What accounting issues arise for a company as a result of engaging in international trade
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What accounting issues arise for a company as a result of engaging in international trade (imports and exports)?
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- This question is related to (International Accounting) course. Critically discuss the issues associated with the calculation of profit of a foreign subsidiary.What are the acceptable methods of accounting for business operations in a foreign country? Choose a publicly-traded company that operates internationally and identify the impact that the foreign operations have on the financial statements. Explain.How important of international trade (imports and exports) to the world economy? What accounting issues arise for a company as a result of engaging in international trade (imports and exports)? Why might a company be interested in investing in an operation in a foreign country (foreign direct investment)?
- Do all transactions between US businesses and foreign parties need specific accounting processes on the side of the US businesses? Explain.Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.What are the primary challenges that arise in accounting for and analyzing international transactions? Illustrate how differences in accounting standards, currency exchange rates, cultural factors, and regulatory requirements can impact the financial reporting and analysis of multinational companies operating in various countries.
- Functional currency is the currency that influences sales price, labour, material and other costs of a company’s goods and services. (a) Explain factors that should also be considered to determine the functional currency of a foreign operation. (b) Explain what will happen if a business transaction is denominated in foreign currency but reported in functional currency.Recognize the particular accounting challenges connected with combining a foreign subsidiary's activities with those of its parent business in the United States.How assets, liabilities, provisions and foreign exchange transactions are recorded in the books of manufacturing companies ?
- Where are the EU directives effective in generating comparability of financial statements across companies located in number of nations? Why or why not?What does it mean by "Financial Services" when pertaining to the North American Free Trade Area?What are the key challenges faced in the accounting and analysis of international transactions, and how do they impact financial reporting and decision-making for multinational companies?