CHALLENGES IN ACCOUNTING IN GLOBAL FINANCE

Running head: CHALLENGES IN ACCOUNTING IN GLOBAL FINANCE
CHALLENGES IN ACCOUNTING IN GLOBAL FINANCE
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1CHALLENGES IN ACCOUNTING IN GLOBAL FINANCE
Executive Summary
Finance accounting is one of the most important aspects of business operations that help
organizations to make decisions regarding budget and cost structure. Accounting helps an
organization to effectively understand its position in the industry and their internal situation
based on economic condition and this facilitates it key decision making strategies. Financial
accounting in the global context has become a very tricky and challenging aspect in the business
operations of today simply because companies have to bear in mind a lot of rules and regulations
from various countries across the globe. These challenges need to be correctly and efficiently
identified and solutions need to be come up with. The following report would like to take a
deeper look into these problems and try to provide ways that would help to do away with the
challenges and make the accounting process smoother.

2CHALLENGES IN ACCOUNTING IN GLOBAL FINANCE
Table of Contents
Introduction......................................................................................................................................3
Project objective..............................................................................................................................3
Project scope....................................................................................................................................4
Literature review..............................................................................................................................4
Green accounting:........................................................................................................................6
Harmonisation:.............................................................................................................................6
Literature gap...................................................................................................................................6
Hypothesis.......................................................................................................................................7
Research design...............................................................................................................................7
Qualitative research:....................................................................................................................7
Quantitative research:..................................................................................................................8
Research limitations.........................................................................................................................9
Time schedule..................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

3CHALLENGES IN ACCOUNTING IN GLOBAL FINANCE
Introduction
The primary functions of financing have always been trying to control costs, making and
maintaining proper budgets. Finance department of any organization is laden with the task of
planning a budget which will dictate the financial transactions and operations of the companies.
Another important role of finance is internal auditing. This is an essential aspect of business
running, which ensures the organisations are operating in a correct manner (Burns & Needles,
2014). However, in the age of globalization, as organizations are expanding rapidly and are
operating business overseas the finance departments and auditing firms are being faced with new
and more intricate challenges every day. Their tasks and responsibilities transcend from being
burdened with simple capital structure making to profit repatriation policies of the company’s
subsidiaries. Capital budgeting decisions should reflect not just the divisional differences, but
also has to show the complicacies that arise due to the different currencies, exchange rates,
taxation policies and the different laws and regulations in different countries (Prencipe, Bar-
Yosef & Dekker, 2014). The companies’ incentive system must be able to assess, acknowledge
and reward the actions and operations of the managers who work under different economic and
financial settings across the globe. This paper will be aimed at 3xamining the role of the
accounting strategies in the environment of globalization and try to identify the challenges that
are faced by the accounting firms.
Project objective
The prime objectives of this paper are:
 To understand the impact of global trends in the globalization setting
 To observe the changing accounting practices in today’s integrated world, and