...Case 11-1: Polluter Corp. Page 1 Suggested Solution -- Case 01 Objectives of the Case This case gives students an opportunity to apply cash flow principles to determine the appropriate classification of various transactions in the statement of cash flows. Applicable Professional Pronouncements ASC 230, Statement of Cash Flows (ASC 230) IAS 7, Statement of Cash Flows (IAS 7) Discussion 1 — Purchase of 2012 Emission Allowances What is the appropriate classification in the statement of cash flows in Polluter Corp.’s (the ―Company’s‖) December 31, 2010, financial statements for its purchase of 2012 emission allowances (―EAs‖) from Clean Air Corp.? Accounting Alternatives — Purchase of 2012 Emission Allowances Alternative 1 — The Company should classify the purchase of the 2012 EAs from Clean Air Corp. as an investing cash outflow in its December 31, 2010, statement of cash flows. Proponents of Alternative 1 believe the Company should classify the purchase of EAs as investing activities in the statement of cash flows given the Company’s election to classify the EAs as intangible assets on its balance sheet. Although EAs are not specifically mentioned in ASC 230, proponents of Alternative 1 believe, given the Company’s accounting policy, the EAs represent ―productive assets.‖ ASC 230-10-20 defines investing activities as follows: Investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment...
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...Cash Flow Poluuter Corp In: Business and Management Cash Flow Poluuter Corp José A Valdés 3 de octubre de 2013 Sem. De Contabilidad Prof. Alejandro Méndez Case 11-1 Polluter Corp Facts of Case: Polluter Corp is an SEC registrant and manufacturer household cleaning products. In the course of operations, Polluter Corp emits emission pollutants; The Company receives emissions allowances, (EAs,) from the government for 2010 to 2030. Polluter Corp will upgrade their production facilities in 2014 in order to reduce their pollutants. Emissions Allowance are given by the government in order to offset pollution expense, with the goal being to reduce pollution 2010 Transactions After 2014, Polluter will emit less pollution, but until then it will need more EAs in order to avoid penalties. Transactions Fiscal Year 2010 After 2014, Polluter Corp will emit less pollution, but until then it will need more EA’s in order to avoid penalties, Polluter buys extra EA’s for 2012 from Clear Air Corp for $3 million. In an effort to offset the cost of the April 2, 2010 purchase of 2012 Eas, the company sold Eas with a vintage year of 2016 to Dirty Chemical Corp for $2 million. Answer Required: 1. What is the appropriate classification in the statement of cash flows in the company’s December 31, 2010, financial statements for its purchase of 2012 EAs from Clean Air Corp ? According to the FASB codification section 805-50-3-1-2, these allowance...
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...Valdés 3 de octubre de 2013 Sem. De Contabilidad Prof. Alejandro Méndez Case 11-1 Polluter Corp Facts of Case: Polluter Corp is an SEC registrant and manufacturer household cleaning products. In the course of operations, Polluter Corp emits emission pollutants; The Company receives emissions allowances, (EAs,) from the government for 2010 to 2030. Polluter Corp will upgrade their production facilities in 2014 in order to reduce their pollutants. Emissions Allowance are given by the government in order to offset pollution expense, with the goal being to reduce pollution 2010 Transactions After 2014, Polluter will emit less pollution, but until then it will need more EAs in order to avoid penalties. Transactions Fiscal Year 2010 After 2014, Polluter Corp will emit less pollution, but until then it will need more EA’s in order to avoid penalties, Polluter buys extra EA’s for 2012 from Clear Air Corp for $3 million. In an effort to offset the cost of the April 2, 2010 purchase of 2012 Eas, the company sold Eas with a vintage year of 2016 to Dirty Chemical Corp for $2 million. Answer Required: 1. What is the appropriate classification in the statement of cash flows in the company’s December 31, 2010, financial statements for its purchase of 2012 EAs from Clean Air Corp ? According to the FASB codification section 805-50-3-1-2, these allowance will be recognized as intangible assets at their cost. When a company buys...
