Cleaning up intercompany accounting: Driving efficiency while managing risk
•
6 likes•5,063 views
More than 3,800 accounting and finance professionals participated in a Deloitte webcast on intercompany accounting. The poll results showed that the greatest challenges to implementing intercompany accounting were disparate software systems, complex intercompany agreements, and transfer pricing compliance. Most companies reported that accounting took the lead in managing intercompany accounting. Nearly half of companies described their intercompany accounting framework as defined but still working to standardize and achieve consistency. The largest potential benefits from a comprehensive intercompany accounting program were seen as financial reporting integrity and reducing fines or penalties.
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (8)
Similar to Cleaning up intercompany accounting: Driving efficiency while managing risk
Similar to Cleaning up intercompany accounting: Driving efficiency while managing risk (20)
More from Deloitte United States
More from Deloitte United States (20)
Recently uploaded
Recently uploaded (20)
Cleaning up intercompany accounting: Driving efficiency while managing risk
- 1. Cleaning up intercompany accounting: Driving efficiency while managing risk Deloitte Poll, results from May 26, 2016
- 2. Copyright © 2016 Deloitte Development LLC. All rights reserved. 2 Methodology More than 3,800 professionals participated in a Deloitte Dbriefs webcast, “Cleaning up intercompany accounting: Driving efficiency while managing risk,” on May 26, 2016. Poll respondents were largely in accounting (47.2 percent) and finance (22.9 percent) roles. To replay the Deloitte Dbriefs webcast, visit the archive online.
- 3. Copyright © 2016 Deloitte Development LLC. All rights reserved. 3 Which do you believe poses the greatest challenge to your organization’s implementation of intercompany accounting? Votes received: 4,127 22.4% Don’t know/not applicable 21.4% 16.8% 16.7% 9.4%13.3% Disparate software systems Complex intercompany agreements Transfer pricing compliance Foreign exchange (FX) exposure Intercompany settlement
- 4. Copyright © 2016 Deloitte Development LLC. All rights reserved. 4 Who do you believe has taken the lead in managing your organization’s intercompany accounting? Votes received: 4,107 12.4% Don’t know/not applicable Combination of accounting, tax, treasury 24.4% Accounting 55.7% Tax 5.5% Treasury 2.1%
- 5. Copyright © 2016 Deloitte Development LLC. All rights reserved. 55 How would you describe your company’s intercompany accounting framework? Defined—aims to achieve consistency in intercompany accounting, but we’re still working on it Developing—it is a goal we want to achieve, but we have yet to standardize our governance Leading—provides a holistic perspective, with efficient systems and communication across critical functions 42.5%25.6% 9.2% Votes received: 4,023 22.7% Don’t know/not applicable
- 6. Copyright © 2016 Deloitte Development LLC. All rights reserved. 6 Where do you believe your organization stands to benefit the most from a comprehensive intercompany accounting program? 40.3% 3.1% 21.4% 13.2% 5.6% Votes received: 3,800 16.5% Don’t know/not applicable Financial reporting integrity A reduction in fines, penalties, or unintended taxable events A more reliable internal control environment All of the below A more efficient month end close and/or statutory reporting process
- 7. Copyright © 2016 Deloitte Development LLC. All rights reserved. 7 Shelley Pfaendler Public Relations Deloitte Services LP spfaendler@deloitte.com Full press release available on Deloitte.com Media contact
- 8. The statements in this report reflect the aggregation of poll responses and are not intended to reflect facts or opinions of any entities. All data, charts and statistics referenced and presented, as well as the representations made and opinions expressed, unless specifically described otherwise, pertain only to the participants and their responses to the Deloitte poll. The information obtained during the poll was taken “as is” and was not validated or confirmed by Deloitte. This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2016 Deloitte Development LLC. All rights reserved.