...The theme of my presentation is “Overseas Market Entry Methods” In this case I would like to tell you about : 1) Scheme of the Methods; 2) Exporting; 3) Joint Venture; 4) Direct Investment; 5) Advantages and Disadvantages First method includes: 1)Direct Export - the organization produces their product in their home market and then sells them to customers overseas 2)Indirect Export - the organizations sells their product to a third party who then sells it on within the foreign market Another less risky market entry method is licensing. Here the Licensor will grant an organization in the foreign market a license to produce the product, use the brand name etc in return that they will receive a royalty payment. ( ex. Coca-Cola) Another of form on market entry in an overseas market which involves the exchange of ideas is contracting. The manufacturer of the product will contract out the production of the product to another organization to produce the product on their behalf. Clearly contracting out saves the organization exporting to the foreign market. (example: hotel chain “Hilton”) The ultimate decision to sell abroad is the decision to establish a manufacturing plant in the host country. The government of the host country may give the organization some form of tax advantage because they wish to attract inward investment to help create employment for their economy. Joint Venture Ownership is a cooperation of foreign and local investors of the capital in order to...
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...THE BRATTLE GROUP Name of Student: Name of Institution: Date: Table of Contents Profile of the Company 3 A Country and Entry Method 3 Ok Fit Country 8 Bad Fit Country 9 Business Strategy 10 Information in the News Concerning the Best Fit Country 11 Conclusion 12 APPENDIX 14 References 18 The Brattle Group Profile of the Company According to Zhu (2006), the Brattle group offers solutions to complex economic, supervisory, as well as financial processes for multinationals, legal firms and state governments across the globe. The company believes that any important insights depends on working hard, respecting details, as well as follow the principles. When the clients face massive challenges, then Brattle group works hard to give clear and independent answers, while being transparent, as the truths are better than giving them false comforts that are created from opinions that cannot survive scrutiny. The truth is provided using relentless pursuit of professionalism, as well as quality analysis. The company was established in 199 under five principles that adhere to integrity and excellent performance in economic and financial consultancy. In 1995 the company merged with Incentives Research to become stronger through the merged expertise in the energy sector, where it opened an office in Cambridge (Phillips et al., 2011). According to Zhu (2006, the company has managed to expand throughout America and Europe serving more than 300 people...
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...breaks down. These cases fall into two categories. In the first category, performance takes place over more than one accounting period; thus, revenue must be allocated across the periods. This is referred to as Along-term contracting@. There are two accounting methods used in this case, the percentage of completion method and the completed contract method. In the second category, cash collection is uncertain, and revenue recognition defaults to a de facto cash basis. There are also two accounting methods used in this case, the installment method and the cost recovery method. The important point to remember in each situation is that the accounting method choice affects both the B/S and the I/S, and thus any performance measures or ratios constructed from the financial statements. Thus, analysts must understand how the accounting method choice affects the reported numbers. Percentage of Completion (PCT) and Completed Contract (CC) methods These two methods are very similar, and are used mainly for construction projects that take more than one period. The methods are comprised of the same 5 journal entries. The entries (and related data) are shown in Exhibit 2.6 on page 76. Entries 1,3,4, and 5 are transaction entries that account for actual construction costs,...
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...Accounting Methods Builder (AMB) Overview Accounting Methods Builder (AMB) System References None Distribution Job Title* Ownership The Job Title [list@YourCompany.com?Subject=EDUxxxxx] is responsible for ensuring that this document is necessary and that it reflects actual practice. Accounting Methods Builder (AMB) [pic] Schedule: Timing Topic minutes Lecture minutes Practice minutes Total Objectives [pic] Accounting Methods Builder (AMB) Overview [pic] Accounting Methods Builder (AMB) Overview [pic] Accounting Methods Builder (AMB) Overview This diagram shows a hierarchy of the AMB, indicating how the components fit together. The transaction objects and the sources carry transaction information into the rules defined for each component of an entry. These components, i.e. journal line type, account derivation rule, and journal entry descriptions are grouped together as a journal line definition (JLD) for a particular event. For example, you can set up a JLD for an invoice validation event, another for payment creation, and another for payment clearing. The set of rules for a particular subledger application is called the application accounting definition (AAD). The set of AADs for multiple applications is called the subledger accounting method. You can maintain multiple accounting methods. You can set up as many components as you like and use them for different accounting...
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...The objective in this article is to discuss on the effective modes of entry for businesses that is planning to venture into international market. The entry modes methods discussed are aimed to help businesses to formulate an effective international business strategy and to position themselves to be successfully established in the global market. The central theory introduced in this article is developed based on a comprehensive framework of the entry modes choices. These modes of choices would determine the success factor of the international business strategy, and to choose these choices there are several important factors to be considered. These factors include situational firm factors, foreign environment review, and moderating factors that would directly influence the firm’s desired mode of choice. Referring to Appendix A is the mode choice of framework by Driscoll that depicts the whole concept discussed. To briefly illustrate, the firm would need to evaluate the two situational factors that would directly affect its desired level of different modes of characteristics. Subsequent from the selected desired modes, the firm would also need to determine the potential moderating influences, which would affect the desired mode. Thus, reassessment based on the moderators would take place to determine the most effective modes of entry. By selecting the right mode of entry, the firm would incorporate an effective business strategy for its international business plans. The...
