...PART 1- An entity’s status as VIE/non-VIE has changed? ASC 810-10-35-4 identifies five specific types of events that lead to reconsideration of VIE status, and ASC 810-10-35-4 also provides guidance on the circumstances in which the entity has incurred operating losses since the initial determination date, stating, “A legal entity that previously was not subject to the Variable Interest Entities Subsections shall not become subject to them simply because of losses in excess of its expected losses that reduce the equity investment” (emphasis added). Consequently, if the amount of the equity investment at risk at the entity’s inception (or when a reporting entity first became involved with the entity) was determined to be sufficient, losses later incurred by that entity do not by themselves require a reporting entity to reconsider whether the entity has sufficient equity in accordance with ASC 810-10-15-14(a). A reporting entity must consider all pertinent facts and circumstances in assessing whether an event that meets the criteria in ASC 810-10-35-4(a) through 35-4(e) has occurred. Insignificant events do not always result in a reconsideration of an entity’s VIE status. An event’s significance depends on whether the event appears to have changed the sufficiency of equity investment at risk or on whether the characteristics of the holders of equity investment at risk have changed. (For guidance on isolating the impact of a change under ASC 810-10-35-4(a) through 35-4(e), see...
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...Fall 13 Fall 13 Professional Accounting 2 Professional Accounting 2 Venturing into Consolidation [Assignment 2] Venturing into Consolidation [Assignment 2] 08 Fall 08 Fall The Accounting Standards Codification states “a legal entity that is deemed to be a business” unless any of the following conditions exist: First, reporting entity participated significantly in the design or redesign of the legal entity (ASC 810-10-15-17d). This condition does not apply if the legal entity is an operating joint venture or under joint control of the reporting entity and one or more independent parties. Secondly, all activities conducted on behalf of the reporting entity. In case of LeaseMed, it substantially all of the activities of LeaseMed do not involve or are not conducted on behalf of either venturer. Next, if the entity provides more than half of total equity, subordinated debt, or other forms of subordinated financial support, the entity does not qualify for business scope exception. In this case, DeviceCo provided 55% of the total equity. Lastly, if activities of the legal entity are primarily related to securitization, asset-backed financings or single-lessee leasing arrangements (ASC 810-10-15-17d), the business needs to be evaluated by a reporting entity. Therefore, Pharamador qualify for the business scope exception. The total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial...
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...CASE 09-3: Venturing into Consolidation Provided Case 09-3, we, Group 7 have dutifully researched the topic, using resources at our disposal to formulate a consistent, clear and legal response. The following submission outlines the case, our conclusions with supporting evidence and the accounting issues present in the subject. FACTS: Case 09-3: Venturing into Consolidation details the ongoings and pertinent information of the joint venture of DeviceCo, and Pharmador branded LeaseMed. The joint venture LeaseMed has been created to operate as a medical equipment leasing entity. The joint venture is overseen by a board of directors composed of six members with three representatives from both parent companies. The joint venture was formed provided $1 million from the parent companies divided as $550,000 from DeviceCo and $450,000 from Pharmador. Ownership and profits/losses are divided per contribution (55:45). Neither company has any involvement with LeaseMed outside of their ownership. All companies relevant to the case have December 31 year-ends. Other relevant facts: • Risk related to LeaseMed’s operations is designed to pass to equity holders per their ownership interest. • Both parent companies have determined that substantially all of the activities of the joint venture do not involve or are not conducted on behalf of either company. • All of LeaseMed’s equity meets the definition of “equity at risk”. • LeaseMed has not been able to issue investment grade...
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...following major problems being faced by Giovanni Buton: * Buton is a family company which maintains its unity and controls most of the company’s shares. On the other hand, other large companies in distilled spirits industry are consolidating through joint ventures or acquisitions. This means that these companies would soon manage to have an increasing share of the total sales in Europe. * There is a decline in consumption of alcoholic beverages in the market. * The growth in popularity of international brands threaten the local producers of alcoholic beverages in spirits industry. Problem Statement What strategies should Giovani Buton implement to develop the company into an international concern in response to the consolidation of several large companies? Objective To come up with market developments to introduce the company and its products in Western Europe in order to compete with the integrated companies, or the so-called European Community. Brief description of the case Giovanni Buton is a company that produces a range of Italian brand spirits that covered approximately 35,000 of the 300,000 spirit outlets in Italy, making its coverage one of the highest liquor distributors in Italy. In 1986, Vecchia Romagna, one of their top grossing products, had declined in sales because of the domination of wines over the brandies. The international spirits market undergo a dramatic change, companies began to gain...
