International Business: The New Realities, 5th Edition

Managing the Diversity of International Accounting and Tax Practices

1. 10.6 Understand how to manage the diversity of international accounting and tax practices.

Accounting systems differ around the world. There are dozens of approaches for determining company profits, R&D expenditures, and cost of goods sold.28 Balance sheets and income statements vary internationally, not just in language, currency, and format but also in their underlying accounting principles. Financial statements prepared according to the rules of one country may be difficult to compare with those of another.

Transparency is the degree to which companies regularly reveal ...