It recent years we have seen rapid expansion of corporate by increasing presence and expanding value chain in different countries. Operating in multiple countries triggers Inter-Company Accounting (ICA). ICA is impacted by (1) law of the land, (2) accounting principles, (3) transfer pricing, (4) stock holding pattern, (5) investment accounting.
Once you overcome ICA, then the problem comes inter-company settlement or called a netting.
In addition to dealing with ICA, you need to chalk out how you are going deal with below issues
- Dispute between intercompany entities
- Foreign currency exposure.
- Legal restriction and process.
- Matching of intercompany transactions.
- Taxes such as withholding tax, VAT etc.
