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Competing in a Global Context - Coggle Diagram
Competing in a Global Context
Transfer Pricing
Arms Length Principle
OECD/United Nations Tax Committee endorsed.
Gives leeway to reduce taxes.
Prioritises legal form.
Transfer mispricing
Unitary Taxation/Profit Apportionment
Prioritises economic substance.
Taxed based on actions in world.
Obstacles
Path Dependency
Vested Interests
Technical Issues
Country by country reporting
Foreign Exchange Market
Value of currency impacts product pricing abroad.
International demand for GBP
More expensive GBP = lower demand for GBP
Changes in Exchange Rates
McBurger Index
Overcoming exchange rate problems
Government Intervention
Impact of Exchange Rate
The Euro
Financial Regulation
Stewardship
Verbal Financial Reports
Incite investors continued support
Managing National Economy
Government aiming for healthy economy
Aim to keep confidence in Economy.
Preserve Investor Confidence
Investors
Industrial Revolution
More capital required.
Large Investments in High Risk areas.
Economy Evolved.
Professional Manager
Capital Market Function
Balance sheet provided to shareholders.
Borrowed Finery
Adapting Legislation
Napoleon's first Commercial Code
UK/US Financial Reporting Form
European Financial Reporting Form
Imperialism
Influence of colonial tradition.
Influence of trade relations.
Economic Domination.
Taxation
Accounting
Provide basis for taxation.
Shapes accounting measurement.
Income Taxation.
Government Regulation.
Rule variations in different jurisdictions
Financial Reporting and its objectives
Contingent model of accounting change
Consensus for remedying problem sought
New Regulation
Financial Scandal/Significant economic change
State of Equilibrium
State of Equilibrium
Unintended Consequences
Means of Regulation
Common Law Model
Professional Accounting Bodies
Infrequently changed Company Law
Fluid professional rules from auditors/preparers/users
Roman Law Model
Government Regulation
Commercial Code
Tax statutes/jurisprudence
Worldwide Economic/Financial Flows
Balance of Payments
Current Account
Capital Account
Financial Account
Offers comparative position of countries
Account Deficit
Global Imbalances
Account Surplus
Foreign Direct Investments
Establishing offices internationally
Multinationals
Securing Operational Control