• IBE_slide2

International Accounting Issues

The international accounting and taxation functions comprise great challenges for today’s global managers. We present the key accounting and taxation issues confronting firms that do business abroad.

First, we examine the ways in which national accounting systems differ and how today’s global capital markets force countries to consider the harmonization of their accounting and reporting standards. We then explore a number of unique issues multinationals face, such as the valuation and translation of transactions and assets that are denominated in foreign currencies. We settle with an examination of the impact of transfer pricing on business unit performance evaluation and an explanation of the balanced scorecard approach to performance evaluation.

Services

Objective
To examine the major factors influencing the accounting practices and the global convergence of accounting standards in different countries.

Outcomes
Cope with differing inflation rates, exchange-rate changes, currency controls, expropriation risks, customs duties, tax rates and methods of determining taxable income, levels of sophistication of local accounting personnel and locals as well as home-country reporting requirements.

Tools and Techniques
~ US GAAP
~ IFRS

Objective
To explain how companies account for foreign-currency transactions and translate foreign-currency financial statements.

Outcomes
Restate foreign-currency financial statements into US Dollars and combine all of these financial statements into one.

Tools and Techniques
~ Currency Rate
~ Temporal

Objective
To discuss different forms of performance evaluation of foreign operations, and explain how foreign exchange can complicate the budget process and how arbitrary transfer pricing can complicate performance evaluation and control.

Outcomes
Evaluate performance of foreign operations, including ROI, sales, cost reduction, quality targets, market share, profitability and budget to actual.

Tools and Techniques
~ Forecast Rates
~ Hedging Strategies
~ Transfer Pricing
~ Balanced Scorecard

Objective
To design, combine and implement the external and international mechanisms to safeguard the assets of a company and protect the rights of the shareholders.

Outcomes
Improved financial disclosures and stronger internal controls with oversight by an independent board of directors.

Tools and Techniques
~ Sarbanes-Oxley Act in the US
~ Audits
~ IFRS

Engagements

 

Featured Section

  • Connect to Grow
    July 2016|Newsroom
    Connect to Grow: Supporting Enterprise Growth through Innovation and Partnership
    Learn More
  • Integrating Trade in Nepal’s Development Strategies
    January 2016|Publication
    Integrating Trade in Nepal’s Development Strategies
    Learn more