Report of the Committee on International Accounting.

Abstract The article presents the text of the 1972-73 report of the American Accounting Association Committee on international accounting. An issue in international accounting is whether performance evaluation in multinational enterprises is sufficiently different from performance evaluation in domestic companies as to require different evaluation systems and techniques. The very fact of extensive operations in more than one nation introduces elements which impact on performance evaluation. These elements can be divided into two categories--those pertaining to differences between the environments of countries, and those pertaining to the conduct of operations across national boundaries. The key concepts in considering differences in the environments of the various nations where operations are conducted are that these differences are likely to be much greater between countries than within any one country and that these greater differences destroy to a significant degree the comparability of operating results and financial status between entities in different countries.