The document discusses capital servicing adjustments (CSA) that are made when determining the contract profit rate for qualifying defence contracts. Some key points:
- The CSA aims to ensure contractors receive an appropriate return on the capital they employ for contract delivery. It is usually the largest adjustment made to the baseline profit rate.
- In 2015/16 the average CSA was 1.10 percentage points, and in the first half of 2016/17 it was 1.55 percentage points. CSAs ranged from 0.30 to 3.67 percentage points.
- Contractors with more capital-intensive operations tended to have higher CSAs, as the CSA calculation takes into account the ratio of costs to
The document provides an analysis of the planned contract profit rates reported in 30 qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) entered into between April 2015 and March 2016 in the UK. The average reported contract profit rate was 11.7%, with individual rates ranging from around 5% to 16%. The largest average adjustment to the baseline profit rate of 10.6% was for capital servicing, at an average of 1.2 percentage points.
Digital realty 3 q16 earnings presentation finalir_digitalrealty
This document provides forecasts and estimates for various economic indicators and metrics for the global economy, U.S. economy, and data center industry for 2017 and 2018. It forecasts modest global GDP growth of around 3.2% in 2017 and slightly higher growth in 2018. U.S. GDP growth is forecast to be around 2.1% in 2017 and 2018. It also provides projections for inflation, oil prices, stock market performance, capital expenditure trends, and other indicators.
Sharing Costs at Cost or Value_Penelle_Published Version. pdfPhilippe Penelle
This document summarizes an article that examines inconsistencies in the OECD's discussion draft on cost contribution arrangements. The draft requires that contributions to such arrangements be assessed based on their value rather than cost, which is a significant departure from existing guidance and practices. This places most taxpayers currently using cost contribution arrangements following the OECD's guidance at risk of non-arm's length adjustments. The document analyzes why requiring contributions to be shared at value rather than cost results in arbitrage opportunities and non-arm's length results that are inconsistent with economic principles and observed market practices.
The Seemingly Strange Case of the Negative PCT PaymentPhilippe Penelle
The authors analyze how the income method in U.S. transfer pricing regulations allows for the possibility of a negative platform contribution transaction (PCT) payment when a U.S. multinational makes platform contributions to a controlled foreign corporation in a cost sharing arrangement. They establish a necessary and sufficient condition - called the Fiaccadori-Tobin-Penelle (FTP) condition - for when the PCT payment will be positive or negative. Specifically, the PCT payment will be positive if the foreign corporation's reasonably anticipated benefit share is less than the ratio of its expected gross income to total expected development costs, and negative otherwise. They also show that any reasonably anticipated benefit share can produce an arm's-length result
First Quarter 2016 Results
- SemGroup reported adjusted EBITDA of $77.7 million for the first quarter of 2016, down slightly from $79.3 million in the fourth quarter of 2015.
- Rose Rock Midstream reported adjusted EBITDA of $49.0 million for the first quarter of 2016, up from $46.6 million in the fourth quarter of 2015.
- SemGroup maintained its 2016 adjusted EBITDA guidance of $270-320 million and Rose Rock Midstream maintained its 2016 adjusted EBITDA guidance of $165-185 million.
On July 31, 2015, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) 2015-12, which is designed to simplify several aspects of employee benefit plan financial reporting, including (1) fully benefit-responsive investment contracts, (2) certain plan investment disclosures, and (3) provide a measurement date practical expedient. ASU 2015-12 is effective for fiscal years beginning after December 31, 2015, however, early adoption is permitted, thus, employee benefit plans may elect to adopt any, or all, of the provisions in the ASU for plan financial statements that have not yet been issued.
The Economics of Business Restructuring Published VersionPhilippe Penelle
The document discusses business restructuring transactions where a controlled manufacturer or distributor is converted into a low-risk contract manufacturer or distributor through a change in transfer pricing policy. Tax authorities are skeptical of these transactions and argue they lack economic substance unless compensated by an "exit charge" equal to expected future profits. However, the author argues that from an economic perspective, reducing risk justifies lower expected income without an exit charge, if the risk reduction is properly measured. The author urges the OECD to apply solid economic analysis and principles to provide guidance on these transactions consistent with how markets work.
While we continue to await final standards for financial instruments and leasing as well as clarifications to revenue recognition, the third quarter marked another period of relatively narrow changes from the Financial Accounting Standards Board (FASB). The majority of the sixteen Accounting Standards Updates (ASUs) that have been finalized during 2015 relate to narrow scope projects identified by the FASB. ASUs issued in the third quarter include narrow scope changes to inventory, derivative instruments, business combinations and more widely applicable changes to benefit plan presentations and disclosures.
The deferral of the effective date for the implementation of Accounting Standards Codification (ASC) Topic 606 was also finalized. Activity at the Public Company Accounting Oversight Board (PCAOB) consisted of approval of the reorganization of PCAOB Auditing Standards and certain requests for comment and discussion papers.
The following provides a brief overview of these accounting developments during the third quarter. A more detailed discussion of these standards and other proposals is available from our archived webinar series.
The document provides an analysis of the planned contract profit rates reported in 30 qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) entered into between April 2015 and March 2016 in the UK. The average reported contract profit rate was 11.7%, with individual rates ranging from around 5% to 16%. The largest average adjustment to the baseline profit rate of 10.6% was for capital servicing, at an average of 1.2 percentage points.
Digital realty 3 q16 earnings presentation finalir_digitalrealty
This document provides forecasts and estimates for various economic indicators and metrics for the global economy, U.S. economy, and data center industry for 2017 and 2018. It forecasts modest global GDP growth of around 3.2% in 2017 and slightly higher growth in 2018. U.S. GDP growth is forecast to be around 2.1% in 2017 and 2018. It also provides projections for inflation, oil prices, stock market performance, capital expenditure trends, and other indicators.
