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

And Analysis - Research Paper Example The subsidiaries of the company are usually consolidated from the acquisition date to the date that the company stops 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 policies used are consistent. The group usually eliminates all its balances, losses, gains, and transactions that arise from intra group transactions. The dividends are also fully eliminated. The losses that are found in a subsidiary are usually attributable to the non controlling interest of the company even if the results may lead to a deficit balance. If there occur a change in ownership of the subsidiary without any losses, the transaction is recorded as an equity transaction. When Mannai corp. losses a subsidiary, it derecognizes its liabilities and assets that were attributable to the subsidiary. It also derecognizes the non controlling interest that was associated with the subsidiary. The translational differ ences that were recorded in equity 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 share of components in other income generating avenues. Acquisition policy The company celebrated its 60th anniversary in 2010 and it was named as the largest service and trading company in Qatar (mannai.com) The company refocused its business in 2001 by divesting its interest that were overseas and reducing the dependence on cyclical activities. The company achieved its restructuring goal in 2004 when the company was able to attain the capacity 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 Company. In the year 2012, mannai corp. and EFG Hermes acquired majority stake in DAMAS Ltd. Motivation 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 Group to continue as a going concern based on the fact that this can only 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 financial statements of the group continue to be made on a basis of going concern. Second, acquisitions help the group in minimize liquidity risk. The Group has been engaged in acquisitions with the main intention of having or consolidating adequate liquidity to help meet its liabilities, under both stressed and normal conditions, without registering unacceptable risking damage or losses to the Group reputation and operations. Thirdly, since the group depends on financing from shareholders and banks loans, the acquisitions serv es to strengthen 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

Brand Essay Example | Topics and Well Written Essays - 500 words

Brand - Essay Example Now it belongs to Goga Ashkenazi, a Kazak former oil and gas tycoon, whose attraction to fashion industry and to Vionnet brand in particular was dictated by a belief in heritage and history of brand (Haritela, 2013). Despite the entire couture industry is directed toward meeting the desires of those customers who can afford luxury clothes, in terms of affordability, the creative director of Vionnet and its owner Goga Ashkenazi is striving to capture more consumers by creating the same couture in a more accessible way (Karmali, 2013). While clothes of couture range sometimes from tens to hundreds of thousands of pounds for the dress, it becomes less possible to all most women to purchase such dress and under such tough economic conditions, it is practically impossible. For that reason, Vionnet offers demi-couture gowns that is full of beauty and captures the couture creation, however, is more affordable for the customers. In addition, couture dresses are usually one-time event clothes, while Vionnet wants to provide its consumers those dresses that will be suitable to wear in more ways than one. Thus, a dress from Vionnet for  £2,000 is considered as affordable couture unit available in differe nt colours, prints and material, and which at the same time does not also lose it exclusivity and unique feature of haute couture. The successful revitalization of Vionnet brand has is also influenced by its designer Chalayan, who is more known for the visionary magician. In U.S. the first new Vionnet collection became available in the house atelier within Barneys New York flagship stores. In Milano the first modern boutique of Vionnet brand was presented in 2011. Today the brand is present in more than hundred and eighty stores worldwide. According to Vogue (Karmali, 2013), the modern collection for Vionnet became also available to order in-store at Harrods. In addition, one can make a purchase through online