International Business & Accounting Concepts

This assignment delves into the world of international business and accounting. It examines the significance of institutions like the World Trade Organization (WTO) and the International Chamber of Commerce (ICC) in facilitating global commerce. The document defines essential accounting terms such as sales, income, equity, cost of goods sold, overhead, net profit, credit, debit, creditor, and debtor. It further explains their relevance within the context of international business operations.

1. The various types of services, facilities and products, the Australian tax office provides
for individuals and business are as follows:
a. The website helps in providing various information in regard to lodging the returns
and also helps in filling returns.
b. It helps in applying and updating the tax file number.
c. It helps in providing information in regard to income and deductions.
d. It helps in providing different services in regard to super.
e. It helps in providing online services in regard to individuals, business, sole traders,
maintenance of system and online security.
f. It also helps in providing information in regard to investing, capital gain tax and
medicare levy.
g. It helps in preparation of the business activity statement.
h. It helps in preparation of the Australian tax statement and the payment of tax.
2. The bilateral trade agreement is one that is made between more than one contracting
activities and the regional trade agreements is the one that will be made between the
contracting parties that belongs to same region. The main purpose of this agreement is to
enter into various types of trade relations between the members that have entered into
agreement. Example: The agreement entered between two parties of Australia in order to
purchase and sale some type of chemical to be used in business.
3. The trade practices act 1974 had been prepared in order to control the economic activities
in Australia. The trade practices act will help in bringing efficiency and effectiveness
which will help in improving the level of productivity which will lead to improvement in
the overall welfare of Australia. The trade practices act thus helps in promoting

competition in the market and also ensures fair practices in trading and hence leads to
provision of protection of consumers in Australia. The trade practices act will be applied
to all the transactions that include the provision of goods and services in the country. This
particular act applies to all different states and territories in Australia. The act applies in
various situations:
a. The persons engaged in the trade and commerce.
b. The persons engaged in different business which involves the usage of different
postal services, telephone services etc.
c. The business or persons which are being involved in the supply of goods or services.
d. The persons that are involved in the activity of trade or commerce within the territory
or outside the territory.
4. The concept of Warsaw convention is the agreement related to international civil aviation
which will provide the legal framework in regard to the carriage of luggage, passengers
and the cargo. This concept will help in providing and controlling liability in regard to
that will apply in regard to international transfer of luggage, cargo and passengers. The
concept of Warsaw convention is very important in financial management as it helps in
defining the liability that may arise due to accidents in relation to transfer of cargo. The
cargo forms an important part of the purchases and other cost of the company. Hence it
will be very useful for the purpose of estimating the net costs and claims that may be
there in regard to transfer of cargo. Hence it will help in estimating the net finance
requirements.
5. The explanation of various terms is as follows:

PAYG withholding: it is the withholding tax that is being retained from the amount that
is being paid by the employer towards the employee. The tax is to be retained from
different payments made to employees, workers under hire agreements, voluntary
agreement payments etc.
Company tax: This is the tax that is being applied on the net income of different
companies which includes life insurance companies, corporate limited partnerships,
public trading trusts etc.
Goods and service tax: It is the tax that is being applied on sale of goods and provision
of services. GST is required to be purchased by business owners and they will be eligible
to take credit of the GST paid on purchase of goods and services.
Financial probity: it implies that there should be honesty in regard to each and every
financial matter. The requirement of clear and accurate financial records should be met
by the business.
Australian business number: It is the unique number that is being issued by the
Australian business register in order to identify each and every business. The Australian
business register is part of the Australian taxation office.
Business activity statement: It is basically a form which is being submitted in regard to
all the tax obligations of the business to the Australian taxation office.
Superannuation: it is a type of pension plan or the retirement benefit which is given by
company to employees.
Fringe benefit tax: It is the tax that is being paid by the employer on the amount of
benefits that are being given to employee.
Income tax: It is the tax that is being paid on the net income excluding all the deductions.

6. The international commercial term is the series of the commercial terms that are pre-
defined and they are duly published by the international chamber of commerce. This is
most widely used in the commercial transactions and the procurement processes
undertaken at the international level. The rules are prepared with the intention to clarify
and communicate the costs and other risk linked with goods transportation and delivery.
7. WTO is playing a very important role in the international business. It helps in providing a
fair platform to all the countries that are its member in regard to imports and exports and
thus helps in bringing transparency in the business. It helps in implementation of trade
agreements amongst the countries and also helps in settlement of disputes.
8. International chamber of commerce helps in serving business at the international level by
promoting free flow of capital, trade, investment, marketing of goods and services. It
helps in promotion of economic growth, employment opportunities and prosperity. Thus
it helps in regulating the economic at the world level.
Description of other words:
Sales: It is the amount of revenue that is being received by way of sale of goods and services.
Income: It is the amount that is being received by providing various services.
Equity: It is the amount of the owned funds of the company which includes both equity share
capital and preference share capital.
Cost of goods: It is the amount that is being incurred in regard to purchase of goods and the
other direct expenses associated with it.
Overhead: it is amount that is being incurred in the business but they are not directly related to
any specific business activity.
Net profit: It is the excess of the income over the expenses in the business.

Credit: It is the ability of the consumers to obtain the goods and services without payment at
that particular time and can be paid at a future date. Credit is also used for decrease in assets,
increase in liabilities.
Debit: It is used in accounting entry for the purpose of recording increase in assets and decrease
in liabilities.
Creditor: It is the person or organization to which the business owes money and liability.
Debtor: It is the person or organization from which the business owns money and will be
received in the future period.

References:
Australian Taxation Office, 2017, “Pay as you go (PAYG) Withholding”; Available at:
https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Pay-as-you-go-(PAYG)-
withholding/
Australian Government, 2017, “Register for an Australian Business Number (ABN)”; Available
at: https://www.business.gov.au/info/plan-and-start/start-your-business/business-and-company-
registration/register-for-an-australian-business-number-abn
Australian Taxation Office, 2017, “Business Activity Statements (BAS)”; Available at:
https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/
Australian Government, 2017, “Fringe Benefits Tax (FBT)”; Available at:
https://www.business.gov.au/info/run/tax/fringe-benefits-tax
Padmavathi Bhamidipati, 2015, “Role of WTO in International Business”; Available at:
https://www.linkedin.com/pulse/role-wto-international-business-dr-padmavathi-bhamidipati
2016, “The Role of the International Chamber of Commerce (ICC)”; Available at:
http://howtoexportimport.com/The-Role-of-the-International-Chamber-of-Commerce--186.aspx
Peter Atrill, Eddie McLaney, David Harvey, “Accounting: An Introduction”; Published by
Pearson Education Australia, Ed. 6, 2014