"Financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent (company) and its subsidiaries are presented as those of a single economic entity", according to International Accounting Standard 27. 2- Describe how Goodwill could be calculated as a result of merger or
executive compensation structure and fair value accounting in the context of business combination. Particularly, it examines the effect of CEO compensation including both earning based and equity based compensation structure on post-acquisition fair value measurement on merger and acquisition activities completed in U.S. context, after the application of the Statement of Financial Accounting Standards “SFAS” 142, Goodwill and Other Intangibles Assets, in July 2001, using the amounts recognized as
Session 1 HR Accounting: Introduction and Overview In our first session we discussed about the layout of our course and a brief about all the components of the evaluation. The first session also included Overview of HR Accounting from a historical perspective and the related future implications. Accounting is an art of recording, classifying, summarizing and interpretation of result. And Human Resource basic function is to provide right man for right job. Human Resource Accounting is the process
investment. So, information about company’s human resources is valuable and should be disclosed to the stakeholders. However, under the current accounting principles there is a lack of both correct measurement and correct disclosure of human resources in the financial reports. Although firms devote significant investments in its human resources; the problem is that these investments are immediately expensed in the financial statement. Besides, the traditional model
inventory as the physical stock maintained on hand by a business to ensure its operations function efficiently. As an asset, inventory is extremely important to any business as its turnover represents revenue generation and income. However, the hospitality industry may differ in this sense as inventory is often a record of tangible goods, such as beverages, which accompany the intangible attributes of the service on offer for purchase. In the case of
over-stated or under-stated. Also, Billabong uses fair values for all the identifiable assets, liabilities and equities in the business combination process. These two policies are very crucial to Billabong because the company has acquired more than 5 companies in 2013 financial year, and this had brought substantial financial instability to the company. (Annual Report, 2013) Hence, the company follows the conservative accounting policy to minimise the earning expectations so that the potential investor can
B) What is the state of the resources of our airline company? Wisconsin World Flights airline company resources can be divided into two types: tangible and intangible resources. Tangible resources Tangible resources are the assets we have in possession and the products we offer towards our customers. It can be divided into two main part which are physical resources and technological resources. Physical resources Since without aircraft, airlines could not function, aircraft become a major resource
consequent approval from the shareholders of the target company. Friendly takeover is a basically an acquisition of the assets or shares of one entity by another with the prior approval of the shareholders and directors of both the entities. Shareholders of the target company are offered the shares of the acquiring company. Another way is to purchase controlling interest or assets of the shares of the target company. The combination of resources enables both the companies to take advantage of the
An important distinction of knowledge theories is whether knowledge is declarative or procedural (Argote & Miron-Spektor, 2011) which is also labeled as tacit knowledge. Declarative knowledge is knowledge which can be articulated and codified, which is easily transferred, and which can be learned by formal education (Liebeskind, 1996; Nonaka & von Krogh, 2009) whereas procedural (tacit) knowledge is difficult to articulate, can hardly be transmitted between persons, and can only be acquired through
(A) Under the International Accounting Standard (IAS) 17, leases are classified as either a finance lease or an operating lease, depending on who bears the risks/rewards of usage i.e the lessor or the lessee. In the case of a finance lease the risk and reward of usage are borne by the lessee. For example often at the conclusion of a finance lease, which will often be for the major part of the economically valuable life of the asset (10-12 years), the ownership of the asset will transfer to the lessee