Questions from International Accounting

Q: Muscle Max–Asia, a wholly owned affiliate of a French

Muscle Max–Asia, a wholly owned affiliate of a French parent company, functions as a regional headquarters for operating activities in the Pacific Rim. It enjoys great autonomy from its French parent...

Q: Consider the statement “National differences in statutory tax rates are the

Consider the statement “National differences in statutory tax rates are the most obvious and yet least significant determinants of a company’s effective tax burden.” Do you agree? Explain.

Q: Carried to its logical extreme, tax planning implies a conscientious policy

Carried to its logical extreme, tax planning implies a conscientious policy of tax minimization. This mode of thinking raises an ethical question for international tax executives. Deliberate tax evasi...

Q: Compare and contrast the role of transfer pricing in national versus international

Compare and contrast the role of transfer pricing in national versus international operations.

Q: Multinational transfer pricing causes serious concern for various corporate stakeholders. Identify

Multinational transfer pricing causes serious concern for various corporate stakeholders. Identify potential concerns from the viewpoint of a. minority owners of a foreign affiliate, b. foreign taxing...

Q: The pricing of intracompany transfers is complicated by many economic, environmental

The pricing of intracompany transfers is complicated by many economic, environmental, and organizational considerations. Identify six major considerations described in the chapter and briefly explain...

Q: Identify the major bases for pricing intercompany transfers. Comment briefly on

Identify the major bases for pricing intercompany transfers. Comment briefly on their relative merits. Which measurement method is best from the viewpoint of the multinational executive?

Q: Are national differences in accounting practice better explained by culture or by

Are national differences in accounting practice better explained by culture or by economic and legal factors? Why?

Q: Explain the arm’s-length price. Is the U.S

Explain the arm’s-length price. Is the U.S. Internal Revenue Service alone in mandating such pricing of intracompany transfers? Would the concept of an arm’s-length price resolve the measurement issue...

Q: What is an advance pricing agreement (APA)? What are the

What is an advance pricing agreement (APA)? What are the advantages and disadvantages of entering into an APA?