please give me case show me the money answers. N pause M Using Corporate Financi

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please give me case show me the money answers.

N pause M Using Corporate Financial Reports Across Borders 5-183 Case: Show Me the Money Heidi Klum, CEO Runway Corporation based in Germany, was at a business luncheon with one of the company's long-time board members, Michael Kors. The two were discussing ways the company could raise more U.S. investor interest for Runway Corporation's stock which was newly issued in the United States last year. For some reason, the stock price seemed undervalued and the volume of trading on the NY was rather low SE "Michael, I believe that the only way Runway Corporation will attract more U vestors is if we provide them with U.S. GAAP secondary statements. I mean, it mak complete sense. The convenience translations we've been providingt enough for investors. They probably view Runway's stock as being too risky. We can definitely enhance the attractiveness of our shares, but only if we provide more user- friendly financial statements." "Maybe you're right, Heidi, but producing a separate secondary statement specifically for U.S. investors is going to cost us a fortune. Who knows if that's even our problem in the first place? l'd rather we spend the money developing a universal secondary statement that we can use across numerous countries for our financing needs. Not only will we save money, we'll be able to attract investor interest from countries all over the world Forget the U.S. market Hong Kong, Australia, France, here we come 1) Discuss some of the advantages and disadvantages of preparing a country-specific a universal secondary statement from both a secondary statement compared to corporate issuer and a user perspective. 2) Critique Michael Kors' response to Heidi Klum's suggestion. Do you agree or disagree? Explain. If you had the deciding vote, whose position would you support and why? 3) Case: Satyam (Truth) Be Told 7, 2009 B. Ramalinga Raju, the chairman of Satyam Computer Services, On January India's fourth largest software firm quit after disclosing that he had manipulated the

Explanation / Answer

Advantages:

Disadvantages:

Part 2

Yes I agree, with use of standards of IFRS, company can easily make universal financial statements which could be used by investors globally for investment decision purpose

Part 3

I shall chose to opt for universal statements as it eleminates the problem of maintaing teams for preparation of country specific financial statements, eases out financial burden as well as serves the purpose of being used by investors globally to assess the company's position for investment.

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