...IFRS8-1: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed? IFRS and GAAP are comparable regarding essential bookkeeping and reporting issues that join. With recognizable proof and estimation of remittance records, accounts receivables, recording rebates, and the diminishment procedure to represent awful obligation and considering. Notwithstanding, FASB (Monetary Bookkeeping Gauges Board) and IASB (Universal Bookkeeping Norms Board) have made moves to execute reasonable worth estimation to money related instruments. Therefore restricting variables, FASB and IASB have embraced a fragmentary methodology. The primary step the two have taken is unveiling the fitting utilization data in the notes. Step two is the appropriation of the honest option that permits organizations to record some monetary instrument at reasonable esteem in money related articulations (Kimmel, 2013). The third step is recognizing the multifaceted nature and all-inclusiveness of perceiving the range of incomes in monetary reporting. FASB and IASB have likewise worked together in the advancement of another single income acknowledgment standard. Both FASB and IASB are of the conclusion that straightforwardness and appreciation of money related articulations can increment if organizations record and report every budgetary instrument at reasonable quality. A percentage of the feedback on both FASB and...
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...Chinese currency and its devaluation Chinese money is called Renminbi (RMB) means "The People's Currency". The popular unit of RMB is yuan. 1 yuan equals 10 jiao, 1 jiao equals 10 fen. There are parts of China where the yuan is also known as Kuai and Jiao is known as mao. Chinese currency is issued in the following denominations: one, two, five, ten, twenty, fifty and one hundred yuan; one, two and fivejiao; and one, two and five fen. The current official exchange rate between U.S. dollar and Renminbi yuan is about 1:6.8 (1 US dollar = 6.8 yuan RMB). Since the economic reform started in 1979, the Chinese currency (yuan) had been devalued several times until 1994 when the two-tier foreign exchange system was ended. While the official rate of yuan had been maintained constant over seven years since 1998, the pressure on the revaluation of yuan intensified. It has been perceived by some economists that the yuan is undervalued on an order of 37.5%. There are two implications for a currency devaluation. First, devaluation makes a country's exports relatively less expensive for foreigners and second, it makes foreign products relatively more expensive for domestic consumers, discouraging imports. As a result, this may help to reduce a country's trade deficit. Thus, As China pursued its gradual transition from central planning to a free market economy, and increased its participation in foreign trade, the renminbi was devalued to increase the competitiveness of Chinese industry...
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...1. CHAPTER 1, question 1: The term globalization has become widely used in recent years. How would you define it? = “I define globalization as producing where it is most cost-effective, selling where it is most profitable, and sourcing capital where it is cheapest, without worrying about national boundaries.” 2. CHAPTER 1, question 10: Financial Globalization. How do the motivations of individuals, both inside and outside the organization or business, define the limits of financial globalization? = If influential insiders in corporations and sovereign states continue to pursue the increase in firm value, there will be a definite and continuing growth in financial globalization. But, if these same influential insiders pursue their own personal agendas, which may increase their personal power, influence, or wealth, then capital will not flow into these sovereign states and corporations. The result is the growth of financial inefficiency and the segmentation of globalization outcomes, creating winners and losers. The three fundamental elements—financial theory, global business, management beliefs and actions—combine to present either the problem or the solution to the growing debate over the benefits of globalization to countries and cultures worldwide. 3. Problem 9-1 Americo’s Earnings and the Fall of the Dollar. The dollar has experienced significant swings in value against most of the world’s currencies in recent years. a. What would be the impact on Americo’s consoli-dated...
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...GAAP Comparing the IFRS and GAAP has been a three-week process for learning team F. Our team spent time discussing fair value measurements, component depreciation, revaluation of plant assets, development expense, development cost, contingent liabilities, and the differences between GAAP and IFRS accounting liabilities. Fair Value The GAAP fair value standards focus on the sale of an asset or the transfer of a liability using an exit price, unadjusted for transaction costs (Tran, 2012). Unlike GAAP, IFRSs standards are based on principle rather than on strict rules. IFRS requires some assets and liabilities to be measured at fair value in certain circumstances, the concept of fair value measurements in integral to the IASB’s conceptual framework (Tran, 2012). Component Depreciation Component depreciation is a method in which the parts or sections of property or individual depreciated at different rates. Component depreciation should be use by a business when it has items that will have product or assets that are the same with different useful lives (Business Dictionary,2016). Revaluation of Plant Assets Revaluation of plant assets is a change in the book value of assets, caused by a devaluation of the currency in which their value is recorded in the accounts (Business Dictionary, 2016). Revaluation of plant assets should be used for all of your plant assets to maintain the same book value of the fair value of the product no matter the age of the asset. Development...
