Part One Based upon recording balance of payment (BOP) transactions, determine whether or not the following is a debit, credit, or no entry to the U.S. Balance of Payment statement. Also determine...

Part One Based upon recording balance of payment

(BOP) transactions, determine whether or not the following is a debit,

credit, or no entry to the U.S. Balance of Payment statement. Also

determine what chart of account is affected (i.e., CA, KA, or OSB):

1. U.S. resident purchases Mercedes Benz C230,

2. U.S. resident purchases Chevelot Impala,

3. foreigner purchases GE dryer,

4. U.S. resident purchases UK stock, and

5. U.S. resident borrows funds from British broker to purchase stock.

Part Two

Read the case study, pp. 759-762, “H&M: The Challenges of Global

Expansion and the Move to Adopt International Financial Reporting

Standards.” Answer questions 19-3 and 19-4 at the end of the case study

and the questions listed below. Your response for all four questions

should be at least three pages in length and follow APA style

guidelines.

? What type of exposure could the CFO of H&M in the U.S. be

subjected to since H&M is based in Sweden and the financial

statements are prepared according to IFRS?

? Payments or liabilities may also be subjected to exposure. Explain

the operational hedging strategies that may offset exposure.

19-3. If an investor wants to compare the financial

results of the Gap, Index, and H&M. what difference does it make

that their financial statements are prepared according to different

GAAP? Would you expect there to be a big difference between U.S. GAAP as

used by the GAP and IFRS as used by H&M and Inditex?

19-4. Waht are the major sources of influences o H&M’s accounting standards and practice?