The Portable MBA in Finance and Accounting, 3rd Edition

388 Planning and Forecasting The Becton Dickenson statement is the clearest statement of the case for not hedging translation ex ...

Global Finance 389 There is some hedging of translation, but the hedging of translation expo- sure is clearly less common than t ...

390 Planning and Forecasting at their fair values. Whether or not these changes in fair value go immedi- ately into the computat ...

Global Finance 391 Many of the hedging examples disclosed in Exhibits 12.5 and 12.8 in- volved balances that were already record ...

392 Planning and Forecasting of a der ivative contract be recognized as it occurs. However, GAAP does not permit recognition of ...

Global Finance 393 also recorded in other comprehensive income (see Becton Coulter Inc. in Ex- hibit 12.23 for an example of thi ...

394 Planning and Forecasting Improve the quality of financial reporting. Make easier the comparison of the financial position, ...

Global Finance 395 SEC Requirements for Disclosing the Effects of GAAP Differences With the continuing globalization of financia ...

396 Planning and Forecasting include schedules reconciling earnings under U.S. and foreign GAAP (the 20-F Report). An example of ...

Global Finance 397 equity in the Exhibit 12.27 reconciliation of shareholders’ equity. Writing up its fixed assets increased EP’ ...

398 Planning and Forecasting Among costs deferred by EP were research and development. These costs must be expensed as incurred ...

Global Finance 399 to judge whether a stock might be either over or undervalued. Electricidade de Portugal’s P/E ratio is higher ...

400 Planning and Forecasting immediately, whereas the U.S. firm would take the charge through its future income statements.^45 I ...

Global Finance 401 EVALUATING THE PERFORMANCE OF FOREIGN SUBSIDIARIES AND THEIR MANAGEMENT With the acquisition of its Danish su ...

402 Planning and Forecasting the effects of changes in the value of the dollar, that is, the price of the dollar. As (1) involve ...

Global Finance 403 The previous adjustment holds constant the value of the foreign currency in measuring net income for purposes ...

404 Planning and Forecasting of their responsibilities. At least in the case of transactional exposure, Black & Decker manag ...

Global Finance 405 Taxes and Transfer Pricing A major issue surrounding transfer prices in the international arena is their ef- ...

406 Planning and Forecasting The tax authorities of countries are well aware that multinationals have strong incentives to shift ...

Global Finance 407 shipped. There are, of course, some potential offsetting disadvantages from this practice: Charging higher t ...