Sharing Costs at Cost or Value_Penelle_Published Version. pdfPhilippe Penelle
This document summarizes an article that examines inconsistencies in the OECD's discussion draft on cost contribution arrangements. The draft requires that contributions to such arrangements be assessed based on their value rather than cost, which is a significant departure from existing guidance and practices. This places most taxpayers currently using cost contribution arrangements following the OECD's guidance at risk of non-arm's length adjustments. The document analyzes why requiring contributions to be shared at value rather than cost results in arbitrage opportunities and non-arm's length results that are inconsistent with economic principles and observed market practices.
The Seemingly Strange Case of the Negative PCT PaymentPhilippe Penelle
The authors analyze how the income method in U.S. transfer pricing regulations allows for the possibility of a negative platform contribution transaction (PCT) payment when a U.S. multinational makes platform contributions to a controlled foreign corporation in a cost sharing arrangement. They establish a necessary and sufficient condition - called the Fiaccadori-Tobin-Penelle (FTP) condition - for when the PCT payment will be positive or negative. Specifically, the PCT payment will be positive if the foreign corporation's reasonably anticipated benefit share is less than the ratio of its expected gross income to total expected development costs, and negative otherwise. They also show that any reasonably anticipated benefit share can produce an arm's-length result
First Quarter 2016 Results
- SemGroup reported adjusted EBITDA of $77.7 million for the first quarter of 2016, down slightly from $79.3 million in the fourth quarter of 2015.
- Rose Rock Midstream reported adjusted EBITDA of $49.0 million for the first quarter of 2016, up from $46.6 million in the fourth quarter of 2015.
- SemGroup maintained its 2016 adjusted EBITDA guidance of $270-320 million and Rose Rock Midstream maintained its 2016 adjusted EBITDA guidance of $165-185 million.
On July 31, 2015, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) 2015-12, which is designed to simplify several aspects of employee benefit plan financial reporting, including (1) fully benefit-responsive investment contracts, (2) certain plan investment disclosures, and (3) provide a measurement date practical expedient. ASU 2015-12 is effective for fiscal years beginning after December 31, 2015, however, early adoption is permitted, thus, employee benefit plans may elect to adopt any, or all, of the provisions in the ASU for plan financial statements that have not yet been issued.
The Economics of Business Restructuring Published VersionPhilippe Penelle
The document discusses business restructuring transactions where a controlled manufacturer or distributor is converted into a low-risk contract manufacturer or distributor through a change in transfer pricing policy. Tax authorities are skeptical of these transactions and argue they lack economic substance unless compensated by an "exit charge" equal to expected future profits. However, the author argues that from an economic perspective, reducing risk justifies lower expected income without an exit charge, if the risk reduction is properly measured. The author urges the OECD to apply solid economic analysis and principles to provide guidance on these transactions consistent with how markets work.
While we continue to await final standards for financial instruments and leasing as well as clarifications to revenue recognition, the third quarter marked another period of relatively narrow changes from the Financial Accounting Standards Board (FASB). The majority of the sixteen Accounting Standards Updates (ASUs) that have been finalized during 2015 relate to narrow scope projects identified by the FASB. ASUs issued in the third quarter include narrow scope changes to inventory, derivative instruments, business combinations and more widely applicable changes to benefit plan presentations and disclosures.
The deferral of the effective date for the implementation of Accounting Standards Codification (ASC) Topic 606 was also finalized. Activity at the Public Company Accounting Oversight Board (PCAOB) consisted of approval of the reorganization of PCAOB Auditing Standards and certain requests for comment and discussion papers.
The following provides a brief overview of these accounting developments during the third quarter. A more detailed discussion of these standards and other proposals is available from our archived webinar series.
Budget 2016 was recently announced by the Finance Minister of India. This Presentation unravels the Transfer Pricing and International Tax proposals of the Budget 2016.
The EITF recently reached consensus on issues related to NAV disclosures and dropdown transactions for master limited partnerships. For NAV disclosures, instruments using the practical expedient will be exempt from fair value hierarchy classification and disclosure, but disclosed as a reconciling item. For dropdown transactions, the general partner must retroactively adjust historical earnings per unit to account for the transfer as if it occurred on the earliest date of common control. The EITF also reached consensus-for-exposure drafts on issues related to electricity contracts, prepaid stored-value cards, and employee benefit plan simplification.
The document summarizes accounting changes from the third quarter of 2014, including ongoing projects from the FASB on revenue recognition, lease accounting, financial instruments, and other areas. It discusses new standards and guidance issued on these topics. Implementation guidance is being developed by various groups for the new revenue standard. The FASB also issued standards on going concern disclosures, troubled debt restructurings for certain mortgage loans, and measuring assets and liabilities of consolidated collateralized financing entities.
Goodrich Corporation announced financial results for the third quarter of 2007, with income per share up 39% year-over-year. The company increased its full-year 2007 earnings outlook and provided an outlook for 2008 with sales expected between $7.1-7.2 billion and earnings per share of $4.15-$4.30. Key drivers for growth include increasing production rates for commercial aircraft and above market growth for defense programs. The company also announced the pending sale of its aviation maintenance business.
This document provides condensed consolidated interim financial statements for Hyundai Capital Services, Inc. and its subsidiaries for the period ended September 30, 2016. It includes statements of financial position, comprehensive income, changes in equity, and cash flows. The independent auditors' review report indicates the financial statements were prepared in accordance with relevant accounting standards and nothing came to the auditors' attention that would cause them to believe the financial statements were not properly prepared.
- Revenues for Q1 2009 decreased 12% quarter-over-quarter and 9% year-over-year to KRW 3.66 trillion due to declining panel prices.
- The company reported an operating loss of KRW 412 billion for Q1 2009 compared to an operating income of KRW 881 billion in Q1 2008.
- Cash and cash equivalents increased slightly to KRW 3.57 trillion at the end of Q1 2009, and the company expects total LCD shipments and average selling prices to increase in Q2 2009.
This white paper can help tax professionals understand the challenges of managing fixed assets involved in a technical termination and how to more efficiently and accurately handle the set-up, transfer, and management of those assets.
