...A2 Auto Corporation Date: March 31, 2010 Prepared by: Joe Expert Senior Reviewed by: Manager XWZ CPA Adam Smith ISSUE: Grouping of long-lived assets to be held and used for impairment testing purposes. BRIEF BACKGROUND OF HISTORY A2 Auto Corporation (“A2 Auto”) is one of the world’s largest manufacturers and distributors of automobiles and automobile ancillary parts. In its Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”), A2 Auto has disclosed within Note 24, Segment Information, that it has four operating segments: (1) A2 Americas, (2) A2 Asia Pacific, (3) A2 Others, and (4) Financial Services. Note 12, Goodwill and Other Intangibles, disclose that A2 Auto has the same four reporting units. ACCOUNTING QUESTIONS 1. What are the appropriate criteria for the grouping of long-lived assets to be held and used for impairment testing purposes? 2. On the basis of the information in A2 Auto’s 2010 Form 10-K, what is the appropriate grouping for purposes of recognizing and measuring an impairment loss? 3. What audit considerations should be made when testing the appropriate grouping of long-lived assets for purposes of recognition and measurement of an impairment loss? 4. Is A2 Auto’s approach for testing goodwill for impairment after recognizing an impairment charge related to a long-lived asset group classified as held-and-used appropriate? 5. After the A2 Americas $1.76 billion impairment loss was recognized, strategy...
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...Case 09-7 A2 Auto Corporation Impairment A2 Auto Corporation (“A2 Auto”) is one of the world’s largest manufacturers and distributors of automobiles and automobile ancillary parts operating in the Asia Pacific and American Markets. A2 Auto’s automotive operations include the design, manufacture, assembly, and sale of passenger cars, recreational and sport-utility vehicles, minivans and trucks, and related parts and accessories. In its Form 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”), A2 Auto has disclosed within Note 24, Segment Information, that it has four operating segments: (1) A2 Americas, (2) A2 Asia Pacific, (3) A2 Others, and (4) Financial Services. Note 12, Goodwill and Other Intangibles, discloses that A2 Auto has the same four reporting units. The following is disclosed within Note 11, Impairment of Long-Lived Assets, of A2 Auto’s 2010 Form 10-K: 1. On the basis of the assumptions underlying the acceleration of our strategy refocus, we project a decline in net cash flows for the A2 Americas segment, primarily reflecting lower market share assumptions, capacity reductions, and other aspects of our accelerated plan. As a result, in the third quarter of 2010, we tested the long-lived assets of this segment for recoverability and recorded a pretax impairment charge of $1.76 billion in automotive cost of sales, representing the amount by which the carrying value of these assets exceeded their fair value. 2. During the third quarter of 2010, we also...
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...companies and all the mergers between the companies. The specialists would to have indicated that the expansion of the foreign commerce in the auto industry, and it dates back to the transfer of Ford Motor Company’s mass production from the U.S. to Western Europe and Japan that followed both World Wars (Business & Economics Research Advisor, Modern Global Automobile Industry, 2004). There was a significant growth in the production of Japanese and German Markets. Another important to the industrial globalization is the export of the fuel efficient cars from Japan to the United States, the reason for this is because of the oil embargo from 1973 to 1974 (Business & Economics Research Advisor, Modern Global Automobile Industry, 2004). There are a number of things that can be identified by looking at the global automotive market. They are, Global Market Dynamics, Establishment of Global Alliances – U.S. Automakers, and Industry Consolidation. There are also three tiers to consider, first tier company mergers –Volkswagen-Lamborghini, BMW-Rolls Royce; the second tier company mergers, Chrysler-Mercedes Benz; Renault-Nissan-Fiat and the third tier company mergers, Mazda-Mitsubishi; Kia-Volvo1974 (Business & Economics Research Advisor, Modern Global Automobile Industry, 2004). In the 21st century the UAW has been working hard to aid the auto industry to rebound and also helping their members to have a benefit package, the only problem with is that these generous benefit packages...
