The balance sheet approach starts by specifying how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when carrying a foreign work assignment.
A situation where debits and credits must match is referred to by an accounting phrase. Set expatriate compensation using the balance sheet method. Protecting or equating an expatriate's purchasing power while on assignment abroad is the aim of this policy. The balance sheet approach approaches expatriate packages holistically, taking into account all the important elements to make sure employees don't make significant gains or loses when they go.
The Balance Sheet Approach to International Compensation is a strategy created to provide incentives to balance out qualitative disparities between assignment sites and to balance the spending power of employees at equivalent position levels living abroad and in the home country. One type of audit approach used by the auditor is the balance sheet audit approach.
Hence, The balance sheet approach starts by specifying how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when carrying a foreign work assignment.
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