Which of the following is a method for managing tax liabilities for international operations?

Managing tax liabilities in international operations is complex due to varying regulations and currency fluctuations. One effective method is accurately assessing foreign currency gains and losses. This is crucial because fluctuations in exchange rates can significantly impact the profitability of operations in different countries and therefore affect taxable income.

By accurately calculating these gains and losses, a corporation can ensure that its income statements reflect the true economic situation. This not only helps in presenting an accurate financial position but can also lead to more strategic tax planning. For instance, understanding foreign currency impacts can allow businesses to leverage tax laws in different jurisdictions effectively, enabling them to minimize their overall tax burden. It ensures compliance with regulations in both the home country and the countries where they operate since proper recognition of currency effects is often required for tax calculations.

The other approaches mentioned would not be effective in managing tax liabilities. Utilizing only domestic accounting methods ignores the complexities and specific requirements of foreign jurisdictions. Converting all income into local currency may not address the underlying currency risks and does not inherently manage tax liabilities. Ignoring foreign tax regulations could lead to non-compliance and potentially incur penalties, increasing the overall tax liabilities rather than managing them effectively.