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...Chapter 1 Introduction to Law and Legal Reasoning TRUE/FALSE QUESTIONS A1. The stability and predictability of the law is essential to business activities. B1. An important function of the law is to provide jurisprudence. A2. Law is a body of enforceable rules governing relationships among individuals and between individuals and their society. B2. How judges apply the law to specific disputes may depend in part on their personal philosophical views. A3. The basis for the U.S. legal system is natural law. B3. A judge’s view of the law is of little importance in a common law legal system. A4. Constitutional law includes only the U.S. Constitution. B4. Congress can only pass legislation that falls within the limits set up by the U.S. Constitution. A5. A state constitution is supreme within the state’s borders. B5. The U.S. Constitution is the supreme law of the United States. A6. Whether a law is constitutional depends on its source. B6. Each state has its own constitution. A7. Uniform laws apply in all states, including those in which the laws have not been adopted. B7. The Federal Trade Commission developed the Uniform Commercial Code. A8. A state law that conflicts with the U.S. Constitution will be deemed unconstitutional. B8. State agency regulations take precedence over conflicting federal...
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...Asian crisis on this management and decision taking processes; Korea’s initial factor dotation, i.e. the prevalence of certain factors over others which pushed the company to seek knowledge and resources abroad at a very early stage; The replication of Japanese strategies (Nissan, Mitsubishi, Toyota). - Due to the complexity of HMC’s environment, strategy over time cannot be illustrated using a single internationalisation framework. The report therefore discusses two different frameworks – namely Porter’s diamond and Dunning’s eclectic paradigm – to analyse the company’s strategy at different stages of its international development. 2 06/06/2013 Research project: Hyundai globalisation strategy Introduction Hyundai Motor Corporation (HMC) is a South Korean multi-national automaker which is part of the Hyundai Motor Group founded in 1967 by Chung Ju-Yung. HMC sells its vehicles in 193 countries through a network of over 6000 dealerships and showrooms. HMC operates the world’s largest integrated automobile manufacturing...
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...Copyright ©2001 Ian H. Giddy globalsecuritization.com The Securitization Process3 Securitization of Assets Securitization is the transformation of an illiquid asset into a security. q For example, a group of consumer loans can be transformed into a publically-issued debt security. q A security is tradable, and therefore more liquid than the underlying loan or receivables. Securitization of assets can lower risk, add liquidity, and improve economic efficiency. q Sometimes,assets are worth more off the balance sheet than on it. q Copyright ©2001 Ian H. Giddy globalsecuritization.com The Securitization Process4 What is the Technique for Creating Asset-Backed Securities? A lender originates loans, such as to a homeowner or corporation. q The securitization structure is added. The bank or firm sells or assigns certain assets, such as consumer receivables, to a special purpose vehicle. q The structure is legally insulated from management q Credit enhancement and rating agency reviews q The SPV issues debt, dividing up the benefits (and risks) among investors on a pro-rata basis q Copyright ©2001 Ian H. Giddy globalsecuritization.com The Securitization Process5 Securitization: The Basic Structure SPONSORING COMPANY ACCOUNTS RECEIVABLE SALE OR ASSIGNMENT SPECIAL PURPOSE VEHICLE ISSUES ASSET-BACKED CERTIFICATES ACCOUNTS RECEIVABLE Copyright ©2001 Ian H. Giddy globalsecuritization.com The Securitization Process6 The Process Is the company...
