Elucidating Challenges Account Corporations -Myassignmenthelp.Com

Questions: Which Issues Are Being Faced By The Multinational Organizations Related To The Accounting Aspect While Performing The Business Operations At The Global Level? Which Accounting Policies Can Be Adopted By The Multinational Organizations For Coping With These Issues? What Are The Impacts Of These Issues Related To Accounting On The Multinational Organizations And Their Performance? Answers: Introduction Multinational organizations are operating at the global level and for the effective execution of the operations, it is vital to comply with the accounting and tax system. This will help in resolving the issues or disputes faced by the organizations in a better manner. Different issues are being faced by the multinational organizations which are creating an impact on the operations of the business (Mann, 2012). These issues include ambiguous, inconsistency and ever-changing taxation rules. An effective tax and accounting system has to be adopted by the organizations so as to recover from the downturn, operating in the global market, coping with the foreign tax regulations at the local and global level and coping with the issues of budget deficits (McKinley Owsley, 2013). This research will focus on the accounting issues which are affecting the performance of multinational organizations by focusing on Apple Inc. Project Objective Objectives are formulated with a motive to form a base for the data collection process. Objectives help in guiding the researcher towards the right direction. The objective of this research program is to analyze the issues related to the accounting aspect of the multinational organization during the execution of the business operations at international level. Another objective is to analyze the accounting policies which can be adopted by the multinational organizations for coping with the issues. Project Scope The focus of this research program will be on the various accounting standards adopted by Apple Inc. and issues which are being faced by the company during the launch of its products in the external market. Different accounting regulations will be covered in this research program which is being adopted for the management of internal environment by the organization. It will focus on the issues and policies available for solving the issues faced by the multinational organizations. Literature Review In the words of Freedman (2011), accounting is an important aspect which includes a recording of the transactions executed by the organization and keeping the records of the transactions. It is essential for the organizations operating at an international level to consider the tax jurisdiction for complying with rules and regulations. There is a need to comply with the changing taxation rules and regulations (Kravitz, 2016). It has been recommended to the organizations to enroll in the international operations by meeting the tax laws of the land. Different principles need to be adopted by the company so as to match up with the tax rules and regulations (Lipin, 2011). Another issue which is being faced by the organizations at international level is revenue recognition. Revenue is an important element for the financial statements (Gornik-Tomaszewski Showerman, 2010). Revenue recognition is considered as an important accounting policy which determines when to recognize the revenue generated from the sale of the products of the company (Norton, 2011). Research Design and Methodology Different methods are present which can be adopted by the researcher for the purpose of conducting the research program by collecting quality data. Analysis has been done of the various methods available for the selection of the most suitable and appropriate methods for the completion of the research and attaining the objectives defined. In this research program, the focus is on a collection of the data regarding the issues related to the accounting which are being faced by the organizations while execution of the operations of the business at the global level. There are various accounting policies used by the multinational organizations for overcoming these issues. Data regarding these aspects will be assembled with the use of the selected methods of data collection. Research design: analysis has been done of qualitative and quantitative research method so as to select the most appropriate method for data collection. Qualitative research method has been preferred for this research program. Qualitative research methods use semi-structured or unstructured methods for the collection of the data regarding the aspect (Kielmann, et. al., 2012). The reason behind the selection of this method is the data provided by the qualitative research method regarding the issue, aspect or the trend (Acaps, 2012). The better analysis will be done of the issues faced by the multinational organizations regarding the accounting aspect while managing the business operations. This research method will help in assembling quality data regarding the accounting issues faced by the Multinational organizations. Research approach: qualitative approach has been chosen for this research program among the various alternatives available. The motive behind the selection of this approach is a collection of the relevant data for the research project. Primary and secondary sources are applied to the assembling of the required data. This approach ensures the quality of the data as well as contributes to the reliability and authenticity of the data. Data collection: collecting the required data is an essential aspect of every research as it determines the quality of the research work carried out by the researcher. Primary and secondary sources have been chosen from the list of available methods for data collection. Primary data is the raw data which gets assembled specifically for the research program