International Managerial Accounting

write about the issues with noncomparability of U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) financial statements, and the environmental factors that affect a MNC.

Specifically, you must address the critical elements listed below:

III. Noncomparability of Financial Statements: What are the resultant problems in performing international financial analysis?
A. Identify the issues when comparing a MNC’s financial results to a corporation operating solely in the United States.
B. Describe the kinds of analysis you would recommend for use by the investor.
C. Discuss why harmonization of U.S. GAAP and IFRS would benefit investors.

IV. Environmental Factors: How do environmental factors affect accounting standards and financial statement analysis?
A. In looking at your MNC (NESTLE) and the exchange it trades on, identify the legal system of the country in which NESTLE stock is traded.
Explain the impact the legal system has on investing in this corporation.
B. Discuss how economic and political factors influence the accounting standards in at least one country that the MNC operates in.

Sample Solution

and influencing the potential visitor to choose their destination over another. However, destination branding cannot take place without the creation of a destination image. A vast expanse of existing literature agrees that a destinations image is a visual depiction of the destination in the tourist’s mind. (Josiassen et al., 2015) A prominent belief amongst those that have studied destination marketing is that a destinations image, if positive, will develop the likelihood of an individual to visit a certain destination but will also contribute positively to their experience and the extent to which they are satisfied. (Stylises et al., 2017). As (Aaker 1991) states that a brand image is a collection of all the associations that link a consumer’s memory to a brand. Therefore, it is of extreme importance to a destination to have a positive image as it as it adds value to the brand or in this case a destination. A brand image is said to add value in various ways. It enables the consumer to obtain information about the brand. It allows for differentiation of the brands products and effects the products market position. A brand image also gives the customer reasons to purchase that brands products and also fosters a positive emotion within the consumer to the brand (Aaker 1994). When pertaining this theory to a destination, it is said that the image is the informational beliefs one has about a country but also the view and the reputation of a destination that an individual has of the place. It is said that a destinations image in the eyes of tourists is made up of three distinctive components. These are cognitive, affective and conative (Pike and Ryan 2004). The cognitive image is the component that relates to the tourist understanding and evaluation of the destinations attributes (Crompton, 1979

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