Part I. Discuss the terms listed below. Your discussion should expand on the definition. Explain why these concepts are important to financial statements. - Generally Accepted Accounting Principles (US GAAP); - International Accounting Standards (IFRS); - Securities and Exchange Commission (SEC); - Public Company Accoun
Discuss contingencies and how they are reported on financial statements. What conditions must be met before a contingency can be charged against income? For each of the intended uses of the derivatives listed below, explain the accounting in fair value: o Derivative designated as a hedge of the exposure to changes in the fai
What is meant by foreign exchange risk? What specific problems does foreign exchange present in an organization? How may an organization that needs euros in 6 months protect itself from currency fluctuations?
1) Discuss the reasons why corporations invest in securities. Discuss how the market would be affected if they stopped this practice? 2)Compare and contrast the valuation guidelines for investment at a balance sheet date.
Sun Bank USA has purchased a 16 million one-year Australian dollar loan that pays 12 percent interest annually. The spot rate of U.S. dollars for Australian dollars is 0.625. It has funded this loan by accepting a British pound (BP) denominated deposit for the equivalent amount and maturity at an annual rate of 10 percent. The c
4. A trial balance consists of: A. A two-column schedule of all debit and credit entries posted to ledger accounts. B. A two-column financial statement intended for distribution to interested parties outside the business. C. A two-column schedule showing the totals of all debits and of all credits made in journal entries. D
1 Ann Page Co. ... fixed costs $30,000 per year. Variable costs per unit are $17. Sales price per unit is $30 a) What is the contribution margin of the product? b) Calculate the breakeven point in unit sales and dollars. c) What is the operating profit (loss) at: i) 1,500 units per year?
? Discuss the major functions of the Federal Reserve Board ? Recognize the role of the FED as the commercial bank of the US Treasury ? Analyze the supervisory and regulatory authority of the FED over the activities of banks in their district ? Explain the FED responsibility in the collection and replacement of damaged currenc
Beatco, an accrual basis domestic corporation, manufactures musical instruments for sale both in the United States and abroad. Beatco's functional currency is the U.S. dollar. Two years ago, Beatco established a branch sales office in Switzerland. The sales office qualifies as a qualified business unit with the Swiss franc (SF)
What risks are associated with international business and how do they impact capital budgeting decisions? What impact may political risk have on an international business? How might risks be mitigated? Describe three risks that international businesses face and ways to mitigate those risks? What DOES CORPORATE FI
One of the great challenges of catching money launderers today is the global nature of the crimes. For example, international money service bureaus can appear legitimate but are often fronts for those who need money laundering. Sophisticated international networks have been established such as Hawala that fall outside easily tra
A 100 percent owned foreign subsidiary's trial balance consist of the account listed as follows. Which exchange rate - current, historical, or average would be used to translate these accounts to parent currency assuming that the foreign currency is the functional currency? Which rates would be used if the parent currency were
Analyzing Revenue Recognition Methods Managers must determine which revenue recognition method is best for a company while complying with revenue recognition rules. 1. Describe different revenue recognition methods under GAAP and IFRS. 2. Define ADR firms. Suppose the selected ADR firm is considering whether to report
What is a derivative security? And, why is it important?
Real world financial markets such as the NYSE or the foreign exchange (foreign currency) markets are assumed to be "efficient" in their structure and operation. Indeed if they are not (or not approximately efficient) much of contemporary financial theory would not apply to them. What is an efficient market, why are they importan
1. The International Organization of Securities Commissions (IOSCO) is a group of top securities administrators from about 50 countries. The Securities and Exchange Commission (SEC) is a member of IOSCO. IOSCO is a primary supporter of the internationalization of financial reporting standards through the International Accounting
See attached article. Analyze the techniques and assumptions used by the authors to investigate the importance of financial weaknesses and linkages in the three crises described. On the basis of the evidence presented, how convincing is their conclusion of the following: 'The common creditor is the most important and signific
See attached for pages 86-88 to assess the case of Martin Manufacturing's current financial position. a. Calculate the firm's 2006 financial ratios, and then fill in the preceding table. (Assume a 365-day year.) b. Analyze the firm's current financial position from both a cross-sectional and a time-series viewpoint. Break yo
What are the most important risks for the audit of the acquisition and payment cycles in the automotive industry? Compare and contrast the risks for the automotive industry with another industry of your choice.
Define Euro Currency Markets and explain how they are used in global financing operations. Describe its importance in managing risks.
Dr. Washington had recently overheard a few of his colleagues discussing possible investments in the international marketplace. Wanting to explore all of his potential investment options, he has asked you to explain the various aspects of investing in foreign markets. Your job is to research the following concepts and present
Demand for China RMB currency, and will specifically focus on demand for RMB bonds. 1) What should be my research approach? What are the advantage and disadvantages of such approach? 2) What should be my research philosopy? What are the advantage and disadvantages of such philosophy? 3) What should be my res
Topic: Demand for China RMB currency, and will specifically focus on demand for RMB bonds. 1) What should be my research approach? What are the advantage and disadvantages of such approach? 2) What should be my research philosophy? What are the advantage and disadvantages of such philosophy? 3) What shoul
Discuss the Demand for China offshore RMB bonds. What is Dim Sum Bonds? Are global investors interested into the RMB markets? Why? Why not? Why is the demand for China's RMB currency so high? (Use exchange rate to back up your answers) Is China's RMB denominated bonds more profitable than Europe/US bonds?
Discuss the following two questions: 1. A foreign project that is profitable when valued on its own will always be profitable from the parent firm's standpoint. True or false? Explain. 2. What factors should be considered in deciding whether the cost of capital for a foreign affiliate should be higher, lower, or the same
Capital Structure Decision and the Cost of Capital In simple words, the capital is the combination of debt and equity used to finance a company. The background readings of this Module provide plenty of information regarding both the issue of the capital structure decision and the concept of the weighted average cost of capit
1. What is the basic translation hedging strategy? How does it work? 2. MNCs can always reduce the foreign exchange risk faced by their foreign affiliates by borrowing in the local currency. True or false? Why? 3. Explain why FASB 133 is "one of the most complex FASB standards". Please explain in detail.
I need help with this homework question. Compare the financial condition of your company, at the end of Quarter 4 and the end of Quarter 7. First, establish what criteria you will use to determine the financial condition. Then, draw the data/information you need from your company's financial statements (income statement, ca
You are considering the S&P 500 futures contract on the 1st November 2010, the S&P was trading at 1127,17 when futures contracts maturing on 1st March 2011 were priced at 1119,70. The annualized interest rate is 1,25% and the annualized dividend yield is 2,16% a) What is the theoretical value of the futures contract? Show all
· A brief introduction framing the issues of the case. Do not spend a lot of space on the history, development, and growth of the company over time We have all read the case. · Identification of the company's internal strengths and weaknesses. · Identification of the opportunities and threats in the