A drop in account receivables implies a decrease in quick assets, and such decrease maybe critical for some companies that does not have enough financial resources to pay back the upcoming current liabilities. This is why Xerox announced that it has set aside reserves for these subsidiaries, in an attempt to alleviate the investors’ anxiety about the company’s liquidity.
4. What is the j
liquidity problems. A drop in account receivables implies a decrease in quick assets, and such decrease maybe critical for some companies that does not have enough financial resources to pay back the upcoming current liabilities. This is why Xerox announced that it has set aside reserves for these subsidiaries, in an attempt to alleviate the investors’ anxiety about the company’s liquidity.
a university professor, and a financial analyst.
① From German Accounting Standards to IFRS
∙ Previous German accounting standard was based on legal compliance
accounting.
Especially, it focused on individual company F/S that showed possibility of capital
recovery for creditors rather than consolidated F/S and form over substance.
∙
What is contagion?
“ The likelihood that significant economic change in one country will spread to other countries.”
-Investopedia-
1. CLOSING CASE
American International Group
When the financial crisis in the U.S. in late 2008, many nations could not avoid contagion and its pernicious effects.
In the United States, a notable casualty was AIG.
In 2008,
AIG’s near colla