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...POLLUTER CORP. Polluter Corp is a leading household cleaning products manufacturing company based in the United States. The Company operates three manufacturing facilities as an SEC registrant. Company emission allowances of vintage years are granted by U.S government to be used 2010 and 2030. According to the Federal Energy Regulatory Commission, Polluter Corp. recorded EAs as intangible assets with a zero cost basis when government issued EAs to company and has a fiscal year end of December 31. Government has special guidance to control or reduce the emission of pollutants and greenhouse gases to participating companies. These are explained as follow; companies have a specified level of pollutants to emit EAs. EAs with same vintage year designation are exchangeable or replaceable by any companies to reduce pollution. That means company can buy EAs from other companies when it needs EAs or sell excess its EAS to other companies who need to satisfy pollution control obligation through a broker. According to EAs regulation, company is required to deliver to the governing bodies EAs sufficient to offset the company’s actual emission or pay a fine for overage of EAs. Currently, Polluter has facing a significant increase in emission due to its old manufacturing facilities and forecasted a need for EAs in fiscal year 2010-2014. In order to reduce green house gas emission to a significant low level, company plans to upgrade its facilities in 2014 and it will cost $15 millions. Under...
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...From: Date: Subject: Case 11-1 Polluter Corp. Statement of Relevant Facts Polluter Corporation, an SEC registrant, operates three manufacturing plants in the United States. The Company manufactures various household cleaning products at each facility, which are sold to retail customers. The U.S. government granted the Company emission allowances (“EAs”) of varying vintage years (i.e., the years in which the allowance may be used) to be used between 2010 and 2030. Upon receipt of the EAs, the Company recorded the EA’s as intangible assets with a cost basis of zero. The Company currently emits a significant amount of greenhouse gases because of its antiquated manufacturing facilities. The Company plans to upgrade its facilities in 2014, which will decrease greenhouse gas emissions to a very low level. On the basis of the timing of the upgrade, the Company currently anticipates a need for additional EAs in fiscal years 2010–2014. However, upon completion of the upgrade, the Company believes it will have excess EAs in fiscal years subsequent to 2014 because of reduced emissions as a result of the upgrade. The Company entered into the following two separate transactions in fiscal year 2010, which will impact the Company’s results as presented in the statement of cash flows: 1. To meet its need for additional EAs in fiscal years 2010–2014, on April 2, 2010, the Company spent $3 million to purchase EAs with a vintage year of 2012 from Clean Air Corp. 2. In an effort to offset...
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...Why commodity markets were started The first recorded instance of futures trading occurred with rice in 17th Century Japan. There is some evidence that there may also have been rice futures traded in China as long as 6,000 years ago. Futures’ trading is a natural outgrowth of the problems of maintaining a year-round supply of seasonal products like agricultural crops. In Japan, merchants stored rice in warehouses for future use. In order to raise cash, warehouse holders sold receipts against the stored rice. These were known as "rice tickets." Eventually, such rice tickets became accepted as a kind of general commercial currency. Rules came into being to standardize the trading in rice tickets. These rules were similar to the current rules of American futures trading. In the United States, futures trading started in the grain markets in the middle of the 19th Century. The Chicago Board of Trade was established in 1848. In the 1870s and 1880s the New York Coffee, Cotton and Produce Exchanges were born. Today there are ten commodity exchanges in the United States. The largest are the Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and the New York Coffee, Sugar and Cocoa Exchange. Worldwide there are major futures trading exchanges in over twenty countries including Canada, England, France, Singapore, Japan, Australia and New Zealand. The products traded range from agricultural staples like Corn and...
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... on average, $88,000 a year to keep a youth locked up — far more than the U.S. spends on a child’s education,” wrote Nell Bernstein who authored Burning Down the House: The End of Juvenile Prison. Even as many states have attempted to alter their adolescent prisons, Bernstein says that incarcerating kids is the wrong strategy to manage most early life wrongdoers. Their detention behind those walls will shape who they are. (c) Reverse Bill Clinton’s cutting funding to 350 college programs in prisons around the country in 1994, as a part of his Violent Crime Control and Law Enforcement Act. (d) Implement Obama’s Second Chance Pell program to reestablish the federal grant to prisoners looking to enroll in college. A 2013 study by the Rand Corp, financed by the U.S. Dept of Justice, showed that detainees who got some broad instruction were 43% more averse to re-carry out criminal acts and go back to jail inside of three years than the individuals who didn’t get any...
