Global manufacturing, You're employed by CPA firm that has

Global manufacturing

Reference no: EM1345163

You're employed by CPA firm that has international client, Global Manufacturing, with home offices in country in the European Union. The company recently entered in a lucrative sales contract with company in South Africa. The contract is rather unusual for Global in that it is denominated in neither the currency of the seller (Euros) nor that of the buyer (South Africa Rands); rather, it is denominated in British pounds. Global's Chief Financial Officer, Jaques Perrot, is concerned about the proper accounting tratement of this transaction, because he believes it involves something called an EMBEDDED DERIVATIVE, a concept he is not familiar.

He asks your firm to determine whether an EMBEDDED DERIVATIVE is needed and, if it is, provide him with a memo describing exactly how to account for it.

Because Global's stock is concerned with satisfying the requirements of both Internation Accounting Standards and U.S. GAAP

Reference no: EM1345163

Questions Cloud

Explain the effects of the increase on benefits for agency : Use the subsequent website for the City of Decatur GA for information needed- Explain the effects of the increase on benefits for the agency

Record the conversion of the preferred stock : Pechstein company issued 2000 shares of $10/value common stock upon conversion of 1000 shares of dollar 50 par value preferred stock. The preferred stock was issued at $60 per share.

Training for foreign assignment : From the diversity point of view, what do you need to know about your targeted learners and the training requirements needed prior to taking assignment in a foreign country.

Calculate the labour productivity : The following table displays data on the average number of customers processed by several bank service units each day. Calculate the labour productivity and the multifactor productivity for each unit. Utilize an eight-hour day for multifactor produ..

Global manufacturing : You're employed by CPA firm that has international client, Global Manufacturing, with home offices in country in the European Union. The company recently entered in a lucrative sales contract with company in South Africa.

Hedging against stock prices : Assume you own hundred shares of Dell Inc. stock. Today it is trading at $15/share, but you're worried Michael Dell might retire again, causing the price to go down.

Explain retail stores business process : Explain Retail Stores business process, Visit some retail establishment of your choice in order to gain specific knowledge about the marketing activities of the operation

What are united''s enterprise and total market values : Consider that United uses the entire £50 million in excess cash to pay a special dividend and what will be the amount of the regular yearly dividends in the future

Corporate compliance report : Using your own organization or organization with which you're familiar, prepare a report in which you outline the plan to implement enterprise risk management based upon the Committee of Sponsoring Organizations of Treadway Commission (COSO) recom..

User Account

All Pages