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...Development: The Case of India’s Automotive Industry By Mahipat Ranawat and Rajnish Tiwari Hamburg University of Technology Institute of Technology and Innovation Management Schwarzenbergstr. 95, 21073 Hamburg (Germany) Tel. +49 – (0)40 – 428 78 – 3776, Fax: +49 – (0)40 – 428 78 – 2867 mahipat.ranawat@tuhh.de; rajnish.tiwari@tuhh.de www.tuhh.de/tim; www.global-innovation.net Abstract The automotive industry in India has come a long way from its nascent state at the time of India’s independence in 1947 to its present day dynamic form. As compared to the production of mere 4,000 vehicles in 1950, the production of the industry crossed the historic landmark of 10 million vehicles in 2006. Today, the industry produces a wide range of automobiles and auto-components catering to both the domestic as well as foreign markets. The development of the industry has been shaped by the demand on the one hand and the government interventions on the other; the influence of the latter being considerable. The evolution of India’s automotive industry is identified to have occurred in four phases. In the first (1947-1965) and second phase (1966-1979), the important policies identified were related to protection, indigenisation and regulation of the industry. On the one hand, these policies helped India to build an indigenous automotive industry, while on the other it led to unsatisfactory industry performance. In the third phase (1980-1990), the...
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...continue to grow. The city is now also known for Manufacturing, Automobile, Government & Private sector Research Institutes, Information technology (IT) and Educational, Management,Training institutes that attract migrants, students and Professionals not only from India but also students from South east Asia, Middle East and African countries. As per the 2011 Census of India estimate, the population of the Pune urban agglomeration is 6,049,968.In the last 50 years, the city’s population has grown by more than five times. The growth in population testifies to the vibrancy of its economic activity. Today, Pune has a diverse industrial population. It is one of India's most important automotive hubs, with some domestic and international auto giants manufacturing here, including Daimler Benz,MTU FN and Volkswagen. Pune also has hundreds of large and small IT companies. Pune, the Oxford of the East is a historical city in India with a glorious past, an innovative present and a promising future. 2.2 Situation...
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...* MECHANISMS FOR DEALING WITH SHAREHOLDER-MANAGER CONFLICTS * * AGENCY VERSUS CONTRACT * * FURTHER READING: Agency theory suggests that the firm can be viewed as a nexus of contracts (loosely defined) between resource holders. An agency relationship arises whenever one or more individuals, called principals, hire one or more other individuals, called agents, to perform some service and then delegate decision-making authority to the agents. The primary agency relationships in business are those (1) between stockholders and managers and (2) between debtholders and stockholders. These relationships are not necessarily harmonious; indeed, agency theory is concerned with so-called agency conflicts, or conflicts of interest between agents and principals. This has implications for, among other things, corporate governance and business ethics. When agency occurs it also tends to give rise to agency costs, which are expenses incurred in order to sustain an effective agency relationship (e.g., offering management performance bonuses to encourage managers to act in the shareholders' interests). Accordingly, agency theory has emerged as a dominant model in the financial economics literature, and is widely discussed in business ethics texts. Agency theory in a formal sense originated in the early 1970s, but the concepts behind it have a long and varied history. Among the influences are property-rights theories, organization economics, contract law, and political philosophy...
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...ANÁLISIS ECONÓMICO DE MARUTI | SUBMITTED TO:- SUBMITTED BY:-DR. R.L. CHAWLA GARIMA SUNNY ARYA RITIKA SABARWAL SWARAJ S. SIDHU YASHASVI YADAV | MARUTI SUZUKI INDIA LIMITED (MSIL). COMPANY AT A GLANCE HISTORY * Year of Establishment – 1981 * MUL was established by Govt. to meet the growing demand of personal mode of transport caused by the lack of efficient public transport system. * MUL launched Maruti -800 as its 1st car in Dec,1983 for Rs. 47,500 MERGER BETWEEN SUZUKI MOTORS CORP. & MARUTI UDYOG LTD. * Maruti Suzuki India Ltd. Is subsidiary of Suzuki Motors , Japan * MSIL has been the leader of Indian car market for over 25 years now. * The company has two manufacturing units located at Gurgaon and Manesar. * Number of employees >8500 * The company offers...
