Besserbrau
Marcus Gustafsson (k1457094)
Besserbrau
Sales to foreign customers
Because of the fact that Besserbrau are expanding the operations to China the currency will not be the same anymore and thus will result in risks associated with different exchange rates of the different currencies.
Purchases from foreign suppliers
The challenges are basically the same as they are when exporting. Translating foreign currency payables and receivables when either exporting or importing.
Foreign currency exchange risk
Besserbrau needs to take into consideration different forward contracts to be able to resist foreign exchange risks when both exporting and importing.
Foreign direct investment
The most important thing to do for Besserbrau is to convert the profits made in China from Chinese GAAP into German GAAP as well as taking into account the difference in taxation between the two countries.
Financial reporting of foreign operations
Important things to take into consideration are mainly the difference in accounting and other reporting standards. This is important because the same information might be available but stated in a different manner.
International income taxes
The taxation from different parts in the world might be different and for example tariffs are also possible to exist in certain places.
International transfer pricing
Because of internal transactions that will occur between different nations Besserbrau needs to find similar prices for all nations.
Performance evaluation of foreign managers and foreign operations
Besserbrau is not necessarily going to be able to use the same evaluation methods for the operations in China as they have done in Germany. There might be unique conditions that only apply for China and that are not comparable to the German ”climate”.
International Auditing
The same rules and policies must apply for all of the divisions in both Germany and China, because of language differences it might not always be an easy job to do.
Besserbrau
Sales to foreign customers
Because of the fact that Besserbrau are expanding the operations to China the currency will not be the same anymore and thus will result in risks associated with different exchange rates of the different currencies.
Purchases from foreign suppliers
The challenges are basically the same as they are when exporting. Translating foreign currency payables and receivables when either exporting or importing.
Foreign currency exchange risk
Besserbrau needs to take into consideration different forward contracts to be able to resist foreign exchange risks when both exporting and importing.
Foreign direct investment
The most important thing to do for Besserbrau is to convert the profits made in China from Chinese GAAP into German GAAP as well as taking into account the difference in taxation between the two countries.
Financial reporting of foreign operations
Important things to take into consideration are mainly the difference in accounting and other reporting standards. This is important because the same information might be available but stated in a different manner.
International income taxes
The taxation from different parts in the world might be different and for example tariffs are also possible to exist in certain places.
International transfer pricing
Because of internal transactions that will occur between different nations Besserbrau needs to find similar prices for all nations.
Performance evaluation of foreign managers and foreign operations
Besserbrau is not necessarily going to be able to use the same evaluation methods for the operations in China as they have done in Germany. There might be unique conditions that only apply for China and that are not comparable to the German ”climate”.
International Auditing
The same rules and policies must apply for all of the divisions in both Germany and China, because of language differences it might not always be an easy job to do.