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Accounting Reporting Criteria Comparision

Please help me with the following:

Prepare a 700 word paper, in which you compare and contrast the accounting reporting criteria (regulatory environment, issues with foreign currency, differences in GAAP, etc.) of a U.S. company with a foreign company.

Select U.S. Company and foreign company (Go with Ford and Nissan) for comparison answering the following questions

1. Regulatory environment
2. Issues with foreign currency
3. differences in GAAP
4. Other considerations???

Properly cite your references. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

Solution Preview

Ford and Nissan face several regulatory issues that are similar and different. Ford has to comply with the requirements of Corporate Average Fuel Economy, that is the sales weighted average fuel economy, expressed in miles per gallon of a manufacturer's fleet of passenger cars or light trucks with a gross vehicle weight rating of 8,500 lbs. or less manufactured for sale in the US. The authority to establish CAFÉ standards have been handed over to the Administrator of the National Highway Traffic Safety Administration. Violations lead to severe fines. Also the financial reporting for both Ford and Nissan must meet the requirements of International Financial Reporting Standards if they want to do business in the European Countries. With regards to the regulatory environment both Ford and Nissan must adhere to the CO2 emissions regulations. Moreover, both Ford and Nissan must meet the Block Exemption Regulations in Europe. This regulation governs the competition rules in the EU. The companies must comply with the end of life vehicles regulations 2003. Finally, in the US the automobile companies must meet with the requirements of the Sarbanes Oxley Act. The main offices of Nissan are located in Giriza, Tokyo. Nissan must comply with the Air Pollution Control Law (Environmental Agency). In other words it must comply with the permissible limits on the amounts of motor vehicle ...

Solution Summary

This solution compares and contrasts accounting reporting criteria of a US company with that of a foreign company.