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9 pages/≈2475 words
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8
Style:
Harvard
Subject:
Business & Marketing
Type:
Book Report
Language:
English (U.K.)
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MS Word
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Total cost:
$ 38.88
Topic:
Global Issues in Accounting ACG33
Book Report Instructions:
MUST WRITE REPORT
Assignment 2 – Major Report
You are providing advice to a large and successful Australian digital technology company (KW DT Ltd). The company has succeeded in exporting their products to a number of overseas countries and has thus far avoided any problems with fluctuating exchange rates by requiring that all transactions be recorded in Australian dollars. Because of increasing demand for its products and lower manufacturing costs overseas, the company is now considering the establishment of a manufacturing plant in Malaysia, Thailand or South Korea. You are required to select one of these proposed destinations and prepare a report outlining to the board the accounting and other issues which will arise and which must be considered when developing an overseas operation in your selected destination.
THIS ASSIGNMENT MAY BE COMPLETED IN GROUPS NOT EXCEEDING 4 PERSONS and must be submitted via AssignIT.
If you need to locate other group members, you can use the discussion board. It is suggested that you do not put private contact details such as phone numbers on the discussion board, but that contact be via email in the first instance.
This assessment will enable students to discuss various business and accounting issues arising from Australian businesses operating internationally.
Graduate Qualities Assessed:
- Are prepared for lifelong learning
- International perspectives
- Can work collaboratively
- Communicates effectively
Format / Expectations:
This assignment is to be completed in the form of a report.
This report must be printed in 1½ line or double spacing on single sided pages with 3cm left and right margins, and 2.5cm top and bottom margins.
The report is to be 2,500 words in length. The word limit excludes the executive summary and the list of references.
All resources used in your report must be dated no earlier than 2005 and no undated resources may be used.
The Harvard system of referencing is to be used. Failure to use or adequately use the Harvard system of referencing will result in a grade of fail being awarded for this assessment.
Penalties
Late assignments that do not have approved extensions will incur a “flat” penalty of 10% per day late (including weekends). Assignments received more than 5 days after the due date without an approved extension will be awarded a zero mark.
====================
ACG33 (ver 16)
GLOBAL ISSUES FOR ACCOUNTING
Book Report Sample Content Preview:
Running Head: Global Issues in Accounting
Insert Name
Insert Course Title
Insert Instructor`s Name
Date
Table of Contents
TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc283962622 \h 3
1. Introduction………………………………………………………………………………………………………………………………………..3
2. Current economy4
3. Conclusion PAGEREF _Toc283962627 \h 9
4. Recommendations PAGEREF _Toc283962628 \h 10
5. References PAGEREF _Toc283962629 \h 12
Executive Summary
The research undertaken is aimed at providing sublime information on KW Ltd on its strategy to invest in Malaysia. The Company is intending to expand its operations to include cross-border transactions and the report tries to orient the Company on the beneficial impact upon investing in Malaysia. The report entails the major themes affecting the worldwide economies which include political, socio-cultural, economic and legal effects.
The research is focused on the global issues affecting the accounting systems. For instance, hedging translation of foreign currency by the domestic company, risk associated with foreign exchange. This analysis provides an inherent and comprehensive understanding of the adverse and beneficial factors that may have an effect in the global accounting system. Global business initiatives are imperative in the way the global accounting system is to be initiated. In addition, competitiveness of the company in the economy and the effect of transfer pricing makes it to overhaul to a more influential accounting techniques (Christopher, 2007).
The implications in this case is that various business organizations need to appreciate the concept of global change in the business economy and thus be able to put into consideration the relevant accounting policies and standards that will enhance its competitiveness. As such, the themes highlighted will have an effect in the Company`s undertakings and it has to incorporate the various required changes in order to attain its long run efficiency.
1 Introduction
KW Ltd is planning to incorporate in its operations the export of digital products to Malaysia. The Company`s operation is based in Australia and undertakes digital products for exports. The current plans of expanding its operations to overseas have been instigated by the competitive nature of the economy and the inherent technological advancement in developing countries. The company has relied on its domestic accounting policies and therefore has been experiencing increased profits over the past years. KW Ltd has been provided with different strategies to embark on in order to maximize its outlay. The research was conducted by a group of researchers in order to come up with the implications the Company faces by getting involved in cross-border transactions (Don, 2008).
