Measuring Performance

Measuring performance and quantifying success is a key financial dimension of enterprise risk management (ERM). However, ERM has historically been more of an insurance exercise than a proactive tool for managing and enhancing stakeholder value. Each business is unique and there isn’t a single set of performance metrics to measure performance across all businesses. When assessing the most relevant metrics to analyze a business, the most important factors to consider […]

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Transfer Pricing is a Global Issue for FASB ASC 740-10 (f/k/a FIN 48)

Multinational enterprises operating in India are facing increased scrutiny with respect to transfer pricing. An aggressive audit program – which is significantly backlogged – has led to significant unfavorable adjustments for Indian taxpayers. According to an article from The Hindu Business Line, “Under the present litigation process, certainty on disputed income-tax matters cannot be expected before three years, which could extend to even over fifteen years. Not to mention the […]

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Brazil’s Adoption of IFRS May Create Issues for U.S. Multinationals

With Brazil adopting IFRS there are now some serious questions facing Brazilian companies with non-Brazilian subsidiaries (i.e., controlled foreign legal entities). Under the Brazilian accounting rules, results of controlled foreign investees can be recorded two ways: 1) Equity method; or 2) Direct consolidation of foreign legal entities’ results in the Brazilian parents’ results. In the latter instance, the Brazilian parent will effectively have to consolidate the foreign legal entities’ results […]

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