Global Management Accounting: A Guide for Executives of International Corporations

Heely and Nersesian have written a guide using accounting as a means, not an end, and aimed it at managers of international companies who wish to understand better the workings of a global business. The work describes the globalisation of business, the increasing complexity and related accounting treatments of doing business internationally. It discusses recent developments in the standardisation and harmonisation of worldwide accounting practices, accompanied by numerous examples from the annual reports of both foreign and domestic companies. The process by which a parent company consolidates its results from foreign affiliates is described, along with the accounting which would accompany typical business transactions. Emphasis is placed on the connection between transfer pricing and taxation, including a discussion of the considerations which management must face when setting transfer prices. Accounting practices for inflation, along with currency exchange fluctuations, are dealt with from the perspectives of both accounting and risk management.