Re:European Union plans to tax tech giants on local revenue
by wongarsu on Monday March 05, 2018 @04:37PM
(#16524676)
If you learn accounting in Germany, there's external accounting and internal accounting.
External accounting is what you show your investors and tax authorities. It has to conform to all relevant laws, and you play your usual tax avoidance games. Both of those make it fairly unusable for decision making.
Internal accounting is what you base your decisions on, and you can do whatever you like (since you aren't showing it around). It just has to provide insight. For example you can have departments do virtual payments to each other for production steps and services to help you quantify how well departments are doing.
In English/US accounting traditionally you would only do fiscal accounting, but doing internal accounting as well is getting popular.
External accounting is what you show your investors and tax authorities. It has to conform to all relevant laws, and you play your usual tax avoidance games. Both of those make it fairly unusable for decision making.
Internal accounting is what you base your decisions on, and you can do whatever you like (since you aren't showing it around). It just has to provide insight. For example you can have departments do virtual payments to each other for production steps and services to help you quantify how well departments are doing.
In English/US accounting traditionally you would only do fiscal accounting, but doing internal accounting as well is getting popular.