Search results

We assess the impact of NZ IAS 32 on the financial reporting of convertible financial instruments by retrospective application of the standard to a sample of New Zealand companies over the period 1988 ‐ 2003. NZ IAS 32 has a broader definition of liabilities than does the corresponding current standard (FRS‐31) and it does not permit convertibles to be reported under headings that are intermediate to debt and equity. The results of the study indicate that in comparison with the reported financial position and performance, the reporting of convertibles in accordance with NZ IAS 32 would result in higher amounts for liabilities and higher interest. Thus, analysts using financial statement information to assess risk of financial distress will need to revise the critical values of commonly used measures of risk and performance when companies report under NZ IAS

In this chapter, we explore the legal framework of AGMs in seven Member States (Austria, Belgium, Germany, France, Ireland, the Netherlands, and the United Kingdom) of shareholder decision-making rights. We find that, since only a small part of the decision-making rights is harmonized at the European level, there are numerous differences in shareholder rights among national laws. These decision-making rights are usually about the topics director (re-)elections, pay matters, share capital, amendments to articles of association, annual accounts, etc. To be able to conduct empirical research in the remaining chapters, we develop a categorization framework of 15 voting items.

This study addresses the effects of the accounting reclassification of members’ shares in Spanish cooperatives motivated by the new accounting standards. The study reports the results of semi-structured in-depth interviews with experts. The accounting reclassification from equity to liability of members’ shares has effects even if there is no actual material change in terms of the members’ shares. Thus cooperatives are incentivised to modify their statutes in order to retain their equity accounting classification, even when this modification is not desired. The evidence is obtained from qualitative methods and a generalization using quantitative methods would be interesting if data were available. The present study provides a starting-point for further research into the use of lending technologies in the financing of cooperatives and the use of accounting information in granting bank finance to cooperatives, thereby contributing to the study of the use of accounting information by capital providers. There is very little literature on the effects of equity-liability accounting reclassification motivated by a change in an accounting standard. The study takes advantage of the recent accounting standard change in Spain which may be considered as a ‘natural experiment’ and contributes to the literature on the effects of accounting standards.

The Companies Act 1981 introduced some significant changes which dramatically affect the accounts of companies in terms of format, contents and accounting rules. This guide attempts to cover the main provisions of the Act in a clear and concise manner.

Luxembourg is the jurisdiction of choice for many private equity and venture capital investors/funds. Though the optimum balance of financing instruments in relation to any structure varies according to its particular circumstances, one factor that all Luxembourg domiciled FDI structures have in common is the requirement for an appropriate level of equity investment. This article intends to summarize some of the topics frequently encountered in relation to equity structuring choices.

Author details the different steps and choices available to investors and funds. The article offers answers to questions to provide a broad, yet detailed, overview of the process and journey; from selecting the vehicle right through to distributing to investors, governance, and compliance.

To avoid an expensive mistake, it is paramount that the private equity or venture capital investors and management team receive detailed advice to ensure: (i) the deal is structured in the most tax efficient manner possible and the commercial deal is suitable for all parties, and (ii) the deal is structured in a manner which is effective under Luxembourg law, for both tax and legal purposes.

It is important that non-Luxembourg lawyers are able to identify key issues when negotiating the terms of the investment documents, in particular, the articles of association and shareholders' agreement.

Practical guidance from Luxembourg lawyer specializing in corporate law, mergers and acquisitions, venture capital and private equity transactions.

A key issue faced by co-operative enterprises is how to raise external equity capital without compromising member control. The purpose of this study is to examine the potential of a special type of financial instrument called a Cooperative Capital Unit (CCU) introduced into the Australian legislation to facilitate external investment while maintaining member control.

A Delphi panel and six focus groups were used to provide an understanding of the challenges associated with cooperative governance and financing and to aid the development of a conceptual framework for the implementation of CCUs.

The findings from these Delphi panel and six focus groups were used to develop a proposed framework that the authors believe will be useful in structuring equity-like instruments depending on the purposes they might serve. In particular, the authors propose a new form of cooperative ownership and equity structure that could: better align member and investor interests; provide a mechanism to strengthen one role over the other depending on the needs of the cooperative; and provide investors with a better sense of security while retaining member control.

To the best of the authors’ knowledge, the cooperative ownership and equity structure proposed in this study are novel and not currently found in theory or practice. The insights provided by this study should, therefore, be of interest to a wide range of stakeholders, including cooperatives; professional advisors to these businesses; government regulators; investors; and researchers.

It has become increasingly obvious from recent experience that two vital and interrelated factors affecting the eventual success of a management buy‐out (MBO) are respectively the purchase price and the consideration used for the tranfer of ownership. This article examines the types of finance which have become associated with MBOs together with the categories of financial institution involved in providing the finance.

Over recent years an increasing amount of funds has been committed to mergers and acquisitions in the UK. Expenditure rose nearly tenfold from £2.3bn in 1983 to £22.1bn in 1988. This surge in spending has continued despite fears over economic trends, both domestic and international, and shocks in financial markets, notably the global col lapse in share values of October 1987. This monograph is essentially concerned with the events up to, and including, the first three quarters of 1989, ie, a period of two years after the crash of October 1987. Whilst the financing of mer gers and acquisitons activity is a fast moving arena, it does seem to be an opportune time to review developments to date and, tentatively, to suggest future trends in this sphere.

Notes that despite moves towards the international harmonization of accounting standards, some important differences remain between UK and US generally accepted accounting principles which affect the comparability of their financial statements. Outlines the development of the UK accounting profession, accounting standards and the regulatory environment, including company law, before discussing the specific differences between UK and US accounting treatment of assets, liabilities, foreign currency translations etc. and in reporting and disclosure requirements. Briefly considers the underlying reasons for them and stresses the importance of understanding them for accountants, investors, security analysts etc.

Lilliput Lane, based on the edge of the English Lake District, manufactures a range of miniature plaster cottages which are marketed to customers throughout the world, many of whom are committed collectors. This case study traces the early growth of the company in the 1980s, its subsequent setbacks, a successful turn‐around, followed by a flotation and sale in the 1990s. It focuses on the issues of strategic leadership, stakeholder expectations, core competencies, adding value, diversification and focus strategies. Lilliput Lane has been written for the purpose of class discussion. It should not be taken to reflect either effective or ineffective management.