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...average person attended 28 films a year, today it is 6.2 the U.S. population is increasing, but the size of the market in the core demographic group is growing more slowly Americans spend more time than ever on entertainment – 3,500 hours annually – but only 12 are spent at the movies.3 The average person spends as much time watching TV every 3 days. Movies remain as popular as ever, but opportunities for viewing outside the theater have greatly increased. While motion picture studios increased revenues through product licensing, DVD sales, and international expansion, the exhibitors – movie theaters – have seen their business decline. Movies are more available than ever, but fewer are venturing to the theater to see them. Many theaters have ceased operation, driven from the market by consolidation and as patrons stayed away. Will the marquee at the local theater exhibitor soon change to: “A Horror Show at the Cinemaplex?” How has this come to be? What can exhibitors do to respond? Use Porter’s five forces model to analyze the profit potential of the movie theater industry and how to...
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...THE UNIVERSITY OF HONG KONG Department of Social Work and Social Administration COURSE OUTLINE template Academic Year: 2014 /2015 1. Basic Course Information: Course Code: SOWK 1009 Course Title: Existing New Course: to be implemented in Semester 1 / 2 / S Reflective Practitioner 2. Course Instructor / Course Co-ordinator: Name Office Debbie Lam C0549 Kurtee Chu C0550 Grace Leung Chan Ki CO553 C0553 phone 3917-2082 3917-1153 3917-2090 3917-7145 email debbie@hku.hk kurteec@hku.hk gsmleung@hku.hk kichan@socwork.hku.hk 3. Required Pre-requisites (if any): __________NIL________________________ 4. Course Description (should be the same as the syllabus; so please just copy from the syllabus of your program that is available at the Department Website) Social work practice is carried out through interactions between social workers and individuals, families, organizations and society. Social workers are inevitably shaped by their own experiences, beliefs, upbringing and culture, which might affect their interactions with these systems. This course encourages the students to start the reflective journey in visiting issues of self in relation to the perceived identity, intimacy, loss, family, and society. Through reflective exercises, discussions, and assigned readings, the students will develop a deeper understanding of their values, philosophy of life and behaviors, and how these in turn impact social work practice. The course adopts an active-learning and experiential approach...
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...OMRON: SENSING SOCIETY “At work for a better life, a better world for all” SUBMITTED TO Prof. Ray Titus SUBMITTED BY GROUP-1 Aditi A Kulkarni Amritesh Saxena Neha Buruju Sanghamitra Barua Sangram Mishra 1. About Omron: History: Omron is a leading global supplier of sensors, control system components, advanced electronics and related services. It thrives on its ability to identify social needs and innovate. Omron was founded by Kazuma Tateisi an electrical engineer who started his career was at a hydroelectric plant for the Japanese government. Later in 1922, he was transferred to Inoue Electric Manufacturing Company only to quit the company in 1929 after the New York market crash. Being an inventor and innovator by nature he rented a factory in 1930 to produce his inventions and later in 1933 founded the Tateisi Electric Manufacturing Company. Tateisi Electric began with the production of X-ray timers and later moved into producing many other sensing products. Later in 1948, Tateisi began selling household products under the brand name “Omlon” and later adopted the name “Omron” in 1959 for easier pronunciation in foreign languages. Omron was known for multiple engineering firsts. Omron spent huge amount worth 4 times its capital on building an R&D laboratory in 1960. Omron was the western Japan competitor to eastern Japan’s Sony. Omron introduced various new and innovative products in the market. Some of them were vending machines capable...
