Measurements tend to be consistent and translatable across countries, cultures, and languages. If an object's length is measured in feet in the United States, the measurement will need to be converted to meters for those in the United Kingdom to understand. The physical length stays exactly the same; the description of it is what differs. Time, temperature, weight, and distance are all other measurements that are consistent no matter the place and that simply have to be translated. However, value is a measurement that can vary widely within a single country and between countries. Costs and selling prices fluctuate for a number of reasons, which can result in problems when measuring in the same currency, and it's difficult to create an international standard for how to calculate cost. This text examines financial transactions where accounting rules have tried to solve this inconsistency problem and outlines global differences generally and on a country-specific level. Chapter 1 provides an overview of financial measurements, the use of financial transaction information, and historical issues in identifying and recording business transactions; for instance, there were challenges with the various methods of recording business transactions until double-entry bookkeeping was invented. Several concepts are introduced that accountants now use to ensure the information they generate is valid and consistent, including the accruals concept and the going concern concept. A discussion is also offered about whether or not accountants should follow strict rules in their work or if it's more useful to simply apply basic principles; legal and political issues are briefly explored. Inflation causes even more difficulties in identifying, measuring, and recording financial transactions.
Measurements tend to be consistent and translatable across countries, cultures, and languages. If an object's length is measured in feet in the United States, the measurement will need to be converted to meters for those in the United Kingdom to understand. The physical length stays exactly the same; the description of it is what differs. Time, temperature, weight, and distance are all other measurements that are consistent no matter the place and that simply have to be translated. However, value is a measurement that can vary widely within a single country and between countries. Costs and selling prices fluctuate for a number of reasons, which can result in problems when measuring in the same currency, and it's difficult to create an international standard for how to calculate cost. This text examines financial transactions where accounting rules have tried to solve this inconsistency problem and outlines global differences generally and on a country-specific level. Chapter 2 looks at the early business developments that indicated a need for a consistent international approach to setting accounting standards, covering the early 1700s to the 1990s. International differences within legal systems, tax systems, stock exchanges, and regulations are outlined. The development of International Accounting Standards (IASs) is summarized as well as how various countries have adopted IASs. The current International Accounting Standards Board (IASB) is also described, including the process of creating a standard and the IASB's structure and operation. The IASB has identified several financial statements that companies should provide in their annual reports and accounts; the statement of financial position, or balance sheet, is described in detail. The Conceptual Framework, inflation, and the problems they pose are also discussed.
Measurements tend to be consistent and translatable across countries, cultures, and languages. If an object's length is measured in feet in the United States, the measurement will need to be converted to meters for those in the United Kingdom to understand. The physical length stays exactly the same; the description of it is what differs. Time, temperature, weight, and distance are all other measurements that are consistent no matter the place and that simply have to be translated. However, value is a measurement that can vary widely within a single country and between countries. Costs and selling prices fluctuate for a number of reasons, which can result in problems when measuring in the same currency, and it's difficult to create an international standard for how to calculate cost. This text examines financial transactions where accounting rules have tried to solve this inconsistency problem and outlines global differences generally and on a country-specific level. Chapter 3 focuses on the United States, first discussing the accounting standard setting process of the country and the roles of the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). There have been several attempts to converge Untied States standards with the International Accounting Standards (IASs); a discussion of various stages of the relationship between the United States and the International Accounting Standards Board (IASB) is offered. The current practices of the United States and how they differ from the international approach are described, and the role of Generally Accepted Accounting Practices (GAAP) in the financial world is explored.
