...Case 1: Contingencies 1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability? ASC 450-20-25-2 states that: An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met: a. Information available before the financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. Date of the financial statements means the end of the most recent accounting period for which financial statements are being presented. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss. b. The amount of loss can be reasonably estimated. According to ASC 450-20-25-2, M International should accrue the liability for the loss contingency and disclose the liability within their year-end December 31, 2007 financial statements. ASC 450-20-30-1 determines what amount should be accrued and disclosed if both conditions are met in ASC 450-20-25-2. ASC 450-20-30-1 specifies that: If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, that amount shall be accrued. Therefore, M International should record the $17 million as the liability for the contingency because it is the most likely amount within the range of $15 million to...
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...Case 13-08 overview M international (M) and W Inc (W) decided to enter a long term litigation, due to a patent rights violation. M being the demandant and W the respondent. Not enough information was provided in relation to the charges or the patent. To properly understand the events a chronological descripcion of the litigation is to be provided. Events: Problems to be addressed Is necessary to understand the proper and logical accounting literature to address the matter previously presented. The case it self provides a series of matters to be attends, these matters have to be address in accordance to the General Accepted Accounting Principles. Matters to be discussed: * The liability to be recorded by M financial statements, for the year-end December 31, 2007 * What adjustments should be done if any, for the year-ended December 31, 2009, financial statements; should the amount be recognized as a 2009 event or as a prior period adjustment. * When should M record a deduction of the previously recorded loss contingency Solution To understand the topic to be discussed is necessary to understand its basic components. FASB recognizes that companies are often involved in situations where uncertainty exists about whether an obligation will arise and an amount will be disbursed to fulfill or settle the obligation. This is known as a Contingency in the Accounting world. What is a contingency? ASC 450-10-20 defines it as “An existing condition...
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...M International (“M”) and W Inc. (“W”) were involved in a class-action lawsuit regarding a patent infringement. W filed the original claim against M in May of 2007 and the lawsuit continued through the end of February 2011. Since the case is a timeline of facts, some aspects were difficult to determine and assumptions needed to be made. I can only imagine the amount of trouble a company has to go through to typically deal with this kind of an issue, since a lot is left to interpretation. According to ASC 450-20-25-1, “When a loss contingency exists, the likelihood that the future event or events will confirm the loss or impairment of an asset or the incurrence of a liability can range from probable to remote.” Thus, M is dealing with a loss contingency because management determined the loss from the claim would be probable at December 2007. Moreover, the loss should be accrued due to ASC 450-20-25-2, since the “amount can be reasonably estimated” and “information is available before the financial statements are issued.” In reference to the actual amount that should be recorded, the case states a range of the estimated loss from $15 to $20 million dollars, $17 million being the most probable. In deciding which amount to record at December 31, 2007, Accounting Standards must again be referenced. ASC 450-20-30-1 states, “If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, that amount shall be accrued.” Given...
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...Case 13-8 Accounting for a Loss Contingency for a Verdict Overturned on Appeal M International (“M”) and W Inc. (“W,” a competitor of M) have been engaged in longstanding litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matter: • • In May 2007, W filed a claim against M for patent infringement. For the year ended December 31, 2007, management of M determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $15 million to $20 million, with $17 million being the most likely amount of loss within the range. A jury trial took place in September 2009. The jury reached a verdict on September 24, 2009, and a judgment was ordered in favor of W. The judgment required M to pay W $18.5 million. In November 2009, M filed a Notice of Appeal with the Court of Appeals. In December 2010, the Court of Appeals issued a ruling in favor of M’s appeal and reversed the lower court’s ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $18.5 million judgment against M. On January 6, 2011, W filed a petition for a re-hearing before the same panel of appellate judges against the reversal of ruling by Court of Appeals. On February 10, 2011, the appellate judges declined the petition for a re-hearing. On February 28, 2011, management of M determined this matter was closed upon discussions with in-house legal counsel. ...
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...Re: Accounting for a Loss Contingency Verdict Overturned on Appeal Date: Relevant Facts: • W Inc and your company have been engaged in litigation over a specific patent infringement matter. • In May 2007, W filed a claim. • On December 31 2007, your company determined that a loss in connection to the claim was probable. • The company estimated a loss between 15 and $20 million USD. • $17 million USD was named as the most likely amount of loss. • A jury trial took place on September 2009. • On September 24 2009 the jury found in favor of W. • The judgment required your company to pay W $18.5 million USD. • In November 2009, your company filed an appeal. • In December 2010, the court of appeals overturned the jury verdict and the $18.5 million judgement. • On January 6th 2011 W filed a petition for re-hearing. • On February 10, 2011, the appellate judges declined W’s petition. • On February 28 2011, the company’s management determined that the lawsuit was closed. Specific Issue 1: For the year ended December 31 2007, financial statements, what amounts should the company record as a liability? Options: The company could record the liability at 15 million, $17 million, or $20 million. Before deciding what amount to accrue, we should determine if the contingency qualifies for accrual. According to ASC 450-20-25-2, a loss contingency must be accrued if “the information available…indicates that it is probable that… a liability had been incurred...
