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The financial statements of public companies located in the United Arab Emirates provide excellent examples of the impact that reporting investments at fair value can have on net income. This is because of the wide fluctuations in securities prices and real estate prices in recent years. Using an actual company, National General Insurance, which is located in Dubai in the United Arab Emirates, this case provides examples of the impact of fair value accounting for investments under International Financial Reporting standards (IFRS), for both securities and property investments. As US financial reporting moves towards harmonization with IFRS, it is critical to understand how reporting for investments under US Generally Accepted Accounting Principles (US GAAP) compares with international reporting standards. Specific learning objectives include gaining an understanding of the reporting requirements for investments under IFRS, understanding the difference between reporting requirements for investments under US GAAP and IFRS, and understanding both the positive and negative impacts on reported net income from using fair values for reporting investments.

Theories frequently used by researchers’ only offer limited insight, they do not explain why some multinationals continue to invest in some countries despite being rated low on the reasons explained by economic and comparative advantage theories. The paper examines the attractiveness of Australia as an investment destination for US based multinational corporations. By using Porter’s national advantage theory and other variables of country attractiveness, it examines what makes Australia an attractive destination. Within the fast moving consumer goods industry, Australia was found to be attractive for three reasons: incentives offered by the government, low risk and cultural distance. There is evidence that culture has an effect on the choice of foreign investment venture structure well ahead of market size, tariffs, growth and location to cultural similarity. The aim was not only to generate ideas for future more rigorous research but also to investigate the impact critical to elements, such as culture, that make foreign investments attractive.