This chapter explores how the differences influence the activities of multinational companies (MNCs). International accounting focuses on the differences among countries in accounting principles and reporting practices, the state of international and regional harmonization of accounting principles and reporting practices, foreign currency translation in financial reporting, accounting reporting for taxation, and the financial performance assessments of foreign subsidiaries and companies. The chapter considers some managerial accounting issues related to international operations. It also considers the nature of capital markets, type of tax reporting, the legal system and levels of enforcement of regulations, the types of businesses, the status of the accounting profession and accounting education, and economic and political ties with other nations. The two major international managerial accounting issues the authors will examine in the chapter are transfer pricing and international taxation.