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...to the foreign countries. “When the debased money was circulating along the legal coins, the latter will tend to be exported, leaving only the inferior money in the circulation.” Gresham described these unethical practices as “bad money drives out good”. (Black, Module 4, Topic 4.4) Because the clipped coins were not liable to the public, it was habitually accepted only for less than their stamped value. On the other hand, people tended to use these suspicious coins to pay taxes. Oppositely, the British government was eager to raise funds for the war against France. With these double results, the British government was advised by William Lowndes to cry up the value of the money in order to discharge large debts with a small sum. The revaluation could be reversed when the war ended which would cry down to receive more revenue from the tax payers. (Black, Module 4, Topic 4.4) Once the...
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...and China Exchange Rate Exchange rate between two currencies is the rate at which one currency will be exchanged for another. How to calculate exchange rate Each country manages the value of its currency through varying mechanisms. The currency can either be free-floating or fixed. 1. Movable or Adjusted Peg System A system of fixed exchange rates, but with a provision for the revaluation (usually devaluation) of a currency. E.g. Between 1994 and 2005, the Chinese Yuan renminbi (RMB) was pegged to the United States dollar at RMB 8.2768 to $1. 2. Free Floating System In this system the exchange rate is allowed to vary against that of other currencies. It is...
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...UNIVERSITE DU QUEBEC THESE PRESENTEE A L'UNIVERSITE DU QUEBEC A TROIS-RIVIERES L'EVALUATION DE LA CONTRIBUTION DES PROGICIELS DE GESTION INTEGRES A LA PERFORMANCE ORGANISATIONNELLE : DEVELOPPEMENT D'UNE METHODOLOGIE PROCESSUELLE PR EV PAR SYLVESTRE UWIZEYEMUNGU JUIN2008 IE COMME EXIGENCE PARTIELLE DU DOCTORAT EN ADMINISTRATION (DBA) OFFERT CONJOINTEMENT PAR L'UNIVERSITE DU QUEBEC A TROISRIVIERES ET L'UNIVERSITE DE SHERBROOKE W 1*1 Library and Archives Canada Published Heritage Branch 395 Wellington Street Ottawa ON K1A0N4 Canada Bibliotheque et Archives Canada Direction du Patrimoine de I'edition 395, rue Wellington Ottawa ON K1A0N4 Canada Your file Votre reference ISBN: 978-0-494-41597-9 Our file Notre reference ISBN: 978-0-494-41597-9 The author retains copyright ownership and moral rights in this thesis. Neither the thesis nor substantial extracts from it may be printed or otherwise reproduced without the author's permission. PR EV NOTICE: The author has granted a nonexclusive license allowing Library and Archives Canada to reproduce, publish, archive, preserve, conserve, communicate to the public by telecommunication or on the Internet, loan, distribute and sell theses worldwide, for commercial or noncommercial purposes, in microform, paper, electronic and/or any other formats. AVIS: L'auteur a accorde une licence non exclusive permettant a la Bibliotheque et Archives Canada de reproduire, publier, archiver, sauvegarder, conserver...
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...International PEST or ETPS |Economic____________ |Technological_____________ |Political-Legal_________ |Socio-cultural__________ | |Economic development |Regulations on technology transfer |Form of government |Customs, norms, values | |Per capita income |Energy availability/cost |Political ideology |Language | |Climate |Natural resource availability |Tax laws |Demographics | |GDP trends |Transportation network |Stability of government |Life expectancies | |Monetary and fiscal policies |Skill level of workforce |Government attitude towards foreign companies |Social institutions | |Unemployment levels |Patent-trademark protection |Regulations on foreign ownership of assets |Status symbols | |Currency convertibility |Internet availability ...
