Accounting: Tax and Transfer Pricing Essay

Submitted By cc1245
Words: 537
Pages: 3
Open Document
“Measuring Return on Training Dollars Increasingly Possible”

It has been thought that measuring the impact on the bottom-line and establishing return-on-investment for a training programs is near impossible, until now. This article discusses how to create training programs to where the company can reap many benefits from investing in training for employees. Performance problems occur because employees don’t know what they are supposed to do, don’t know how to do it, and don’t know why they should do it. Targeted training can be a solution to all three of these challenges. The first step to training employees is to link the training to business outcomes. It needs to go deeper than identifying performances they wish to get out of employees; people learn from their mistakes, so you have to identify the variances, the mistakes people make. The next step focuses on the mistakes made that are most important to the business meaning how much a mistake costs on average, how often it is made, and how much does it cost to train employees not to make that mistake. This will assist to create a training program that addresses the top-performance issues based on ROI. Many people assume that once employees are trained they are more likely to leave the company but actually the opposite is true. Trained staff is generally happier with their jobs leading to loyalty toward their employers, which will decrease company spending on turnover.

“Transfer Pricing”

Transfer pricing dictates what multinational corporations (MNC) charge for products and services within their global operations. Since more than 60% of international trade takes place within MNC’s, these goods which are effected by transfer pricing constitute a majority of the goods in world trade. As globalization has expanded, transfer pricing has become a more important global economic issue. If two separate companies buy and sell their products on the open global market, they pay or sell for market prices. It is when one company with two different enterprises in different companies where this becomes important because they are not “subject to the full play of
Show More

Related Documents: Accounting: Tax and Transfer Pricing Essay

Kpmg Case Essay

Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues Case Study Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues Jan Taylor Morris, PhD, CPA Riggers Inc (“Riggers, “client, or “Company”) is audited by Stone LLC CPA firm (“Stone” or “auditor”). The Compa” ” ny builds and owns offshore drilling rigs. Riggers is a US-based corporation that recently expanded its operations into Brazil (the only foreign-based operations for Riggers). As a result of this expansion…

Words 1535 - Pages 7

International Accounting Essay

Assignment #1 2. Some issues in accounting due to engaging in international trade is the risk that the foreign currency will decrease in US $ value over the life of the receivable. A company can hedge against a loss from an exchange rate fluctuation by having a foreign currency option or a forward contract. 3. Increase sales and profits, enter rapidly growing or emerging markets, reduce costs, protect domestic markets, protect foreign markets, and acquire technological and managerial know-how…

Words 634 - Pages 3

Essay Transfer Pricing

Transfer Pricing Why have transfer pricing?-There can be significant tax benefits and foreign exchange benefits. From an organisational perspective benefits can be seen through: * The ability to now calculate profit/loss from each division * Easy and fair to assign responsibility to business units and reward their performance * Easy to see the contribution of each division to whole company profits * Better cost control and quality improvement * Motivate managers/increase managerial…

Words 1464 - Pages 6

Management Accounting Group E Stream 2 Essay

December 2014 Group Assignment Management Accounting Submitted to: Professor Jeremy Fernando Submitted by: Group E, Stream 2 Alaine Sung | Hadrien Jacomino | Mokhtar Ibrahim | Nikhil Gangwani | Ronami Ogulu | Yana Kim PROBLEM 1 Q1 What, if anything, should John Powell do about Frank Duffy’s reluctance to use KEA-priced linerboard manufactured by a Del Norte Paper Company mill in the United States? Answer 1: Transfer pricing: is the setting of the price for goods…

Words 2640 - Pages 11

Describe Problem Faced By Organisations Using Multiple Financial Responsibility Center

centres; i.e. transfer pricing problem Hull University Business School 2 Chapter 7: Financial Responsibility Centers Financial results controls Responsibility centers 1. 2. 3. 4. Revenue Expense Profit Investment Revenue centers Expense centers Control in expense centers Profit centers Profit centers (cont..) Measuring “profit” Revenue Cost of goods sold Gross margin Advertising and promotion Research and development Profit before tax Income tax Profit after tax Gross Margin…

Words 673 - Pages 3

Assignment 2 Essays

This essay is going to introduce the Australia Carbon Pricing Mechanism and discuss the guidance to how to account the transfer and surrender carbon units during the fixed price period and the flexible price period. A) The carbon pricing mechanism is the system which covers 60% of Australia’s carbon emissions. They include wastewater, electricity generation, stationary energy, industrial process, landfills and fugitive emissions. Companies acquire and surrender one carbon unit for one…

Words 966 - Pages 4

Finance: Financial Ratios and Tax Essay

Introduction Financial analysis is the process or critically examining in detail, accounting information given in financial statements and reports. It is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of a firm’s performance. The measurement and interpretation of business performance is done through the use of ratios. The financial statements published by companies are too general to be used by the various stakeholders and hence…

Words 3042 - Pages 13

Capital Budgeting for the Multinational Corporation Essay

of the firm realistically Ans: c Section: Net present value Level: Easy 17.3 When the introduction of a new product takes sales away from the firm’s existing products, it is known as _______. a) cannibalization b) sales creation c) transfer pricing d) opportunity cost Ans: a Section: Cannibalization Level: Easy 17.4 When evaluating an investment, the MNC should consider the _______ cash flows generated by the project. a) total b) variable c) incremental d) fixed Ans: c Section:…

Words 1317 - Pages 6

Case Analysis 10-3 Kansas City Zephyrs Baseball Club, Inc. Essay

I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’, players’, GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same money promised him in his guaranteed contract? Of what…

Words 1732 - Pages 7

Essay on Case Analysis 10-3 Kansas City Zephyrs Baseball Club, Inc.

I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’, players’, GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same money promised him in his guaranteed contract? Of what…

Words 1715 - Pages 7