Multinational Corporations Vs. Mncs

In the course of history and as per the needs and complexity of financial system, almost each and every country in the world developed their own accounting principles and financial reporting system in accordance to their rule, law, culture and social order. However, as the world moves more toward globalization, world market economy get close to each other, International investments spread out throughout the globe especially among countries with open economy. Thus, the diversity in accounting practices is not conducive for boosting international investments, and businesses in today’s market. For example, guess you invest in the international market and you are required to prepare a financial report in compliance with rule of that country and then you need to convert the report to where your company is originally resident. First of all, it is a hassle for the investing companies to report based on the host country rule and regulation. Second, it creates a lot extra costs which fall on investors to compare the result of the report with different countries and may not be able to make a good comparison anyway. Thus, it limited the effectiveness of the international capital markets as well as cross border investment. (International Accounting Pg, 65)

Canon Inc. is a Japanese multinational corporation that specializes in the manufacture of imaging and optical products, including cameras, photocopiers, steppers and computer printers. Its headquarters are located in Ōta, Tokyo, Japan.[2]

The effort of moving towards international convergence of accounting standards has risen since the end of World War II, resulting to the revolution of financial reporting. “IFRS for example are accounting standards issued by the IASB, an independent organisation based in London, UK” (Ball, 2006). IASB is primarily established to promulgate IFRS and are responsible to set rules that can be equivalently implemented by public companies internationally. Uniform accounting standards are simply demanded in order to produce a comparable accounting information as many big companies begin to enlarge their territory beyond their home country. Therefore, many professionals believe that a transparent and understandable financial reporting could be produced by using uniform standards. However, the competency of uniform standards alone in producing uniform financial reporting is arguable due to significant factors. The existence of varieties in capitalism by individual countries have restricted the ability of uniform standards in regulating local financial reporting. Plus, the distinction in institutional influences make it harder for uniform standards to work efficiently in various political conditions and to agree with different types of regional legal structures. Besides, cultures and religions also play an important role in accounting industry as they have the power to shape national economies. Therefore, regardless of many benefits that uniform standards could bring, there are

It seems that the key issue facing global financial markets and international investors is worldwide accounting diversity as considerable differences exist across countries which inevitably leads to chaos in global capital markets as different amounts are being reported on balance sheets and income statements (Doupnik & Perera, 2012, p. 23). This type of environment can create extensive opportunities for corruption and poor performance and it is

Imagine you only earn 12-14-cent-an-hour for your hard work, imagine you work with toxic chemical glues, paints and solvents everyday. Multinational Corporation is a company that make and sells a product in more than one country. Sometime we called a ¡°transnational corporation ¡±. Multinational Corporation are harmful because of bad working condition, low wage and long hours, bad future and life.

The nature of Multinational Corporation does not allow containing a homogeneous structure of policies and practices. As, they operate into many

Over the years, Multinational corporations (MNCs) have been a source of controversy ever since the East India Company developed the British taste for tea and a Chinese taste for opium (Stopford, 1998). A typical multinational corporation (MNC) normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise (MNE) or a transnational corporation (TNC) (Tatum, 2010). They enter host countries in different ways and different strategies. Some enter by exporting their products to test the market and to find whether their existing products can gain sizeable market share. For such firms,

The first big factor of this change is globalization. Defined as the convergence of many markets around the world from different points to allow for further trade and the development of an organization’s international influence and operations on an international scale. “In a narrower sense, it refers to the economic exchange of goods and services internationally and international financial flows.” It’s had a massive effect on the amount of regulations and standards that accountants and businesses now must apply by. Globalization has also had an effect on the very concept of accounting. Globalization has brought about an increase in competition and timeliness that warrants for faster information gathering. This means that management accountants no longer just play the role of information provider but also the role of resource manager through costing analysis and using that information in the decision-making process.