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...Alex Ism Chapter 2: Trade in the Modern World 1. Global sourcing- the process of buying equipment, capital goods, raw materials, or services from around the world. Exporting- to send goods or services to another country, especially for sale. Value added- thhe amount of worth that is added to a product at each stage of processing. Its the difference between the cost of the raw materials and the cost of the finished goods. Licensing agreement- an agreement that grants premission to a company to use a product, service, brand name or patent in exchange for a fee or royalty. Exclusive destrebutiion rights- a form of licensing agrreement that grants a company the right to be the only destrebutor of a product in a specific geographic area on country. Franchise- an agreement granted to an individual or group by a company to use that companies name, services, products, and marketing. Joint Venture- a common type of international business, in which a new company with shared ownership is formed by two businesses, one of which is usually located in the country where the now company is etablished. Foreign Subsidiary- often refered to as a wholly owned subsidiary, a branch of a company that is own as an independant entiry in a country outside of the on in which the parent company is located. Protectionism- the theory or practice of shielding domestic industries from foreign conpetition, often through trade barriers such as tarrifs. Trade quotas- a government-...
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...Chapter 35 – International Finance The Balance of Payments The balance of payments is a periodic statement (usually annual) of the money value of all transactions between residents of one country and the residents of all other countries (pg 740). It provides information on: * A nation’s imports and exports. * Domestic residents’ on assets located abroad. * Foreign earnings on domestic assets. * Gifts to and from foreign countries (including foreign aid). * Exchange of assets. * Official transactions by governments and central banks. The balance of payments accounts record both debit(-) and credit(+). Definition of Debit: “Any transaction that supplies the country’s currency in the foreign exchange market is recorded as a debit”. Debit Example: an American retailer (BestBuy) wants to buy Toshiba TV sets so that he can sell them at his BestBuy stores in USA. To buy the TV sets from Toshiba, BestBuy has to supply U.S Dollars in the foreign exchange market in return for Japanese Yen. Then, he will pay Toshiba in Japanese Yen in exchange for the TV sets. Note: Think of when you go to the money changer to exchange currency. You supply your local currency and demand a foreign currency. Definition of Credit: “Any transaction that creates a demand for the country’s currency in the foreign exchange market is recorded as a credit”. The international transactions that are summarized in the balance of payments can be grouped into three accounts; the...
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...Agent Problem: conflict of goals between manager and shareholder. Parent Control: Comp. plans / oversea / rewards. Corp Control: Remove. Centralized vs. Decentralized Theory of Comparative Adv: country specialized Imperfect Market: factors of production are immobile Product Cycle: Home > Export > Sub > Ownership Balance of Payment: Summary of transact between domestic and foreign over certain time. Current Account: Payment of merch. Services, factor income interest/div, transfer of payment, aids grants gifts. Capital Account: DFI, Port inv, EO reserve. Increase trade volume: NAFTA, Single EU act Outsourcing: subcontracting to 3rd pt Balance of Trade / Trade Deficit, factors: Cost of labor, inflation, national income, Gov. Policy, Exchange rate. Dumping: gov helps firm export. Inter company trades: sub purchase. J curve: trade deficit increase shorter, between weak $ and increase demand IMF: promote stability, promote coop between countries. CFF comp. finance facility. Special drawing rights Foreign exchange, fixed, float. Spot market, spot rate. Interbank market: trade between market. Bid/ask spread of banks bid = buy, ASK > BID, (ask – bid) /ask Direct # of $ per currency / indirect. Indirect = 1/direct Cross exchange rate: peso in C$ = peso / C$ Forward MNC over counter/ Future Exchange / Call option right to buy at (strike / exercise price) Currency put / call option: right to sell currency at a specific price and time Risk...
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...What was the Bretton Woods system? Outline its main pillars and discuss to what extent, if any, its architecture led to both post-war stability and prosperity in the developed world throughout capitalism’s ‘golden age’ “50 Years is Enough” In the final months of the Second world war, an architecture of stability for the international economy emerged. The United States and Britain, having already committed to each other with the signing of Mutual Aid Agreement(1941)1, vied to create a multilateral economic system to replace the international gold standard and its structural rigidity. The Bretton Woods agreement of 1944 established a dollar-gold standard of fixed, but adjustable, exchange rates of $US35 an ounce2. Which, according to Milton Friedman, “carried within it the seeds of its own destruction”3. The Institutions of neo-liberal global economic governance4, were formed; International Monetary Fund, & International Bank for Reconstruction and Development. The Twin Pillars of post-war order5, an “economic super-government”6 essentially adopting both; U.S. Inflation rates.7 and US political policies8. There has been no country in history that has emerged from war into such happy economic circumstances as the United States in 19459. General Maximum Price Regulation(1942) was signed after the attack on Pearl Harbour, controlling most prices beneath a price ceiling until '46, and imposing penalties on violations. In addition to a comprehensive ration system. In order to maximise...
