The interest charged on the multimillion dollar loan clearly will have a significant impact on the company’s financial reports. Thus, the Financial Accounting Standards Board (FASB) established SFAS No. 34, “Capitalization of Interest Costs,” to provide guidance on how to record this type of interest properly. Basically, this standard explains that the interest on the loan for building your new facility can be capitalized, as part of the costs of the facility because it meets their two criteria, (1) it is not yet ready for use, and (2) it is currently under construction (p.
* Managements is currently seeking potential fund managers and also intend to use its current third party record keeper’s expertise to perform certain investment valuations. * Before finalizing and implementing the plan, management needs the approval of the Board of Directors (governance). * The Board has requested that management prepare documentation that will facilitate their understanding of the risks involved, as well as documentation listing the controls management intends to implement, both pre-investment and post-investment, to manage said risk and
The restructuring of Auto World will have an impact on their current earnings and the store closures need to be properly disclosed. FASB ASC has specific guidelines that must be followed to report discontinued operations. According to numerous ASCs, Auto World’s closures of the Pit Stop Centers should not be reported as discontinued operations in Auto World’s second quarter financial statements. Rather than being reported as discontinued operations, the Pit Stop Center stores should be considered as continuation of operations. An entity that is classified as disposed or held for sale, under ASC 360-10-45-9, should be reported as discontinued operations, under ASC 205-20-45-3, when the two conditions under ASC 205-20-45-1 are met.
However, the company needs to meet the requirements of the debt covenant and delaying these payments will be necessary to meet those needs. It is a business decision. If the covenant is violated, the bonds will be in default, and a new agreement for the terms of the debt will be renegotiated likely with worse terms. The bond holders will be affected by this decision. This could cause Equity investors to be more aware of the bond covenants and closely monitor the financial
Hamilton’s Vision of America’s Future The Boston Tea Party in 1770, Declaration of Independence in 1776, Revolutionary War in 1775-1783 is some of the events that played significance in the creation of a nation. Alexander Hamilton who was secretary of the treasury in 1790’s, issued three reports where his vision of America’s future was put in words. The First Report on Public Credit George Washington appointed Alexander Hamilton the first Secretary of the United States Treasury, Hamilton believed in a strong centralized government, and wanted to create a financial and economic program where banks and factories bring wealth to the nation. In the first report Hamilton outlined the importance to create a plan that supports Public Credit. In his report Hamilton stated “in a country, which, like this, is possessed of little active wealth, or in other words, little monied capital, the necessity for that resource, must, in such emergencies, be proportionably urgent” (Hamilton, The First Report on Public Credit, January 9, 1790).
3. What advice would you give to critics of Wal-Mart in order to enhance their impact on the company? To enhance their impact on governmental and regulatory agencies? To enhance their impact on society in general? Case Summary -China, India, and Wal-Mart: Issues of Price, Quality, and Sourcing: “Sam Walton understood the immense clout of the company he created long before it was the largest retailer in the United States or the largest corporation in the world.
In July of 1782 Hamilton was elected to the Congress of the Confederation to be New York’s representative for the 1782 term which began in November. Hamilton was later elected to be the very first United States Secretary of the Treasury. Alexander Hamilton had many political views. One of which was that he believed in a strong central government. Hamilton issued a brand new proposal, to pay off all of the Confederation debts at full value.
This required the FDIC to review financial reports and accounts activities regularly. When mismanagement or acquisition of risky assets happened, the FDIC could warn the bank in order to help the bank get back on the right track, which also helped to achieve the central bank's regulatory intent. * The FDIC would promote competition in the banking sector appropriately, in order to provide the public with lower prices and better quality services. The deposit insurance system was to protect the small and medium-sized banks and to promote fair competition and effective methods, which would enable depositors to form a consensus. Whether deposits went into the big or small banks, their levels of protections of the system were the same.
Syracuse University Federal Commercial Power: A Case of Regulating Liberty, Circumstance and Time David Yitzhari PSC 324, Fall Semester, Section M100 Professor John Hanley October 28, 2013 The propriety of granting the American federal government the right to regulate a high degree of economic activity within its national borders is to be assessed with respect to circumstance and timing. Inevitable calamities such as war and economic failures may threaten the very continuity and existence of an entire nation if not successfully and swiftly addressed. Thus, the national government, must fully utilize its unmatched capacity to effectively organize respective states through all economic means to minimize the prospect of an
Impact of Cultural Distance on Cross-boarder Mergers and Acquisitions in Europe Master of Finance Ali Mohktar Katsiaryna Bahdanovich Basma Aloufa March 31, 2015 Abstract This paper pursues the goal to investigate the impact of cultural distance on the cross-boarder merger and acquisitions (M&A) deals where a bidder and a target are domiciled in Europe. Recent surveys held by various consultancy companies argue that cultural differences are the ones to blame for the failures of M&A deals. However, academic literature provides mixed findings about the existence and the sign of the impact. Therefore, in our paper we would like to test whether European cross-boarder deals are subject to the problems caused by cultural differences.