – Smith Beecham
Group Study and Presentation
International Accounting is a too new and too broad field to be fully addressed in the textbook
and covered in a one-semester course. To expand the study, students will be organized in study groups
and required to study as a team, discuss/debate the assigned materials, and make presentation to class.
Each group is assigned a selected article, case, and/or a topic from the textbook. This teamwork is
important part of the course requirement and performance will be evaluated up to 8% of student’s course
grade.
For each assignment, the team should submit formal report to instructor for grading. Also, the
team should prepare a presentation outline, at least two pages, and distribute to class during presentation.
The presentation, less than 15 minutes, should address such issues as: (1) the main issue; (2) the main
conclusions; (3) how conclusions are reached (e.g., method, procedure, and evidences); and (4) what you
have learn (for case only). All presentation must be in PowerPoint.
The evaluation of team performance is based on the quality of report, presentation, the handout,
and peer review. A peer review form will be distributed to evaluate contribution by group members.
Teams responsible for the subject “International Accounting Comparative Studies” should find
financial statements of active foreign company from the country assigned as an example in presentation.
The financial statements can be found under
http://www.nyse.com/international/nonuslisted/int_listed.html.
Group assignments (TBA)
Date
Name
Papers
IFRS, is it coming to the US?
1. SEC Work Plan 2012
2. SEC Work Plan – Possible Method of
Incorporating IFRS 2011
3. IASB Chairman at AICPA Conference 2011
4. FAF Chairman on IFRS 2011
5. IFRS, AICPA Backgrounder 2011
IFRS Debate – Conceptual and empirical evidences
6. IFRS: Pros and Cons for Investors, ABR, 2006
7. IFRS and Accounting Consensus, AH 2009
8. IFRS and Home Bias, JAPP 2008
9. IFRS and Earnings Management JAPP 2008
10. IFRS and Accruals Anomaly, JBFA 2008
11. Market reaction to IFRS reconciliation RAS 2010
12. Does IFRS improve information environment WP 2009
13. Why do countries adopt IFRS HBR 2009
14. Adoption of IFRS by multinational firms, IJA 1999
15. Adoption of IFRS by developing countries, IJA 2006
How IFRS affects accountants and auditors?
16. Improved judgment in principle-based accounting,
CPA Journal 2009
17. IFRS and Accountant’s Liability, CPA J 2009
18. IFRS and Audit Risk, CPA J 2009
19. Professional Judgment – a model for accounting
and auditing decisions, CPA J 2009
What are IFRS?
20. IFRS in your pocket 2011 – Deloitte
21. IFRS/US GAAP differences, EY, 2011
Comparative Accounting – China
Comparative Accounting – Japan
Page 6 of 7.
Comparative Accounting – UK
Comparative Accounting – German
Comparative Accounting – Mexico
Chapter 6 and its references
Note: DP – International Accounting textbook by Doupnik and Perera. Others are downloadable from the
Blackboard or internet with address given.
Page 7 of 7.