General Motors Vs. Volkswagon
...Group Members
Jose Cervantes
Hilda Patricia Moreno
Aracelis Nass
Keila Urdaneta
Florida International University
ACG 6255 International Accounting
Professor Leonardo Rodriguez
Summer 2008
TABLE OF CONTENTS
Objectives ………………………………………………………………………………………………………………………………………………………3
The Automotive Industry ……………………………………………………………………………………………………………………………….4
The Automotive Industry in the United States …………………………………………………………………………………..5
The Automotive Industry in Germany ……………………………………………………………………………………………….7
Company Backgrounds ………………………………………………………………………………………………………………………………….8
General Motors Corporation …………………………………………………………………………………………………………….9
The Volkswagen Group ……………………………………………………………………………………………………………………10
Environmental Factors …………………………………………………………………………………………………………………………………11
German Legal System ……………………………………………………………………………………………………………………..11
United States Legal System ……………………………………………………………………………………………………………..12
German Economic Environment ………………………………………………………………………………………………………13
United States Economic Environment ……………………………………………………………………………………………. 14
German Social and Business Environment ……………………………………………………………………………………….15
United States Social and Business Environment ………………………………………………………………………………16
Accounting and Auditing Standards Used by GM and VW …………………………………………………………………………….16
Consolidation Methods ……………………………………………………………………………………………………………………17
Foreign Currency Translation Methods ……………………………………………………………………………………………18
Auditing Standards ………………………………………………………………………………………………………………………….19
Translation Method ……………………………………………………………………………………………………………………………………..20
Financial Ratios Analysis ……………………………………………………………………………………………………………………………….23
Liquidity Ratios: Short-Term Solvency ………………………………………………………………………………………………26
Activity Ratios: Liquidity of Specific Assets ……………………………………………………………………………………….27...
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