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...tension in business format franchising between, on the one hand, standardisation and uniformity and, on the other hand, geographical variations in market conditions and resource availability. Previous research has demonstrated in the case of independent small firms that local geographical conditions influence business strategy. This paper examines whether variations in the local geographical environment, notably in terms of demand and supply side conditions, affect format implementation and whether franchisors permit franchisees to make local adaptations of the format in response to local environmental conditions. The study is based on interviews with 40 UK-based franchisors, all of whom were at the later stages of roll-out or in the consolidation stage of network development. Local variations in the business environment do create a conflict with the need to maintain the uniformity of the franchise format. Adaptation was restricted to peripheral format components. No changes were made to the core format components. Most franchisors recognise that their franchisees are an important source of new innovation. However, implementation of franchisee ideas across the system is found in only a minority of cases. Key words: franchising, geography, adaptation, standardisation Please direct correspondence about this paper to Colin Mason 1. Introduction Business format franchising operates on the principle of ‘cloning’ a standardised tried and tested business format...
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...A Horror Show at the Cinamaplex Shameka L. Evans Strayer University Business Administration Capstone/ BUS499 September 3, 2012 Dr. Barry Adkin A Horror Show at the Cinemaplex Cinemaplex is a movie theater that has experienced changes due to technology advancements. The change has negatively affected the attendance at the theater. Revenues have increased but only due to the inflated prices of tickets, concessions, and advertising revenues. Some of the technological advancements that have Cinemaplex concerned are; home theater systems, quick movie to DVD releases, video on demand, and internet streamlining Perform a comprehensive analysis of the five competitive forces. Discuss what level of competition can be anticipated amongst industry rivals. Applying the five competitive forces model in this case, it can be said that the competitive landscape in the film industry is concentrated, because the top four competitors have control of the majority of the market share, hence a high concentration ratio. Since only a few competitors control the majority of the market share, there is less competition; since there is less competition in the film industry, it can be considered disciplined. In order for this to change, one of the top four competitors would have to seek a competitive advantage over the other firms. High fixed costs, which would make a competitors have to produce more services to attain lower costs of services; low switching costs, which allow a customer to...
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...STRATEGIC DILEMMAS OF A SMALL MARKET PLAYER: THE CANADIAN WINE INDUSTRY Judith J. Madill Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 8014 Fax: +1 (613) 520-4427 e-mail: Judith_Madill@carleton.ca Allan L. Riding Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2394 Fax: +1 (613) 520-2363 e-mail: al_riding@carleton.ca George H. Haines, Jr. Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, ON, Canada, K1S 5B6 +1 (613) 520-2600 Ext. 7487 Fax: +1 (613) 520-4427 e-mail: george_haines@carleton.ca Abstract This paper undertakes an analysis of the strategic situation of the Canadian wine industry. A very small player by world standards, Canadian wineries face intense and intensifying competition within the domestic market. The demand side of this market is dominated by a small number of large provincial monopoly retailers. The supply side comprises five substantial firms that account for ninety percent of total wine production and a large number of very small wineries. The Canadian competitive environment is characterized by strong historical reputations of (and consumer preferences for) Old World wines, economies of scale and technology associated with New World wines, (at best) stable per capita wine consumption patterns, rapid increases in both the number of domestic wineries and land under viticulture...
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...core demographic group is slowly growing. Americans tend to spend more time on entertainment than ever before-spending an average 3,500 hours annually-however only twelve of those hours are spent at the Cinemaplex. Every three days, the average person watches more television. Movies still remain popular as they always have but the opportunities for viewing outside the theatre has indeed increased greatly. The motion picture studios had increased their revenues through product DVD sales, product licensing, and global expansion. The exhibitors on the other hand, have seen their business in a decline. Nowadays, movies are more available than ever before and fewer people are venturing out to the theatres to see them. As a result of this sudden shift, many of the theatres had ceased in operation due to consolidation and a lack of patrons. A horror Show at the Cinemaplex 3 Discuss...
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...University of Ulster MSc International Business International Marketing Assignment One Student No: B00630158 Word Count: 3020 Words Date of Hand in: 08/02/13 Content Page Section No Page No 1. Introduction 4 2. Product Information 4 3. Current Situation Analysis 6 3.1 Market Summary 6 3.2 SWOT Analysis 7 3.2.1 Strengths 8 3.2.2 Weaknesses 8 3.2.3 Opportunities 8 3.2.4 Threats 8 3.3 Competition 8 4. Market Entry 9 5. Marketing Strategy 10 5.1 Mission 11 5.2 Marketing Objectives 12 5.2.1 Segmentation 12 5.2.2 Targeting 12 5.2.3 Positioning 12 5.3 Communications Plan 13 5.4 Pricing Plan 14 6. Summary 14 7. References 15 1. Introduction This report will give information about the marketing plan of exporting Turkish coffee to the UK. The main information will be some background information about the coffee and the rest will be outlining and justifying the market and customer information, market entry methods, competitors and distribution channels. At the same time, the following plan formulates a new business strategy that will lead the way for future success. The most important part of a business plan...
