George Weston Limited Case Study Solution
Moreover, the company established and maintained the system of disclosure procedures and controls in order to provide the reasonable assurance that all the information of material related to the company and its subsidiaries is reported and gathered. The disclosure of the information of the intercompany transaction plays a significant part in improvement of scarce resources whereas the non-availability of the information might lead to the uncertainty in the investment market. Additionally, the disclosure of the information of the segment also impacts the performance of the management of company in a way that it encourages them to work with core consideration of satisfying investors and work in interest of investors. All in all, the intercompany transaction elimination or disclosed positively and negatively affects the stakeholders of the company in both short run as well as long run.
Joint Venture or Special Purpose Entity
In the fiscal year 2014, the joint venture between Wittington and Choice properties has been formed with the acquisition of property from Loblaw. In addition to this, the main purpose and reason for the joint venture between Wittington and Choice properties was to develop the acquired site into the property that would be anchored by the Loblaw food store. The joint venture could positively and negatively impacts the shareholders, management and owners of the company in a way that the joint venture could create value for the shareholders and at the same time it could make them reluctant to pursue their relationship with the company due to the fact that vague objectives, lack of commitment, inefficient use of resources could lead to unprofitable operations, which in turn could disrupt the investors relations. An equity method accounting was used by Choice Properties in order to record the 40 percent interest in the joint venture. Due to the fear of the great imbalance in the expertise, assets and investment the investors of the company might reluctant to pursue their relationship with the company. Additionally, the management of the company is quite responsible and accountable to make an effective use of the resources such as technology and s-specialized staff and the management of the company is also responsible to better use the capital and equipment.
In addition to this, the shareholders of the company could be benefited from the fast growth of the business fueled by the joint resources and expertise resulted from the joint venture between two companies. In the similar manner, the vague objectives and goals, lack of commitment, conflict as well as misunderstanding could negatively affect the shareholders and investors due to the fact that the vague goals and objectives, lack of commitment, conflict and misunderstanding would not allow the companies to accomplish the organizational goals and objectives in same manner. In a consequence, the joint venture between two companies could lead to positive and negative impact on the management, owners and shareholders of the company as the joint venture has some favorable and unfavorable aspects for them.
Foreign Currency Transaction
The remote cash conversion standard is known as the outside exchange, or forex which is the change of one country's cash into another. In a free economy, a country's money is regarded by the laws of natural market. By the day's end, a money's worth can be pegged to another country's cash, for instance, the United States dollar, or even to a bushel of fiscal guidelines. A country's cash worth may in like manner be set by the country's council.
Regardless, most countries coast their money related structures straightforwardly against those of various countries, which keeps them in predictable instability.
The estimation of a cash is directed by feature powers subject to trade, adventure, the movement business, and geo-political danger. Each time a guest visits a country, for example, they should pay for product and undertakings using the money of the host country. Right now, vacationer must exchange the money of their country of birthplace for the close by cash. Money exchange of this sort is one of the premium variables for a cash.
Another huge factor of intrigue happens when an outside association hopes to work with another in a country. Generally, the outside association should pay in the close by association's money. At various events, it may be alluring for a money related expert from one country to place assets into another, and that hypothesis would be made in the close by money moreover. These necessities produce a prerequisite for outside exchange and add to the tremendous size of remote exchange markets.
In the year 2017, the foreign currency exchange losses are 11 million dollars which are lower than the foreign exchange losses of the year 20116 which is 14 million dollars.
The user identified for this section are creditors, investors, insurance companies, tax agencies and shareholders of the company because a depreciation in currency value will negatively affect the ownership, worth, value, market share price and weighted average cost of capital of the company...............................
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