Foreign Intercompany Accounting Policy

This policy establishes procedures regarding the accounting of foreign intercompany transactions on a timely basis. Foreign intercompany transactions are defined as all financial transactions which arise between a domestic (U.S.) and a foreign entity or between two foreign entities.

In this example, steps are outlined for recording of intercompany transactions (including the treatment of accrued interest), settlement of intercompany transactions, balancing intercompany account differences, and more. The policy also explains the responsibilities concerning the establishment and interpretation, implementation and administration of accounting policies pertaining to intercompany transactions.