BusinessWorld Online: Economy

Aug 072017

In the arena of international transactions, management and service agreements between interrelated companies within a multinational corporation is an inevitable consequence of globalization. The diversity of cultures among different nations necessitates the proliferation of management and service agreements between a domestic corporation and its parent or affiliate Non-Resident Foreign Corporation (NRFC). Management services are advantageous to groups of companies, as member companies or affiliates will benefit from the expertise of these groups and, in the process, they can ensure the quality and uniformity of practices among all the subsidiaries. They can also be a catalyst for taking advantage of the efficiencies and economies in maintaining resource centers among the member companies.

Aug 062017

In the last three years, the International Accounting Standards Board or IASB has issued four new major International Financial Reporting Standards (IFRS). First on the list was the final version of IFRS 9, the new standard on financial instruments, followed by IFRS 15, the new revenue recognition standard. Both standards were issued in 2014 and are effective for annual periods beginning Jan. 1, 2018. In 2016, the IASB issued IFRS 16, the new leases standard, which will be effective in 2019. And last, but certainly not the least, came IFRS 17, the much-anticipated new standard on insurance, which takes effect in 2021.