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After setting the total pay the organization divides the amount into four components of the total pay package such as base salary, tax equalization allowance, benefits, allowances, . The balance sheet approach adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas.
There are four categories of outlays incurred by expatriates that are incorporated in the balance sheet approach.
a. Goods and services; Home country outlays for items such as food, personal care, clothing, household furnishings, recreation, transportation and medical care.
b. Housing; The major cost associated with the housing is the host country.
c. Income taxes; Parent and host country income taxes.
d. Reserve; Contributions to savings, payments for benefits, pension, contribution, investments, education expenses, social security taxes etc.
When costs associated with the host country assignment exceed equivalent costs in the parent country these costs are met by both the firm and the expatriate to ensure that parent country equivalent purchasing power is achieved.
What else can I help you with?
If a company uses the Section 179 rule to expense a fixed asset is it still reported as a fixed asset on the balance sheet?
No . If an assest is expensed it will only flow thru the PnL or Income Statement and not be recorded on the Balance sheet as an asset. That is generic treatment of expensing. In a capitalisation approach the asset will appear on the Balance sheet and annual depreciaiton expenses will be reflected on the PnL ( income statement). The Balance sheet will show the Accumulated depriciation on the liabilities side of the balance sheet and Net value ( ie Asset value less less depreciation amount) on the Asset side of the Balance sheet No . If an assest is expensed it will only flow thru the PnL or Income Statement and not be recorded on the Balance sheet as an asset. That is generic treatment of expensing. In a capitalisation approach the asset will appear on the Balance sheet and annual depreciaiton expenses will be reflected on the PnL ( income statement). The Balance sheet will show the Accumulated depriciation on the liabilities side of the balance sheet and Net value ( ie Asset value less less depreciation amount) on the Asset side of the Balance sheet
Difference between on balance sheet financing and off balance sheet financing?
In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.
What is a pro forma balance sheet?
Proforma balance sheet is a projected balance sheet to predict the future of business.
What does it mean a balance sheet does not balance?
my balance sheet does not balance why?
What are post balance sheet items?
Post balance sheet items are those items which arise after closing date of balance sheet that's why called post balance sheet items.
Is Loan on balance sheet or off balance sheet?
Loan is on balance sheet
If a company uses the Section 179 rule to expense a fixed asset is it still reported as a fixed asset on the balance sheet?
No . If an assest is expensed it will only flow thru the PnL or Income Statement and not be recorded on the Balance sheet as an asset. That is generic treatment of expensing. In a capitalisation approach the asset will appear on the Balance sheet and annual depreciaiton expenses will be reflected on the PnL ( income statement). The Balance sheet will show the Accumulated depriciation on the liabilities side of the balance sheet and Net value ( ie Asset value less less depreciation amount) on the Asset side of the Balance sheet No . If an assest is expensed it will only flow thru the PnL or Income Statement and not be recorded on the Balance sheet as an asset. That is generic treatment of expensing. In a capitalisation approach the asset will appear on the Balance sheet and annual depreciaiton expenses will be reflected on the PnL ( income statement). The Balance sheet will show the Accumulated depriciation on the liabilities side of the balance sheet and Net value ( ie Asset value less less depreciation amount) on the Asset side of the Balance sheet
Difference between on balance sheet financing and off balance sheet financing?
In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.
What accounts are balance sheet accounts?
A balance sheet account is any item that is found on the financial statement known as the balance sheet. The figures reflected on the balance sheet, consist of the ending balance of the balance sheet account. After all the transactions are posted in the individual balance sheet account's "T" account (involving debits and credits), the ending balance is the amount found on the balance sheet.
Grouping and marshalling in balance sheet?
grouping and marshalling in balance sheet grouping and marshalling in balance sheet
Is there a difference between a merchandiser's balance sheet and a service company's balance sheet?
Yes in merchandiser balance sheet there is stock of items available in balance sheet while in services balance sheet there is no inventory item available.
What is a pro forma balance sheet?
Proforma balance sheet is a projected balance sheet to predict the future of business.
Allowance for doubtful accounts is reported in the a balance sheet or a income sheet?
balance sheet
What does it mean a balance sheet does not balance?
my balance sheet does not balance why?
Is EB-IT shown in balance sheet?
EBIT is not show in balance sheet rather Earning after tax is shown in balance sheet.
What are post balance sheet items?
Post balance sheet items are those items which arise after closing date of balance sheet that's why called post balance sheet items.
What is the projected balance sheet method?
projected balance sheet method
