Maximum dividends of $100‚000 per year Issues: Lease: IFRS states that “An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.” The lease of the Sudbury retail location is therefore an onerous contract. DCDL has an obligation to pay $27‚500 per year for the lease on the Sudbury location. The sub-contract agreement DCDL has is a sub-lease that pays $5‚000 for year one‚ and $5‚000 each
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The Electrosteel Castings case is about an Indian ductile iron pipe (DIP) and cast iron pipe (CIP) manufacturer’s decision to internationalize. The central issue is about the choice of where to go‚ and the choice of the type of investment the company will pursue. This paper will analyze the options available for the company and recommend the best solution. 1. Electrosteel options As for the location‚ Electrosteel has two options: France and Vietnam. France is attractive because it could be
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In 1929‚ by Sri Mohan Lal Dayal‚ PARLE founded at Bombay. Then Sri Narottam Chouhan added confectionary plants inside PARLE. PARLE has big oven in ASIA. Daley production is 200 Ton. Parle Products has been India’s largest manufacturer of biscuits and confectionery for almost 80 years. Makers of the world’s largest selling biscuit‚ Parle-G‚ and a host of other very popular brands‚ the Parle name symbolizes quality‚ nutrition and great taste. With a reach spanning even to the remotest villages of
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1. Background In order to build trust in the workplace by establishing a new level of credibility and strengthen relations between management and employees‚ Paul Simard‚ the new plant manager‚ ordered the removal of all time clocks from the plant. Although initially employees saw the gesture as a sign of positive change‚ within two months problems started to appear. About 5% of the employees began showing up late‚ leaving early‚ or took extended lunch breaks. Those employees who respected the
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Question 1 What challenges confronted BAL in 1993? 1. Economic forces By the 1990s‚ the Indian economy was undergoing structural change‚ and imports were largely unregulated. Since 1990‚ consumers had felt the pinch of recession‚ inflation had averaged 13%‚ interest rates had shot up‚ and consumer purchasing power had dropped considerably. In 1993‚ demand for two-wheelers had declined substantially‚ the Indian two-wheeler vehicle industry suffered from chronic overcapacity due to the economic
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Introduction Li & Fung is a listed company in Hong Kong‚ therefore it should comply with the relevant regulation‚ e.g. Listing Rules‚ HK Companies Ordinance and Hong Kong Financial Reporting Standards. Now we are going to discuss whether the information provided in its interim reports for the period ended 30 June 2010 is comply with the relevant regulation and sufficient to enable investors to make investment decisions. Management Discussion & Analysis In this aspect‚ basically the disclosure
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Case 11-6 Lessee Ltd. Case 11-6 deals with Lessee Ltd.‚ a company that operates in Britain and uses IFRS. The question in this case is how to classify a lease that Lessee‚ Ltd. acquired from Lessor Inc. The accounting standard that deals with leases under IFRS is IAS 17. IAS 17 was originally issued in September 1982 and was reissued in December 2003. It classifies leases as either finance leases or operating leases. Finance leases make it so that the lessee recognizes an asset and a liability
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2013 Executive Summary In August 1995‚ President Geoffrey Chutter of Richmond‚ British Columbia based WhiteWater West Industries Ltd.‚ a water slide designing‚ manufacturing and installation company‚ decided that the company’s fiberglass manufacturing facility in Kelowna‚ BC needed to be relocated. The main reasoning for the move being that WhiteWater Specialties Ltd.‚ the sector firm running the facility‚ were at capacity for manufacturing due to the size of their current plant. Mr. Chutter‚ along
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Need and Basics of STP In this Article‚ we will understand and analyse the need and basics of STP strategy taking the example of one of the most respected Company in the world – the Cadbury Company‚ its marketing approach and methods to remain at the top of the chocolate market in India. Let‟s have a brief background of the company. Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate‚ gum and candy brands. They have direct operations in over 60 countries
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1.How did Mehta construct his financial forecast? Using the financial forecast‚ prepare to show the "cash cycle" of the firm (i.e. the flow of funds through the working-capital accounts of the firm). Mr. Mehta developed a monthly forecast of financial statements by using the current operating assumptions. As an alternative way of looking at the forecasted funds flows‚ Mr. Mehta also prepared a forecast of cash receipts and disbursements. To prepare a financial forecast‚ Mr. Mehta would improve on
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