Zee Entertainment Enterprises: Good quarter; near-term outlook weak - Prabhud...IndiaNotes.com
- Zee Entertainment reported quarterly earnings above estimates driven by higher revenues and margins. Advertising revenues grew 21.5% year-over-year outpacing industry growth.
- While near-term outlook is weak due to delays in implementation of television digitization, the company expects industry advertising growth to remain in the double digits for the full fiscal year.
- The report maintains a "Buy" rating for Zee Entertainment, seeing the benefits of digitization being realized in the long-run through consistent earnings growth and a strong balance sheet.
This document discusses intercompany inventory transactions and provides answers to questions about eliminating intercompany profits in consolidated financial statements. Key points include:
- All inventory transfers between related companies must be eliminated to avoid overstating revenue, cost of goods sold, inventory, and net income in consolidated financial statements.
- Knowledge of whether an intercompany sale was upstream (parent to subsidiary) or downstream (subsidiary to parent) is important when allocating unrealized profits, as it determines whether the profit is eliminated from net income of just the parent or proportionately from the parent and non-controlling interests.
- When inventory is sold via an intercompany transfer but not resold before the end of the period
The document discusses issues related to multinational accounting and the translation of foreign entity financial statements. It provides answers to multiple questions covering topics such as the benefits of adopting international financial reporting standards (IFRS), the structure and process of the International Accounting Standards Board (IASB), considerations around US adoption of IFRS, foreign currency translation methods, and the determination of a foreign entity's functional currency.
Solutions Manual for Advanced Accounting 11th Edition by BeamsZiaPace
Full download : https://downloadlink.org/p/solutions-manual-for-advanced-accounting-11th-edition-by-beams/ Solutions Manual for Advanced Accounting 11th Edition by Beams
The document contains questions and answers related to intercompany transfers of services and noncurrent assets between affiliated companies. It addresses topics such as when profits from intercompany sales are considered realized, the accounting treatment for upstream and downstream sales, and how unrealized profits are eliminated in consolidated financial statements. The document provides guidance on preparing eliminating entries and calculating income allocated to noncontrolling interests.
- Hyundai Capital Services, Inc. and its subsidiaries released condensed consolidated interim financial statements for the period ending March 31, 2016 including statements of financial position, comprehensive income, changes in equity, and cash flows along with accompanying notes.
- An independent auditor reviewed the statements and issued an unqualified opinion finding the statements were prepared according to relevant accounting standards and gave a true and fair view of the financial position and performance of the company.
- The financial statements show the company had total assets of 24.7 trillion won as of March 31, 2016 and realized a profit of 90.4 billion won for the first quarter of 2016.
Petronet LNG: Reports decent set of numbers, hold - Sushil FinanceIndiaNotes.com
Petronet LNG has reported decent set of numbers for the quarter ended March’14 which were slightly better than expectations. With no major trigger in offing in near term, expect the stock to underperform & hence maintain hold with a revised price target of Rs152
The document discusses additional consolidation reporting issues including:
- Cash flows from operations cannot be easily incorporated into the existing three-part workpaper format because both beginning and ending consolidated balance sheet totals are needed to determine cash flows for the period.
- Dividends paid to noncontrolling shareholders are included in the consolidated cash flow statement but not the consolidated retained earnings statement.
- The indirect method of preparing the statement of cash flows focuses on reconciling net income to cash flows from operations, but does not report explicit payments to suppliers.
Solution Manual Advanced Accounting 9th Edition by Baker Chapter 13Saskia Ahmad
This document provides answers to questions about segment and interim reporting. It discusses the purpose of segment reporting and the criteria for determining reportable segments. It also addresses accounting issues related to interim reporting, including recognizing revenue and expenses, inventory valuation, and allocating costs between interim periods. Matching revenue and expenses, accounting for long-term contracts and other items in interim statements is also examined.
CNO announced the sale of its subsidiary Conseco Life Insurance Company (CLIC) to Wilton Re for approximately $237 million. The sale transfers $3.4 billion in traditional life, interest-sensitive life, and annuity reserves and is expected to close in mid-2014. Additionally, Bankers Life will recapture $160 million of traditional life reserves previously reinsured to Wilton Re for $28 million. The transactions are expected to increase CNO's holding company liquidity by $125 million and reduce exposure to interest rate risk while simplifying operations.
Ryder System, Inc. held a conference call to discuss fourth quarter 2016 earnings and provide a 2017 forecast. Key points included:
- Fourth quarter 2016 earnings per share were $0.92 compared to $1.42 in the prior year, impacted by lower used vehicle sales and accelerated depreciation.
- The 2017 forecast expects total revenue growth of 4% and operating revenue growth of 3%, with moderate economic growth assumptions.
- Earnings per share are forecasted between $4.78-$5.08 for 2017, reflecting cost reductions but also lower used vehicle pricing and higher depreciation impacts.
- Business segments are expected to see revenue growth in 2017, with Fleet Management Solutions revenue up 2%
This document provides condensed consolidated interim financial statements for Hyundai Capital Services, Inc. and its subsidiaries for the period ended June 30, 2017. It includes statements of financial position, comprehensive income, changes in equity, and cash flows, as well as notes to the financial statements. An independent auditor's review report indicates the financial statements were prepared in accordance with relevant accounting standards and that nothing came to the auditor's attention to cause belief that the statements are not fairly presented.
The document provides an introduction and overview of illustrative financial statements prepared in accordance with FRS 102. It summarizes that the financial statements are meant to provide guidance but not be a substitute for completing disclosure checklists or consulting professional advisors. Key areas introduced by FRS 102 or differing from UK GAAP are highlighted. Appendices provide examples of alternative statement formats permitted by FRS 102. Source references for disclosures are included in the financial statements.
Budget 2016 was recently announced by the Finance Minister of India. This Presentation unravels the Transfer Pricing and International Tax proposals of the Budget 2016.
