TABLE OF CONTENT
Title page
Certification
Dedication
Acknowledgement
Table of contents
CHAPTER
ONE
INTRODUCTION
1.1
Background of the study.
1.2
Statement of the research problem.
1.3
Objective of the study.
1.4
Significant of the study.
1.5
Research question.
1.6
Scope of study.
1.7
Study plan.
1.8
Definition of the key
CHAPTER
TWO
LITERATURE
REVIEW
2.1
Determination accounting system of
multinational company.
2.2
Branch accounting system.
2.3
The summary of the requirement of the
statement of accounting.
2.4
Accounting practice (SSAP 20 foreign
current transaction)
2.5
Method and rates of transaction of
foreign financial statement of subsidiary company.
Reference
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1
Historical profile or case study.
3.2
Research hypothesis.
3.3
Method of data collection.
3.4
Method of data analysis.
CHAPTER
FOUR
INTRODUCTION
4.1
Data presentation and analysis.
4.2
Computation of measures of effectiveness
of accounting multinational companies operation.
4.3
Discussion of findings
CHAPTER
FIVE
SUMMARY
CONCLUSION AND RECOMMENDATION
5.1
Summary
5.2
Conclusion
5.3
Recommendation
5.4
Limitation of the study
BIBLIOGRAPHY
APPENDIX: QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
A
multinational enterprise is a business enterprises that carries on operation in
more than country through a network of branches, division, influenced invests
and subsidiaries.
Multinational enterprises obtain raw
material and capital in countries where such as plateful, multinational
enterprises manufacture their product on nations where wage and other operating
cost are lowest and they sell their product in countries that provide the most
profitable market.
An accounting system is the possible
ways or method in which accounting concepts may be applied to financial
transactions.
Accounting policies refer to the
accounting basic used by a company when accounting its financial statement.
Accounting system in multinational
companies varies with the nature of operation type of business as well as the
accounting standards principal and adopted by each company.
Accounting for multinational companies
is one of several recognized specialist in the accounting, auditing, management
accounting, behavioural accounting and financial information system.
The history of accounting is an
international one double entry book-keeping often though of as the genesis of
today, accounting eliminated from Italian city-state of the fourteenth and
fifteenth centuries, in due course, Italian city state book-keeping migrated t
Germany, France, the lowland and subsequently to Britain, the Britain influence
spread accounting and auditing techniques not only to north American but
brought out the existing Britain common wealth.
Multinational enterprises face a number
of reporting requirement not applicable to domestic enterprises.
1.2 STATEMENT
OF THE RESEARCH PROBLEM.
There are several problems that are
faced in the appraised of the accounting system in multinational companies
operation some of them are: -
a.
The conflict and difficult included by
different national accounting standard and practices.
b.
The problem of adjusting financial
statement to reflect the various level of inflation in different countries.
c.
The deficiency in the consolidation of
the financial statement of foreign subsidiaries and the regulative affects in
the multinational setting.
d.
The problem of determining the total
return from a multinational setting
e.
The problem involved in foreign
exchanged transaction into the accounting system in multinational company
operation.
f.
Internalization of some technical
accounting standards.
1.3 OBJECTIVES
OF THE STUDY.
The
specific objectives of the study are: -
a.
To investigate the affect of numerous
existing the national accounting rules and regulations on multinational
companies operations.
b.
To examine the events have influenced
the type of accounting system adopted in multinational companies.
c.
To examine the problem of conversion of
foreign exchange transaction brought about by the internalization accounting.
d.
To examine the effect of consolidation
of the financial statement of foreign subsidiaries or affiliates on
multinational settings.
e.
To investigate the effects of
internalization of accounting on multinational enterprises operations.
f.
To ascertain the area the clearly
require adjustment in their accounting system.
g.
To highlight the effect of competition
on the sales procedure.
h.
To examine the kind accounting books on
records being kept as well as the type of account prepared in relation with the
nature of operation in existence.
i.
To examine the accounting policies
adopted by the multinational companies.
1.4 SIGNIFICANCE
OF THE STUDY.
This study will serve the following
usefulness.
a.
It will undoubtedly contribute
tremendously to the accrete efficiency of the accounting system of the case
study company and accounting system of the multinational company as a whole.
b.
It will also contribute to the adoption
of a uniform international companies.
c.
This study will need for proper accounting
system that meet international accounting standards.
1.5 RESEARCH
QUESTION.
In the course of this study, the
experimental and group theory approach and question was adopted. This school of
thought in favour of this approach open that the knowledge sought in any
research is collect and or such that finding research is emerge from the analysis
of the result achieves the group theory approach exchange the use of research
question and simply to extract the necessary information required.
1.6 SCOPE
OF STUDY.
The scope of the study covers the
following
a.
The requirement of various accounting
standard and practice in multinational enterprises.
b.
Accounting for branches.
c.
Accounting for joint ventures.
d.
Accounting for transaction involving
foreign currencies (foreign branch and subsidiaries)
e.
Computerized accounting system.
f.
Business combination and consolidation
financial statements.
1.7 STUDY
PLAN.
The study of plan is organized into five
chapters.
Chapter one is the introduction: this
entail giving definition of the study that is stating the theoretically
background to study. It also enter highlighting the statement of the study, the
scope and limitation of the study.
Chapter two the literature review: in
this chapter topic relating to the study from different author are discussed.
Topic such as determination of accounting system, multinational companies
branches, accounting system, summary of the requirement of statement of
accounting practice (ssrs) foreign currency transaction as well as accounting
for group of companies.
Chapter three is the case of study
and methodology: this given on historical background of
the case study, which is a Cadbury plc. In Lagos. It also discusses the issue of
research and source of data.
Chapter four is the data
presentation and analysis: this entails stating the analysis
of data computation of effectiveness of the study and statement of hypothesis.
Chapter five give the summary,
conclusion and recommendation: is also highlights
major of final summary and conclusion drawn the issues and useful
recommendation.
1.8 DEFINITION
OF KEY TERMS.
A. WORKING
CAPITAL: This is referring to the administration of all aspect of current
asset and current liabilities. Is also relates to the total investment in
current assets or the different between current asset and current liabilities
floating or circulating capital is sometimes use for this term.
B. ECONOMIC
ORDER: The number of units which will quantity (EOQ) order at a time and
while result in incurring minimum cost.
C. INVESTMENT:
This is on asset held mainly for the purpose of increasing shareholder, wealth
but is not in the principal line of the business of the firm.
D. INVENTORY:
This is otherwise known as stock inventories, are asset held for render in the
ordinary courtesy of business of goals that will be used or consumed in the
production of goods to be said.
E. OPERATING
CYCLE: The average time that it takes to convert raw
materials into cash. These are defined as chime help against other for money,
goods or services collectable within a year or the operating cycle which ever
is longer.
F. RE-ORDER
LEVEL: The print at which is essential and imperative
during the next hading or operating period.
G. HYPOTHESIS:
These are tentative statement open to criticism.
H. SECURITIES:
These refer to share stock debenture or bonds treasury bills, commercial bank
deposits e.t.c.
I. BUDGET:
This is a financial and or qualitative statement prepared and approved prior to
a defined period of time of the policy to be pursued during that period, for
the purpose of affecting a given objective.
J. CURRENT
LIABILITIES: Current liabilities are the obligation
that reasonable expressed to be liquidated.
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