International Financial Reporting
Instructions
Part 1
For this first part, you will set up your own fictional business using either GAAP or IFRS standards. In a typed document, accomplish the following:
– Provide the name and location of your business
– Identify the goods and/or services offered
– Identify which accounting standards will be used
– Provide a list of accounts (also known as the chart of accounts); your list must include assets, liabilities, equity, revenue, and expense as well as current and long-term assets
– Provide beginning balance amounts to each account in the list
– Create an accounting journal consisting of a minimum of ten business transactions
– Construct basic financial statements based on your transactions
– Perform a basic ratio analysis to assess the success or failure of the business
Part 2
Your business is now providing goods and services to people across the world. You have also started working with multiple currencies. In your document, describe how working with multiple currencies can have an effect on financial on financial statements. List the steps you could take to reduce the risk of loss to your business when working with multiple currencies.
Combine both parts of the assignment into a single Word document. Your submission should be 6-10 pages, double-spaced, 12-point font, and in Times New Roman. No references are required, but if you choose to use them, these should be cited in APA format.
