<tbody id="jia29"><pre id="jia29"></pre></tbody>
<th id="jia29"></th>
    1. <form id="jia29"><tr id="jia29"><u id="jia29"></u></tr></form>

        <nav id="jia29"><big id="jia29"></big></nav>
          <dd id="jia29"><center id="jia29"><noframes id="jia29"></noframes></center></dd>
            英語資訊
            News

            會計英語 Unit eight

            Source: 恒星英語學習網  Onion  2009-07-29  我要投稿   論壇   Favorite  
            [00:00.00]Unit 8 Acquisition accounting
            [00:03.66]Text 8.2        Honeymoon accounting offers financial advantag
            [00:09.74]The launch last week of TI Group's hostile bid for Dowty, the aerospace company ,raised familiar questions about how Mr Christopher Lewinto
            [00:18.26]the TI chairman accounts for acquisitions in his rapidly growing engineering grou
            [00:23.69]Although wihin accounting standards, TI's past treatment of acquisitions is almost certain to figure prominently in Dowty's defence this mont
            [00:31.76]The ensuring debate will again highlight current accounting rules which grant acquiring companies a financial honeymoon during which to reorganise their priz
            [00:40.54]a luxury not available to the same degree to incumbent management
            [00:44.59]Ironically Mr Michael Garner, TI's finance director ,is a member of the Accounting Standards Board which later this year will produce a draft standard covering the treatment of fair value adjustments on acquisition
            [00:57.23]This well-established practice allows the cost of reorganising an acquisition to be defrayed without impacting on profit
            [01:05.31]It has been widely criticised as a way in which ordinary operating costs can be 'lost' boosting reported profits and earning
            [01:13.25]The acquisition accounting issue looms particularly large for T
            [01:17.66]Its rapid transformation since 1986 from Tube Investment has involved a heavy acquisition programme and an equally heavy use of fair value adjustment
            [01:27.82]Over the period it spent about $500m on acquisitions and another $100m on reorganisatio
            [01:34.69]Almost all acquisitive companies make use of the practic
            [01:38.51]At its simplest it allows an acquiring company to identify costs of reorganisation
            [01:43.92]redundancies and plant closures  and to set up provisions in the balance sheet against which future costs can be charge
            [01:50.97]But in 1990, TI was widely criticised in the City for taking the practice to the limits of what was acceptabl
            [01:58.18]Fair value provisions are usually set up soon after an acquisition and released over 18 month
            [02:03.92]In its 1989 accounts TI made $92m of fair value provisions,some £59m of which related to'additional'goodwill write-offs relating to its 1988 acquisitions.
            [02:17.43]The 'additional'provision was more than half that year's pre-tax profits of $112
            [02:24.43]Critics said these costs ,referred to as a major rationalisation of manufacturing facilitie
            [02:30.49]systems and organisational structures in the 1989 accounts,might have been better treated as exceptionals or operating costs in what was by then an on-going busines
            [02:41.70]Mr Lewinton and Mr Garner insist there was nothing wrong with this treatment-and indeed Price Waterhouse, TI's auditors, did not qualify the account
            [02:51.21]"We had always had an agreement with our auditors that we would not rush to finalise provisions in one balance sheet,said,Mr Garne
            [02:58.78]The reasoning behind this 'second bite' at the provisions had,however ,been poorly  communicated to the Cit
            [03:06.20]Some analysts have argued there is more to TI's second bit
            [03:10.69]First of all, TI had 11 months after the acquisition of Bundy, in Apirl 1988 ,before the auditors signed off the 1988 accounts during which to identify potential write-off
            [03:23.08]It also had an opportunity before the bid ,which was agreed, and allowed TI to do full due diligence on Bund
            [03:30.70]Mr Garner said that the opportunity for further restrucucturing ,and therefore additional provision
            [03:36.53]only came to light once senior members of the Bundy board left nearly a year after the acquistion and fresh ideas from more junior executives surface
            [03:45.72]The debate is not academic as it has implications for TI's cash flo
            [03:50.90]TI's unbroken record of strongly positive funds generation since 1986 would be severely dented if some of its past provisions were treated as on-going operating cost
            [04:01.01]In 1989, for instance,a tougher accounting treatment of the second Bundy provision would have meant TI's operations were actually a drain on fund
            將本頁收藏到:
            上一篇:會計英語 Unit nine
            下一篇:會計英語 Unit seven

            最新更新
            論壇精彩內容
            網站地圖 - 學習交流 - 恒星英語論壇 - 關于我們 - 廣告服務 - 幫助中心 - 聯系我們
            Copyright ©2006-2007 www.pesugihanputih88.com All Rights Reserved
            亚洲日韩在线一区

            <tbody id="jia29"><pre id="jia29"></pre></tbody>
            <th id="jia29"></th>
            1. <form id="jia29"><tr id="jia29"><u id="jia29"></u></tr></form>

                <nav id="jia29"><big id="jia29"></big></nav>
                  <dd id="jia29"><center id="jia29"><noframes id="jia29"></noframes></center></dd>