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...interests because of allocations and amortization. C. A worksheet and consolidation entries continue to provide structure for the rendering of a single set of financial statements for the combined entity. D. When a time factor is included in the consolidation process, additional complications are encountered. 1. The parent must select and apply an accounting method to cover the relationship between the two companies. The investment balance recorded by the parent varies over time as a result of the method chosen, as does the income consequently recognized. 2. The parent’s investment balance is eliminated on the worksheet so that the subsidiary’s actual assets and liabilities can be consolidated. 3. Additionally, the income figure accrued by the parent is excluded each period so that the subsidiary’s revenues and expenses can be included can be included when creating an income statement for the combined entity. II. Investment Accounting by the Acquiring Company A. Consolidation of a subsidiary becomes necessary for external reporting whenever control exists; but, for internal record-keeping, the parent has a choice of three alternatives for monitoring the activities of its subsidiaries: 1. the cost method, 2. the...
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...UNIVERSITY OF EDUCATION, WINNEBA (COLLEGE OF TECHNOLGY EDUCATION, KUMASI) IMPROVING THE PERFORMANCE OF SECOND YEAR ACCOUNTING STUDENTS’ IN DOUBLE ENTRY PRINCIPLES THROUGH PARTICIPATORY METHODS OF TEACHING AND LEARNING: USING POPE JOHN SENIOR HIGH SCHOOL AND MINOR SEMINARY, KOFOFIDUA AS A CASE STUDY URIAH- ACQUAH PANFORD JUNE, 2015 IMPROVING THE PERFORMANCE OF SECOND YEAR ACCOUNTING STUDENTS’ IN DOUBLE ENTRY PRINCIPLES THROUGH PARTICIPATORY METHODS OF TEACHING AND LEARNING: USING POPE JOHN SENIOR HIGH SCHOOL AND MINOR SEMINARY KOFOFIDUA, AS A CASE STUDY BY URIAH- ACQUAH PANFORD (4121010023) A PROJECT REPORT PRESENTED TO THE DEPARTMENT OF ACCOUNTING STUDIES EDUCATION, AT THEUNIVERSITY OF EDUCATION, WINNEBA IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THEAWARD OF BACHELOR OF SCIENCE EDUCATION DEGEE IN ACCOUNTING STUDIES JUNE, 2015 ACKNOWLEDGEMENT I wish to express my heartfelt appreciation to Mr. Frank Yao Gbadago, a lecturer ine department of Accounting Studies Education of the University of Education, Winneba, Kumasi Campus for his guidance and directions in writing this action research report. To Mr. Imoro Musah Daniel, what would...
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...Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels closely, applying the equity method would seem to be a waste of time and energy. A company must plan to use the additional data before the task of accumulation becomes worthwhile. Size of the subsidiary. If the subsidiary is large in comparison to Pilgrim, the effort required of the equity method may be important. Income levels would probably be significant. However, if the subsidiary is actually quite small in relation to the parent, the impact might not be material enough to warrant the extra effort. Size of dividend payments. If Crestwood pays out most of its earnings each period as dividends, that figure will approximate equity income. Little additional information would be accrued by applying the equity method. In contrast, if dividends are small or not paid on a regular basis, a Dividend Income balance might vastly understate the profits to be recognized by the business combination. Amount of excess amortizations. If Pilgrim has paid a significant amount in excess of book value so that annual amortization charges are quite high, use of the equity method might be preferred to show the effect...
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...the equity method of accounting for investments Chapter Outline I. Three methods are principally used to account for an investment in equity securities along with a fair value option. A. Fair value method: applied by an investor when only a small percentage of a company’s voting stock is held. 1. Income is recognized when dividends are declared. 2. Portfolios are reported at fair value. If fair values are unavailable, investment is reported at cost. A. Consolidation: when one firm controls another (e.g., when a parent has a majority interest in the voting stock of a subsidiary or control through variable interests, their financial statements are consolidated and reported for the combined entity. A. Equity method: applied when the investor has the ability to exercise significant influence over operating and financial policies of the investee. 1. Ability to significantly influence investee is indicated by several factors including representation on the board of directors, participation in policy-making, etc. 2. According to GAAP guidelines, the equity method is presumed to be applicable if 20 to 50 percent of the outstanding voting stock of the investee is held by the investor. Current financial reporting standards allow firms to elect to use fair value for any investment in equity shares including those where the equity method would otherwise apply. However, the option, once taken, is irrevocable. After 2008, an entity can make...
