Need help - Accounting matterMarch 11 2012 at 2:03 PM
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(1) Is International Standards applies to every country that traded with the United States? (2) When United States invested in foreign countries such as Middle-East for Oil should these countries comply with United States Law and the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS)?
The reason I'm saying is LNG has USA involvement in our region. Can professional or student in the field of accounting give some inputs on these Laws? Is PNG accounting Laws abiding with this? Thank you.
Exxon is cleaning up on taxes etc thanks to the PNG gavmanNo score for this post
|March 11 2012, 3:01 PM |
Whenever a company does business in another country,it has to follow the rules of that country.
Fortunately for Exxon, our government has given them one tax break after another. Of course they have to pay for the gas itself, but that's ok with them cuz they just add their profit to it.
They didn't have to pay a toea in import duty for all those containers you see at Fairfax harbour. Not a toea!
Exxon started out in USA but hardly based there anymore, they are one of the biggest of the multinational companies and home to them is wherever they want to be at that moment. They may have an Esso PNG right now, but they'll disband it and run away the moment they stop making big bucks.
Corporate ResponsibilityNo score for this post
|May 7 2012, 1:07 PM |
Exxon Mobile Corporation owner of Esso Highlands (PNG) Ltd is an American international energy company. Exxon Mobile stocks are listed on several major stock markets such as the New Yorh Stock Exchange which requires compulsory reporting and disclosure requirements under international securities and trading laws other markets regulatory bodies locally and internationally.
Exxonmobile meets all reporting and disclosure requirements which obviously include; declaring directors remuneration and interests in the company, furnishing audited financial reports to the market quarterly etc, changes in shares and shareholding, markets and business capitalisation, etc as according to disclosure requirements. Financial statements are prepared and reportined according to internationally accepted accounting and auditing standards, and other standards. It's on the financial reporting side of things.
An important aspect of international corporations in the class of ExxonMobile is to maintain a corporate reputation as a socially responsible company. ExxonMobile has an obligation to maintain its international reputation as an LNG Developer and Distributor, and to do that it must have a well developed social relation with the host government, indegineous communities, and stakeholders to minimise business risks and reduce costs, for the benefit of its shareholders. Such international companies such as ExxonMobile, Shell, Santos, Inter Oil, Talisman and Others, with an international audience, operates globally under different settings, rules and procedures as I suppose for instance in PNG, they are regulated by the Oil & Gas Act, Environment Act, Mining Act, Labour & Employment Act, PNG Taxation Act, PNG Marinetime Act, and other regulatory regimes given the nature of the business.
What is important for ExxonMobile is its international reputation as a leader in the energy business. It has got the muscles to influence energy market globlly and has a hunde market capatalisation with huge globally consumer base. ExxonMobile should adapt global reportin standards such as the IFC's Performace Standards and Equator Principles, international human rights laws, internationa labour laws, and other global reporting standards. It must have good working relations with indegineous communities, local governments and business stakeholders as partners in development so as to initiate and develop sustainable practises. Engagement of local communities from very early stages of a project as positive impacts on the project development. Good community relations equates to minimised business risks, reduced costs and project development time.
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