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...current-account balance from the following changes in tax rates: 17.5. A change in the terms of trade Suppose that the home country is Brazil, which produces a lot of coffee for export. We considered in the text a change in the terms of trade that stemmed from a disturbance in the rest of the world. Suppose, instead, that a temporary shock at home—say a failure of Brazil’s coffee crop—raises the relative price of coffee. In this case, how does the disturbance affect Brazil’s current-account balance? Chapter 18, Review Question 4 Does the central bank have discretion over the quantity of domestic money in a fixed exchange rate system? Show how an attempt to carry out an independent monetary policy can lead to devaluation or revaluation. Why might the attempt lead to trade restrictions? 18.7. A shift in the demand for money Consider an increase in the real demand for money, Md/P, in the home country. 18.9. President Nixon’s departure from the gold standard in 1971 Under the Bretton Woods System, the United States pegged the price of gold at $35 per ounce. a. Why did trouble about the gold price arise in 1971? b. Was Nixon right in eliminating the U.S. commitment to buy and sell gold from foreign official institutions at a fixed price? What other alternatives...
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...THE COMPANY AND ITS OPERATIONS Abbott Laboratories (Pakistan) Limited (The Company) is a public limited company incorporated in Pakistan on July 02, 1948, and its shares are quoted on the Karachi, Lahore and Islamabad stock exchanges. The address of its registered office is opposite Radio Pakistan Transmission Centre, Hyderabad Road, Landhi, Karachi. The Company is principally engaged in the manufacture, import and marketing of research based pharmaceutical, nutritional, diagnostic, diabetic care, molecular devices, hospital and consumer products and in providing toll manufacturing services. Head Office : Abbott Laboratories (Pakistan) Limited, Diagnostics Division, Opposite Radio Pakistan Transmission, Hyderabad Road, Landhi, Karachi. Office: +92-21-5015045-49 (111 222 688) Ext:3500 Dir: +92-21-5100422 Fax : 92-21-5042952 Wyeth Pakistan Ltd. Wyeth Pakistan Limited (the company) is a public limited company incorporated in 1949 in Pakistan. The company is listed on the Karachi and Lahore stock exchanges The address is following;International public company PO Box 167, S-33 Hawkes Bay Rd., SITE, Karachi, 75730, Pakistan ()92 021 256 7411, 92 021 256 4428 fax, http://www.wyethpakistan.com Primary SIC: Pharmaceutical Preparations, Primary NAICS: Pharmaceutical Preparation Manufacturing Description: Manufacturing: Manufacture and marketing of research-based ethical specialities and other pharmaceutical and agro-chemical products, including Tazocin, a highly-effective...
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...acct 1511 notes Chapter 6 – Financial Reporting Principles, Accounting Standards and Auditing 6.2 Accounting Principles and the use of Accounting Information Doing accounting takes expert knowledge, considerable experience and continuous attention to new problems and solutions. Concepts and principles are important, as they form logical structure that practising accountants use every day to consider problems to make recommendations GAAP (Generally Accepted Accounting Principles) applied differently for different entities Rules, standards and usual practices that companies are expected to follow when preparing financial statements Stock market crash of 1929 brought GAAP AASB (Aust Accounting Standards Board) IASB (International Accounting Standards Board) AASB uses IASB as foundation, but includes more details applicable to Aust environment SACS – Statement of Accounting concepts SAVS established for general concepts and principles to be used in preparing financial statements SAC 1 – Definition of a Reporting Entity SAC 2 – Objective of General Purpose Financial Reporting SAC 3 – Qualitative Characteristics of Financial Information SAC 4 – Definition and Recognition of the Elements of Financial Statements Now, SAC 3 and SAC 4 is replaced with “Framework for Preparation and Presentation of Financial Statements” FYI: Difficulties that face accounting and managers by GAAP Difference in company structures – e.g. ABC = not for profit, publicly...
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