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International Finance | Assignment

   

Added on  2020-12-18

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FinanceEconomicsPolitical Science
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International Finance
International Finance | Assignment_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. Impact of standardised international accounting reporting practices......................................1TASK 2............................................................................................................................................32. Potential issues that are raised for multinational companies..................................................33. Comparing and contrasting strategies that can be used by multinational companies.............5TASK 3............................................................................................................................................74. Impact of risk and requirement to comply with international accounting and reporting........7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
International Finance | Assignment_2

INTRODUCTIONInternational finance is a broad term which is focused with the interrelation of monetaryresources and macro economics. IFC (International Financial Corporation) is an internationalfinancial institution who publish principles, rules and regulations for the organisations to managetheir funds that are invested in international business. Under this various different activities areperformed by the organisations such as making investments in capital market, monitoring foreignexchange rates and conducting trade practices in one or more countries (Abadie, Galarraga andRübbelke, 2013). This project report is mainly based on the detailed study of international finance and itsuses. Company chosen for this report is Real Madrid C.F. which is a football club established inMadrid, Spain. Recently Real Madrid is planing to execute business operation at global level . Somanagement of Football group has decided to expand their business in China Market. This isbecause China have diversified economy and one of the most leading country in world thathave. Report shows the different problem faced by management of Real Madrid C.F anddifferent effective decision made to overcome these financial issues. Different topics have beencovered under this assignment that are impact of standardised international accounting andreporting practices on promoting and protecting stakeholders interest etc. Potential issues thatmay take place in market and affect multinational companies, comparing and contrasting variousstrategies, an evaluation of impact of risk and requirement to comply with internationalaccounting and reporting standards have also been discussed in this report.TASK 11. Impact of standardised international accounting reporting practicesInternational accounting and reporting: Both the terms are related to the reportingsystem of financial transactions in financial statements as they are evaluated by stakeholders inorder to make strategic decision. Various types of standards and principles have been introducedby regulatory authorities so that transparent final accounts can be formulated. For Real MadridC.F. it is very important to follow all the principles so that it can satisfy its stakeholders and gaintheir trust by representing a transparent image of the organisation. IAS (International AccountingStandards) and IFRS (International Financial Reporting Standards) are the standards that are1
International Finance | Assignment_3

imposed by IASC (International Accounting Standards Committee) and IASB (InternationalAccounting Standards Board) (Argy, 2013). IAS: All the standards under IAS have been launched by IASC and all of them have beenintroduced to guide organisations to conduct accounting practices in appropriate manner. Thesewere published in year 1973. Main objective of these standards is to enhance transparency in thefinal accounts of the organisations so that their business can be executed successfully. Whencome contradictions have taken place due to IAS than IASB lunched IFRS that are the modifiedversion of IAS (Armijo and Echeverri-Gent, 2014).IFRS: All the standards were launched in year 2001 for the purpose of directingorganisations to appropriately formulate financial statements. Some of the selected IFRS are asfollows that should be followed by Real Madrid C.F.:IFRS 1: It is related to first time adoption of financial reporting standards and it helps theorganisations to formulate all the financial statements appropriately. It set outs variousregulations and rules for the companies that are required to be followed at the time of recording.IFRS 2: It is concerned with share based payments of an organisation. This standardguide the companies to mention information about share based payments so that shareholderscan gather data of the returns or dividends that will are going to be received by them.IFRS 9: This is based on the reporting of financial instruments that an organisation ishaving in its balance sheet. According to this standard the companies should present appropriateinformation of all the financial instruments that are used by the company in order to operatebusiness and increase its monetary resources.IFRS 10: It is related to the consolidation of financial statements in which all thefinancial information is recorded by the organisation. This standard guide the companies to formtheir statements in consolidated form so that overall performance and profitability can bemeasured. The parent company is responsible for the formulation of final accounts and measurethe financial strength. All the above mentioned standards are followed by Real Madrid C.F. For the purpose ofproviding appropriate information of business to its stakeholders. If the organisation is not ableto follow all the standards than it can create problems as it is a multinational company. It is notpossible for Real Madrid C.F. To implement reporting and accounting principles of all the2
International Finance | Assignment_4

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