Interested to Buy Any Domain ? << Click Here >> for more details...
Case- XYZ ltd an IT company is not an MNC based in the USA.
ABC ltd an IT company is an MNC based in Germany.
The Germany company wants takeover the USA company.When the
ABC ltd scans XYZ ltd company's financial statements it
shows profit (no fraud or infringement was made in accounts
of XYZ ltd).But the finance department of ABC ltd says the
XYZ ltd financial statements show various losses.
Question- Cite four reasons why XYZ ltd shows loss, while it
has made profit?
- 10 Answers
- 14656 Views
- HSBC, I also Faced
- E-Mail Answers
Answer Posted / badri
I got the answer close may not exact. The above answer had a
little ambiguity.
Answers are -
1. Interest rate- The interest rate of the USA may differ
that of the interest rate of Germany.
2. Conversion of currency - The fluctuation of currency.
While converting the USD to Germany currency that would show
loss. As USD value is less than Germany currency.
3. Cash flow impact :- While the investing row of cash flow
statement may differ both the organization.
4. Accounting standards- The application of accounting
standards might differ country to country.
I believe due to these things the XYZ ltd shows loss.
| Is This Answer Correct ? | 42 Yes | 0 No |
Post New Answer View All Answers
What are the two most basics financial statements prepared by the companies?
What is proprietary ratio? What are its components?
Which technology is used by the banks for settlement of cheque?
Iam an MBA student.I need guidance to prepare for AMAZON COMPANY. can u post papers to ammuprathyu@ymail.com
What do you know about SEZ?
what is Actuarial life tables?
Give one point of difference between commercial banks and private banks?
Name the plans which are adopted for unemployed People?
What's CRR?
What do you understand by Bulls and Bears?
What is a non -banking financial company (nbfc)?
What is demonetization?
Name the CM and Governors of all states.
What do you know about Money Laundering?
What is 'bill of exchange' (boe)?