by the researcher directly from the respondents. This information is first-hand data as it is collected directly from the respondents (Thomas, 2015). Secondary data is the second-hand data which gets assembled from the work of other researchers from internet or newspapers (Johnston, 2014). When the discussion is made regarding the reliability, secondary data is considered over the primary data (Turkenburg McAuley, 2013). Sampling method: after analysis of the different sampling methods, random sampling has been chosen. Random sampling technique is an approach in which selection of the sample is done on a random basis which eliminates the selection of the samples on the biased basis (Banerjee, 2012). Samples get selected by providing equal opportunity of getting selected for the analysis and evaluation process (Alvi, 2016). Research strategy: for the completion of the research program in a successful manner, there is a need to adopt a strategy which will ensure the completion of the research by covering every aspect. A sequential strategy is an effective approach for ensuring the completion of research in a pre-defined order. This will cover every activity one after one for the attainment of the objectives. Targeted market: this term can be defined as the place from where data regarding the research program is to be assembled. Research data has to be gathered by targeting the market from where data has to be accumulated. Primary data will be accumulated with the help of a questionnaire to the employees working in the accounts department of the multinational organizations. Secondary data will be accumulated from the internet sources such as journals, websites, notifications, and articles. Timeframe: an action plan has been prepared with an objective to define the time period in which every activity of the research has to be completed. This timeframe will serve as a blueprint for every activity of the research. Ethical considerations: ethics helps in guiding the individual towards the right or wrong. While conducting the research program, focus of the researcher should be on conducting the research in a fair manner. For this research project, few ethical aspects have been taken into consideration. These ethical aspects are confidentiality, unbiasedness or fairness and integrity. Research Limitations Research limitations can be defined as the hurdles or issues which affects the execution process of the research program. Identification of the research limitations needs to be done in an effective manner as these limitations create an impact on the successful completion of the research program. Different approaches are being used by the researchers for overcoming these limitations and elimination of the impact of these limitations on the research program. Quality of the research may get affected due to the presence of the research limitations. Research limitations identified during the execution process of this research project are lack of availability of resources, insufficient time period and lack of right to access the data. Time Schedule (Research Plan) Sequence Activities Date of initiation Duration (ways) Date of completion A) Selection of the research topic 24 January 2018 1 24 January 2018 B) Formulating plans for framing a base for the research 25 January 2018 5 29 January 2018 C) Execution of the plans framed 30 January 2018 7 05 February 2018 D) Selection of methods for assembling of the data 06 February 2018 1 06 February 2018 E) Using selected methods for data collection 07 February 2018 6 12 February 2018 F) Analysis and evaluation 13 February 2018 3 15 February 2018 G) Conclusion and recommendations 16 February 2018 1 16 February 2018 Conclusion From the above discussion, it can be stated that numerous challenges are being faced by Apple Inc. while the recording of the transactions and managing accounting functions. These challenges or issues include uncertain tax positions and revenue recognition. These issues or challenges are creating an adverse impact on the performance of the organization. Organizations faces issues in the identification, measurement, evaluation, and reporting of the uncertain tax positions. These issues are faced regarding the uncertain tax position is due to the analysis of the new, existing and changing tax positions. Revenue recognition is one of the most important accounting policies for an organization. The point-of-sale approach has been selected by Apple for recognizing the revenue just after the sale of the hardware products. References Acaps, 2012, Qualitative and Quantitative Research Techniques for Humanitarian Needs Assessment, Acaps. Alvi, M., 2016, A Manual for Selecting Sampling Techniques in Research, MPRA. Banerjee, M., 2012, Simple Random Sampling, University of Michigan. Davis, B., 2018, The Multinational Corporation and Globalization, Slideplayer. Accessed on: 25 January 2018. 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A., 2011, Uncertain tax positions and the new tax policy of disclosure through the schedule UTP,Virginia Tax Review, Vol. 30(4), pp.663713. Mann, R., 2012, Chief Counsel's subtle impact on revenue: regulations, litigation, and administrative guidance,National Tax Journal, Vol. 65(4), pp.889898. McKinley, J. Owsley, J., 2013, Transfer pricing and its effect on financial reporting: multinational companies face high-risk tax accounting,Journal of Accountancy, Vol. 216(4), p.50. Norton, B., 2011, Hyper-Regulation Leaves No Place to Hide,Financial Executive, vol. 27(1), pp.4044. Taborn, H., 2018, Welcome to Apple: Group 8, Slideplayer. Accessed on: 25 January 2018. Available at: https://slideplayer.com/slide/2912183/ Thomas, J. A., 2015, Using unstructured diaries for primary data collection, Nurse researcher, vol. 22, no. 5, pp. 25. Turkenburg, J. P. McAuley, K. E., 2013, Data collection and processing,Acta Crystallographica Section D, Vol. 69(7), pp. 1193-1194.