Identify the major International accounting issues that International firms face when operating in foreign currencies. How...

Identify the major International accounting issues that International firms face when operating in foreign currencies. How can these issues be reduced or eliminated?

Expert Solution

one of the major issues that the firms doing international business face is :

tax compliance. when businesses are operating internationally , the major issue that can arrive in the accounting is the problem of tax complaince and the burden of double taxation for the businesses liable to pay corporate tax abroad. different rates of taxes and compliances can make the process of accounting a very cahllenging process.

the way this issue can be addressed is :

by being aware of the tax treaties and mitigating the risk of different layers of taxes , i.e the problem of double taxation.

the differences in the currency rates : the different currency rates can create a problem when making accounting transactions. major fluctuations can seriously make an impact on the business expense and profit.

a way in which this problem can be addresses is :

by entering into a forward contract to predertime the price at which the sales will happen in the future, so as to mitigate the risk of currency fluctuations.

jeff jeffy answered 2 years ago

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