ch 8

[Lynzee Lai]

Home work 6-1
-Canadian national bank changes every 15 min. French changes every
hours
-Exchange rates can go up to 10 decimal rates depending on how tight
they want to control the FX rate. Got to know which way your
exchanging to.
-Translation can skew your numbers. If you do current ratio, net
profit, analyze things translated into dollars will be skewed. Must
analyze in the original currency. Does business have large seasonal
swings? Does the translation done at the end of the year reflect the
seasonal variations?
-Temporal method is more accurate because you apply more accurate
rates (rates of that day). There is a large difference between
companies that use different method, even if they have the same
numbers –income, expense, etc. (current, temporal, etc). Pre
translation gives you a better idea of how a company is doing. What is
purchase is seasonal (first 6 months) and sales is also seasonal (last
6 months)

Ch 13 was a review of ch1,2,3,4

Ch 8
-Income taxes- revenue for government
-Property tax-not all countries have property tax – used to pay for
schools, electricity, etc. in most countries its not for those
things.
-Sales tax-not all states have sales tax-more money-in some countries,
you can get a refund if you are a foreigner.
-Value added taxes-import export taxes-raise revenue, in some
countries this is the only revenue they have. In this country we use
import/export excise tax for security. Not every transaction is under
excise taxes. Port authority can undo excise tax for some products, or
add excise tax if it wants to.
-Oil on import is only $1.25, but there is $2 in federal and state
taxes.
-no common set of guide lines on taxes.
-every country is unique, and each business is unique. Depends on how
your business is set up. If you are an American company and you do
operate in Sweden you don’t get taxed by Sweden, if you are a company
that opens in Sweden and operates in Sweden you get taxes. Government
wants foreign companies to operate in their country b/c they employ
people. Often times government taxes foreign companies less. No
businesses no taxes
-taxes-either raise tax base or tax rate. Income minus expenses. The
only money in is taxes. Taxes are tied to what the state makes. Hawaii
makes coffee, pineapple. Nevada=gambling. Montana=hunting and tourism.
Georgia the country has a port and most taxes are based on import and
export (b/c they are the port for the land locked countries behind
them)
-US has the most convoluted tax structure. Most countries tax is
geared at something, but US taxes everything.
-most corrupt tax nations are the developed countries, in that every
person, companies has a different tax structure/bracket. Developing
nations have one or few tax structure, everyone plays by the same
rules.
-how do you pay taxes on hedging? Spot rate? Forward rate? On the
translated amount?
-some countries have different tax codes from financial statements.
Other countries these two are the same
-what if you are Haiti? Only have farming and tourism. Who are you
going to tax?

[Alexander Stehle]

thanks for emailing me my own document. your such a thinker!

[lynze...@gmail.com]

Oh shut up! I emailed it so everyone could have it ass!

Sent via BlackBerry from T-Mobile

---

From: Alexander Stehle <ajsteh...@gmail.com>

Sender: acct...@googlegroups.com

Date: Tue, 26 Oct 2010 20:58:23 -0700

To: <acct...@googlegroups.com>

ReplyTo: acct...@googlegroups.com

Subject: Re: ch 8

[Rauf Mammadov]

plz go on :)))

[Alexander Stehle]

you would think that we're married the way you yell at me. 

On Tue, Oct 26, 2010 at 9:00 PM, Rauf Mammadov <rau...@gmail.com> wrote:

plz go on :)))

[lynze...@gmail.com]

I could only hope ; )

Sent via BlackBerry from T-Mobile

---

From: Alexander Stehle <ajsteh...@gmail.com>

Sender: acct...@googlegroups.com

Date: Tue, 26 Oct 2010 21:12:07 -0700

To: <acct...@googlegroups.com>

ReplyTo: acct...@googlegroups.com

Subject: Re: ch 8

[Sergey]

You guys are too funny, but do go on entertain. Who is going to SCREAM
next!? Obviously my inbox can handle alot of CRAP.

On Oct 26, 10:17 pm, lynzee....@gmail.com wrote:
> I could only hope ; )
> Sent via BlackBerry from T-Mobile
>
>
>
> -----Original Message-----
> From: Alexander Stehle <ajstehle2...@gmail.com>
>
> Sender: acct...@googlegroups.com
> Date: Tue, 26 Oct 2010 21:12:07

> To: <acct...@googlegroups.com>
> Reply-To: acct...@googlegroups.com

> Subject: Re: ch 8
>
> you would think that we're married the way you yell at me.
>

> On Tue, Oct 26, 2010 at 9:00 PM, Rauf Mammadov <rauf...@gmail.com> wrote:
>
> > plz go on :)))- Hide quoted text -
>
> - Show quoted text -

[Kiyomi Kondo]

thanks for the notes, lynzee ;p

have a happy halloween everyone!!!!

Kiyomi

2010/10/27 Sergey <sergey...@hotmail.com>