Essays on Gobal Issues In Accounting Assignment

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BackgroundKW IT set up of a subsidiary company in India will come with change of business or company name in order to facilitate global different identity of operations between the two companies (Beausang, F. 2003). The parent company KW IT ltd is posed to change its company name to KW IT (Australia) Ltd while the company name for the Indian subsidiary will be KW IT (INDIA) Ltd. The successful set up of KW IT (INDIA) ltd should slough and weather barriers (Barnes, J. 1999: 401-415) that may negatively affect success of her operations so that they may conform to the parent company KW IT (AUSTRALIA) ltd. Statement of the problemKW IT (Australia) Ltd needs to improve management of her liquidity (Annavardula, M.G.

and Beldona, S. 2000:48-57) by setting a subsidiary sister manufacturing company in India. Set up of KW IT (India) Ltd will make KW IT (Australia) to enjoy a uniform payment method (Buckley P. J. 2004: 50-62) and process since all her transactions will be based on Australia Dollar. Setting up KW IT (India) Ltd comes with benefit of competitive bidding for receipt (Buckley P. J.

2004: 50-62; Annavardula, M.G. and Beldona, S.2000) and settlement services of card systems. At the same time, by becoming multinational, KW IT (Australia) ltd will have powerful influence in Indian economies. KW IT (India) Ltd will also enjoy a lower productivity cost through adoption of lean manufacturing strategies. Objectives of the studies on KW IT ltd set up of subsidiary company in IndiaTo evaluate effects of political factors and alignment of Indian law in business towards KW IT (Australia) Ltd investmentTo investigate Indian cultural influence on KW IT (Australia) investmentTo determine the effect of Indian culture on a accounting practices of KW IT (Australia) LtdTo evaluate potential of foreign currency transaction of KW IT (Australia) LtdTo determine impacts of KW IT (Australia) Ltd foreign currency translation. Hypothesis for testingThe Indian political climate and law in business favors KW IT (Australia) Ltd investmentIndian cultural influence on business will foster KW IT (Australia) Ltd potential for investmentIndian cultural influence on accounting practices will be a strength for KW IT (Australia) LtdThere will be no challenges that may negatively affect KW IT (Australia) Ltd foreign currency transactionThere will be no prevailing conditions that will interfere with KW IT(Australia) Ltd perceived or forecasted foreign currency translationSignificance of studies on KW IT ltd setting up subsidiary company in IndiaThe studies will show Indians current political climate and legal standards with respect to foreign investmentThe studies will show the extend cultural factors affect foreign business and foreign investments in IndiaThe studies will provide guideline on how culture affects accounting practices. The studies will provide a guide that can be used for Indians vs.

Australia currency transactionThe studies will show how KW IT (Australia) ltd and KW IT (India) will carry out their foreign currency translation. Indian potential for KW IT (India) LtdManufacturing sector of India is similar to other western manufacturing practices (Amsden, A.H.

1989). India is undergoing rapid development as a centre of research and development facility as well as a centre for IT research (Amsden, A.H. 1989). Indian is undergoing infrastructural reconstruction in order to improve her transport system with respect to airports, roads and marine ports (Buckley, P. J. 1976). Indians speak fluent English (Buckley, P.

J. 1976 and Amsden, A.H. 1989). Indians land productivity potential is high and a greater population can afford to pay for IT products. Indians is an expatriate destination and skilled labor is present at a lower rate of 1.25 united States dollar (Christianson, D. 2006: 42-53)

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