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Finance in a global cotext - Coggle Diagram
Finance in a global cotext
Economic and Finacial flows
The Balance of Payments
The Capital Account record all transfer of capital
The finacial Account records inflows
Direct investment
Portfolio investments
Reserve assests
Currencies
Commodities
The Current Account register payments
Imports and exports
good and services
Transfers of Money
Global imalance
Surplus or deficit in Capital
Suplus or deficit in finacial balances
Corrected by market force or government action
Foreign Direct Investment
Multinationals
Operational Control in countries around the world
Companies that have operations in at least two contries
Financial institutions
International Monetary Fund
Framework for economic cooperation
Leands money to nations
The world bank
Long term view
eradicate poverty
Exchange Rates
The Foreign exchange market is where exchange rates are determined.
Value of currency affects the price of a businesses products abroad
Impacts cost of imports and exports
McBurger index
Government intervention
Buying own currency using foreign currency reserves
Increase intrest rates
Financial Reporting
International Financial Reporting Standard
Transparecy
Accountability
Efficiency
Not for profit public intrest organisation
Jurisdictions
Diffirent legal systems
The international accounting standards board
Sets international accounting standards
Reporting objectives
Assest
Liabilities
Equity
Income
Expenses
Change in equity
Change in cash flow
Tax
Transfer pricing
Traditional Approch
Arms Lenght Priciple
Trasfer mispricing
Alternative approche
Unitary Taxation
Organisation for Economic co-operation and development
International tax reporting requierments
Country by country reports
Master files
Local Files
Base erosion and profit shifting