Stetson School of Business and Economics

The Stetson School of Business and Economics (SSBE) promotes the advancement and integration of quality business education and practice. In support of Mercer Universitys mission, the School provides undergraduate and graduate programs that are designed to enable, enhance, and expand professional careers, civic responsibility and lifelong learning.

ACC 640 A12 Advanced International Accounting Topics Summer 2012 Session I Tuesdays: 6:00 P.M. to 10:15 P.M.

Professor: Julie Petherbridge Office: 205 BE Bldg

Office Phone: Email:

678-547-6010

petherbrid_j@mercer.edu

Office Hours: 3 - 6 p.m. Tuesdays and by appointment COURSE DESCRIPTION This course addresses issues in accounting areas that are unique for companies doing international business. Suggested topics are transfer pricing, international auditing, foreign exchange, corporate environmental auditing and international tax. COURSE OBJECTIVES Students completing this class should be able to: To understand and apply how foreign currency forward contracts and foreign currency options can be used to hedge foreign exchange risk. To provide possible solutions to problems associated with analyzing foreign financial statements. To demonstrate how foreign tax credits reduce the incidence of double taxation. To explain how rules related to controlled foreign corporations, subpart F income, and foreign tax credit baskets affect U.S. taxation of foreign source income. To describe governments reaction to the use of discretionary transfer pricing by multinational companies. 1

To apply transfer pricing methods used in the sales of tangible property across the borders. To explain the role played by accounting in formulating and implementing multinational business strategy. To understand the relationship of culture and management control. To explain the link between auditing and corporate governance in an international context. To explain the steps taken toward international harmonization of auditing standards.

PREREQUISITES
ACC 204 & ACC 205 or BA 510

TEXTBOOK (1 text) Radebaugh, Gray, & Black. International Accounting and Multinational Enterprises, Sixth Edition (John Wiley & Sons, Inc., 2006). REQUIRED READING - RESEARCH PAPERS: Some research papers that are required readings for the course contain statistical methods. I am not concerned about whether you understand the statistical methods. It is important that you understand what the research is attempting to accomplish. Therefore, in reading these papers, you should be able to answer the following questions: 1. 2. 3. 4. What is the issue or problem being examined? How sufficient and reliable are the data? What are the findings or results? What the implications of the findings or results for assurance/audit practice?

The published papers can be downloaded at the library web site or from blackboard.

ASSIGNMENTS:

1. 2.

Complete seven Weekly Cases from textbook website. They are downloadable from the books web site (www.wiley.com/colege/radebaugh). Lowest one while be dropped. Complete Country Study Report for the third week of class. These will be distributed on Blackboard.

TERM PAPER AND PRESENTATION: A term paper is required for this course. The paper should be on a topic related to the material covered in the course. Other topics may be considered with instructor approval. The paper will be graded on its content, organization, and writing style. A reasonable length is 6 to 8 double-spaced, typed (12 pt font) pages of text (not including tables, references, etc.). The term paper is to be completed in groups of two students. Student presentations of the term papers will be made the last day of the course.

GRADING: Grades will determined based on your relative performance on the following: Points Weekly Cases (6 @ 50 points) Project Exam Term Paper & Presentation 300 100 100 100 600

It is principally your ranking in the class point distribution that will determine your final letter grade. The course will be curved as follows (approximately): A AB+ B 10-15% 15-20% 30-35% 30-35%

Poor performance can result in a grade lower than a "B." CONCLUDING COMMENT: This is a graduate level course and I intend to run the class as such. This means that I will expect a lot of instructor/student discussion during class. This will require you to come to class prepared (i.e., you have read the material in advance).