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...BOOSTER – 2006 2 Introduction 2 Malted Milk Market 3 Macro & Micro Environment. 3 Acquisition by GSK – 2002 4 Objectives 4 Positioning Strategy – “Viva Power Booster” 5 Product – “Viva Power Booster” 5 Price – 5 Place - 5 Promotions – 5 Post Launch Evaluation. 5 Recommendation and Action Plan for Repositioning 7 Reference 9 MARKETING TURNAROUND REPOSITIONING VIVA POWER BOOSTER – 2006 Introduction Beginning of GlaxoSmithKline (GSK) could be traced back to early 17th century when, in UK a Company manufacturing and marketing pharmaceuticals and health care products were born. Through several mergers and takeovers the company is now a leading international business entity with a major concentration in India. Venturing into malted milk market in India in a big way the company also acquires an energy booster drink marketed by Shaw Wallace & Hedges Company, branded “Viva” in 2002 in Sri Lanka. In its portfolio the product is marketed along with flagship “Horlicks” brand, a malted milk with a strong brand heritage tracing it’s origins to UK. GSK re-launches “Viva” with several marketing objectives in mind soon after the acquisition. Performance reviews conducted periodically and adverse findings such as stagnant malted milk market size and company’s own share compels GSK to carry out a situational marketing audit involving a strengths, weaknesses, opportunities and threats analysis (SWOT) amidst macro environmental factors (PEST) affecting the performance...
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...a) INTRODUCTION ACKNOWLEDGEMENT Praise to Allah for six (6) months I undergo my internship that begins on early February this year till end of July, I finally successfully completed my Industrial training report. For the remaining days that I have to continue my training in order to complete my course, I pray to Allah hoping my journey is in His bliss. I also would like to extend my thankfulness to the most precious persons in my life, my father and mother for all their moral support, financial support and also to my friends for never ending reminding me to always be honest and trustworthy during my training here. As for my supervisor from Universiti Teknologi Mara Kampus Seri Iskandar Perak, Puan Naimah Binti Zaini. I thank you for all the reprimand and guidance as it is very helpful for me in completing my report. Last but not least I would like to extend my appreciation to my industrial supervisor (k.cik/) and (k.ika ) for their advices and patiently guiding me through while I working here as a trainee. Not forgotten for all the staffs working at Khatulistiwa Corporate Services Sdn Bhd, I am obliged to staff members of Khatulistiwa Corporate Services Sdn Bhd for the valuable information provided by them in their respective fields and I very much appreciate for their entire kindness helping and teaching me when I’m working there. I am very lucky to have such a helpful colleagues and I never felt left out in any situation. I am entrusted to undergo...
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...PPL Growth Strategy and Financing Policies Pennsylvania Power and Light Company (PPL) was originally incorporated in 1920 as holding company. 1920-1994 PPL operated as a vertically integrated utility. In 1994 the company’s management recognizing and anticipating changes to the electric utility industry chose to changes it strategy by creating a subsidiary PPL Global “to pursue business opportunities in the unregulated electricity marketplace” (Esty, Ferman3). Senior management recognizing the need to create a more competitive environment within the company began a restructuring process from 1994-2000. In 1999 the company announced it intended to double its generation capacity by 2005 “through acquisition of existing plants and development of new plants” (Esty, Ferman 4). Jim Abel and PPL’s Finance team determined that in order to execute this new strategy PPL needed to maintain access to large amounts of capital at low cost while maintaining the financial soundness of the corporate balance sheet. This culminated in the separation of its unregulated generation businesses from its regulated distribution and transmission businesses in 2000(Esty, Ferman 4). The environment PPL was operating in during this time was not conducive to PPL Global using Corporate Finance to raise the billions of dollars needed to fund the expansion of the company’s generation portfolio. To use Corporate Finance would result in a burden on the company as a whole while putting the PPL at risk of...
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