Research and Analysis Paper Example | Topics and Well Written Essays - 1500 words

And Analysis - Research motif ExampleThe subsidiaries of the company are usually consolidated from the acquisition date to the date that the company loot controlling the subsidiary (Gulf times.com). The accounts for the subsidiaries are prepared at the same time as that of the mother company. The accounting system policies used are consistent. The group usually eliminates all its balances, losses, gains, and transactions that arise from intra group transactions. The dividends are to a fault fully eliminated. The losses that are found in a subsidiary are usually traceable to the non controlling interest of the company even if the results may lead to a deficit balance. If there eliminate a change in ownership of the subsidiary without any losses, the transaction is recorded as an integrity transaction. When Mannai corp. losses a subsidiary, it derecognizes its liabilities and assets that were imputable to the subsidiary. It also derecognizes the non controlling interest that was associated with the subsidiary. The translational differences that were recorded in fair play are also derecognized. At the same time, it recognizes fair value of the consideration that it receives, fair value that is attributable to investments received and recognizes profits or losses that are associated with the subsidiary loss. The company then reclassifies its packet of components in other income generating avenues. Acquisition policy The company celebrated its 60th anniversary in 2010 and it was named as the largest wait on and trading company in Qatar (mannai.com) The company refocused its business in 2001 by divesting its interest that were overseas and cut down the dependence on cyclical activities. The company achieved its restructuring goal in 2004 when the company was able to attain the substance of delivering sustainable earnings for its shareholders. The company became a public company in 2007. In 2011, the company acquired 35% controlling interest in Axiom Compa ny. In the year 2012, mannai corp. and EFG Hermes acquired majority stake in DAMAS Ltd. demand for Acquisitions Although it is not directly mentioned in the consolidated statements, from the analysis, the company has motivation for acquisitions for many reasons. First, to enhance the ability of the company to continue as a going concern based on the fact that this can save happen if the Group has enough resources to continue operating or doing business for the foreseeable future. This is evident in the way the consolidated monetary statements of the group continue to be made on a nates of going concern. Second, acquisitions help the group in minimize liquidity risk. The Group has been engaged in acquisitions with the important intention of having or consolidating adequate liquidity to help meet its liabilities, under both stressed and traffic pattern conditions, without registering unacceptable risking damage or losses to the Group reputation and operations. Thirdly, since th e group depends on financing from shareholders and banks loans, the acquisitions serves to sanction the security or collateral base for securing loans from banks. In fact, one of the risks of the group is credit risk where financial liabilities accrue as a result of banks loans or overdrafts (pp. 34). Fourthly, its motivation for acquisition is to increase market share or simply reduce competition. This is because, apart from Axiom Limited which is engaged in import, wholesale and retail sale of various mobile phones brands as well as related