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...XI THE RESERVE BANK’S ACCOUNTS FOR 2010-11The balance sheet of the Reserve Bank expanded significantly during the year, mainly reflecting the impact of liquidity management operations undertaken by the Bank. The income from foreign assets declined for the second successive year, reflecting the low interest rates in international markets. The decline in income from foreign assets in 2010-11 was, however, more than offset by earnings from domestic assets which have expanded. While the Bank’s gross income increased by 12.73 per cent to ` 37,070.12 crore in 2010-11, there was a 3 per cent increase in total expenditure to ` 8,655.22 crore. After meeting the needs of necessary transfer to the Contingency Reserve and the Asset Development Reserve, `15,009 crore was allocated for transferring to the Government.XI.1 The size of the Reserve Bank’s balance sheet increased significantly in 2010-11 (July-June) mainly on account of its liquidity management operations. On the liability side, the expansion was on account of a large increase in notes in circulation as also an increase in banks’ deposits with the Reserve Bank in line with the deposit growth in the banking system (see Box II.6). On the asset side, there was a significant increase in Bank’s portfolio of domestic assets in the form of government securities on account of open market purchases, repo purchases and disinvestment of Government of India’s surplus balance parked with the Reserve Bank. The increase in foreign currency assets...
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...Risk Management Name: Instructor: Course title: Name of institution: Date: INTRODUCTION Twilight Inc. is a large multinational company that specializes in the production of petroleum products. With its headquarters in Chicago, Illinois, Twilight Inc. has numerous branches throughout the United States of America and in different countries in Europe and Asia. It has employed over 15, 000 people in different capacities and on an annual basis, Twilight Inc. rakes in excess of $1 billion in terms of revenues. The success of this company is demonstrated by the fact that it’s already listed on Wall Street and on the London bourse. Considering the fact that Twilight Inc. is one of the biggest multinationals, it is thus of paramount importance to establish a comprehensive...
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...Systems……………...5 4. Research problems and significance………………………………….........6 5. Contributions and originality……………………………………………...….7 6. Theoretical arguments………………………………………………………..8 *The Contingency Theory……………………………………………...….8 * Dynamic Capabilities Theory:……………………………………..…….9 *Task Technology Fit………………………………………………..….….9 7. Research methods ……………………………………………………..….....9 *An outline of the methods used for the research study……..…......…9 *Description of methods…………………………………………….......10 *Analysing the Methods suitability for the study………………………10 8. Key Findings of the study ………………………………………………..…12 9. Research Limitations ……………………………………………………….13 10. Suggestions for future research……………………………………….….14 11. Conclusion…………………………………………………………………...15 12. References…………………………………………………………………..16 13. Appendix* EXECUTIVE SUMMARY According to Zairi’s (1997) definition, BPM is the ability to consistently enhance integral activities within vital company operations, with the use of a procedure which is well structured. From this, determining the best possible way to identify the critical success factors by a combination of three theories; contingency theory, dynamic capability and Task Technology Fit as attempted by the author Trkman (2010) is critiqued to...
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...death and suicide. If a person has experienced the majority of these symptoms for longer than a two-week period they may be diagnosed as having had a major depressive episode. If a person has had one or more major depressive episodes, has no history of mania, mixed episodes or hypomania and the symptoms are not due to another disorder, they may be diagnosed as having major depressive disorder.( Schimelpfenin,2013) Major depression episode Definition: A major depressive episode is when a person experiences 5 or more symptoms during most parts of the day for a two week period. The main symptoms are depressed mood (must be present), loss of interest in activities (must be present), significant weight change, change in sleeping habits (insomnia or hypersomnia), a noticeable slowing down, restlessness, or change in observable behavior, fatigue or loss of energy, strong feelings of guilt or worthlessness, difficulty...
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.................................................................................................... 4 Structure of the Company ...................................................................................................... 6 Functional Structure ........................................................................................................... 6 New Organisational Structure............................................................................................. 7 Structure and Performance: Correlation ................................................................................ 9 Oticon’s Organic Structure.................................................................................................. 9 Business Contingencies .................................................................................................... 10 Results ................................................................................................................................. 12 Problems in the Long-Term and Limiting Risks ..................................................................... 12 Conclusion ........................................................................................................................... 14 References ........................................................................................................................... 15 Introduction The purpose of this report...
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...Master of business Administration | 1 Background to the project, Kurdistan Region of Iraq witnessed a great development booming starting on 2006 till 2013, this lead to an annual expansion on the electrical power demand of %15 per year. New living complexes were built that needed all type of infrastructure utilities. Kurdistan Regional Government (KRG) through its Ministry of Electricity (MOE) issued several tenders for different projects of Transmission Lines as well as transforming and distribution Substations. CONTRACT No. KRG-MOE/ES-06c/2011, between Kurdistan Regional Government (KRG), Ministry of Electricity (the “MOE”) and Melec S.A.L was one of the project of 2012 year. The contract main scope was for Engineering, Procurement and Construction (EPC) 31.5MVA 33/11kV Substations at Hana City, in the Erbil Governorate. Project objectives: Objective help to define the project in terms of its purpose and perceived benefits.(turner, 1997).The objective of this project is to support the expansion of electrical power grid in Kurdistan region in Erbil by building a complete electrical substation to step down the transmission voltage (33KV) to distribution voltage (11 KV) Then distributing it in multiple direction for various kind of usage such as industrial usage and Private usage . Project objective are the activities involved in achieving the firm’s goals (Field and Keller, 1998) . By taking this project the company was trying expand into a new booming...
