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How can enterprises create value through international management accounting

with the development of global economic integration and multinational enterprises' exploration of international markets, the major of international management accounting is becoming familiar to Chinese enterprises. Different from traditional cost accounting and management control, international management accounting allows multinational enterprises to achieve their long-term strategic goals through various performance evaluation tools and management tools

many multinational companies in the United States and Europe have implemented localized management strategies in different countries as early as the 1960s, and have achieved certain results. In the 1980s, under the impact of globalization and the sharp decline in tariffs, this "multinational localization" strategy became less applicable than before, and many companies turned to "global strategy" to increase competitiveness

in contrast, the implementation of "multinational localization" makes it easier for enterprises to adapt to the special environment of the country or region where they are located. However, the subordinate companies distributed all over the country are also prone to face the problem of lack of research and development power, which is detrimental to the development of enterprises

if we look at the markets around the world to see how to ensure the equipment measurement into a whole market, enterprises can adjust and control according to the differences in cost and technology among countries. At present, many large multinational companies organize the enterprise structure on this basis

in this context, the management accounting industry has developed a series of new decision-making and management tools, including: strategic management accounting, which considers the current and future uncertainty of enterprises and provides information for enterprise decision-making; Emphasize the economic value evaluation of shareholders' real income; And the Balanced Scorecard Used in the comprehensive performance evaluation of enterprises

the emergence of the above management accounting methods has broken through the original management accounting framework system and formed a new trend of management accounting that emphasizes enterprise value creation in the context of globalization

the scope and extension of management accounting in the context of globalization

International Management Accounting adapts to the development trend of international economic integration. Its research purpose is how to maximize the allocation and use efficiency of economic resources in transnational business activities. It combines the basic principles and methods of modern management accounting and forms a new field under the environment and conditions of transnational business activities

at present, the scope of international management accounting is mainly defined as multinational companies, but it is not limited to this

set hierarchical goals and objects

the goals of international management accounting are divided into three levels: short-term goals, medium-term goals and long-term goals

the short-term goal is mainly to solve the special management accounting problems faced by multinational companies and establish a management accounting practice system suitable for the needs of multinational operations; The medium-term objectives mainly focus on the comparison of international management accounting, analyze the differences in politics, economy, culture, education, law, management and other aspects of various countries, explore and study the common laws of the development of management accounting in various countries, and lay the foundation for coordinating the management accounting practices of various countries; The long-term goal is to systematically and scientifically summarize and summarize the management accounting theories of various countries on the basis of comparative analysis, and finally form a series of accepted and implemented practice standards

the object of international management accounting has its particularity because it involves the international business environment:

1 Not limited to the internal unit. Multinational companies can measure the tensile strength, specified non proportional elongation strength, elastic modulus, elongation and other mechanical properties of steel strands. They should not only study the internal conditions, but also study the external environment, such as the change of exchange rate, the degree of foreign exchange control, the level of inflation and interest rate, the weight of tax burden, etc

2. It cannot be limited to value information, or even economic information. Because non value information, such as the political stability of various countries and the level of management accounting education in various countries, will have an impact on the application

3. The object of international management accounting is to compare and standardize various information resources required by multinational companies and international organizations in the international environment

achieve the maximization of employee behavior and enterprise strategy, shareholder value

international management accounting takes the activity-based cost accounting system as the center, collects the relevant information of enterprise decision-making necessary for financial, operation and management and market theory, and uses the comprehensive performance evaluation system and compensation system to manage it and the above specified proportion limit σ P and elastic limit σ E is just different in the amount of plastic deformation. It can stimulate the employees of the enterprise to jointly implement the business decisions of the enterprise, make their behavior consistent with the requirements of the long-term strategy of the enterprise and the maximization of shareholder value, and form a complete and closed discipline system from the practice to the enterprise goals, strategies, and organizational structure and control

characteristics of International Management Accounting:

1 The importance of modern information network. Using computer information network, transnational operation can transcend the limitations of geographical environment, and timely collect, analyze, store and transmit the information of operation and management

2. The breadth of information. It involves not only the theory and practice of transnational management accounting, but also the comparison of management accounting in various countries, as well as the coordination of management accounting

3. The transverseness of information transmission. International management accounting information not only flows vertically between superiors and subordinates, but also needs to carry out horizontal information flow among subsidiaries, so as to coordinate and adjust transnational business activities in a timely manner

4. Uncertainty of information expression. International management accounting information needs currency conversion and text translation, which may cause uncertainty in information expression

5. Diversity of information system structure. Each multinational operating company has the diversity of organizational structure and business management policies, which requires that international management accounting must adapt to its organizational structure and business management policies, and the information system should include a diversified information system structure that can meet the global and multi center business decision-making information needs

risks faced by opening up international markets

enterprises often face many new risks when opening up international markets

foreign exchange risk problem

foreign exchange risk refers to the risk that the exchange rate of currencies of various countries changes, resulting in the rise or fall of the value of assets and liabilities denominated in foreign currencies. Including:

(1) foreign currency business risk - the risk that the actual amount of receipts and payments will change due to the change of exchange rate in the process of business operation, which is a real risk

(2) foreign currency translation risk - refers to the risk of changes in the amount of relevant items in the statements due to exchange rate changes when the enterprise converts and consolidates the foreign currency accounting statements of foreign subsidiaries according to the currency of the country where the parent company is located. This is a calculated and nominal risk

(3) economic risk - the risk of changes in the expected operating income of the enterprise due to unexpected changes in the foreign exchange rate caused by factors such as instability in the economic conditions of the country where the subsidiary is located. This is a potential risk

reasonable tax avoidance

multinational corporations bear a heavy tax burden, as well as the weak links in international tax havens and tax control. Therefore, it is necessary to coordinate the tax relations between countries, reduce the tax burden, and avoid tax in a reasonable and legal situation

political and cultural risks

with the development from indirect investment to direct investment, multinational companies will bear the risks of national political fluctuations, changes in tax policies, foreign exchange controls and other factors

on the other hand, the cultural backgrounds of the countries involved by transnational corporations are different, so they also face the risk of differences in cultural backgrounds. (end)

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