ESSAY : Global accounting considerations

An American company is considering entering into a joint venture with a firm in Ireland. Describe what cultural and accounting practice differences each party should consider and explain why.

SAMPLE SOLUTION

Many companies go into a joint venture as a way of creating value, improve market access as well as create economies of scale. Such an initiative may, however, be easy to implement if the companies in question are within a given country. In cases of multinationals, accounting and cultural considerations have to be made as will be shown herein.
Cultural and Accounting Considerations to be made
Culture has a big role to play in as far as joint ventures are concerned (Chang, 2019). There is a possibility of great cultural differences between companies in the US and those in Ireland. Some of the cultural considerations that the two companies have t consider include strategies of employee motivation, decision-making styles as well as beliefs regarding what success means for the individual companies (Nguyen, Larimo & Ali, 2016). It will also be important for the two companies to evaluate the employees’ notion of the use of technology to engage in meetings through teleconferencing. Other than employee-centered cultural considerations, the two companies will have to contend…