The EITF recently reached consensus on issues related to NAV disclosures and dropdown transactions for master limited partnerships. For NAV disclosures, instruments using the practical expedient will be exempt from fair value hierarchy classification and disclosure, but disclosed as a reconciling item. For dropdown transactions, the general partner must retroactively adjust historical earnings per unit to account for the transfer as if it occurred on the earliest date of common control. The EITF also reached consensus-for-exposure drafts on issues related to electricity contracts, prepaid stored-value cards, and employee benefit plan simplification.
The document summarizes accounting changes from the third quarter of 2014, including ongoing projects from the FASB on revenue recognition, lease accounting, financial instruments, and other areas. It discusses new standards and guidance issued on these topics. Implementation guidance is being developed by various groups for the new revenue standard. The FASB also issued standards on going concern disclosures, troubled debt restructurings for certain mortgage loans, and measuring assets and liabilities of consolidated collateralized financing entities.
Goodrich Corporation announced financial results for the third quarter of 2007, with income per share up 39% year-over-year. The company increased its full-year 2007 earnings outlook and provided an outlook for 2008 with sales expected between $7.1-7.2 billion and earnings per share of $4.15-$4.30. Key drivers for growth include increasing production rates for commercial aircraft and above market growth for defense programs. The company also announced the pending sale of its aviation maintenance business.
This document provides condensed consolidated interim financial statements for Hyundai Capital Services, Inc. and its subsidiaries for the period ended September 30, 2016. It includes statements of financial position, comprehensive income, changes in equity, and cash flows. The independent auditors' review report indicates the financial statements were prepared in accordance with relevant accounting standards and nothing came to the auditors' attention that would cause them to believe the financial statements were not properly prepared.
- Revenues for Q1 2009 decreased 12% quarter-over-quarter and 9% year-over-year to KRW 3.66 trillion due to declining panel prices.
- The company reported an operating loss of KRW 412 billion for Q1 2009 compared to an operating income of KRW 881 billion in Q1 2008.
- Cash and cash equivalents increased slightly to KRW 3.57 trillion at the end of Q1 2009, and the company expects total LCD shipments and average selling prices to increase in Q2 2009.
This white paper can help tax professionals understand the challenges of managing fixed assets involved in a technical termination and how to more efficiently and accurately handle the set-up, transfer, and management of those assets.
Zee Entertainment Enterprises: Good quarter; near-term outlook weak - Prabhud...IndiaNotes.com
- Zee Entertainment reported quarterly earnings above estimates driven by higher revenues and margins. Advertising revenues grew 21.5% year-over-year outpacing industry growth.
- While near-term outlook is weak due to delays in implementation of television digitization, the company expects industry advertising growth to remain in the double digits for the full fiscal year.
- The report maintains a "Buy" rating for Zee Entertainment, seeing the benefits of digitization being realized in the long-run through consistent earnings growth and a strong balance sheet.
This document discusses intercompany inventory transactions and provides answers to questions about eliminating intercompany profits in consolidated financial statements. Key points include:
- All inventory transfers between related companies must be eliminated to avoid overstating revenue, cost of goods sold, inventory, and net income in consolidated financial statements.
- Knowledge of whether an intercompany sale was upstream (parent to subsidiary) or downstream (subsidiary to parent) is important when allocating unrealized profits, as it determines whether the profit is eliminated from net income of just the parent or proportionately from the parent and non-controlling interests.
- When inventory is sold via an intercompany transfer but not resold before the end of the period
The document discusses issues related to multinational accounting and the translation of foreign entity financial statements. It provides answers to multiple questions covering topics such as the benefits of adopting international financial reporting standards (IFRS), the structure and process of the International Accounting Standards Board (IASB), considerations around US adoption of IFRS, foreign currency translation methods, and the determination of a foreign entity's functional currency.
Solutions Manual for Advanced Accounting 11th Edition by BeamsZiaPace
Full download : https://downloadlink.org/p/solutions-manual-for-advanced-accounting-11th-edition-by-beams/ Solutions Manual for Advanced Accounting 11th Edition by Beams
The document contains questions and answers related to intercompany transfers of services and noncurrent assets between affiliated companies. It addresses topics such as when profits from intercompany sales are considered realized, the accounting treatment for upstream and downstream sales, and how unrealized profits are eliminated in consolidated financial statements. The document provides guidance on preparing eliminating entries and calculating income allocated to noncontrolling interests.
- Hyundai Capital Services, Inc. and its subsidiaries released condensed consolidated interim financial statements for the period ending March 31, 2016 including statements of financial position, comprehensive income, changes in equity, and cash flows along with accompanying notes.
- An independent auditor reviewed the statements and issued an unqualified opinion finding the statements were prepared according to relevant accounting standards and gave a true and fair view of the financial position and performance of the company.
- The financial statements show the company had total assets of 24.7 trillion won as of March 31, 2016 and realized a profit of 90.4 billion won for the first quarter of 2016.
Petronet LNG: Reports decent set of numbers, hold - Sushil FinanceIndiaNotes.com
Petronet LNG has reported decent set of numbers for the quarter ended March’14 which were slightly better than expectations. With no major trigger in offing in near term, expect the stock to underperform & hence maintain hold with a revised price target of Rs152
The document discusses additional consolidation reporting issues including:
- Cash flows from operations cannot be easily incorporated into the existing three-part workpaper format because both beginning and ending consolidated balance sheet totals are needed to determine cash flows for the period.
- Dividends paid to noncontrolling shareholders are included in the consolidated cash flow statement but not the consolidated retained earnings statement.
- The indirect method of preparing the statement of cash flows focuses on reconciling net income to cash flows from operations, but does not report explicit payments to suppliers.
Solution Manual Advanced Accounting 9th Edition by Baker Chapter 13Saskia Ahmad
This document provides answers to questions about segment and interim reporting. It discusses the purpose of segment reporting and the criteria for determining reportable segments. It also addresses accounting issues related to interim reporting, including recognizing revenue and expenses, inventory valuation, and allocating costs between interim periods. Matching revenue and expenses, accounting for long-term contracts and other items in interim statements is also examined.
