International Accounting: Recent Developments, MNE's International Financial, Financial Performance Analysis

International
Accounting

INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
1. Critically discuss two recent developments in the international financial environment.........2
2. Discuss the following key elements of the MNE’s international financial.............................3
3. Analyse the financial performance by using accounting ratio.................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
International accounting can be defined as international kinds of transactions, along with
such aspects like accounting principles and monitoring practises countries as well as their
categorization; trends of accounting development; global and domestic harmonisation, exchange
rate transcription; foreign currency risk; descriptive statistics of integration accounting and
inflation accounting (Agostini, 2018). This assessment based on IBM (International Business
Machines) Corporation which is an American multinational innovation and consulting firm
headquarters is located in Armonk, New York, with far more than 350,000 workers assisting
customers in 170 countries. This report covers the several such as two recent developments in the
international market, discuss some elements and analyse the company’s financial performance
with the help of accounting ratio.
MAIN BODY
1. Critically discuss two recent developments in the international financial environment
Recent developments in world financial markets have been the speeding up of convergence
and modernization. This growth, fostered by the deregulation of trade, rapid technological
change and significant developments in technology, has developed numerous strong investment
opportunities for companies and communities around the globe. Due to developments in
financial market is impacting on the IBM for individuals and companies would result in an
effective distribution of capital that will, in effect, foster market prosperity and development.
Besides this increasing convergence and integration, financial markets around the world have
also currently undergoing growing default risk. In particular, this trend has been fuelled by the
increase in mergers and acquisitions and utilized buy-outs that have taken place in late-term
markets, not only in the euro zone countries. One element of this securitization process was
rising in industrial issuing bonds that also correlated IBM with a decreasing supply of treasury
securities in many countries, especially the United States.
Other important recent developments in global financial markets include the ongoing
development and success of derivative instruments. The growth of such markets has been largely
due to the fact that rapid developments in technology, financial innovation and financial
assessment have continued to increase both the supply and demand for more advanced and
complicated derivatives instruments. Enhanced this use commodities to adjust overall risk in
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capital sector has also caused an increase in the unsecured notes of unresolved derivative
products seen in recent years, especially in over-the-counter (OTC) financial institutions with
lending rates and equity markets as traded assets (Al Karaawy and Al Baaj, 2018).
These developments impact on the IBM Company in positive manner. Due to changes in
technology Banks have been leaders in developing consumer-facing applications, but broader
digital reinventions in the finance sector have been slower, constrained by issues which include
data protection and privacy. Currently, many institutions are collaborating with IBM to redesign
their problems and institutions new tech finance frameworks, such as the world’s largest first
cloud-ready financial products. Whenever the international bank BNP Paribas started
implementing its digital technology plan, its aim was to provide outstanding solutions to its
clients and business clients whilst maintaining the protection and anonymity of the respondents.
The bank found that it could not digitize fast enough for its current cloud environment. IBM was
asked to founder-create a public infrastructure that would be robust, stable and secure. In future
changes in technology impact on the profitability due to carry out new technology so increase
cost and reduce profit.
Another development impact on the IBM for 'currency-adjusted' or 'currency-adjusted' in the
Management Discourse do not involve operating effects that could arise from variations in
international exchange rates. As we refer to the rate of growth. Constant currency or changing
certain exchange productivity growth is achieved in such a way that such financial statements
can be seen without the effect of foreign exchange rate volatility, thus allowing time span-to-
period comparison of corporate strategy (Abhayawansa, Guthrie and Bernardi, 2019). This
method is used in countries where the usable money is the national currency. Commonly, as the
dollar either increases or diminishes against the other commodities, growth at constant currency
exchange rates or currency changes would be slightly lower than even the growth recorded at
foreign exchange rates. It impact in future in different variations in regard of Currency-adjusted
financial results are determined by converting current period operation into local currency by
using equivalent exchange rate of the previous year's currency.
2. Discuss the following key elements of the MNE’s international financial
Source of Finance: In order to run their operational activities organization required
finance which helps in performing their operations. A firm can manage fund from several
sources and all are different from it (Berger, 2018). It includes equity, debt, debts, retained
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