How to calculate payment of expenses, Financial Management

How to calculate payment of expenses:

SAIB, LLC is a US company that provides cell phone and internet service; it seeks to expand its international operations into Kyrgyzstan.  The US Ambassador in Kyrgyzstan introduces SAIB to a delegation from Kyrgyzstan and SAIB agrees to form a joint venture with a Kyrgyzstan private company.  It applies to the Kyrgyzstan government for licenses to set up the latest 4G LTE wireless towers in Bishkek, but its applications are met with resistance and questions about the company.  To answer some of those questions, SAIB invites a government delegation to its plant in the US to tour its operations and to demonstrate its software and hardware.  It pays for the airfare (first class), hotels (4-star), transportation and meals for the delegation including the spouses of three high level government officials. 

While in the US, two of the government officials indicate they have always wanted to go to Disneyland.  SAIB offers to pay for their trip (and their spouse's expenses) for a 3-day visit to Disneyland. Three months later, SAIB's applications are approved, and shortly thereafter, SAIB is importing the electronics, hardware and software to begin construction. 

To expedite the processing in Customs and keep the project on schedule, it pays the Customs' Officials about $300 each time a shipment arrives in Kyrgyzstan.  Further, in order to maintain a good relationship with its Kyrgyzstan partner, SAIB gives it $500,000 to cover expenses and other miscellaneous issues that might come up during the project.

  1. Explain whether SAIB's expenses to bring Kyrgyzstan officials to tour its plant in the US violate the FCPA.
  2. Explain whether SAIB's payment of expenses for the trip to Disneyland violates the FCPA
  3. Explain whether SAIB's payment to the Customs Official violates the FCPA.
  4. Explain whether SAIB's decision to give $500,000 to it Kyrgyzstan partner violates the FCPA.
Posted Date: 2/14/2013 7:03:04 AM | Location : United States







Related Discussions:- How to calculate payment of expenses, Assignment Help, Ask Question on How to calculate payment of expenses, Get Answer, Expert's Help, How to calculate payment of expenses Discussions

Write discussion on How to calculate payment of expenses
Your posts are moderated
Related Questions
Question: The Statement of Principles for Financial Reporting sets out the principles that should underlie the preparation and presentation of general-purpose financial stateme

Value Index Numbers The value index number as described earlier is a combination index which combines price and quantity changes. Because of the difficulties experienced in pri

Q. Accounting Change? Accounting Change - Change in (1) an accounting principle (2) an accounting estimate or (3)the reporting entity which necessitates DISCLOSURE and explan

In 2005, Mr. Gordon Brown's brought up a plan of action to help reduce poverty and boost economic development in Africa. The three essential elements of the 2005 development plan

Q. What is Purchasing Power Risk? Variations in the returns are caused also by the loss of purchasing power of currency. Inflation is the reason behind the loss of purchasing p

What is a sunk cost?  Is it relevant when evaluating a proposed capital budgeting project?  Explain. A sunk cost is a cash flow that has already takes placed, or that will take

Rate duration can be defined as the sensitivity of the change in value to a particular change in spot rate. Every point in a spot rate curve has a rate dura

Explain and compare the costs of hedging via the forward contract and the options contract. Answer: There is no up-front cost of hedging through forward contracts. Though, in t

Explain how to resolve a "ranking conflict" between the net present value and the internal rate of return.  Why should the conflict be resolved as you explained? Whenever there