Measurements tend to be consistent and translatable across countries, cultures, and languages. If an object's length is measured in feet in the United States, the measurement will need to be converted to meters for those in the United Kingdom to understand. The physical length stays exactly the same; the description of it is what differs. Time, temperature, weight, and distance are all other measurements that are consistent no matter the place and that simply have to be translated. However, value is a measurement that can vary widely within a single country and between countries. Costs and selling prices fluctuate for a number of reasons, which can result in problems when measuring in the same currency, and it's difficult to create an international standard for how to calculate cost. This text examines financial transactions where accounting rules have tried to solve this inconsistency problem and outlines global differences generally and on a country-specific level. Chapter 4 explores the Islamic religion, Islamic law (Sharia), and how they affect accounting in Muslim countries. Islamic financial institutions have grown vastly in the past few decades; however, international accounting-specifically International Financial Reporting Standards (IFRSs)-differ from Islamic accounting. Zakat (charitable donation) is offered as an example of a distinction and conflict between Islamic accounting and IFRS. A brief history and description of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is provided as well as an outline of accounting standards in several Muslim countries. Accounting concepts and assumptions in Islamic accounting are described, including the entity concept, money measurement, and conservatism. Interest is prohibited by Sharia law, so Islamic institutions use different modes of borrowings and investments to meet financing needs.
Measurements tend to be consistent and translatable across countries, cultures, and languages. If an object's length is measured in feet in the United States, the measurement will need to be converted to meters for those in the United Kingdom to understand. The physical length stays exactly the same; the description of it is what differs. Time, temperature, weight, and distance are all other measurements that are consistent no matter the place and that simply have to be translated. However, value is a measurement that can vary widely within a single country and between countries. Costs and selling prices fluctuate for a number of reasons, which can result in problems when measuring in the same currency, and it's difficult to create an international standard for how to calculate cost. This text examines financial transactions where accounting rules have tried to solve this inconsistency problem and outlines global differences generally and on a country-specific level. Chapter 5 discusses developments that are changing corporate reporting. Rather than focusing solely on financial reporting to shareholders, companies are now paying attention to various interests in corporate activities. Some specific pressures have led to corporate reporting changes, such as giving financial information to employees. Changes in the United Kingdom, the United States, and Islamic countries are described. There are many countries that don't set financial reporting standards anymore, but developments in international regulations are considered, including the establishment of the International Accounting Standards Committee (IASC). Technology has also influenced corporate reporting, especially eXtensible Business Reporting Language (XBRL). The Integrated Reporting Model and sustainability accounting and reporting are also explored.
Aravind Eye Care System (AECS) exploited economies of scale to offer affordable eye care for masses, with a mission to eliminate needless blindness. Over the years, AECS had built a strong organisational culture based on compassion and service. The organisation had made its first foray into large metro cities by establishing a presence in Chennai in 2017 and was gradually scaling up when the Covid-19 pandemic erupted globally in March 2020. The precipitous decline in patient volume triggered questions on the survival of the business model, which was dependent on high volumes. The case details various challenges faced by AECS and the responses of the leadership team during the March-July 2020 period. The pandemic jeopardised the delivery of eye care to patients in need; challenged organisational sustainability owing to dwindling volumes; and affected the morale of employees, who were afraid of contracting Covid-19. As eye camps were not being organised due to lockdown restrictions, vulnerable patients-economically disadvantaged people and older adults-were at risk of blindness; this risk was exacerbated by the postponement of surgery and fears of contracting Covid-19. Fear turned into panic among doctors, nurses and staff when two nurses at Aravind Eye Hospital Chennai tested positive for Covid-19. To tide over the crisis, Dr S. Aravind, Chief Medical Officer (CMO) of Aravind-Chennai, had to return to the roots of the organisation and reinforce its culture. The Covid-19 pandemic had exposed hidden fault lines in society and shortcomings of the efficiency-oriented business model of AECS. Dr Aravind had to determine ways to reduce the fragility and build resilience in the organisation.
Many of the most successful firms - such as Alibaba, Google, and Uber - operate platforms. Electric vehicles (EVs) are platform goods as well because value comes from the vehicle plus complementary providers. Gasoline vehicles are also platform goods, but managers in the industry can ignore that because the refueling network is mature. However, temporal and structural differences in network effects for electric vehicles make it crucial for EV firms to incorporate platform strategies. This article explains these differences and outlines the key platform strategy decisions that EV firms need to make, including platform network coordination, launch, and openness.
