Aberystwyth University ASL Airlines Hungary Financials Worksheet

User Generated

Nepuv

Business Finance

Aberystwyth University

Description

Properly formatted Balance sheet and income statement from your foreign company based in the country you will do the Country analysis on, must be in Excel spreadsheet and all formulas working.

You can use these two sources

Data Sources:

CIA Factbook https://www.cia.gov/library/publications/the-world-factbook/

IFRS Country Profiles http://www.ifrs.org/Use-around-the-world/Pages/Jurisdiction-profiles.aspx


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Your Name and the Country and company you are studying Template for Country Analysis Source sheet Your Name and Country and company in the header Scenario: The firm of Capozzoli and Capozzoli CPA’s has had numerous domestic clients open offices in foreign countries. To better serve their client base it was decided that you (an up and coming accountant with the firm) have been asked to perform a country analysis to determine if the country is suitable for a planned expansion of the firm. To facilitate the analysis you will analyze a country and a company operating in that country. To enable this expansion the country must have a technology infrastructure in place to support far flung teams operating in a global environment. Answer the questions below and include the answers in the first page of the report. Should the firm consider this country to establish a business presence for accounting related activities? Yes or No, Why (3 sentence maximum): Overall Assessment of IT Capability of Country (3 sentences maximum): Attractiveness of the Country from a Strategic Perspective (3 sentences maximum): Dimension Political environment # Category 1.0 Political stability 1.1 Extent of government promotion of accounting policies (AP) and information technology (IT) 2.0 Regulation/restrict ion of company ownership of an Regulation Accounting H M L i e o g d w h Comments/Notes/URL Sources Your Name and the Country and company you are studying accounting practice 2.1 Accounting Certification What does it take to be a CPA or equivalent 2.2 Existence of a formal accounting board 2.3 Extent of IFRS adoption 2.4 Extent of native accounting practices in use 2.5 Accounting standards are set by? 3.0 Literacy overall 3.1 Accounting Literacy 3.2 IT literacy Language/ 4.0 Extent of knowledge of English Culture 5.0 Hofstede MAS 5.1 Hofstede UAI 5.2 Hofstede PDI 5.3 Hofstede (IND) 6.0 Extent of Internet connections Educational System Telecommunic ations Infrastructure Your Name and the Country and company you are studying Economy 6.1 Support for EDI 7.0 Quality of physical infrastructure 7.1 GNP per capita 7.2 Imports 7.3 Exports 7.4 Extent of foreign direct investment from other countries 7.5 Extent of foreign direct investment to other countries 7.6 Legal protection for international software copyrights & trade secrets Company Specific Information: Name of Company Year of Financial Statements Does it use IFRS or Local GAAP? Are the statements audited? Who performed the audit? Value of assets Order in which assets are presented Capitalization / Stockholders equity Net Income / profit loss after tax Currency used if more than one give both What is the current ratio? Does it present fair value data? What is the value of deferred taxes if any? Given your currency translation to US $ what was the exchange rate gain or loss? Is the company listed on an American stock exchange? Your Name and the Country and company you are studying
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Explanation & Answer

Attached.

Should the firm consider this country to establish a business presence for accounting
related activities? Yes or No, Why (3 sentence maximum):
Yes. Hungary is a prime country for any company to establish business presence for accounting
related activities. Hungary’s accounting practices are governed by the international Financial
Reporting Standards (IFRS) which in this case makes it an ideal country to establish business
presence for accounting related activities. The country also provides an enabling business
environment which is critical for the success of any foreign company.
Overall Assessment of IT Capability of Country (3 sentences maximum):
Hungary has the required technology infrastruture in place to support far flung teams operating
in a global environment. Hungary achievements in science and technology have been very
significant and research and development efforts form an integral part of the country's economy.
Therefore, Hungary is suitable for a planned expansion of the firm Capozzoli and Capozzoli
CPA’s.
Attractiveness of the Country from a Strategic Perspective (3 sentences maximum):
The country has the 13th-highest number of Nobel laureates per capita and high employment
rate. The country also has advance system in consulting expertise making it more attractive for
this strategic location. Most importantly is a high-income mixed economy with high human
development index and skilled labor force.
Dimension

Political
environment

#

Category

H M L
i e o
g d w
h

Comments/Notes/URL Sources

1.0

Political
stability

Y
e
s

Hungry is a politically stable country with
absence of violence and terrorism

1.1

Extent of
government
promotion of
accounting
policies (AP)
and information
technology (IT)

Y
e
s

There is a strong government regulation and
detailed, codified accounting rules to an
approach based on general accounting principles

2.0

Regulation/restri
ction of
company

Y
e
s

There is a strong government regulation and
detailed, codified accounting rules.

Regulation
Accounting

ownership of an
accounting
practice
2.1

Accounting
Certification
W...


Anonymous
Really useful study material!

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