Challenges of Accounting in Global Organizations: A Case Study of Blue Scope Steel Company

HI6008 - ASS 2
CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS
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Table of Contents
Introduction......................................................................................................................................3
Project objective..............................................................................................................................4
Project scope....................................................................................................................................5
Literature review..............................................................................................................................6
Research questions...........................................................................................................................8
Research design and methodology..................................................................................................9
Research findings...........................................................................................................................12
Research limitations.......................................................................................................................17
Time schedule................................................................................................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
Appendix........................................................................................................................................21
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Introduction
Accounting is a most important process which is used by the global organisation so that they can
record, summarise and analyse daily financial transactions of the business enterprise. Accounting
is considered as most important organisation function which provides complete information
about financial stability and performance of the business enterprise. This assessment would be
based on the different challenges of accounting which are faced by multinational organisations
like Blue Scope steel Company. Some of the most important factors are conversion rates,
economic conditions and other economic factors which will be discussed in this report. Apart
from this, this report will include project objectives, scope, literature review, research questions,
limitations and time schedule.
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Project objective
For better success and growth of research project, it is very much essential for a business
enterprise to set some project objectives (Bhimani and Willcocks, 2014). With the help of setting
project objectives, managers can analyse their performance and also can watch accomplishing
their main mission. Some most important objectives of the current research project are discussed
below:
 To determine the challenges associated with the accounting function
 To analyse the role of accounting in global organisations
 To find out the major factors which result in accounting challenges
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Project scope
Accounting is most important organisational function which allows business enterprise to make
systematic records of its financial transactions. With the help of accounting information,
multinational companies like Blue Scope Steel Company can easily determine its selling price
and also can manage financial resources (Borowczyk-Martins, et. al., 2013). There are various
factors like economic conditions, conversion rate and other technology issues which creates
problem in accounting process and affect the business growth. So, it is very much important for
organisation to analyse all the challenges of accounting. Hence, the scope of this project is very
wide.
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Literature review
As per the point of view of Prencipe, et. al. (2014), accounting process is so much helpful in
maintaining the daily financial transactions of business enterprise. In simple words, accounting is
that systematic process through which business enterprise can record financial transactions in
appropriate manner. The procedure of accounting includes analysing, evaluating and recording
the financial information which will help the organisation in making future financial decisions.
There are various fields of accounting such as cost, financial and tax accounting (Prencipe, et.
al., 2014).
According to Smith (2014), accounting function plays a most important role in a multinational
organisation like Blue Scope Steel Company. This business enterprise follows all the accounting
processes and methods for keeping its financial record updated. By taking help of proper
accounting systems and software, an organisation can manage its accounting activities in
appropriate manner. Blue Scope Steel Company has its subsidiaries in all over the world so, it is
important for it analyses and manages financial condition of its each and every outlet (Smith,
2014).
As per the observation of Borowczyk-Martins, et. al. (2013), accounting function provides
various advantages to global organisations as it helps them in managing their financial
performance within global markets. With the help of this function, Blue Scope Steel Company
keeps systematic and complete records of its daily financial transactions (Borowczyk-Martins, et.
al., 2013).
As per the perspective of Bhimani and Willcocks (2014), there are various problems which are
associated with accounting function and influence negative impact on organisational growth as
well as development. Major accounting challenges are continuous changes in conversion rates,
economic conditions and another type of economic factors. The poor technology of business
enterprise affects kits accounting and other functions as well (Bhimani and Willcocks, 2014).
In the view of Cai, et. al. (2013), global organisations such as Blue Scope Steel Company is
highly influenced by accounting challenges because they have to manage financial performance
of their several subsidiaries. Accounting problems like technological issues influence the
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