Question

Before finding earth, the only foreign transactions the Endorians ever had was with the Vulcan’s. The Vulcan economy has always been very stable with little to no inflation, therefore; Endor accounting only has one method for handling foreign currency. This method is similar to our method when the foreign currency is functional. Against the advice of family, friends and the music loving people of the galaxy, Mr. Spock, the treasurer of Vulcan has resigned to pursue a career on American Idol, X-factor, America’s got talent etc.. This has sent shock waves throughout the Vulcan economy and massive inflation has begun there.   All the experts believe that after 5 years of trying out (and being kicked off) all these talent shows, Mr. Spock will return to Vulcan and restore stability to their economy.

Do you think the Endorian method is best when inflation is not a problem?

Do you think the monetary/nonmonetary method is best when inflation is a problem?

If Endorian Companies were in the US they would be forced to switch method for the 5 years Mr. Spock tortures the music loving galaxy and then switch back when stability comes to Endor. Do you think companies should have to switch and lose consistency? Explain your answer.

Answer 1

Solved Passage 1:

Write memos to our 4 distinguished representatives explaining why you have accepted or rejected their recommendation.

Memo 1:

To: Madam JarJar, Head, United Nations

From: XYZ, Head IFRS/GAAP Convergence Committee

Date: dd:mm:yyyy

Subject: Recommendation Review

Dear Madam JarJar,

The IFRS/GAAP Convergence Committee reviewed your recommendation on the case of accounting languages concerning Earth-Endorian business relations. After reviewing the recommendation through multiple levels, we beg to say that we may not be able to move ahead with the same as we concur it might lead to challenges in understanding the accounting books as it might be difficult for any party to understand the language of the other party. As at this juncture of trade relations, transparency is a major parameter to success, we would consider absolute transparency in conduct.

Thank you for taking out time for this case.

Memo 2:

To: Mr. Vadar, Head, IMF

From: XYZ, Head IFRS/GAAP Convergence Committee

Date: dd:mm:yyyy

Subject: Recommendation Review

Dear Mr. Vadar,

The IFRS/GAAP Convergence Committee reviewed your recommendation on the case of accounting languages concerning Earth-Endorian business relations. After reviewing the recommendation through multiple levels, we beg to say that we may not be able to move ahead with the same as we concur it might lead to challenges in understanding the accounting books as it might be difficult for the Endorians to understand English. As at this juncture of trade relations, transparency is a major parameter to success, we would consider absolute transparency in conduct.

Thank you for taking out time for this case.

Memo 3:

To: Mr. Yoda, Head, Endorian Treasury

From: XYZ, Head IFRS/GAAP Convergence Committee

Date: dd:mm:yyyy

Subject: Recommendation Review

Dear Mr. Yoda,

The IFRS/GAAP Convergence Committee reviewed your recommendation on the case of accounting languages concerning Earth-Endorian business relations. After reviewing the recommendation through multiple levels, we beg to say that we may not be able to move ahead with the same as we concur it might lead to challenges in understanding the accounting books as it might be difficult for our Earth colleagues to understand the Endorian language. As at this juncture of trade relations, transparency is a major parameter to success, we would consider absolute transparency in conduct.

Thank you for taking out time for this case.

Memo 4:

To: Prof. C3P0, Head, Linguistics, The University of The Hoth System

From: XYZ, Head IFRS/GAAP Convergence Committee

Date: dd:mm:yyyy

Subject: Recommendation Review

Dear Prof. C3P0,

The IFRS/GAAP Convergence Committee reviewed your recommendation on the case of accounting languages concerning Earth-Endorian business relations. After reviewing the recommendation through multiple levels, we are glad to share that we have accepted your recommendation for the case. It is important to have mutual understanding at this juncture of bilateral trade relations as the parties are relatively unknown to each other’s cultures and languages. Your recommendation will help build the culture of mutual trust as linguistic challenges can be taken care of using the same.

My sincere congratulations to you.

Discuss what steps (if any) and how they are to be funded to accomplish your recommendation.

After selecting Prof. C3P0’s recommendation, my first priority would be to have a joint meeting with all the stakeholders – trade bodies, banking bodies, industry bodies and governments of both the planets – to align them to the recommendation. There will be challenges at first but we would need to explain why the selected alternative is the most viable of the lot. Next step would be to seek funding from the bodies, majorly the trade, industry and government bodies to make the plan a success. Major funding would come from industry bodies as companies are most likely to enjoy the fruits of the deal in the short run.