The world’s multinational corporations would have you believe that their accounts provide a true and fair view of the transactions that they undertake, but this is in very many ways very far from the truth.
First of all, there is no one company that actually undertakes all the transactions that they include in their financial statements.
And, secondly, their financial statements exclude from view all the transactions between the subsidiaries that are owned by the multinational corporation’s parent company.
The consequence is that the accounts present a very selective view of what actually takes place within the multinational corporation, in a format that is designed largely for the benefit of their bankers, and no one else.
In this video Richard explains why changes needed so that everyone interested in a multinational corporation’s affairs gets the data that they need.