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
- 11357 Views
- HSBC, I also Faced
- E-Mail Answers
Answer Posted / navit thareja
Loses can be on account of
A) Interest Rate Risk on their Investments.
B) Exchange Rate Risk when Converting Targets Currency to
Acquirers Currency.
C) Contingent Liabilities.
D) Loses found out by the Acquirer of any SPV of Target
company.
E) Most important Reason, Converting US GAAP to IFRS.
Can be on account of the Inventory Policies.
Policies on Investments.
| Is This Answer Correct ? | 6 Yes | 0 No |
Post New Answer View All Answers
What Is The Single Supervisory Mechanism?
Explain debt equity ratio. What are its components? What does it indicate?
Tell about yourself and your family background?
What are the two accounts,automatecly closed?
What are the different groups under which ratios are classified?
what is the shortcut to select the purchase order voucher type?
Name the methods used to 'control the inflation'?
What are the problems in CIBIL updation? How will you convince your angry customer whose name is default list even after repayment of complete loan?
What Are Adjusting Entries?
What do you know about Banking Laws?
Why do you choose banking as your career?
How will you differentiate between revenue deficit and fiscal deficit?
Which is the 7th Navigation Satellite?
Tell us about internet security and threats and how as software engineer can you contribute to NABARD?
What Are Accrued Revenues And When Are They Recorded?