CNO announced the sale of its subsidiary Conseco Life Insurance Company (CLIC) to Wilton Re for approximately $237 million. The sale transfers $3.4 billion in traditional life, interest-sensitive life, and annuity reserves and is expected to close in mid-2014. Additionally, Bankers Life will recapture $160 million of traditional life reserves previously reinsured to Wilton Re for $28 million. The transactions are expected to increase CNO's holding company liquidity by $125 million and reduce exposure to interest rate risk while simplifying operations.
Ryder System, Inc. held a conference call to discuss fourth quarter 2016 earnings and provide a 2017 forecast. Key points included:
- Fourth quarter 2016 earnings per share were $0.92 compared to $1.42 in the prior year, impacted by lower used vehicle sales and accelerated depreciation.
- The 2017 forecast expects total revenue growth of 4% and operating revenue growth of 3%, with moderate economic growth assumptions.
- Earnings per share are forecasted between $4.78-$5.08 for 2017, reflecting cost reductions but also lower used vehicle pricing and higher depreciation impacts.
- Business segments are expected to see revenue growth in 2017, with Fleet Management Solutions revenue up 2%
This document provides condensed consolidated interim financial statements for Hyundai Capital Services, Inc. and its subsidiaries for the period ended June 30, 2017. It includes statements of financial position, comprehensive income, changes in equity, and cash flows, as well as notes to the financial statements. An independent auditor's review report indicates the financial statements were prepared in accordance with relevant accounting standards and that nothing came to the auditor's attention to cause belief that the statements are not fairly presented.
The document provides an introduction and overview of illustrative financial statements prepared in accordance with FRS 102. It summarizes that the financial statements are meant to provide guidance but not be a substitute for completing disclosure checklists or consulting professional advisors. Key areas introduced by FRS 102 or differing from UK GAAP are highlighted. Appendices provide examples of alternative statement formats permitted by FRS 102. Source references for disclosures are included in the financial statements.
This document outlines the duties of CDPQ INFRA inc. which include developing complex specification documents for requests for proposals, quotes, information, and solutions. They coordinate the full tendering and approval process and source suppliers on behalf of customers while ensuring compliance and meeting needs. Technical contractual documents are also prepared and maintained, including purchase orders, amendments, and complex vendor contracts with appropriate supporting documentation.
The document discusses internationalization strategies for businesses. It describes internationalization as firms expanding outside their domestic markets. It outlines reasons for internationalization like accessing new markets or reducing costs. The document also discusses entry strategies firms use, issues they may face, and institutions like Chambers of Commerce that support internationalization efforts.
This document provides an overview of consulting services offered including executive coaching, leadership development programs, cross-cultural training, and lunch and learn sessions. Executive coaching includes one-on-one coaching and an accelerated leadership program involving group coaching. Cross-cultural training is offered through a partnership. Lunch and learn sessions provide real-time learning on management topics over multiple meetings with discussion and action planning.
The report examines the landscape of 54 UK government financial institutions, which has expanded significantly since the 2008 financial crisis. This includes 4 banks acquired during the crisis, 7 core financing institutions, membership of 7 international institutions, and 36 policy-related institutions established to implement specific policies. Between 2004-2014, policy-related institutions tripled from 12 to 36. Collectively they administer over £200 billion in assets and liabilities. The government plans to reduce exposure in some sectors but increase financing in others, such as student loans which may reach £100 billion by 2018. Proceeds from selling assets are estimated at £62.6 billion by 2020, but this is offset by ongoing financing costs and new initiatives.
Este documento explora si el bullying en la adolescencia puede ser una adaptación evolutiva. Explica que el bullying implica un desequilibrio de poder donde un individuo más fuerte causa daño repetidamente a uno más débil. Algunas teorías sugieren que el bullying puede adaptativo para la supervivencia y reproducción, mientras que otras lo ven como un proceso desadaptativo. El documento también discute posibles funciones evolutivas del bullying con respecto al sexo y el establecimiento de jerarquías sociales.
American Express is well positioned in the credit card market due to its long history and large brand recognition. It faces the most competition from other credit card companies in pricing and eligibility for its cards. American Express has integrated its businesses well by dividing into clear segments and offering tailored products. It is recommended they expand their product offerings to additional customer segments beyond their affluent base. Growing their consumer base helped the company and maintained their elite brand image while expanding their rewards program, which strengthened their position in the credit card market over time.
ERP Selenne responde a la gestión total de las empresas integrando todas las áreas de negocios. Selenne cuenta con altos niveles de especialización sectorial para ERP Industrias Químicas, ERP Gestión de Ingenierías, ERP Gestión de Proyectos, ERP Industria del Metal, ERP Fabricación Industrial, ERP Fabricación en Proyectos, ERP Planificación de la Producción, ERP Centrales de Compras, ERP Gestión Comercial, ERP Bróker de seguros, ERP Organismos de control, ERP ITV, ERP Financiero, ERP Suministros Industriales.
Visa aims to build a winning solution in conversational commerce by leveraging its existing assets and partnerships. As a fast follower, Visa can enter the growing conversational commerce market using its large payment network, Visa Developer platform, and partnerships with mobile keyboard and telecom companies. This would allow Visa to offer a secure and convenient payment solution that works across messaging apps on smartphones and basic phones, meeting user needs. By expanding access to both banked and unbanked consumers globally, Visa sees an opportunity to become a leader in the estimated $700-$800 billion conversational commerce market by 2017.
Working capital adjustments are made when comparing a tested party's transactions to potential comparable transactions to eliminate material differences in working capital levels like inventory, receivables, and payables. A working capital adjustment calculates the value of the working capital differences using an appropriate interest rate to adjust the profit of the comparable. Courts have upheld working capital adjustments but they must be reasonably accurate and eliminate material differences on a case by case basis.
