All aboard for the euro

Article Abstract:

Management accountants and financial managers should become aware of the effects of the Jan 1, 1999 implementation of the single European currency or euro on their organizations. In the area of information technology (IT), the introduction of the euro will require the conversion of IT systems to support the new currency. The Financial Accounting Standards Board has also identified four areas of financial accounting and reporting that could be affected by the euro, namely, conversion cost accounting, foreign currency translation and segment and general disclosures. Furthermore, the euro has several tax implications. Germany and Austria, for instance, will defer exchange gains and losses from euro conversion while France requires gains and losses from conversion to be included in tax computations.

European Monetary System

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Managing in a high inflationary environment (abroad)

Article Abstract:

Reduced US inflation does not affect multinational operations overseas, which occur in hyperinflationary environments and need to effect a realistic performance measurement system of accounting. Local currency should be used in such as system, with adjustment for inflation. Monthly balance sheets, income statements, and cash flow statements should be used. Performance forecasts should be developed that are separate from those involving commitment and performance. Monthly reports of performance against plan should be produced, including balance sheet changes. Employing such as measurement system will preclude 'unreal numbers' from undermining corporate planning and objectives.

Foreign operations, Accounting, Inflation accounting

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Long term cooperation prospects in international joint ventures: perspectives of Chinese firms

Article Abstract:

The factors that affect the prospects of long-term cooperation in international joint ventures in China were examined. The perspectives of Chinese firms were analyzed to test whether Western approaches can be applied to managers with non-Western culture and from developing countries. Empirical results showed that the prospect of long-term cooperation in international joint ventures is not affected by either market uncertainty or founding year of the venture. On the other hand, mutual trust, culture and satisfaction with the joint venture influence the prospects of cooperation.

Research, China, Joint ventures, Industrial cooperation

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