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Associated and Joint Venture - Essay Example

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This paper investigates the viability of Associates and Joint Venture as standard financial consolidation for accounting. It assesses the relevant IAS requirement to treat this reporting aspect as well as its alternative ways of reporting such arrangements with a special reference to HK listed companies namely Honda Motor Company and Hutchison Whampoa Limited.
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Associated and Joint Venture
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The partners all sit on the joint venture corporation's board, and together have been able to provide the community with a much-needed resource. Therefore, a joint venture may be a corporation, limited liability Company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability. A joint venture is often seen as a very viable business alternative in this sector, as the companies can complement their skill sets while it offers the foreign company a geographic presence.

Studies show a failure rate of 30-61%, and that 60% failed to start or faded away within 5 years. (Osborn, 2003) It is also known that Joint ventures in low-developed countries show greater instability. Some countries, such as the People's Republic of China, require foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement often forces technology transfers and managerial control to the domestic partner. This detailed Report provides an Earnings and Dividends history for Honda Motor Co., Ltd. Tabular results include up to a ten-year history of "as reported" Earnings per Share and Dividends per Share plus a calculation of the amount of earnings paid out over the year in dividends (i.e. Payout Ratio).

Earnings and Dividends are presented on both a Quarterly and Annual basis. An annual Percent Change factor is calculated for both Earnings and Dividends.Honda Motor Co., Ltd.. The Group's principal activities are to manufacture automobiles, motorcycles and power products. The Group develops and manufactures a wide variety of products, ranging from small general-purpose engines to specialty sports cars that incorporate their internal combustion engine technology. The Group also provides financing for the sale of its motorcycles, automobiles and power products.

The Group has got 319 subsidiaries and affiliates. The Group operates in the following four segments: Motorcycle business, Automobile business, Financial services and Power product and other businesses. The Group's major trademarks includes HONDA, ACURA, ACCORD, CIVIC, FIT, ODYSSEY, CR-V, PILOT, MOBILIO, ELEMENT, STEP WGN, MDX, STREAM, LIFE, ACTY, VAMOS, THAT'S, CUB, WAVE and GOLD WING. The Group has subsidiaries throughout the world including North America, Pakistan, the Philippines, India, South America and Europe.

Either Associate or Venture Management is focused on the skills and practices required to manage the rapid growth of new business in highly dynamic environments. These environments are often, but now always, characterized by rapid technology change.Associates are usually identified with the following principles. A holding of 20% or more of the voting power, directly or through subsidiaries, would indicate significant influence unless it can be clearly demonstrated otherwise. If the holding is less than 20%, the investor will be presumed not to have significant influence unless such influence can be clearly demonstrated. [IAS 28.6] .

The existence of significant influ

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