MANAGERIAL ISSUES IN INTERNATIONAL ACCOUNTING CHAPTER 7 MANAGERIAL ISSUES IN INTERNATIONAL ACCOUNTING

LEARNING OBJECTIVES: 1. Examine budgeting and performance evaluation issues for international firms

2. Discuss global risk management tools and strategies including multinational capital budgeting and foreign exchange risk management

3. Identify the main constituents of cross-border transfer pricing policies, define the transfer pricing methods, and consider the issues in devising a transfer pricing strategy

4. Recognize the critical role of information technology systems in the effective recording, processing and dissemination of financial and managerial accounting information

CHAPTER OUTLINE I. Budgeting and Performance Evaluation (1) Using Appropriate Performance Measures (2) Using Appropriate Currencies

I. Budgeting and Performance Evaluation (3) Transfer Pricing Policies (4) Other consideration (5) Distinguishing Between Manager Performance and Subsidiary

I. Budgeting and Performance Evaluation (6) Some Comparative Evidence on Budgets and Performance Evaluation Systems

II. Global Risk Management (1) Multinational Capital Budgeting (2) Managing Foreign Exchange Risk

III. Transfer Pricing (1) Major Constituents Affected by Transfer Pricing Choices (2) Internal Constituents (3) External Constituents

III. Transfer Pricing (4) Transfer Pricing Methods (5) Advance Pricing Agreements (6) Research Evidence on Determinants of International Transfer Pricing Methods

IV. Information Technology (1) Complexities Involving IT Systems for MNCs (2) Global IT Challenges and Strategies