Jacqueline John – Individual Assignment - Accounting II Session II, January 16, 2014 Chapters 15 & 16 Chapter 15: Questions 2,5,6,7 and 14 Question#2 What is the International Accounting Standards Board? Why has the board been unable to obtain uniform global application of its standards? Answer: The IASB is particularly interested in harmonization and is charged with the responsibility of establishing and gaining acceptance of international financial reporting standards. Cross-border differences in accounting and reporting create analysis and comparability problems between and among companies. The need for comparable information has led to the demand of harmonization.
Question#5: It is important to understand the economic system for businesses before entering into a business relationship because. Economics are handled differently by governments around the world. Much of the time, the economic system is relevant to the form of government.

Question #6: Provide an example showing how the following environmental forces affect accounting practices: A. Political and Legal Systems: Managers operating in or planning operations in foreign countries must monitor associated political risks. Political risk occurs because governments have the ability to shift asset ownership from the company to the government or because the company may be asked to relinquish control over operations due to government intervention. Laws enacted by foreign governments often have an impact on the net profits earned from international activities. Taxes, tariffs, and licensing fees vary from country to country. Laws restricting the flow of currency can affect the amounts of foreign-earned profits that can be transferred out and used elsewhere. B. Economic Systems: The economic systems under which businesses operate significantly affect the form and