Most MNCs in the world want to move to the "developing world" because of their cost/benefit analysis and because they tend to be more powerful than many of the national governments of the countries they wish to enter. As a representative of a MNC, you are met with fierce resistance from human rights groups, national and international, and women 's groups who argue that your company will lead to the displacement of thousands, disrupt the local economy and encourage labor rights abuses based on your record of dealing with other countries in the developing world. How would you respond and how would you negotiate?

The business environment appears to get smaller with each passing day. Therefore, accountants face troubles in remaining protected from the progressions that occur around the world (Diaconu and Coman 2006). Globalization hint at the regularly changing procedure of incorporation and connection among governments, individuals and organizations. The key three things that declare incorporate globalization venture, worldwide exchange and data innovation (Diaconu and Coman 2006). Globalization moves the world to another level and places it to more at the leading edge statures reliably. Outstandingly, globalization procedure have both negative and constructive effects on accounting (Godfrey and Chalmers 2007). This is unmistakable as in,

Multinational Corporations are the economic powerhouses of globe. These corporations bring an influx of wealth, power and resources. With the introduction of Corporations in other countries it brings employment opportunities, technological advancements and in best case scenarios raises standards of living; However the cons of Multinational corporations are increasing and in some cases getting out of hand. We are seeing increasing cases of companies forgoing waste management laws and disposal standards as well as the exploitation of workers either violating child labor policies or underpaying employees both in state and internationally. This is creating serious harm the the environment as well as the harm to the well being of those employed. Often times these negative consequences are the reverse of the benefits, yes there are job opportunities that might have not been available before but at 50 cents an hour how much is truly beneficial.

All companies, specifically Multinational Corporations (MNC), are faced with a progressively complex environment in order to accommodate global economies, accelerated advancements in technology, evolving socio-cultural ideals, rapidly changing demographics and new consumer trends (Goksoy, 2016). In today’s world, it is highly essential for a multinational corporation to respond quickly to the ever-changing environment and to the highly competitive outside forces that affect businesses. Due to all of these factors, change management requires a delicate balance. To offer an example of change, technology has allowed for the quick exchange of information in addition to how employees and managers can attend meetings for work. Moreover, information put out on social media can affect a public company in the stock market. For these reasons and many more, an organization must be able to react and implement change to further the success and status of the company. For the past couple of months, a division manager for Starbucks has been frustrated because the changes he tries to implement have been significantly unsuccessful. As a consultant for the company, the author has prepared a procedural document that the division manager can refer to when such changes need to be incorporated. At the end of every procedure given, the ways in which to overcome resistance to change are included.

The primary purpose of this essay is to evaluate the Multinational Corporations (MNCs) role in discharging their ethical and philanthropy beyond the statutory requirements and its implications on the reporting system.

Why do multinational enterprises (MNEs) exist? This seems to be a silly question. The answer seems to be simple – because they are profitable! But the issue is more complicated than it sounds.

Advance in technology, globalization and internationalization are affecting the method organizations are conducting businesses in the contemporary business environment. Changes in the method that organizations employ in conducting business also increase the danger of fraudulent financial reporting. Financial failures and high profile scandals within business environment between 2000 and 2002 have necessitated market regulators to call for scrutiny in the corporate financial reporting in the United States. The occurrence of fraudulent practices within business environment made the stakeholders to call for risk management, governance as well as increase in the scrutiny and quality in auditing and assurance. Following the WorldCom and Euron's fraud scandals that eroded the confidence of investors in the United States, the government focuses on the impact of external auditing practice on the quality of financial reporting. In 2001, Euron Corporation filed for bankruptcy with $62 billion worth of assets. The downfall of Euron made thousands of employees to lose their jobs making thousands of shareholders to lose their money. In 2002, WorldCom also filed for bankruptcy with $100 billion worth asset making Euron case appear small in comparison. High profile scandals that swept across the United States between 2001 and 2002 have shown that quality-auditing practice is very critical for the quality accounting and financial reporting.