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International Accounting, Finance, and Taxation - Coggle Diagram
International Accounting, Finance, and Taxation
Environment of Global Financial Markets
The Rise of Cross-border financing
Financial reasons
Possibilities to obtain cheaper financing outside
Lowering overall cost of capital
Non-financial reasons
Desire to be a world-class company
External financial markets
Short term financial markets, less than a year
Money markets
Long term financial markets
Capital market
Equity Market
Sales of rights of ownership
Debt Market
Borrowing from other firms
Bank market
The environment of International Financial Accounting
Causes
Political and economic ties with other countries
Levels of inflation
The legal system
The size and complexity of business
The source of external financing
Culture
Consequences
Harmonization of financial accounting diversity
International accounting standards board (IASB)
International Financial Reporting Standards (IFRS)
International Financial Reporting
International consolidation
Combine assets, liabilities, and other financial items of two or more entities into one
Financial statements wherein all subsidiaries report under the umbrella of a parent company
Foreign currency translation
To translate the financial statement from subsidiaries into one consolidation
Current exchange rate
Average exchange rate
Historical exchange rate
Auditing in an International Environment
Examine and verify the adequacy of a company's financial and control systems and the accuracy of its financial records.
International financial statement analysis
Barriers
Format
Language
International taxation
Every nation sets its own tax policy in line with its own national goals and traditions.
The worldwide principle results in double taxation, since income earned outside a country is taxed by the foreign tax authorities and then taxed by the home tax authorities.
Tax minimization strategies
Tax credits
Tax incentives tax havens
Tax treaties
International transfer prices
The price paid for the transfer of goods and services between two subsidiaries of the same multinational company.