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...Every organization is unique in the context that its goals, the environment within it, the size of the organization and the technology it uses to pursue these goals are different from one organization to another. These key variables are the most important factors that map out how an organization is going to be structured. Therefore, there is no one best way to structure an organization. The structure of an organization, particularly ones operating in several countries, i.e. MNC’s is closely related to its strategies, as argued by (Qiu and Donaldson 2010,P 82). Their hypothesis suggests that small changes in the way an organization is structured may play a big role in how successful it is in reaching its goals. They effectively sort out different structural models that the organizations can base their structure on depending on a number of determinants. The key determinants being how responsive the organizations want to be in regards to the local market changes, how diversified they want their products to be between different countries and the degree to which they want a similar global rule, i.e. global integration. (Qiu and Donaldson 2010,P-98 ) An MNC with a more standardized product line globally such as Dell, Asus etc., which will have a more rigid approach with high centralization of authority cannot have the same strategy as another MNC which might be more accepting to selling diversified products and thus may be more willing to allow greater autonomy amongst their subsidiaries...
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...rizwanshaikh007@gmail.com ( +971 552584384. Address: 1206, Damac Properties, Cresent Tower-B, I.M.P.Z Emirates road, Dubai. CAREER OBJECTIVE A highly experienced and motivated Manager with 7 years of experience in organizational operations and decision making for the improvement of organizational activities, I have ability to perform all organizational activities with good leadership skills. PROFESSIONAL EXPERIENCE APPAREL GROUP L.L.C, (Brand BOOKSPLUS) U.A.E. (July 2009 to till date) Area Manager – Brand & Operations BOOKSPLUS offers a whole range of books, be it fiction, non-fiction or any genre that you seek. Booksplus is a part of APPAREL GROUP at present group has 50 International brands under its portfolio from U.S, Canada, Europe, Australia & Far east. The group now operates 500 stores in UAE, Kuwait, Qatar, Bahrain, Oman, Saudi Arabia, India, Poland, Russia, Singapore, Jordan, Thailand, Indonesia & Malaysia. Job Profile: ➢ Delivery of the business plan: Achieving the sales objective in the Business Plan through periodic brand performance review and taking practical and appropriate actions (e.g. Trading Calendar, training, merchandising, advertising etc.) in compliance with standards to ensure the desired results are achieved. ➢ People management: Owning the manpower planning and management of stores and its staff in order to achieve work environment which supports and improves store and team...
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...An Assignment On Managing Risk in Business Table of Contents 1. Introduction: 3 1.1 Theoretical Review: 3 2. Relationship between Financial and Risk Management: 4 2.1 Role of Risk Management 4 2.2 Importance of Measuring Risk: 5 3. Types of risks faced by the college: 6 4. Responsibilities for Management of Risk: 7 5. Strategies and Objectives for Risk Management: 8 6. Support of effective risk management: 11 7. Conclusion: 13 8. References: 14 1. Introduction: In the modern business world, diversifications and changes are occurred in every moment. Anything can be changed within a second who couldn’t predict. So to run a business firm in modern world we need to be more conscious about the uncertainty and changes that might affect the business entity anytime. These uncertainties are known as business risk. A business owner and the management team have to consider the factors related to risks of a project or business operation. Mismanagement of risks can be cause of termination of a business. A number of cases have occurred in the recent past which very well brings light on pro-activity on the part of the management in managing risk. Risk management therefore is an integral part of operating a business. Even for an educational institute, risk management is quite an important issue. This report has been prepared on Bridgend College which is a further education college situated at Bridgend, Wales in UK. Now a day, there are many changes and pressures...
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...Engineering and Technology Management, University of Pretoria, Pretoria 002, South Africa. 2 Formerly Department of Engineering and Technology Management, University of Pretoria, Pretoria 002, South Africa. ABSTRACT CCPM has attempted to account for certain human behaviour patterns during project planning and execution which other time management techniques neglect. CCPM gives this human behaviour as a major influence on amount of contingency provided in activity duration estimates. The human behaviours however are assumptions and justification of CCPM relies heavily on these assumptions. The problem is that we do not know if the human behaviours assumed are an important influence on contingencies provided in activity duration estimates during project planning. The main objective of this research is therefore to determine, using empirical data how stakeholders in the construction industry rate the influence of human behaviour on contingency provided in activity duration estimates. Other factors that influence contingency provided have been identified and their relative importance investigated. 1.1 Introduction As competition increases, organisations survival will be determined by their ability to make profits and grow. In their effort to survive (make profits and grow), organisations are finding themselves saddled with multiple, concurrent projects. According to Turner (in Steyn 2002:77 it is estimated that up to 90% by value of all projects are...
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