Acc 366 International Accounting Ch.1-4

Below are four computational and essay questions. (80%) Instruction: 1. Colper Grant is the president of Acme Brush of Brazil, the whole owned Braziliain Subsidiary of US based Acme Brush Inc. Cooper Grant's compensation package consists of a combination of salary and bonus. His annual bonus is calculated as a predetermined percentage of the pre-tax annual income earned by Acme Brush of Brazil. A condensed income statement for Acme Brush of Brazil for the most recent year is as follows (amounts in thousands of Brazilian reals (BRL)): BRL 10,000 9,500 Sales Expenses Pre-tax income 500 After translating the Brazilian real income statement to the US dollars, the condensed income statement for Acme Brush of Brazil appears as follows (amounts in thousand of US Dollars (USD): Sales 3,000 Expenses 3,300 Pre-tax loss -300 A. Explain how Acme Brush of Brazil's pre-tax income in BRL becamea US dollar pretax loss. In order to receive the full credit, you are required to show all steps in calculation. B. Discuss whether Cooper Grant should be paid a bonus or not. 2. As noted in the chapter, diversity in accounting practice accrss countries generates problesm for a number of different groups. a. Which is the greatest problem arising from worldwide accounting diversity? b. which group is most affected by worldwide accounting diverstiy ? c. which group can most easily deal with the problems associated with accounting diversity? 3. Geneva Technology Company (GTC), a Swiss-based compay founded in 1999, is considering the us of IFRS in preparing its annual report for the year ended Dec 31, 2013. You are manager of GTC's fixed assets accounting department. The steps that you will need to take in your department to comply with the requirements of IFRS 1