Besserbrau AG is a German beer producer headquartered in Ergersheim,  Bavaria. The company, which was founded in 1842 by brothers Hans and  Franz Besser, is publicly traded, with shares listed on the Frankfurt  Stock Exchange. Manufacturing in strict accordance with the almost  500-year-old German Beer Purity Law, Besserbrau uses only four  ingredients in making its products: malt, hops, yeast, and water. While  the other ingredients are obtained locally, Besserbrau imports hops from  a company located in the Czech Republic. Czech hops are considered to  be among the world’s finest. Historically, Besserbrau’s products were  marketed exclusively in Germany. To take advantage of a potentially  enormous market for its products and expand sales, Besserbrau began making sales in the People’s Republic of China 3 years ago. The company  established a wholly owned subsidiary in China (BB Pijio) to handle the  distribution of Besserbrau products in that country. In the most recent  year, sales to BB Pijio accounted for 20 percent of Besserbrau’s sales,  and BB Pijio’s sales to customers in China accounted for 10 percent of  the Besserbrau Group’s total profits. In fact, sales of Besserbrau products in China have expanded so rapidly and the potential for  continued sales growth is so great that the company recently broke  ground on the construction of a brewery in Shanghai, China. To finance  construction of the new facility, Besserbrau negotiated a listing of its  shares on the London Stock Exchange to facilitate an initial public  offering of new shares of stock.

Discuss the various international accounting issues confronted by Besserbrau AG.