INTERNATIONAL ACCOUNTING
5th Edition
ISBN: 9781264020386
Author: Doupnik
Publisher: MCG
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Textbook Question
Chapter 1, Problem 4EP
The London Stock Exchange (LSE) provides a list of companies listed on the exchange on its website (www.londonstockexchange.com) under “Statistics” and “Companies and Securities.”
Required:
- a. Determine the number of foreign companies listed on the LSE and the number of countries they represent.
- b. Determine the number of companies listed on the LSE from these countries: Australia, Brazil, Canada, France, Germany, Mexico, and the United States. Speculate as to why there are more companies listed on the LSE from Australia and Canada than from France and Germany.
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Choose the correct. Which of the following statements is true for a foreign company registered with the U.S. SEC to list its stock on the New York Stock Exchange?a. The company must file an annual report with the SEC that is prepared in accordance with U.S. GAAP.b. The company may file an annual report with the SEC that is prepared in accordance with IFRS but must also provide a reconciliation of IFRS to U.S. GAAP.c. The company must file an annual report with the SEC that is prepared in accordance with IFRS but must also provide a reconciliation of IFRS to U.S. GAAP.d. The company may file an annual report with the SEC that is prepared in accordance with IFRS but need not also provide a reconciliation of IFRS to U.S. GAAP.
1.The London, Tokyo and New York Stock Exchanges, Ghana, among others, require an annual audit of the financial statements of companies whose securities are listed on it. What are the possible reasons for this?
A foreign-based company must use US GAAP if it wants to have its stock traded on a US stock exchange.
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Chapter 1 Solutions
INTERNATIONAL ACCOUNTING
Ch. 1 - Prob. 1QCh. 1 - 2. What accounting issues arise for a company as a...Ch. 1 - 3. Why might a company be interested in investing...Ch. 1 - 4. How important is foreign direct investment to...Ch. 1 - 5. What financial reporting issues arise as a...Ch. 1 - 6. What taxation issues arise as a result of...Ch. 1 - Prob. 7QCh. 1 - 8. Why might a company want its stock listed on a...Ch. 1 - 9. Where might one find information that could be...Ch. 1 - Prob. 10Q
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