subsidiaries of Xerox throughout Latin America was found to have exposed receivables, and the reason for this could be because of these faulty accounting procedures for recognizing rentals as sales. One major problem that could be caused by excess of exposed receivables is that the company can face liquidity problems. A drop in account receivables implies a decrease in quick assets, and such decr
- The directors voted to establish a subsidiary in Thailand
- Its initial estimates = 550 million Thai Baht(TB)
= $ 12.65 million (∵ spot rate = $0.023/TB)
- Now Blades has $2.65 million available
- The remaining $10 million (=TB434,782,609) should be obtained from other sources
- CFO prefers 'debt' to equity financing to raise the funds since Blades is a
subsidiaries of Xerox throughout Latin America was found to have exposed receivables, and the reason for this could be because of these faulty accounting procedures for recognizing rentals as sales. One major problem that could be caused by excess of exposed receivables is that the company can face liquidity problems. A drop in account receivables implies a decrease in quick assets, and such decr
(1) Add up to subsidiary and equity method income.
IFRS demands consolidated financial statements and applies equity method to make financial statements.
Before introducing IFRS, equity method income is reflected in non-operating income, but after introducing IFRS, it is reflected in operating income.