IB 200 11.16

IB 200 11.16 - versa (example: environmental impacts,...

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IB 200 11/16 Overview - standards differ quite a bit for accounting around the world - look at flow chart - relationship between business and providers of capital o Companies become public with stock and governments have a set of rules for these. This is structured differently all over the world. o Inflation can distort inflation The level of a country’s economic development - legal system may be handled by the local government, citizens, or on a national scale - in india people used to keep two sets of books: one of how the company was actually doing and another where the company was not making any profit so they wouldn’t have to pay any taxes. Now they are using automated systems so this is less of a problem - companies report their earnings but that does not mean they pay that amount in taxes, it is different when they apply different rules - things can be prices differently think LIFO or different systems - you may have to track things you don’t have to track in another country or vice
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Unformatted text preview: versa (example: environmental impacts, etc.)-there may be certain industries that are not easily comparable because the standards are loose – a problem with I__ International Taxation Issues-a foreign branch receives funding from home country. It acts as a brand image for your firm but doesn’t make profits overseas and doesn’t pay taxes in the country it is located in -subsidiaries pay taxes to both the country its located in and the parent country.-Corporate income taxes are just one way you can tax a country. -The government can try a variety of tactics to keep a company in their country. -The US Nominal Rate is high compared to other advanced economies but the effective rate that companies pay is actually much lower. -How do you market your rate to make it seem desirable to other countries? U.S. practice for corporate income taxes-Indirect-Direct Look at example for completing worksheet...
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This note was uploaded on 11/21/2011 for the course BUS 200 taught by Professor Tuli during the Fall '10 term at Wisconsin.

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