Everything you need to know about the determinants of dividend policy. Dividend policy determines the allocation of earnings payable to shareholders and earnings to be retained. As such, the policy framed by the management regarding the distribution of earnings to the shareholders as dividend is known as dividend policy. It is not related to dividend payable only in a specific [...]
Although not as prevalent as inventory transactions, intercompany sales of other assets occur occasionally. Accounting for Land Transactions: The consolidation procedures necessitated by intercompany land transfers partially parallel those for intercompany inventory. As with inventory, the sale of land creates a series of effects on the individual records of the two companies. The worksheet process must then adjust the account [...]
Hedges of foreign currency denominated assets and liabilities, such as accounts receivable and accounts payable, can qualify as either cash flow hedges ox fair value hedges. To qualify as a cash flow hedge, the hedging instrument must completely offset the variability in the cash flows associated with the foreign currency receivable or payable. If the hedging-instrument does not qualify as [...]