This document provides an analysis of Bharat Heavy Electricals Limited (BHEL) including its company profile, key financial highlights, accounting standards, strengths, weaknesses and recommendations. BHEL is India's largest engineering and manufacturing company in the energy and infrastructure sectors. It has increased turnover 3x and profit 4x over five years. The analysis examines BHEL's profitability, coverage, solvency, and performance ratios identifying both strengths like high ROI and weaknesses like long debtor days. Recommendations include improving the cash conversion cycle and utilizing more long-term financing.
1. Preamble
Whereas, The Client is one of the Federal Democratic Republic of Ethiopia (FDRE) Client office established to promote the expansion of domestic trade and take appropriate measures to maintain lawful trade practices and to ensure modern and fair trading practices in domestic and foreign trade practices.
Whereas, It is found necessary to support commercial registration and licensing activities with modern technology in order to make them suitable for data management, to combat illegality and make data accessible to the government, the society and concerned authorities.
Whereas, The Client has developed an online commercial registration and licensing system and related service payments and other fee collection ways through modern technology and digital banking systems in order to develop easy business doing system.
Whereas, it has become necessary to establishing efficient and effective commercial registration and licensing systems and latest technologies with a capability to carry-through online transaction with reasonable cost and time; to increase the societies satisfaction and contribute to the comprehensive economic changes in the nation;
Whereas, the Client has faced limitation in customer demand satisfaction and service delivery due to the complexity of business laws and practices;
Whereas, in managing this large number of traders and to create efficiency in registration, controlling and the collection of ordered service fee payment, accessibility, fast delivery time and customer satisfaction using technology and electronic payment channels, it requires integration and collaboration to work with financial-institutions.
Whereas, the bank and the client are integrated their system to process and facilitate the order service fee payment collection.
Whereas, the bank is capable and willing to meet the financial service needs of the client.
Currently the bank has payment methods of Internet banking and Cash deposit at branches. In addition to these, CBE is facilitating the use of Mobile Banking and CBE Birr channel.
Therefore, this agreement will serve both parties in the operationalizing the Client’s request for the collection of order service fee payment from its customers whenever needed via bank account.
Therefore, The Bank and the Client agree as follows:
1. Terms
1.1. This Agreement shall be effective as from ___________for a period of time subject to the right of either party to terminate as stated in this agreement.
1.2. This Agreement shall be legally binding on the parties as a full-fledged contract. The Parties hereby agree that they are bound exclusively by this agreement and there is no need to enter into any separate agreement without the consent of both parties. Handle any sort of transaction and issues which are listed under the responsibilities and duties of both parties.
Therefore, The Bank and the Client have agreed as follows:
2. Definition of Term
IFRS17 Risk Adjustment Worked Example Part 2.pdfSyed Danish Ali
The document discusses further modeling of risk adjustment (RA) for insurance contracts under IFRS17. It recaps the modeling done in Part 1 using cost of capital and risk metrics approaches. Part 2 develops additional areas: 1) Diversification reduces the undiversified RA total by 10% using a mirrored Clayton copula, 2) RA is modeled for reinsurance and liability for remaining coverage, 3) RA can be amortized based on premium earning patterns or liability run-off, 4) Stochastic modeling is done for best estimate liability under IFRS17 versus deterministic estimates under IFRS4. The document concludes that RA will likely increase reserves compared to IFRS4 and that RA may be
OBJECTIVE
OECD Inclusive Framework released a public consultation document on matters where its members seek input from stakeholders in conducting this 2020 review. This webinar shall touch upon the issues relating to implementation, scope and content of CbC Reporting set out in the document for public consultation.
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The document provides an overview of the company's fourth quarter and full-year 2015 results. Some key points:
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IFRS 17 is a new accounting standard for insurance contracts that will replace IFRS 4. It was published by the IASB in May 2017 and applies to annual periods beginning on or after January 1, 2021. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts. It requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. IFRS 17 also requires extensive disclosures to increase transparency of accounting policies, recognized amounts and risk exposure. The standard is expected to significantly impact insurers' financial reporting and operations.
InfraREIT reported solid third quarter 2017 results with most metrics slightly better than expectations. Lease revenue increased 4% due to more assets under lease, partially offset by lower lease pricing. Net income decreased 10% primarily due to lower lease revenue growth and costs related to an asset exchange transaction. Non-GAAP EPS was $0.36. The company also provided an update on the asset exchange transaction with Oncor and highlighted growth opportunities in its expanded footprint in Texas, including a pipeline of projects with Hunt. Forward guidance was updated with 2017 Non-GAAP EPS expected in the range of $1.20 to $1.24.
Plug Power reported on its fourth quarter and full year 2016 financial results. Key highlights included continued sales growth, strong bookings momentum for 2017 delivery, cost reductions driving improvements in margins, and progress expanding into new markets. For 2017, Plug Power expects total revenue of $130 million, gross margins between 8-12%, bookings of $325 million, and $25-35 million in net cash used for operating and investing activities. The company also provided an overview of its strategy to continue expanding in fuel cell applications.
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1. Capital servicing adjustments in qualifying defence contracts
1
The Defence Reform Act 2014 (the Act) requires that the price payable under a qualifying defence
contract (QDC) or qualifying sub-contract (QSC) must be determined in accordance with the
formula: price = (CPR x AC) + AC. CPR is the contract profit rate for the contract and AC is the
Allowable Costs under the contract. When agreeing the contract profit rate, contractors and the
MOD must follow a six-step process set out in section 17(2) of the Act and Regulation 11 of the
Single Source Contract Regulations 2014 (the Regulations).1
The sixth step in the process is the
capital servicing adjustment (CSA). The CSA aims to ensure that the primary contractor receives
‘an appropriate and reasonable return’ on the fixed and working capital they employ in contract
delivery. This bulletin presents analysis of the CSA applied to QDCs and QSCs agreed between
1 April 2015 and 30 September 2016. It uses data reported to the Single Source Regulations
Office by defence contractors, as required by Regulation 22 of the Regulations.2
Key points
• In 2015/16, the average contract profit rate reported by contractors was 11.52 per cent
(compared to the prevailing baseline profit rate (BPR) of 10.60 per cent). The average contract
profit rate reported in the first half of 2016/17 was 10.97 per cent (compared to the prevailing
BPR of 8.95 per cent).