Inclement Weather: If severe weather occurs, classes will be canceled in accordance with the Associate Provosts decision of Mercer-Atlanta. Call the Mercer weather phone for information about class cancellations(678) 547-6111 (Atlanta) or listen to WSB 750 AM. 3

University Policies Honor CodeAny student who engages in any form of academic misconduct will be subject to the maximum allowed disciplinary action. A violation of the Honor Code involves: (1) cheating, (2) plagiarism, (3) academic negligence, or (4) other acts of dishonesty in the area of academics and research. Please consult the Mercer University Bulletin for additional information. Electronic Submission of Course WorkStudents bear sole responsibility for ensuring that papers or assignments submitted electronically to a professor are received in a timely manner and in the electronic format(s) specified by the professor. Students are therefore obliged to have their e-mail client issue a receipt verifying that the document has been received. Students are also strongly advised to retain a copy of the dated submission on a separate disk. Faculty members are encouraged, but not required, to acknowledge receipt of the assignment. Use of Cell Phones and PagersOut of courtesy for all those participating in the learning experience, all cell phones and pagers must be turned off before entering any classroom, lab, or formal academic event. Wait listWait listed students will be placed into courses as seats become available. Circumstances may arise which warrant exceptions to this general principle. Writing StyleEach student is reminded that Mercer University emphasizes proper grammar, composition, and writing style across the university curriculum. All assignments should reflect appropriate writing skills. Students requiring accommodations for a disability should inform the instructor as early in their matriculation as possible or by the close of the first class meeting. The instructor will refer you to the Disability Support Services Coordinator to document your disability and determine eligibility for accommodations under the ADAAA/Section 504. In order to receive accommodations, eligible students must provide each instructor with a Faculty Accommodation Form from Disability Support Services. Students must return the completed and signed form to the Disability Support Services Coordinator (212 Sheffield Center). For convenience, anyone can send this information through Campus Mail; fax the form to (678) 5476373 or e-mail the form as an attachment to stilley_r@mercer.edu. Even students with a documented disability who do not wish to use academic accommodations are strongly encouraged to register with Disability Support Services and complete a Faculty Accommodation Form each semester. For further information, please contact Richard Stilley, Disability Support Services Coordinator / Assistant Dean for Campus Life, at (678) 547-6823 or visit the website at http://studentaffairs.merceratlanta.org/disabilities.html.

Tentative Schedule

Week No. 1 (May 22)

TOPICS AND READINGS

INTRODUCTION
Overview of the course. Chapter 1 - Discussion International Accounting and International Business Chapter 2 International Accounting Patterns, Culture and Development Cases: Toyotas Global Expansion (Due May 29) Research and preparation for Country Study Report (Due June 5th)

2 (May 29)

Discuss Comparative International Financial Accounting (Chapter 3 & Chapter 4) Chapter 5 International Financial Statement Analysis Assignment: Developing Countries (Ch. 4), Hanson & ICI (Ch 5)(Due June 5)

3 (June 5)

Presentations of Country Study Countries Chapter 6 International Transparency and Disclosure Chapter 7 International Accounting Standards and Global Convergence Assignment: Stora Enso and the Veracel Vision (Ch 6) (Due June 12)

4 (June 12) Chapter 8 International Business Combinations, Goodwill, and Intangibles Chapter 9 Segment Reporting Chapter 10 Accouting for Foreign Currency Chapter 11 International Accounting for Price Changes Chapter 13 Managing Foreign Exchange Exposure Assignment: BMW (Ch 9) (Due June 13) Assignment: Kamikaze Enterprises (Ch 10), Nokias Foreign Exchange Exposure (Ch 13) (Due June 26)

5 (June 19) 6 (June 26) Chapter 12 Corporate Governance and Control of Global Operations Chapter 14 International Budgeting and Performance Evalation Chapter 15 International Auditing Issues Assignment: The Royal Dutch/Shell Scandal (Ch 12), Xerox Corporation (Ch 15) (Due July 3) 7 (July 3) Chapter 16 International Taxation Issues Assignment: Midwest Uniforms (Ch 16) (Due July 10) 8 (July 10) Presentations of Term Project Exam: Test Hints provided on Blackboard Class time to work on Term Paper