After reading this chapter you should be able to:

Understand the purpose of accounting and the differences between managerial accounting and financial accounting.

Understand why nations originally adopted different accounting systems and the types of systems in use around the world.

Understand the complexities and challenges for an MNC's accounting practices in emerging markets.

Identify the pressures that lead to the harmonization and standardization of accounting procedures.

Understand the basics of International Accounting Standards.

Know how MNCs account for exchange-rate differences and translate foreign currencies for financial reporting.

Appreciate the complexities of accounting for transfer pricing between units of MNCs taking into account the new OECD rules on country-by-country reporting of financial information.

Be able to apply basic tax planning strategies.