In May 2022, a consultant with global management consulting firm Kearney was working on a project for a private equity client, OPW Partners Inc. (OPW). The client was looking to acquire a high-end wine producer in Oregon and had engaged Kearney to complete an operational due diligence of its wine-making operations. The consultant and his team would be flying to Oregon to complete a series of site visits and ask questions directly to the wine-making team. These meetings would allow the consultant to confirm his assumptions and would provide him with an opportunity to investigate possible operational constraints and identify potential solutions. Kearney's due diligence report was expected to evaluate potential longer-term operational issues, specifically whether Silverton would have sufficient capacity to support OPW’s expansion plans, which were expected to start in the 2023 harvest season.
Dual-class share structures offer stakeholders real advantages, but more firms need to follow best practices in deployment to mitigate the risk of abuse. This article highlights four different ways that Canadian firms, including Rogers and Shaw, implement dual-class share structures. It also discusses the related advantages and risks. Advantages include how dual-class shares facilitate the execution of strategy; encourage founders to publicly list stock; insulate the firm and management from short-termism; protect founders from activist shareholders; and protect firms making capital expenditures with long pay-off horizons. Disadvantages include how dual-class shares create agency issues and conflicts of interest, especially when controlling shareholders have minimal economic interest; create an inferior class of shareholders; allow entrenchment of management with directors often elected by controlling shareholders; increase the likelihood of related-party transactions; and reduce the likelihood of independent/non-executive board leadership. The article finishes with some governance considerations, including how the Canadian Coalition for Good Governance developed a dual-class share policy that encourages best practices for companies with dual-class shares. Some of the key principles include subordinated rather than non-voting shares, meaningful equity ownership, and mandatory sunset provisions.
The case describes the family tensions and corporate crisis at City Developments Limited (CDL), a large and well-reputed Singaporean property firm that was the flagship company of a larger family-controlled business group. The gradual transition to the third-generation leader was marked by an aggressive growth strategy in China, which unravelled when the Chinese property sector experienced headwinds and CDL’s Chinese joint venture partner experienced liquidity problems. These events forced the family firm to write off US$1.32 billion in 2021, causing it to report its first loss in decades. Moreover, four board members resigned, with one citing “unresolved differences in opinion” as part of his rationale for his resignation. The combination of a corporate crisis and a family boardroom drama elicited questions as to what steps the company should take to recuperate from the adverse events and resume its internationalization strategy.
King’s Hawaiian Bakery, West Inc. (King’s Hawaiian), a beloved and highly regarded company, produced a line of bread products dating back to the 1950s and was inspired by a Portuguese sweet bread. The business had grown over time, adding more production facilities and expanding from Hawaii to the mainland United States in 1977. King’s Hawaiian had done minimal consumer research related to its development of new products before it hired Troy Figgins as its new head of consumer insights. In October 2018, Figgins was tasked with creating a new consumer insights department; what this department looked like and how it functioned were entirely up to him. He was eager to design a best-in-class insights team to work with new strategies, tools, and partners. King’s Hawaiian knew it had to conduct market research to uncover insights to keep pace with evolving customer needs—but how? Figgins considered his problem and possible solutions to deliver great insights.
Vroom Inc. (Vroom) was a video conferencing technology company located in London, Ontario, Canada. The founder of Vroom was reviewing the company's financial performance for its second fiscal year. He had already reviewed the company's operating decisions over the past fiscal year and was now eager to review the company's financing and investing transactions.
This two-part case describes the efforts of the Longueuil agglomeration police department (SPAL) and Fady Dagher, its chief of police, to improve relationships between the officers and the communities they serve. In the wake of a policy implemented by the Quebec government to create a more community-based police force, the SPAL had adopted a community policing approach to this effect. The focus of this case is the fundamental transformation of police culture to highlight not just protection but also collaboration, with the police also playing a social role.
This two-part case describes the efforts of the Longueuil agglomeration police department (SPAL) and Fady Dagher, its chief of police, to improve relationships between the officers and the communities they serve. In the wake of a policy implemented by the Quebec government to create a more community-based police force, the SPAL had adopted a community policing approach to this effect. The focus of this case is the fundamental transformation of police culture to highlight not just protection but also collaboration, with the police also playing a social role.
