Rasoul H. Tondkar

A survey of international accounting education in the US and some other countries

Abstract This study compares the extent of coverage and methods employed by US and non-US business schools to internationalize the accounting curriculum. Using a survey methodology, the study comparatively explores: (1) approaches to internationalize the accounting curriculum: separate course vs integration; (2) relative importance of international accounting topics; (3) strategies and obstacles to implement the integration approach to internationalization; and (4) the level of satisfaction with the internationalization achieved. The findings of the study should benefit both schools currently involved in internationalizing their accounting curriculum as well as those planning to internationalize their programs in the future.

An analysis of international accounting research in Journal of International Accounting Auditing & Taxation: 1992–2001

Abstract This study analyzes the research published in Journal of International Accounting Auditing & Taxation (JIAAT) between 1992 and 2001 in terms of topical focus, methodology, and international dimensionality. The results suggest that the research published in the journal spans a broad spectrum of topical areas, uses several methodological approaches, and covers a wide area of international dimensionality. Additionally, this study analyzes the published research by author attributes. While the majority of the authors contributing to the journal have been from the U.S., there has been an increase in co-authorship between U.S. and non-U.S. authors over time. The results of the study indicate that the journal has served as an important forum to promote and disseminate international accounting research.

Foreign Direct Investment and Evaluation of Country Risk: an Empirical Investigation

This paper investigates the extent to which country risk ratings influence the inflow of foreign direct investment (FDI). Using International Monetary Fund (IMF) data from over 100 countries and Euromoney’s country risk ratings over a ten‐year period, this study finds that country risk ratings have a significant influence on FDI. This effect is stronger for US FDI. We also analyze the relative importance of the individual components of the country risk index.

An examination of the success of the EC directives to harmonize stock exchange disclosure requirements

Abstract This study examines the success of the EC initiative in coordinating stock exchange disclosure requirements by measuring the degree of harmony in the requirements of EC stock exchanges. The study results indicate that EC stock exchange disclosure requirements for nine of the 11 EC stock exchanges examined are largely coordinated in terms of the minimum conditions specified in EC directives. The results, however, also suggest that the successful implementation of EC directives does not necessarily eliminate all of the variation in the disclosure requirements between the different EC stock exchanges, only that it sets a lower bound below which the level of disclosure required by the relevant national standards may not fall. Disclosure requirements of EC stock exchanges are allowed to vary as long as they meet the minimum requirements.

THE CHINESE SECURITIES REGULATORY COMMISSION AND THE REGULATION OF CAPITAL MARKETS IN CHINA

Abstract The rapid development of China’s capital markets necessitated the establishment of a regulatory agency that would administer market operations and protect investors’ interests. The Chinese Securities Regulatory Commission (CSRC) was established in 1992 for this purpose. In 1999, the Chinese Securities Law recognized the CSRC as the sole regulatory agency responsible for regulating securities instruments and markets in China. Although the CSRC is considered instrumental to Chinese accounting reforms and capital market development, it has remained relatively unexamined in the accounting literature. This paper contributes to the accounting literature by providing insight into an important regulatory agency that has enormous impact on the economic development of China. Specifically, this paper discusses the CSRC’s establishment and development, its regulatory efforts, and its achievements and shortcomings in its efforts to regulate China’s emerging capital markets. The underlying factors that explain some of the CSRC’s regulatory actions are also analyzed by discussing several cases involving fraudulent financial reporting.

Transfer Pricing Practices and Regulatory Actions in the U.S. and U.K.: A Cross-Country Comparison and Analysis

Abstract With the continued globalization of world markets, transfer pricing has become one of the dominant sources of controversy in international taxation. Cross-country differences in transfer pricing practices and regulations present challenges to taxing authorities and multinational enterprises (MEs). In the last two decades, tax authorities in the United States (U.S.) and other countries have brought major court cases against MEs accused of underpayment of taxes through transfer pricing practices. This paper discusses transfer pricing practices, regulatory agencies, penalties related to violations, and proper documentation required in the U.S. and one of its major trading partners, the United Kingdom (U.K.). The paper also examines the acceptable valuation methods allowed as a surrogate for arms-length transactions as established by the countrys regulatory agency. Finally, the paper discusses the similarities and differences between the major court cases related to transfer pricing in the two countries.

An Empirical Investigation of Factors Affecting the Selection of Markets for Foreign Bond Issues

Abstract This study investigates factors affecting the selection of markets for issuing foreign bonds and assesses the increase in the likelihood of issuing in a given market when certain variables are present. Logistic regression models evaluate similarity/diversity of accounting systems; disclosure levels; and the existence of a parent/subsidiary and/or an equity listing in the market country as independent variables. The results support the hypothesis that accounting diversity is an influencing factor in selection of a market for issuing foreign bonds.

Teaching foreign currency translation: A flowchart approach

Abstract This paper briefly discusses the major aspects of FASB Statement No. 52 and presents a flowchart designed to assist accounting instructors in teaching the accounting and reporting requirements for foreign currency translations.