Why does deutzs have a re-measurement gain
Course:- Management Theories
Reference No.:- EM132187189

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Management Theories

(Financial statement analysis)

Analyse and discuss whether the financial information provided in the exhibits provided any warning of the company's eventual demise. Your answer should be based on an analysis of the companie's liquidity, efficiency, profitability and solvency ratios. Highlight and describe any anomalies or peculiarities in the financial ratios and/or financial data. (ratios are already down in excel)


1. How did the DM130,719 transaction loss arise? Show how this loss was calculated (see Exhibit 3).

2. Complete Exhibits 1, 2, and 3.

3. Why does Deutz's have a remeasurement gain (or loss) and a translation gain (or loss) in 2001? (explain with words rather than numbers).

4. What differences do the choice of functional currency make in the German subsidiary's dollar statement results and its key financial ratios? Explain the reasons for these differences.

5. It is Machinery International's practice to evaluate its overseas operations' performance in terms of their U.S. dollar equivalent performance.

The key performance measurements used by Machinery International are U.S. denominated return on sales, return on equity, return on assets and net income. If Machinery International changes Deutz's functional currency for financial reporting purposes, it intends to use the same approach for measuring the performance of the Deutz management. As a Deutz senior manager, how might you react to the new performance measurement approach, assuming the deutsche mark is the functional currency?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Management Theories) Materials
The organization's culture is often explained as the personality of an organization.  It is a key factor in getting organizational goals, in attracting and keeping desirable
Evaluation of Corporate Performance of Google Inc- Evaluate the soundness of the company's financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.)
Elaborate on the major reasons why, according to the text, health care systems can be considered complex. Next, argue a case for double-loop against single-loop learning in or
Acme Supastore advertised its 'price promise' heavily in the Nottown Evening News. This promise stated that Acme was the cheapest retailer in the city of Nottown and that it
Visit the websites of the following organizations and read about the organizations' missions and visions as well as about their leaders. National Center for Healthcare Lead
Presentations: Designing Presentation Visuals Depending on the sequence your instructor chose for this course, you may have covered up to a dozen chapters or so at this poin
Annual-plan control requires making sure that the company is not overspending to achieve sales goals. What key ratio is watched closely? How are fluctuations of this ratio tra
Briefly describe each of your key tasks or activities that relate to your accounting major(s). For each key task or activity, identify and briefly explain a comprehensive rang