King's Hawaiian Bakery, West Inc. (King's Hawaiian), a beloved and highly regarded company, produced a line of bread products dating back to the 1950s and was inspired by a Portuguese sweet bread. The business had grown over time, adding more production facilities and expanding from Hawaii to the mainland United States in 1977. King's Hawaiian had done minimal consumer research related to its development of new products before it hired Troy Figgins as its new head of consumer insights. In October 2018, Figgins was tasked with creating a new consumer insights department; what this department looked like and how it functioned were entirely up to him. He was eager to design a best-in-class insights team to work with new strategies, tools, and partners. King's Hawaiian knew it had to conduct market research to uncover insights to keep pace with evolving customer needs-but how? Figgins considered his problem and possible solutions to deliver great insights.
In May 2022, a consultant with global management consulting firm Kearney was working on a project for a private equity client, Opal Partners Inc. (Opal). The client was looking to acquire a high-end wine producer in Oregon and had engaged Kearney to complete an operational due diligence of its wine-making operations. The consultant and his team would be flying to Oregon to complete a series of site visits and ask questions directly to the wine-making team. These meetings would allow the consultant to confirm his assumptions and would provide him with an opportunity to investigate possible operational constraints and identify potential solutions. Kearney's due diligence report was expected to evaluate potential longer-term operational issues, specifically whether Silverton would have sufficient capacity to support Opal's expansion plans, which were expected to start in the 2023 harvest season.
Dual-class share structures offer stakeholders real advantages, but more firms need to follow best practices in deployment to mitigate the risk of abuse. This article highlights four different ways that Canadian firms, including Rogers and Shaw, implement dual-class share structures. It also discusses the related advantages and risks. Advantages include how dual-class shares facilitate the execution of strategy; encourage founders to publicly list stock; insulate the firm and management from short-termism; protect founders from activist shareholders; and protect firms making capital expenditures with long pay-off horizons. Disadvantages include how dual-class shares create agency issues and conflicts of interest, especially when controlling shareholders have minimal economic interest; create an inferior class of shareholders; allow entrenchment of management with directors often elected by controlling shareholders; increase the likelihood of related-party transactions; and reduce the likelihood of independent/non-executive board leadership. The article finishes with some governance considerations, including how the Canadian Coalition for Good Governance developed a dual-class share policy that encourages best practices for companies with dual-class shares. Some of the key principles include subordinated rather than non-voting shares, meaningful equity ownership, and mandatory sunset provisions.
The case describes the family tensions and corporate crisis at City Developments Limited (CDL), a large and well-reputed Singaporean property firm that was the flagship company of a larger family-controlled business group. The gradual transition to the third-generation leader was marked by an aggressive growth strategy in China, which unravelled when the Chinese property sector experienced headwinds and CDL's Chinese joint venture partner experienced liquidity problems. These events forced the family firm to write off US$1.32 billion in 2021, causing it to report its first loss in decades. Moreover, four board members resigned, with one citing "unresolved differences in opinion" as part of his rationale for his resignation. The combination of a corporate crisis and a family boardroom drama elicited questions as to what steps the company should take to recuperate from the adverse events and resume its internationalization strategy.
In March 2020, the outbreak of the COVID-19 pandemic disrupted global supply chains. The spread of the SARS-CoV-2 virus affected the entire world, including the scenic Prince Edward County in Eastern Ontario. Three co-owners of the boutique distillery Kinsip House of Fine Spirits (Kinsip) were inspired to contribute to their community's efforts to limit further spread of the virus. As a distillery, Kinsip was aptly able to produce the principal ingredient of hand sanitizer-ethanol. The other two main ingredients-glycerol and hydrogen peroxide-were generally procured on the open market from North American suppliers. Obtaining the right packaging for the sanitizer as quickly as possible, including both the bottle and the cap, was one of the key challenges the three partners were facing. Another challenge was navigating Health Canada's approval process. In addition, the partners needed to determine Kinsip's capacity to supply hand sanitizer to the local region and the production schedule on which it could deliver the product.