ESCP EAP Paris by GarrettPendergast

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									ESCP-EAP, Paris                                                                2008


       Course Outline : International & European Accounting Standards


June 3 (Christopher Hossfeld):
Accounting diversity and accounting harmonization
      Readings: IQBAL: International Accounting, ch. 4.

June 3 & 5 (Christopher Hossfeld):
The European Union accounting harmonization
      - The EU Accounting Harmonization - History of the EU
      - The EU Accounting Harmonization – Institutions and principal rules
      - The different European initiatives to harmonize accounting rules
      - The EU Accounting Harmonization – A new strategy
      Readings: HALLER: Financial accounting developments in the European
         Union: past events and future prospects, European Accounting Review
         2002, pp. 153-190.

June 10 (John Kennedy):
Country Study I: Accounting in the UK
      - The Economic and Legal Environment
      - Financial Statements and Consolidated Financial Statements – Differences
          with US-GAAP
      - The Accounting Profession

June 12 & 17 (Christopher Hossfeld):
Country Study II: Accounting in Germany
      - The Economic and Legal Environment
      - Accounting Regulation
      - Accounting and Taxes
      - Accounting Philosophy
      - Financial Statements and Consolidated Financial Statements – Differences
         with US-GAAP
      - The Application of International Accounting Rules
      - The Accounting Profession

June 19 & 24 (Anne Le Manh):
Country Study III: Accounting in France
      - French legal and business environment
      - French accounting (individual and consolidated accounts)
      - French auditing




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ESCP-EAP, Paris                                                                     2008


June 26 & July 1 (Christopher Hossfeld):
International Financial Reporting Standards
       - The functioning of the IASCF
       - The existing IFRS and differences with US-GAAP
       - Current problems and future developments
       Readings:
       STREET/LINTHICUM: IFRS in the US: It may come sooner than you think: A
       commentary, J of International Accounting Research, Vol. 6 (1), 2007, pp. XI-
       XVII.
       ERCHINGER/MELCHER: Convergence between US GAAP and IFRS:
       Acceptance of IFRS by the US Securities and Exchange Commission (SEC),
       Accounting in Europe, Vol. 4 (1-2), 2007, pp. 123-139.
July 1: Presentation of assignments

July 3 (Christopher Hossfeld):
Final exam (3h)

Assignment: Do your own international financial statement comparison/analysis!
   - Work in groups of 5 (maximum).
   - Choose two companies from two different countries in the world and write a
      report of 10 – 12 pages (1.5 spaced) about the consolidated financial statements
      of those two companies.
      In your report you should identify all kind of differences that you find in both
      financial statements, e.g.: presentation of the income statement and the balance
      sheet …., valuation of assets and liabilities, consolidation methods, auditors
      report, management discussion & analysis ….
      If you find differences, show their (potential) impact (increase/decrease) on the
      two ratios ROE and debt/equity ratio. It is not necessary to calculate those ratios
      with the actual numbers.
   - Make sure that the companies you choose establish their financial statements
      according to two different GAAPs. The more exotic your GAAPs the easier it is
      to find differences.
   - Make sure that you are working with the complete consolidated financial
      statements, and not excerpts thereof or the individual financial statements of the
      group’s parent company.
   - It is best to compare two companies in the same industry/sector. However,
      avoid the banking and insurance sector because they have to apply generally
      industry-specific standards that you are not necessarily familiar with.
      In order to identify differences you should familiarize with the GAAPs of the
      two companies you choose. Use different text books for this purpose that you
      will find at the ESCP-EAP library; e.g.
      Alexander/Nobes: A European Introduction to Financial Accounting;
      Alexander/Archer: Miller European Accounting Guide;
      Nobes/Parker: Comparative International Accounting;
      Roberts/Weetman/Gordon: International Financial Accounting;
      Walton/Haller/Raffournier: International Accounting;


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ESCP-EAP, Paris                                                                    2008


      various issues of the European Accounting Review.
      You may also find information on the internet, e.g. the web-site of IFAD
      (www.ifad.net) or the European Union (europa.eu.int). The most
      comprehensive web-site is www.iasplus.com (from Deloitte&Touche) which
      you should absolutely visit!! The AICPA has recently opened an IFRS web-
      site: www.ifrs.com.
      Hand in your report at the latest on June, 26. On July 1, each group will present
      shortly (5 minutes) its main findings.
      A selection of companies studied in the past:
      BHP Billiton (IFRS) and Hindalco (Indian GAAP)
      NIKE (US) and adidas (IFRS) or PUMA (IFRS)
      TOTAL (IFRS) and Petro-Canada (Canadian GAAP)
      EDF (IFRS) and TEPCO (Japanese GAAP)
      VW (IFRS) and Hyundai (Korean GAAP)
      PEMEX (Mex GAAP) or Chevron (US) and Petrobras (Brazilian GAAP)
      Singapour Airlines (Singapour GAAP) and Thai Airways (Thai GAAP)

Credit: Final exam (60%), Assignment (30%), Participation in class (10%).




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