Report on ABC Plc

Document Type:Thesis

Subject Area:Accounting

Document 1

Different countries have different regulation and laws regarding financial reporting since they are key in taxation. As a company that seeks to expand to the Czech Republic and the United States of America, ABC Plc has to learn of the differences which exist in these locations compared to the headquarters in the UK. Differences between the financial reporting standards for companies registered in the Czech Republic and the USA Financial reporting differs in different states. With ABC Plc acquisitions of shareholdings in companies in Czech and USA, it has to familiarize with the various standards in these countries which are also different from the headquarters in the UK. Globalization has opened up markets for various companies and many organizations operate on multinational platforms.

Sign up to view the full document!

This means that irrespective of the multinational organization’s use of IFRS for its financial reporting, it has to use CAS too. This might require an organization such as ABC to adopt both standards. Since they are listed in the regulated securities market in the UK, their financial reporting on that end has to comply to IFRS which was adopted by the EU. On the other hand, for income tax compilation the organization has to compute their results based on CAS standards (Skacelik and Machova, 3). The US uses the Generally Accepted Accounting Principles (GAAP) and does not quite converge it with IFRS. Companies expand into other regions for various reasons which could be political, technological or even economic. For ABC Plc, some economic factors must have been considered before acquisition of shareholdings in these subsidiary companies in the Czech and USA.

Sign up to view the full document!

One of the major factors is the availability of market. Moving blindly into another country without ensuring there is market for the service is a risk that businesses avoid. The decision could have been influenced by the available market in these locations (Driver, n. Competition is also an important economic factor to consider before moving into a new market. The organization has to identify the trade barriers in the given location and if it is able to adapt (Manzella, n. p. In this case, the issue on financial reporting could be a trade barrier based on the different principles by the locations which also differ from the domestic location. Identifying and understanding the financial reporting requirements in these locations is the first step (Abner, n.

Sign up to view the full document!

Technology has become a major player in setting apart businesses. For a multinational organization expanding into other regions, technology is a necessity in running the business. Firstly, technology provides a quick way of analyzing data. The same work that would take a number or people days to complete can now take shorter time. This saves time and other resources such as money for both the organization and the clients. Data Analytics technology enables analysis of larger data as well as effective delivery of the data (Combs, 2). Technology also provides interconnectedness of the various branches in different locations allowing for sharing of data. Having expanded to subsidiary locations which are geographically far from the headquarters, technology can be used to bridge that gap in terms of monitoring and data access.

Sign up to view the full document!

The management in the headquarters office can easily access data from their operations in the Czech Republic without having to travel there. The organization can use technology which allows for data sharing. As discussed above, the US is prone to litigation on matters finances and does not apply the IFRS s guidelines unlike Czech and therefore would require extra care. Technology has also proven to be a resourceful tool in managing geographically far locations and therefore can be implemented at ABC Plc especially in data sharing and access and monitoring to ensure standards are observed. Works Cited Abner, Brian. "4 Considerations for Taking Your Business International. " The Business Journals, 12 Feb. Combs, Len. “Use of Data and Technology in the Audit. ” PwC, 2017, https://pcaobus.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template