The main focus was Malaysia where the market for digital products is booming and therefore provided a more cohesive market for its products. The report compiled is to provide the Company with challenges that will face KW Ltd upon investing its operations in Malaysia. It also analyzes the positive implications of such undertakings and how it benefits the Company in the realization of its strategic goals (Gerard, 2009). The company needs to articulate to the relevant accounting principles available in the geographical region of its operations. As such according to GAAPs various geographical regions provide their accounting standards and principles which will, in one way or another, comply with that of the board.
2 Current economy
KW Ltd participation in the cross border business transaction will force to comply with the international regulations and therefore its financial system should show the various accounting notions that are to be used in the transactions. As such, the company`s financial report should account for the risks involved in foreign exchange undertakings. According to Christopher (2007), KW Ltd can immensely reduce the risks involved by incorporating the various risk reduction strategies. These strategies are the ways of hedging the risk. The major strategy to be undertaken is the contracts involving forward exchange for the currency. In this initiative KW Ltd will indulge its transactions now but aims to be paid at a specified date when the foreign exchange currency has skyrocketed. This will boost its revenue outlay unlike in the case where the payment would have been undertaken in the same period the transaction took place.
Additionally, other hedging strategies that will boost the financial position of KW Ltd is by use of the currency future contracts, contract for forward exchange on the interest, currency`s money market processes, interests` money market operations and the future contract for the interest. The economic volatility and its inflationary nature have enhanced the KW Ltd operations in Malaysia to also incorporate various accounting changes with ease.
Currently, the economy is facing a recess after the Global Financial Crisis experienced in the early 2008 and the financial markets experience a gradual increase in its operations. The problem was instigated by accounting profession and the imminent use of the accounting policies across geographical boundaries. In most instances, corporate governance had been in use by many countries that practices cross-border investment. The system is determined by several factors including; legal system of the domestic country government policies executed, cultural diversity, corporate ownership, economic climate and also the capital inflows from external economies (John, 2007).
Foreign exchange translation will also affect the accounting policies in which KW Ltd will apply. As such, the currency translation will foster the revenue outlay where the management of the Company puts into consideration the timely effects. In order to achieve a stable financial position in the Malaysia economy, should adopt the strategy. This will enhance KW Ltd to transact with individuals in Malaysia using the domestic currency therefore lowering eth costs incurred in foreign exchange initiatives (Christopher, 2007).
KW Ltd accounting system should incorporate the imperative tax avoidance in order to minimize the cost outlay associated with double taxation notion. This strategy enhances the Company not to pay irrelevant taxes in Malaysia and also in the domestic country. Mitigation of such initiative in the accounting system of KW Ltd will foster increased revenue and thus its financial position is stabilized. Malaysian economy has a wide tax base and therefore where the company`s strategy does not focus on tax avoidance, the result is adverse.
The Company will face various challenges upon adopting the strategy of investing in Malaysia. This will range from differing accounting policies in these two countries, socio-cultural differences of inhabitants of Malaysia, legal undertakings, political, economic and financial implications of the region. The Company needs to integrate these changes in order to effectively fit into the system and realize their strategic goal in the short time possible (Mary, 2007).
Political dimension and the influence it has on the accounting operations in relation to foreign and national policies have an effect in the operation of foreign investment. KW Ltd will face challenges in the Malaysia economy on the adoption to various economic stipulations. Some of the political strategies deployed are restriction to accessibility to products in some of the designated regions and also facilitations of incentives to industries when investing in certain geographical region (Christopher, 2007). The restrictions are facilitated by the lack of security and also adverse economic effects on the place. Such restrictions will force the Company to change the location and focus on less restricted areas.
Cultural diver...
Insert Name
Insert Course Title
Insert Instructor`s Name
Date
Table of Contents
TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc283962622 \h 3
1. Introduction………………………………………………………………………………………………………………………………………..3
2. Current economy4
3. Conclusion PAGEREF _Toc283962627 \h 9
4. Recommendations PAGEREF _Toc283962628 \h 10
5. References PAGEREF _Toc283962629 \h 12
Executive Summary
The research undertaken is aimed at providing sublime information on KW Ltd on its strategy to invest in Malaysia. The Company is intending to expand its operations to include cross-border transactions and the report tries to orient the Company on the beneficial impact upon investing in Malaysia. The report entails the major themes affecting the worldwide economies which include political, socio-cultural, economic and legal effects.
The research is focused on the global issues affecting the accounting systems. For instance, hedging translation of foreign currency by the domestic company, risk associated with foreign exchange. This analysis provides an inherent and comprehensive understanding of the adverse and beneficial factors that may have an effect in the global accounting system. Global business initiatives are imperative in the way the global accounting system is to be initiated. In addition, competitiveness of the company in the economy and the effect of transfer pricing makes it to overhaul to a more influential accounting techniques (Christopher, 2007).
