Question 2 a) A fall in the value of the Australian dollar (AUD) against the U.S. dollar (USD) benefit Billabong in two folds‚ strengthened price competitiveness and translation advantage. Firstly‚ the Americas segment accounts for about 50% of Billabong’s sales revenue in 2008 and 2009. (Appx.1) In case of depreciation of AUD against USD‚ the price of imported surfwear to the U.S. in terms of USD will decrease. The US importers demand more for Billabong’s products. The sales increases from the
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views on the role of accounting and the accountant on CSR and sustainability. Go to: * http://www.billabongbiz.com/phoenix.zhtml?c=154279&p=irol-community. * http://www.visy.com.au/?id=106 * http://www.westpac.com.au/about-westpac/sustainability-and-community/performance-reporting/stakeholder-impact-reports/ b. Select one of the above companies. Discuss the way in which the organisation has demonstrated its social and environmental accountability. Good starting points
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you can transform your business into a large-scale business‚ you can provide customer service to greater amount of people from all over the world. Many companies have considered this and now are making profit from it for Example Telstra Australia‚ Westpac‚ BHP-Billiton. As to every positive thing there are negatives to it as well‚ there is a hindrance to accepting diversity‚ for example Stereotypes‚ a set of beliefs about a group that is applied universally to all members of that group‚ such as “all
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1997:188). This makes their speech more acceptable to the interlocutor. For example‚ You are mistaken. I think you are mistaken. The second way of saying contains a hedge ‘think’ which helps to soften the force of utterance and makes it less threatening to the hearer. Therefore hedging is closely related to the politeness. When we use hedges to make our
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Deposit rate 8% 5% Borrowing rate 9 6 Given this information‚ determine whether a forward hedge‚ money market hedge‚ or a currency options hedge would be most appropriate. Then compare the most appropriate hedge to an unhedged strategy‚ and decide whether Carbondale should hedge its receivables position. ANSWER: Forward hedge Sell S$500‚000 × $.62 = $310‚000 Money market hedge 1. Borrow S$471‚698 (S$500‚000/1.06 = S$471‚698) 2. Convert S$471‚698 to $283‚019 (at $.60
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1 Hedging Strategies Using Futures Chapter 3 2 Long & Short Hedges • A long futures hedge is appropriate when you know you will purchase an asset in the future and want to lock in the price • A short futures hedge is appropriate when you know you will sell an asset in the future & want to lock in the price • A short hedge is also appropriate if you currently own the asset and want to be protected against price fluctuations 3 Arguments in Favor of Hedging • Companies should
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1. Should multinational firms hedge foreign exchange rate risk? If not‚ what are the consequences? If so‚ how should they decide which exposures to hedge? Generally‚ multinational firms should hedge foreign exchange rate risk. Because foreign exchange risk 1) Affects existing income statement items and balance sheet assets‚ liabilities‚ and equity through translation exposure. 2) Influences the value of outstanding foreign-currency-denominated contracts and obligations‚ thus firm’s earning and
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Accounting For Derivatives Menurut GAAP‚ semua derivatif harus dinilai pada nilai yang wajar dan dicatat sebagai aktiva atau kewajiban dalam neraca. Kecuali untuk derivatif yang ditunjuk sebagai hedges‚ keuntungan dan kerugian terkait dengan perubahan dalam nilai wajar dari derivatif harus dilaporkan sebagai bagian dari pendapatan bersih setiap tahun. Menurut peraturan tersebut‚ investor diberi informasi tentang nilai-nilai derivatif dan keuntungan dan kerugian yang timbul dari perubahan dalam
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Metropolitan (UK)‚ for a total payment of £1‚000‚000. The following exchange rates were available to Pixel on the following dates corresponding to the events of this specific export sale. Assume each month is 30 days. [pic] (a) Assume Leo decides not to hedge the transaction exposure. What is the value of the sale as booked? What is the foreign exchange gain (loss) on the sale? ( The sale is booked at the exchange rate existing on June 1‚ when the product is shipped to Grand Met‚ and the shipment is
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Mirage Electronics Pty Ltd estimates in the first year‚ the company would have a sale of $694‚925 and a net profit of $8‚115. As the business is newly established with no reputation in the market‚ not every clothing chain will be willing to spend a large amount of money on Reflections. Therefore‚ in the worst-case scenario‚ the business projected that only 5 clothing chains will purchase our product as a trial in Queensland stores. The price set previously in the marketing plan (3.2.3) states that
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