International Accounting

Question 1

hedging

Answer 1

insulates loss during foreign exchange of currency

Question 2

foreign exchange option

Answer 2

sets a strike price for a currency exchange for a period of time

Question 3

forward contract

Answer 3

making a deal with a bank for a fee that locks the rate for a certain period of time

Question 4

FDI

Answer 4

foreign direct investment (1.4 tril in 2012)

Question 5

IFRS

Answer 5

international financial reporting standards, principle based, not as complex as the GAAP

Question 6

transfer pricing

Answer 6

when goods are exchanged between parent companies and subsidiaries or divisions

Question 7

GAAS

Answer 7

generally accepted accounting standards

Question 8

IASB

Answer 8

international accounting standards board

Question 9

what does the IASB do

Answer 9

created in 2001, with a goal to create a single set of global accounting standards, based in london, cant enforce or require countries to use the IFRS standards

Question 10

what groups select the members of the IASB

Answer 10

IRFS foundation monitoring board and IFRS foundation trustees

Question 11

Who assists members of the IASB

Answer 11

IFRS advisory council for advice

IFRS interpretations committee for interpretation rules

Question 12

Hierarchy of international accounting standards

Answer 12

IFRS, issued by the IASB
IAS
Interpretation