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...Commercial Paper Thomas K. Hahn C ommercial paper is a short-term unsecured promissory note issued by corporations and foreign governments. For many large, creditworthy issuers, commercial paper is a low-cost alternative to bank loans. Issuers are able to efficiently raise large amounts of funds quickly and without expensive Securities and Exchange Commission (SEC) registration by selling paper, either directly or through independent dealers, to a large and varied pool of institutional buyers. Investors in commercial paper earn competitive, market-determined yields in notes whose maturity and amounts can be tailored to their specific needs. Because of the advantages of commercial paper for both investors and issuers, commercial paper has become one of America’s most important debt markets. Commercial paper outstanding grew at an annual rate of 14 percent from 1970 to 1991. Figure 1 shows commercial paper outstanding, which totaled $528 billion at the end of 1991. This article describes some of the important features of the commercial paper market. The first section reviews the characteristics of commercial paper. The second section describes the major participants in the market, including the issuers, investors, and dealers. The third section discusses the risks faced by investors in the commercial paper market along with the mechanisms that are used to control these risks. The fourth section discusses some recent innovations, including asset-backed commercial...
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...Customer Satisfaction Survey of Maruti Suzuki India Limited Maruti Suzuki India Ltd. Maruti Suzuki India limited (MARUTI SUZUKI INDIA LIMITED) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki¶s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every...
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...TESTS 100 TOEIC Preparation Tests Index ...................................................................................... Advanced Level 1. Bearing Information ..................................................................... 2. Cinemas ................................................................................. 3. Cliches ................................................................................. 4. Mistaken Identity ....................................................................... 5. Speaking: At the Station ................................................................ 6. Speaking: At the Supermarket ............................................................ 7. Speaking: At the Theatre ................................................................ 8. Speaking: The Broadcast ................................................................. 9. What comes next (the bill) .............................................................. 10. Accounts ............................................................................... 11. Advertising ............................................................................ 12. Agreements ............................................................................. 13. Applying for that Job .................................................................. 14. Are You in Debt? ....................................................................... 15. At the Computer ...................................
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...TESTS 100 TOEIC Preparation Tests Index ...................................................................................... Advanced Level 1. Bearing Information ..................................................................... 2. Cinemas ................................................................................. 3. Cliches ................................................................................. 4. Mistaken Identity ....................................................................... 5. Speaking: At the Station ................................................................ 6. Speaking: At the Supermarket ............................................................ 7. Speaking: At the Theatre ................................................................ 8. Speaking: The Broadcast ................................................................. 9. What comes next (the bill) .............................................................. 10. Accounts ............................................................................... 11. Advertising ............................................................................ 12. Agreements ............................................................................. 13. Applying for that Job .................................................................. 14. Are You in Debt? ....................................................................... 15. At the Computer ...................................
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...DIGITAL CAMERA User's Manual En Where to Find It Find what you’re looking for from: i i i i i The Table of Contents Find items by function or menu name. ➜ 0 vi–xi The Q&A Index ➜ 0 ii–v Know what you want to do but don’t know the function name? Find it from the “question and answer” index. The Index Search by key word. ➜ 0 232–234 Error Messages Troubleshooting ➜ 0 221–223 If a warning is displayed in the viewfinder or monitor, find the solution here. ➜ 0 216–220 Camera behaving unexpectedly? Find the solution here. A For Your Safety Before using the camera for the first time, read the safety instructions in “For Your Safety” (0 xii). Help Use the camera’s on-board help feature for help on menu items and other topics. See page 13 for details. Digitutor “Digitutor”, a series of “watch and learn” manuals in movie form, is available from the following website: http://www.nikondigitutor.com/index_eng.html Q&A Index Table of Contents 0 ii 0 vi 0 1 X Introduction s Basic Photography and Playback x Framing Pictures in the Monitor (Live View) y Recording and Viewing Movies z More on Photography (All Modes) t P, S, A, and M Modes I More on Playback Q Connections o The Playback Menu i The Shooting Menu L Custom Settings g The Setup Menu u The Retouch Menu w Recent Settings / v My Menu n Technical Notes 0 27 0 41 0 49 0 53 0 79 0 115 0 131 0 146 0 148 0 153 0 165 0 174 0 190 0 193 i Q&A Index Find...
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