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Case Study 2 Facts Albion and Board decide to form a joint venture but do not sign a written agreement regarding the control of the joint venture. However, minutes of the meeting where the relationship was discussed have been signed by the parties. Each company owns 50% of the equity shares and provides equal numbers of directors to the management board. There is an understanding that the shares in the joint venture cannot be sold unless first offered to the other shareholder. Required Discuss whether it is possible for joint control to exist if there is no written contract. Solution Joint control will exist in this case because the substance of the arrangement is that of joint control, and the Standard says that the existence of a contractual arrangement can be shown in a number of ways, one of which is minutes of discussions between the venturers. The existence of a contractual obligation establishes joint control over the venture so that no single venturer can be in a position to control the venture. Each company owns 50% of the equity and provides equal numbers to the board. Also, the shares should be offered to the other shareholder first before selling.

Which is best for weight loss a diet low in carbohydrates and high in protein, or a diet balanced in carbohydrates, protein, and fat That s been a question that has received a lot of scienti c attention, and science is showing a rm conclusion it does not matter. According to dozens of research studies, no particular type of diet speeds up metabolism more than another. In 2004, a complete review of all research

Required Please prepare the operating activities section of the cash flow statement using the indirect method. Solution

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The credibility of the independent audit is essential to public trust, the keystone of the financial reporting system. The accounting profession prides itself on the integrity and objectivity of its members. The future of our profession, not to mention our livelihood, rests on this reputation. A few recent high-profile financial scandals have, however, called auditors independence into question. Neither the accounting profession nor the financial markets can afford an erosion of public confidence. For that reason, auditors must scrupulously preserve their objectivity, in reality and appearance. We therefore call on the SEC and other regulatory bodies to prohibit public companies and other organizations with public accountability from hiring the partner responsible for their audit for one year after the partner ceases to serve that client. Additional steps can be taken, with the support of the business community, to secure public confidence in the independent audit and the financial reporting system. SEC registrants and other publicly accountable organizations should be required to have audit committees composed entirely of independent directors whenever practicable. The audit committee members should be charged with specific responsibilities, including overseeing the financial reporting process, and recommending appointment of the entity s auditors.4

2 where dE S i ; S j denotes the minimum squared Euclidean distance between subsets S i and S j . Since the Euclidean distance between the two signal points within all these subsets is 2, the minimum squared Euclidean distance between two signal points within a subset is 2 sub dE 4

Fig. 13.9 Infant birth weight by maternal exercise status. From Leet & Flick (2003) with permission.

Marc Martinez, the customer contact for ACME Corporation. The first four entries in Table 2.12 show the date, time, purpose, and type of contact mechanism used as well as the status of the event. The status is used to indicate if the activity has been completed or if it is just scheduled. William Jones started with a face-to-face initial sales meeting on January 12 and then proceeded with a more detailed product demonstration using the company's Web site, which has the capabilities to do a product demonstration and includes chatting capabilities. The fifth entry shows an email contact initiated by John Smith to Nancy Barry who is a supplier representative. The sixth entry shows that Joe Schmoe has made a call to Jerry Red regarding a problem and illustrates that communication event tracking is important not only in sales but in other areas of the business such as purchasing relationships. This data structure provides a mechanism for tracking communication events for all types of relationships and circumstances and is a very powerful business tool.

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5.2 2.0 (continued)

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