• On average, the CSA is the largest adjustment made to the BPR when calculating the contract
profit rate. It accounted for 1.10 percentage points of the average contract profit rate in 2015/16
and 1.55 percentage points of the average for contracts agreed in the first half of 2016/17.
• Of the 46 QDCs/QSCs examined, 11 (24 per cent) had a CSA of zero. The other 35 had CSAs
ranging from 0.30 percentage points to 3.67 percentage points.
• As expected, where data was available, we found that contractors with more-capital-intensive
operations tended to agree higher CSAs on their QDCs/QSCs.
Contract profit rates in QDCs/QSCs
1 Full details of the six-step process can be found in SSRO (2016) Contract Profit Rate: Guidance on
Adjustments to the Baseline Profit Rate.
2 Data remain subject to verification by the SSRO. The types of contract reports and the data to be
provided in each are prescribed in Part 5 of the Regulations.
Capital servicing adjustments in
qualifying defence contracts
25 October 2016
Figure 1: Contract profit rates reported in individual QDCs/QSCs
Assuring value, building confidence
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Contractprofitrate
2015/16
BPR
2016/17
BPR
2015/16 average CPR 2016/17
average CPR
1 Apr 2015 to 31 Mar 2016 1 Apr 2016 to 30 Sept 2016
QDCs/QSCs
2. Capital servicing adjustments in qualifying defence contracts
2
In 2015/16, the average contract profit rate for the 34 QDCs/QSCs reported by contractors was
11.52 per cent.3
This was 0.92 percentage points higher than the BPR in 2015/16 (10.60 per cent).
The average contract profit rate for the 12 QDCs/QSCs reported in the first half of 2016/17 was
10.97 per cent. This was 2.02 percentage points higher than the BPR in 2016/17 (8.95 per cent)
(Figure 1).
Contractors are required to report to the SSRO the adjustments made in deriving the contract profit
rate for a QDC/QSC. On average, the CSA is the largest of the adjustments made to the BPR
when calculating a contract profit rate.
Calculating the CSA4
The CSA is calculated by reference to the following data:
• The fixed capital and working capital, together forming the total capital employed, for the
unit of the contractor’s business that is most relevant to the QDC or QSC.5
This may be a
subsidiary company, division or site location.6
• The cost of production, generally defined as the material, labour and overhead costs of the
contractor’s business unit, subject to certain adjustments.7
• The capital servicing rates published each year by the Secretary of State for fixed capital,
positive working capital, and negative working capital (see table).8
The proportions of fixed and working capital identified by the contractor for the business unit
delivering a particular QDC are applied to the respective capital servicing rates to determine
an average capital servicing allowance for the contract. This allowance is then scaled using
the ratio of the cost of production (CP) to total capital employed (CE) (the CP:CE ratio) for the
business unit. Accordingly, contractors with more-capital-intensive operations (those that have
lower CP:CE ratios) benefit from larger adjustments than those with less-capital-intensive
operations (higher CP:CE ratios).9
A contractor should propose the CSA for a particular contract to the MOD, supported by the
facts, assumptions and calculations relied upon. The MOD should scrutinise those data and
request any further information required to agree the final adjustment.
3 This is slightly lower than the value given in SSRO (2016) Profit Rates Reported in Qualifying Defence
Contracts 2015/16, which was based on 30 QDC/QSCs reported at the time of publication.
4 Full details of how the CSA is calculated can be found in SSRO (2016) Contract Profit Rate: Guidance on
Adjustments to the Baseline Profit Rate.
5 Taken as the average of the opening and closing balances for the period under review. A number of items
are generally excluded from the calculation of capital employed, such as goodwill, investments in shares
and securities, surplus cash and capital not efficiently employed. (See SSRO (2016) Contract Profit Rate:
Guidance on Adjustments to the Baseline Profit Rate.)
6 Exceptionally these data may relate to the whole business.
7 The cost of production excludes items such as capital expenditure, capital servicing costs and costs
not considered Allowable under the guidance published by the SSRO. (See SSRO (2016) Contract
Profit Rate: Guidance on Adjustments to the Baseline Profit Rate and SSRO (2016) Single Source Cost
Standards: Statutory Guidance on Allowable Costs.)
8 For more detail on how the capital servicing rates are calculated see SSRO (2016) Single Source Baseline
Profit and Capital Servicing Rates Methodology.
9 Implicit in the calculation of the CSA is an assumption that the CP:CE ratio of the contracting business unit
gives an accurate representation of the CP:CE ratio of the contract.
Capital servicing rates 2015/16 2016/17
Fixed capital servicing rate 5.94% 5.08%
Positive working capital servicing rate 1.72% 1.40%
Negative working capital servicing rate 1.03% 0.74%
3. Capital servicing adjustments in qualifying defence contracts
3
Applying the CSA
For QDCs/QSCs signed in 2015/16, the CSA added 1.10 percentage points to the BPR, on
average (Figure 2).
In the first half of 2016/17, the CSA added 1.55 percentage points to the BPR, on average
(Figure 3).
Figure 3: Average (mean) profit rate adjustments for QDCs/QSCs agreed in 2016/17
Figure 2: Average (mean) profit rate adjustments for QDCs/QSCs agreed in 2015/16
Note: Based on 34 QDCs/QSCs agreed between 1 April 2015 and 31 March 2016. The average BPR
is below 10.60% due to one QDC using a mix of the 2015/16 and 2016/17 BPRs, due to a contract
amendment.
Note: Based on 12 QDCs/QSCs agreed between 1 April and 30 September 2016.