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... | |2 | | | | | | | |1. |Question: |(TCO A) Which of the following results in an increase in the investment account when applying the equity method? | | |Your Answer: | | | | |[pic] | | | | Unrealized gain on inter-company inventory transfers for the prior year | | | | ( ch 1,...
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...INTERVIEW QUESTIONS 1. Under the adjusted balance method, the book balance and the bank balance are brought to a correct cash balance that must appear on the balance sheet. The credit memos are always added to the book balance and the debit memos are always deducted from the book balance. Book Reconciling Items: Credit Memos – Items not representing deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipt. They increase the bank balance. Debit Memos - Items not representing checks paid by bank which are charged by the bank to the account of the depositor but not yet recorded by the depositor as cash disbursement. They decrease the bank balance. Errors. Bank Reconciling Items Deposit in Transit, Outstanding Check, Errors 2. Accounting cycle are: 1. Collecting and analyzing data from transactions and events. - develop a chart of accounts as part of setting up your accounting and bookkeeping system. The chart of accounts is an index of all the accounts where the company files its financial information. A source document in an accounting transaction is evidence that the transaction has occurred. It should be recorded as a journal entry as soon as possible. Examples are canceled checks, invoices, purchase orders, and other business documents. 2. Putting transactions into the general journal. - When a small business makes a financial transaction, they make a journal entry in their accounting journal in order to record...
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...Accounting Presentation Group members The Accounting Information of System The Personnel, procedures, devices, and records used by an organization to develop accounting information and communicate that information to decision makers The accounting process Economic activities Accounting “links” decision makers with economic activities and with the results of their decisions. Decision makers Accounting information Actions (decisions) Types of Accounting Information Financial Providing information about the financial resources, obligations, and activities of an economic entity that is intended for use primarily by external decision makers – investors and creditors. Managerial Providing information that is intended primarily for use by internal management in decision making required to run the business. return of investment The repayment to an investor of the amount originally invested in another enterprise. Basic Functions of an Accounting System Interpret and record business transactions. Classify similar transactions into useful reports. Summarize and communicate information to decision makers. Information System Cost & Revenue Determination Job costing Process costing ABC Sales Assets & Liabilities Plant and equipment Loans & equity Receivables, payables & cash Cash Flows From operations From financing From investing Information Users Investors Creditors Managers Owners Customers Employees...
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...Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels closely, applying the equity method would seem to be a waste of time and energy. A company must plan to use the additional data before the task of accumulation becomes worthwhile. Size of the subsidiary. If the subsidiary is large in comparison to Pilgrim, the effort required of the equity method may be important. Income levels would probably be significant. However, if the subsidiary is actually quite small in relation to the parent, the impact might not be material enough to warrant the extra effort. Size of dividend payments. If Crestwood pays out most of its earnings each period as dividends, that figure will approximate equity income. Little additional information would be accrued by applying the equity method. In contrast, if dividends are small or not paid on a regular basis, a Dividend Income balance might vastly understate the profits to be recognized by the business combination. Amount of excess amortizations. If Pilgrim has paid a significant amount in excess of book value so that annual amortization charges are quite high, use of the equity method might be preferred to show...
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...Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels closely, applying the equity method would seem to be a waste of time and energy. A company must plan to use the additional data before the task of accumulation becomes worthwhile. Size of the subsidiary. If the subsidiary is large in comparison to Pilgrim, the effort required of the equity method may be important. Income levels would probably be significant. However, if the subsidiary is actually quite small in relation to the parent, the impact might not be material enough to warrant the extra effort. Size of dividend payments. If Crestwood pays out most of its earnings each period as dividends, that figure will approximate equity income. Little additional information would be accrued by applying the equity method. In contrast, if dividends are small or not paid on a regular basis, a Dividend Income balance might vastly understate the profits to be recognized by the business combination. Amount of excess amortizations. If Pilgrim has paid a significant amount in excess of book value so that annual amortization charges are quite high, use of the equity method might be preferred to show the effect...
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...Reversing entries are when an accountant makes adjustments to the beginning of the next accounting period. This would be the opposite of what had been done to an entry in the previous period. (Kimmel, 2011) For example, a utility bill. The utility bill would be recorded in one month as received. When the next period happens is when it will be paid so the amount will need entered again. This time is will just need reversed. Reversing entries may be a helpful method, there are however, pros and cons to using this method. The downfall to using reverse entries is, there could be a greater chance a mistake could be made or forgetting to put in or take out one of the entries could happen because there would be more entries. This will eventually double the work load for the accountant. (Reeves, 2011) The positive to using this method to remove an entry in the previous period is there is nothing special which needs to be done. The same exact numbers are just needed to be inserted in the right place. This process can be done by anyone. Even if they are not an expert in accounting and journalizing. This method just cancels out an entry which was made during the last period. (Reeves, 2011) The reason reversing entries are optional is because it can only be used on adjustments which creates accounts receivable. An example would be accruals. Since not all companies are cash based, it is not a mandatory accounting...
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