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...Pollution Prevention in Corporate Strategy NATIONAL POLLUTION PREVENTION CENTER FOR HIGHER EDUCATION Case A: McDonald’s Environmental Strategy Susan Svoboda, manager of the University of Michigan Corporate Environmental Management Program (CEMP), prepared this case under the guidance of Stuart Hart, director of CEMP and assistant professor of Corporate Strategy and Organizational Behavior at the U-M School of Business Administration, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an adminstrative situation. This document may be used by either students or faculty for background information. Introduction Rooted in Ray Kroc’s founding principles of Quality, Service, Cleanliness & Value (Q.S.C.&V.), McDonald’s management has always believed in being a leader in issues that affect their customers. This philosophy is evident in McDonald’s involvement in various community projects regarding education, health care, medical research, and rehabilitation facilities. These activities help the corporation to extend their image beyond fun and entertainment into social responsibility. However, in the late 1980s, McDonald’s began to face criticism for its environmental policies, especially those surrounding polystyrene clamshell containers. In 1987, McDonald’s replaced CFCs, the blowing agent used in clamshell production, with weaker HCFC-22’s after facing public criticism that CFC usage was contributing to ozone depletion. But...
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...AN ANALYSIS: HTC, THE INDUSTRY AND TAIWAN GROUP PROJECT JAPAN & THE FOUR ASIAN TIGERS SMARTPHONE TABLE OF CONTENTS INTRODUCTION ......................................................................... 3 1 Taiwan's Economic History ............................................................ 4 2 Impact of Globalization on Taiwan .................................................. 5 3 PESTEL- Analysis of Taiwan .......................................................... 6 3.1 Political Aspect ............................................................................... 6 3.2 Economic Aspect ............................................................................. 6 3.3 Social Aspect .................................................................................. 6 3.4 Technological Aspects ...................................................................... 7 3.5 Environmental Aspects ..................................................................... 7 3.6 Legal Aspects ................................................................................. 8 4 Financial Markets of Taiwan .......................................................... 8 4.1 Taiwan Stock Exchange .................................................................... 8 4.2 The Bonds Market ........................................................................... 9 4.3 The Inflation Rate in Taiwan .............................................................. 9 5 The Smartphone...
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...CERTIFICATE IN MARITIME ECONOMICS MODULE ONE Economic Geography of Maritime Transport Dr. Stavros Tsolakis Lloyd's and the Lloyd's crest are the registered trademarks of the society incorporated by the Lloyd's Act 1871 by the name of Lloyd's. CONTENTS WELCOME TO THE COURSE ........................................................................................................ 3 STRUCTURE OF THE COURSE ...................................................................................................... 4 INTRODUCTION TO MODULE 1 ................................................................................................... 7 1. ECONOMIC ANALYSIS OF THE SHIPPING INDUSTRY ........................................................... 8 1.1 The Function of Shipping .................................................................................................. 8 1.2 The Structure of World Seaborne Trade and the Demand for Shipping Services....................... 8 1.3 The Ton-Mile as a Measurement of Demand for Shipping Services ....................................... 12 2. ANALYSIS OF GLOBAL COMMODITIES ON-BOARD SHIPS .................................................. 14 2.1 Crude Oil Seaborne Trade .............................................................................................. 14 2.2 Other Challenges for Crude oil Transportation ................................................................... 16 2.3 ...
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...ZARA COMPANY PROFILE Zara is a Spanish clothing and accessories retailer based in Arteixo, Galicia, and founded in 1975 byAmancio Ortega and Rosalía Mera. It is the flagship chain store of the Inditex group, The world's largest apparel retailer, the fashion group also owns brands such as Massimo Dutti, Pull and Bear, Uterqüe, Stradivarius and Bershka. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. This has increased the idea of Zara as a "fashion imitator" company and low cost products. Lack of advertisement is also in contrast to direct competitors such as Uniqlo and United Colors of Benetton. Zara was described by Louis Vuitton Fashion Director Daniel Piette as "possibly the most innovative and devastating retailer in the world." Zara has also been described as a "Spanish success story" by CNN. Amancio Ortega opened the first Zara store in 1975 in a central street in downtown La Coruña, Galicia, Spain.[4] Ortega named his store Zorba after watching the classic film Zorba the Greek, but apparently there was a bar that was called the same, Zorba, two blocks away, and...