10.57%
0.30%
-0.27% 0.00% 0.19%
1.10% 11.91%
0%
5%
10%
15%
Step 1
Baseline
profit rate
Step 2
Cost risk
adjustment
Step 3
POCO
adjustment
Step 4
SSRO
funding
adjustment
Step 5
Incentive
adjustment
Step 6
Capital
servicing
adjustment
Contract
profit
rate
Contractprofitrate
Inaccuracies in
contractor
reports,
-0.39%
Total
contract
profit rate,
11.52%
8.95%
0.50% 0.00% 0.00% 0.25%
1.55% 11.25%
0%
5%
10%
15%
Step 1
Baseline
profit rate
Step 2
Cost risk
adjustment
Step 3
POCO
adjustment
Step 4
SSRO
funding
adjustment
Step 5
Incentive
adjustment
Step 6
Capital
servicing
adjustment
Contract
profit
rate
Contractprofitrate
Inaccuracies in
contractor
reports,
-0.28%
Total contract
profit rate,
10.97%
4. Capital servicing adjustments in qualifying defence contracts
4
Of the 46 QDCs/QSCs examined 11 (24 per cent) had a CSA of zero. The other 35 (related to 19
contractors/business units) had CSAs ranging from 0.30 percentage points to 3.67 percentage
points (Figure 4).
Data underpinning the CSA
Of the 35 contracts with a non-zero CSA, reports for 22 (submitted by 15 contractors) provided
supporting data detailing the costs of production, capital employed, and capital servicing rates
used in CSA calculations.
For 11 of the 22, CSAs had been calculated using data related to a business unit.
• Seven of these related to registered companies with published accounts. (In all but one case
the SSRO was able to fully or partially reconcile data used in the CSA calculation with data
published in the companies’ financial accounts.)
• Four of the 11 were business units that were sub-divisions of registered companies. (In only two
of these cases was it possible to reconcile data with the published accounts of the company of
which the business unit was a part.)
Three of the CSAs had evidently been calculated using contract-level data. In the remaining
eight cases it was not clear whether the data used to calculate the CSA related to the contracting
business unit or the contract.
The data reported exhibit considerable variation in the capital intensity of the contractors/business
units entering into QDCs/QSCs.10
The least-capital-intensive contractor/business unit had a CP:CE
ratio more than 12 times higher than the most-capital-intensive: 7.5 compared to 0.6 (Figure 5).
10 For this analysis all cases are assumed to be contractors/business units, unless explicitly stated.
Figure 4: Capital servicing adjustments by contractor/business unit
Note: As the CSA is usually calculated at a business unit level, different QDCs/QSCs entered into by the
same contractor in a given year typically have the same CSA. Where a contractor/business unit agreed more
than one QDC/QSC with a CSA these are grouped together in the chart. Three columns marked * show
CSAs calculated using contract-level data. The chart excludes cases with a zero CSA.
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Capitalservicingadjustment
2015/16
average CSA
2016/17
average CSA
1 Apr 2015 to 31 Mar 2016 1 Apr 2016 to 30 Sept 2016
Contractors/business units
* **
5. Capital servicing adjustments in qualifying defence contracts
5
Figure 5: CP:CE ratio by contractor/business unit
Note: One contractor/business unit reported data for both 2015/16 and the first half of 2016/17. Two columns
marked * show the CP:CE ratios calculated using contract-level data. The third contract for which CSA data
was reported at the contract level is excluded due to data quality issues.
The data also indicates that the contractors/business units entering into QDCs/QSCs in the
first half of 2016/17 tended to be more capital intensive than those entering into QDCs/QSCs in
2015/16, with CP:CE ratios below the average for 2015/16. Although based on a small number of
contractors/business units, this goes some way to explaining the higher average CSA reported by
contractors in the first half of 2016/17.
The CSA may be expected to positively adjust the contract profit rate for contractors with higher
capital intensities. In the cases where data on capital intensity of contractors/business units was
available, we found that those with higher capital intensity tended to have higher CSAs (Figure 6).
Figure 6: Capital servicing adjustments relative to contractor/business unit CP:CE ratio
Note: Based on data reported for 21 QDCs/QSCs agreed from 1 April 2015 to 30 September 2016. One
case is excluded due to data quality issues.
0
1
2
3
4
5
6
7
8CP:CEratio
Higher
capital
intensity
Lower
capital
intensity
1 Apr 2015 to 31 Mar 2016 1 Apr 2016 to 30 Sept 2016
2015/16 average
CP:CE ratio
Contractors/business units
* *
2.75%
1.58%
0.55%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
0 to 2 2 to 4 4 and over
Averagecapitalservicingadjustment
CP:CE ratio
Higher capital intensity Lower capital intensity
6. Capital servicing adjustments in qualifying defence contracts
6
Data sources and methodology
The data in this report is sourced from either the contract notification report or contract pricing
statement, which suppliers are required to submit to the SSRO within one month of the initial
reporting date for a contract (usually the date the contract is entered into, unless it becomes a
QDC/QSC by amendment), or the quarterly contract report, which is required from QDCs/QSCs
with a contract value of £50 million or more within one month of the end of each calendar quarter.
The capital employed and cost of production data is sourced from supporting information which
suppliers submit alongside these reports. The templates and user guides for all of these reports
are available on the SSRO’s website.11
Data from these reports are collated in the Defence
Contract Analysis and Reporting System (DefCARS).
Only reports for QDCs/QSCs which were submitted before 30 September 2016 have been
included in the analysis for this bulletin. Some figures may have changed between this and
previous statistical bulletins as suppliers have submitted new reports with corrected or updated
data.
Due to the commercial sensitivity of this data, the SSRO does not release any information that
will enable identification of individual contracts or suppliers included within the analysis. For
more information on the SSRO’s handling of commercially sensitive information, see the SSRO’s
website.12
Further information
The SSRO welcomes any queries or feedback you may have on this statistical release.
You can contact us by emailing helpdesk@ssro.gov.uk.
11 https://www.gov.uk/government/collections/qualifying-defence-contracts-reporting-templates-and-user-
guides
12 https://www.gov.uk/government/news/handling-commercially-sensitive-information