Different reporting methods affect business and how product costs are affected by international business.
The learning objectives of this report are as follows:
Compare and contrast basic U.S. and international financial accounting standards.
Explain how key international factors affect business reporting.
Identify key compliance and regulatory requirements.
Using the Unit IV Research Report Template, prepare a written report with at least three scholarly sources
covering the items listed below.
Introduction
Part 1: Select financial statements for two related (e.g., computer manufactures, pharmaceutical companies,
cell phone companies, etc.) businesses; one that uses U.S. accounting reporting and the other that uses
international accounting reporting. Identify the following items:
Provide the name, location, and accounting standards used for each business.
Compare and contrast three major differences you see in the way the financial data is presented on the
financial statements.
Identify which set of financial statements you think is the easiest to understand and provides you with most
accurate cost data as a manager. (Do not forget to look at the notes to the financial statements also.)
Part 2: Analyze and discuss three international factors you think would affect the cost of the products made at
the companies you selected and why.
Part 3: Discuss any compliance and/or regulatory issues you think would be involved in the companies you
have selected as they relate to the cost of the products made. For example, are there strict regulations on
product pricing, tariffs imposed on raw materials needed to make the products, or strict regulations on the
wages paid to workers?
Sample Solution