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...your professor and the rest of the class. (not graded) * Thread over TCO A/I (graded) * Ethics and Patent Rights Post 9/11 (graded) * Q & A Forum for your questions and comments (not graded) | | There is a drop down arrow next to the "Select a Topic" box. Click on this arrow to select topics for discussion. | ------------------------------------------------- Top of Form Select a Topic: Bottom of Form The World Bank Situation (graded) | Class, please read Chapter 2, problem 5 from the Jennings text, p. 72. This week, we will discuss the Wolfowitz situation at the World Bank. Consider the questions at the end of the problem as you make comments in the threads this week. What are the ethics here? Was Wolfowitz trying to do the right thing? Does that make a difference ethically? Throughout the week, I will bring in further questions. Be sure to read the lecture and the international ethics article stated in your reading for the week as well. | Collapse All | Show Options | sort by: response | author | date | read | unread ------------------------------------------------- Top of FormBottom of Form | | Responses | Author | Date & Time | | Dwight Elliott | 9 Apr 11 10:37 PM MST | | Professor Introduction: Chapter 1: Introduction to Law & Legal Reasoning (PLEASE READ) The first section in Unit 1...
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...Green Banking Initiative: Opportunities for Bangladesh Dr. S M Ahsan Habib Professor and Director (Training & Research), BIBM The paper was presented at a seminar on Green Banking at BIBM on October 14, 2010 Green Banking Initiative: Opportunities for Bangladesh I. Introduction Banks that were once seen only as profit motive institutions have been adjusting to a more demanding market and to a more conscious society over last two decades. An increasing number of banks around the world are going green by providing innovative green products that cover financial services to support the activities that are not hazardous to environment and help conserve environment. A green bank is also called an ethical bank, a socially responsible bank, or a sustainable bank. The exact meaning of all these titles may not be same however they cover a lot of common activities and perceptions. At least, all these banks- in various ways and at different times- have engaged themselves in making a better future (Merzio 2007). The approach to green banking (GB) varies from bank to bank, however, broad objectives of green banks are to use their resources with responsibility avoiding waste and giving priority to environment and society. The public concern of the state of environment has been growing significantly in the last few years, mostly due to apparently unusual weather patterns, rising greenhouse gases, declining...
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...ICTs As Enablers of Development: A Microsoft White Paper December 2004 Executive Summary Information and communications technologies (ICTs) are transforming societies and fueling the growth of the global economy. Yet despite the broad potential of ICTs, their benefits have not been spread evenly. Indeed, using ICTs effectively to foster social inclusion and economic growth is among the key challenges facing policymakers today. As one of the world’s leading ICT firms, Microsoft brings a unique perspective to this issue, one informed by years of collaboration with the international development community. Microsoft firmly believes that ICTs hold tremendous promise as an enabler of social and economic development. ICTs can help underserved populations obtain, manage and disseminate knowledge and to tap into global networks of information and services. And rapid innovations in technology – the fruits of intensive R&D efforts by Microsoft and others – are making ICTs less expensive and easier to use, bringing the power of ICTs within the reach of ever more people. ICTs promote development across many dimensions. At their most fundamental level, ICTs enable organizations to be more productive, thereby spurring economic growth and helping firms be more competitive. ICTs can also expand the reach and effectiveness of social development projects and have already yielded important benefits in such areas as healthcare, education, and environmental preservation. Public-sector...
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...International Business ( Semester 2, 2014) * Topic 1: Context * Globalization: There is no agreed or consistent definition for globalization but the key features including: * Everything and everyone equal * Intensive and rapid flows cross border flows (eg product, finance) * Not just economic but social, culture also. * Implication for nation states (countries)- a loss on power for the countries on politically as well as economically. * “ Globalization is about growing mobility across frontiers- mobility of goods and commodities, mobility of information and communications products and services, and mobility of people” ( Robins 2000). * Globalization has become a leading concept in doing business during last few decades, there are various aspects of globalization that influencing in doing business such as Competition, exchange of technology, knowledge/information transfer. * Competition: there is increase in competition. It can relate to product, service cost, price, target market, technological adaptation, quick response, quick production by companies. Company needs to focus on production with less cost to sell cheaper in order to increase its market share. On the other hand, customers also have a large multitude of choices in the markets and it affects their behavior: they want to acquire goods and services quickly and in more efficient way than before with high expectation in quality and low prices. * Exchange of...
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