(GHC) is a United Kingdom based Multinational Company which sources variety of decorative hardwoods from countries around the world. These hardwoods are then processed into products that are used in the construction and furniture industries. It imports hardwoods in a raw, unfinished state which are then processed in its own sawmills and finishing plants. The Chairman of GHC decided to diversify GHC’s business and therefore established Real Furniture Company (RFC) as a subsidiary company to develop these markets. RFC imports a range of hardwood and cane furniture, which is manufactured in overseas location. Current Financial Practices of GHC Profitability position The financial position of Global Hardwood Corporation states that the turnover as a whole has been increasing on an ongoing basis. If we focus on the turnover by product wise then it can be noticed that construction division has shown a continuous decrease, furniture division has shown a continuous increase and the Real Furniture Company has also shown a continuous increase in terms of sales revenue. The earnings before interest and tax has shown a continuous increase since five years, profit before tax and profit after tax has also resulted in tremendous increase since the five year period ranging from 2003 to 2007. Analysis and Measurement of Political and Country Risk The risk which Global Hardwood Corporation may be facing is political and country risk. Political risk is the events that can negatively affect doing business (Jakobsen p.3). The country risk includes the possibility of losses due to country specific political, economic and social events (Levi, 2009, p.463). Nationalization may be the most excessive form of political risk which the company is facing. The other forms of political risk are currency and trade control, regulatory restrictions, changes in tax or labour laws and requirement for additional local production. It also includes macro and micro issues associated with political decisions, social and cultural issues and financial and economic risks. Political risk can be measured from a country risk analysis perspective. GHC may be facing country risk due to the following reasons: regional politics, currency stability, trade alliances, legal and regulatory system and home-host country relations (Shong, 2008, p.22). Political risk can be accessed through protecting new and existing global investment and operations and capitalizing on opportunities resulting from political change. Careful assessment is to be done by avoiding investment in those areas that are too risky and pulling money out of the areas when they become too risky. The managers should evaluate alternative investment options on a continual basis. Micro level political risk can be assessed by shifting the investment to different industries and firm can also file an insurance claim (Rajwani, 2013, p.1). Ratio analysis is used for measuring country risk. The ratio of gross domestic fixed investment to GDP measures the economic propensity to invest. The net capital imports over gross domestic fi
Can you please amend the references? Because my lecturer place a great emphasis on references that he requires us to avoid using website as references. And I found that the WEBSITE references in the report are not ACADEMIC website even some of the links cannot open…
Joe Company: Effect on transaction exposure due to fluctuation of Euro 7 Change in the global chemicals market due to fluctuation of Euro 8 3. Capital budgeting for projects in an overseas subsidiary: Assessment from the perspective of parent’s cash flow rather than just the subsidiary’s cash flow 8 Multinational vs.
Finance and Accounting, Essay. This study aims to advice Sparkle Plc. and its board of directors regarding the information that should be included in the annual report of the company along with the financial statements. Information that is significant and has to be included is termed as compulsory information according to the Company Act of 2006, while voluntary information is those which are important but optional and may be included at the discretion of the company.
Essay, Finance and Accounting. Accounting entails the preparation of financial reports. The research delves on the companies’ compliance with International Financial Reporting Standards. The research delves on cosmetic accounting. The companies’ compliance with reporting standards enhances reliance on financial reports.
It the second largest bank in the country in terms of market capitalization. Apart from Australia, the bank has operations in New Zealand and the Pacific regions. It has operations in other continents as well and has operations in New York, London, Singapore and Hong Kong.
On the contrary, there are some countries in which international accounting standards are considered as an appropriate means for carrying out financial reporting. This difference in their financial reporting is based on varying prejudices and preconceived concerns, the basis of which has often been questioned by experts and proponents of adopting national and international accounting standards.
acquiring new customer base, recruiting efficient employees and also development of new products). Thus it is quite profitable for the companies if they go for acquiring efficient firms. The essay highlights the valuation of an acquisition plan that is done by United Kingdom’s leading engineering support service company, Babcock International Group PLC.
Secondly, the fact that the enhanced disclosure is as well not enough and finally, there is the objective of realizing an improvement in the quality and the comparability of the financial reporting. During the analysis of the lessee’s financial position, it is evident that many users tend to want to capitalize operating leases through adjustments made to the reported financial information.
Evaluate two of the additional statement of the company you have chosen for example -Chairman's Report, financial Review with two additional statements included by Rio Tint PLC in its Annual Report or Financial statements.
'' As well as statutory information many companies choose to give additional information such as Operating Reviews, Chairperson's Statements or Business Summaries.
s being asked to compare the difference between computing overhead based on direct labor hours( 150% of 4,000 direct labour hours = 6,000 hours) and computing overhead using direct labor hours (6,500)
Davina has scrutinized the current full cost or absorption costing method in
l market within a country or a regional market, a company operating on the international arena, often referred to as a multinational corporation is one which is involved in the production or the delivering of services in more than a single country. As such, international
16 pages (4000 words)Essay
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