This also ties in with other notable exceptions that have been recently modified, namely that a subsidiary is specifically not to be included in a consolidated financial report when the controlling interest's holding of the majority voting value/shares in the subsidiary is intended to be temporary, and a sale is expected or desired in the near future (Shortridge & Smith 2007). The vague definitions in both of these exclusionary circumstances are the main cause for concern as to the real effects that the financial reporting consolidation changes have had on accuracy. Most of the changes were necessary and warranted; when a controlling company's capital is tied up in subsidiary stocks and other means of ownership, there is an obvious effect on the controlling interest's value based on the value of the subsidiary's assets. The is true whether or not the subsidiary is located in a foreign country of even if there is a substantial minority interest in the subsidiary. Inclusion in consolidated reports on these grounds definitely leads to greater accuracy in financial reporting because, quite simply, it more accurately reports the total value of a controlling interest's assets. At the same time, one could quite reasonably argue that the same is true for subsidiaries where control is not firmly established, and even where...
These two situations do not change the real value of the subsidiary, nor do they affect the cost of the majority ownership to the controlling interest. These are the factors that are truly important; a healthy subsidiary, even if possibly controlled by minority interests, still adds value to the controlling interest's portfolio, and a financially sick subsidiary necessarily detracts from the overall health of a controlling company. Both of these effects need to be included in financial reports if they are to have nay semblance of completeness.
Multinational Acquisition Due Week 8 worth 240 points Use Internet research a publically traded U.S. multinational corporation recently acquired multinational corporation. Write a (6-8) page paper: Briefly describe acquisition selected. Corporate acquisition The case of Google's acquisition of Motorola Mobility Google Inc. was established in 1998 in California, United States, and has made its presence felt within the IT community through the development of the most popular research engine. Since then however, the
Alcan's continued revenue growth is the result of the combined success of increasing sales in four main business units, in addition to growth through acquisition. The cumulative effects of these two factors have served to create a profitable business and one where a highly decentralized organizational structure dominates (Chang, Wang, 2011). The catalyst of the organization becoming so decentralized is the continued revenue gains made across four businesses, each competing
Japanese-American Biopharmaceutical Industry in the 21st Century Optimizing Ethical Drug Availability Between These Two Pharmaceutical Superpowers" The Japanese-American biopharmaceutical industry represents an ongoing international effort between the two top pharmaceutical markets in the world. These two economic powers provide consumers with a majority share of all pharmaceuticals produced in the world. However, a number of pharmaceutical products that are currently available to U.S. residents are unavailable to Japanese consumers. From a humanitarian perspective, this
Running Head: BUSINESS ENVIRONMENTAL ANALYSIS21BUSINESS ENVIRONMENTAL ANALYSISBusiness Environmental AnalysisI. Market DomainA: Historical SignificanceThe choice of industry on this front will be the healthcare industry � specifically the medical healthcare insurance plans. In seeking to evaluate an unmet need in the health insurance realm, it would be prudent to first offer a concise definition of health insurance. In basic terms, health insurance could be defined as �a contract that requires a
The growth of Internet has led to a desire to understand the characteristics of the users, their reasons for using the service and what the users do when connected. A huge and expanding 'Internet watching' industry has progressed to provide such data. Some statistics can be collected directly from the Internet about traffic volumes and the geographical segmentation of its users and these provide a reasonably accurate picture of
Translation Adjustment Accounting Statement Translation Adjustments for Foreign Subsidiaries As demonstrated on the attached spreadsheet, when preparing financial statements from a foreign subsidiary of a U.S.-owned company, which will typically conduct business in a foreign currency (the domestic currency of the subsidiary's country of operation), there is a somewhat complex series of adjustments that must take place to account for currency exchange rates during the period covered by the statements. In order
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