The implications in this case is that various business organizations need to appreciate the concept of global change in the business economy and thus be able to put into consideration the relevant accounting policies and standards that will enhance its competitiveness. As such, the themes highlighted will have an effect in the Company`s undertakings and it has to incorporate the various required changes in order to attain its long run efficiency.
1 Introduction
KW Ltd is planning to incorporate in its operations the export of digital products to Malaysia. The Company`s operation is based in Australia and undertakes digital products for exports. The current plans of expanding its operations to overseas have been instigated by the competitive nature of the economy and the inherent technological advancement in developing countries. The company has relied on its domestic accounting policies and therefore has been experiencing increased profits over the past years. KW Ltd has been provided with different strategies to embark on in order to maximize its outlay. The research was conducted by a group of researchers in order to come up with the implications the Company faces by getting involved in cross-border transactions (Don, 2008).
The main focus was Malaysia where the market for digital products is booming and therefore provided a more cohesive market for its products. The report compiled is to provide the Company with challenges that will face KW Ltd upon investing its operations in Malaysia. It also analyzes the positive implications of such undertakings and how it benefits the Company in the realization of its strategic goals (Gerard, 2009). The company needs to articulate to the relevant accounting principles available in the geographical region of its operations. As such according to GAAPs various geographical regions provide their accounting standards and principles which will, in one way or another, comply with that of the board.
2 Current economy
KW Ltd participation in the cross border business transaction will force to comply with the international regulations and therefore its financial system should show the various accounting notions that are to be used in the transactions. As such, the company`s financial report should account for the risks involved in foreign exchange undertakings. According to Christopher (2007), KW Ltd can immensely reduce the risks involved by incorporating the various risk reduction strategies. These strategies are the ways of hedging the risk. The major strategy to be undertaken is the contracts involving forward exchange for the currency. In this initiative KW Ltd will indulge its transactions now but aims to be paid at a specified date when the foreign exchange currency has skyrocketed. This will boost its revenue outlay unlike in the case where the payment would have been undertaken in the same period the transaction took place.
Additionally, other hedging strategies that will boost the financial position of KW Ltd is by use of the currency future contracts, contract for forward exchange on the interest, currency`s money market processes, interests` money market operations and the future contract for the interest. The economic volatility and its inflationary nature have enhanced the KW Ltd operations in Malaysia to also incorporate various accounting changes with ease.
Currently, the economy is facing a recess after the Global Financial Crisis experienced in the early 2008 and the financial markets experience a gradual increase in its operations. The problem was instigated by accounting profession and the imminent use of the accounting policies across geographical boundaries. In most instances, corporate governance had been in use by many countries that practices cross-border investment. The system is determined by several factors including; legal system of the domestic country government policies executed, cultural diversity, corporate ownership, economic climate and also the capital inflows from external economies (John, 2007).
Foreign exchange translation will also affect the accounting policies in which KW Ltd will apply. As such, the currency translation will foster the revenue outlay where the management of the Company puts into consideration the timely effects. In order to achieve a stable financial position in the Malaysia economy, should adopt the strategy. This will enhance KW Ltd to transact with individuals in Malaysia using the domestic currency therefore lowering eth costs incurred in foreign exchange initiatives (Christopher, 2007).
KW Ltd accounting system should incorporate the imperative tax avoidance in order to minimize the cost outlay associated with double taxation notion. This strategy enhances the Company not to pay irrelevant taxes in Malaysia and also in the domestic country. Mitigation of such initiative in the accounting system of KW Ltd will foster increased revenue and thus its financial position is stabilized. Malaysian economy has a wide tax base and therefore where the company`s strategy does not focus on tax avoidance, the result is adverse.
The Company will face various challenges upon adopting the strategy of investing in Malaysia. This will range from differing accounting policies in these two countries, socio-cultural differences of inhabitants of Malaysia, legal undertakings, political, economic and financial implications of the region. The Company needs to integrate these changes in order to effectively fit into the system and realize their strategic goal in the short time possible (Mary, 2007).
Political dimension and the influence it has on the accounting operations in relation to foreign and national policies have an effect in the operation of foreign investment. KW Ltd will face challenges in the Malaysia economy on the adoption to various economic stipulations. Some of the political strategies deployed are restriction to accessibility to products in some of the designated regions and also facilitations of incentives to industries when investing in certain geographical region (Christopher, 2007). The restrictions are facilitated by the lack of security and also adverse economic effects on the place. Such restrictions will force the Company to change the location and focus on less restricted areas.
Cultural diver...
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