The bigger companies of the world are formed by some heavy investment, proper management, getting the right ideas and implementing them, and support and backup from parent or sister companies. Some of the largest groups in the world include Pepsi Co. which owns Pepsi Cola, Frito-Lays, Gatorade, Tropicana and Quaker…
Groups are treated as a single entity for the purpose of showing the financial position of the range of companies including parent (holding) company, its subsidiaries, associated companies and other investments such as joint ventures. These financial statements are known as consolidated financial statements because all the accounts of the companies are consolidated to form just one set of accounts. This is done for the better management of accounts, tax cuts, measurement of the size and extent of the business and also it is a requirement in some cases (Brennan & Pierce, 2003). The case discussed below is per USGAAP treatment of group accounts. (Definitions, 2008)
When the company owns or purchases 50% or more of the outstanding common stock, the purchasing company has control over the acquired company. Control in this context is defined as ability to direct policies and management. In this type of relationship the controlling company is the parent and the controlled company is the subsidiary. The parent company needs to issue consolidated financial statements at the end of the year to reflect this relationship. Consolidated financial statements show the parent and the subsidiary as one single entity. During the year, the parent company can use the equity or the cost method to account for its investment in the subsidiary. Each company keeps separate books. ...
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The quality of the product and well managed business operations are always prone to capture the taste buds acceptability. Moreover, if the product is marketed properly, then it can help the product to be successful. The given report, hence, provides the financial feasibility of the project which is about introducing a new drink based providing potential investor an attractive opportunity to enter the growing market and earn attractive returns.
It cost me less than half pound per jar to make and I can sell all I can make for 3 pounds. I would need an investment of 80.000 pounds in equipment, marketing and starting supplies to make and sell 15.000 jars of gel per month. I can rent sufficient space of 200 m2 that includes small office for 500 pounds per month.
Accounting just like any profession has a body of theory that consist of principles, assumptions and standards that together form the building blocks of a proper accounting system. The accounting profession has developed a series of standards that are generally accepted and universally practiced.
It is not important whether the cash has been received or not. Similarly cost are recorded when the company incurred expenses irrespective of the payment of those expenses (Dyson, 2010). Matching Concept The term matching means proper association of revenue and expenses.
A Website either is being used for answering Inquiring e-mails about the shop or for advertising and both of them comes under Profit and Loss account on the debit side. As we know advertising expense is been incurred for attracting the customer to the shop and, therefore, they are been taken as selling expenses.
Without accounting resources cannot be managed effectively."It is irrefutable that any business organization requires the use of accounting. In fact, the use of accounting dates back from the time a business organization is formed.
This is one of the key reasons for revising the reporting requirements in respect of group company accounts by Financial Reporting Standard No2 (Shortly FRS 2).
Convergence on the presentation of the financial statements
Examples of variable costs include labor, cost of distribution, raw materials and use of energy in this whisky company. There are differences between the companies with high variable costs and the ones with high fixed costs. These differences are in terms of
The company will wholly acquire Ranbaxy this year which will make sun pharmaceutical the largest pharmaceutical company of India. Sun pharma has also merged with MSD to provide augmented and differentiated product in the emerging markets. The shares
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