Loss of Control of a Biosimilar Joint Venture and Remeasurement at Fair Value

2020 ◽  
Vol 25 (2) ◽  
Author(s):  
Jennifer Jae-Young Kim ◽  
Jaeyon Chu ◽  
Kyongsun Heo ◽  
Jinhan Pae
Keyword(s):  
Joint Venture ◽  
Voting Rights ◽  
Fair Value ◽  
Loss Of Control ◽  
Full Disclosure ◽  
Joint Venture Partner

Samsung BioLogics recognized a big valuation gain when it lost control over a biosimilar joint venture. The investment community expressed concerns about the revaluation gain because the loss of control of the joint venture was attributable to potential voting rights held by the joint venture partner and Samsung BioLogics had incentives to present higher profitability prior to IPO. We suggest the following: (1) timely and full disclosure of the potential voting rights; (2) extensive disclosure about the fair value estimate; (3) a conservative recognition of valuation gains; and (4) a periodic assessment of potential impairment of fair value estimates.

Heineken's Acquisition of Asia Pacific Breweries: Accounting for Business Combinations and Changes in Ownership Interests

2017 ◽  
Vol 32 (4) ◽  
pp. 101-127 ◽  
Author(s):  
Pearl Tan ◽  
Chu-Yeong Lim
Keyword(s):  
Market Share ◽  
Joint Venture ◽  
Interesting Case ◽  
Asia Pacific ◽  
Joint Control ◽  
Business Combinations ◽  
Final Offer ◽  
Control Premium ◽  
Joint Venture Partner

ABSTRACT On July 20, 2012, Heineken, a Dutch brewery offered S$5.125 billion (Singapore dollars; approximately US$4.1 billion) to buy Asia Pacific Breweries Ltd (APB; formerly, Malayan Breweries Limited) from its Singapore-based joint venture partner, Fraser and Neave, Limited. (F&N). At that point, Heineken and F&N had joint control over APB through the joint venture vehicle Asia Pacific Investments Pte Ltd (APIPL). Brewery business under the joint arrangement had moved on quite predictably from the time APB was formed in 1931. However, the calm changed to high drama when Thai Beverage, owned by one of Thailand's tycoons, made a bid for F&N and APB. Heineken was quick to respond by aggressively buying shares of APB, leading to a large control premium being paid in the final offer price. The bidding war was largely motivated by the Dutch and Thai beer giants, each wanting to own the iconic Tiger beer brand that was owned by APB and thus take control of APB's strong market share in the fast-growing market of Asia. The Heineken bid for APB presents an interesting case study regarding the motivations for acquisitions, the nature of control, and accounting for acquisitions. The case also presents rich issues in accounting for changes in ownership interests with and without gain of control.

scholarly journals Dampak Implementasi International Financial Reporting Standard Pada Penyajian Other Comprehensive Income Perusahaan Perdagangan, Jasa, dan Investasi di Indonesia

2018 ◽  
Vol 5 (01) ◽  
pp. 14-25
Author(s):  
Denny Rianto ◽  
Nurmala Ahmar
Keyword(s):  
Financial Reporting ◽  
Joint Venture ◽  
Foreign Currency ◽  
Fair Value ◽  
Future Research ◽  
Defined Benefit ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Comprehensive Income ◽  
Other Comprehensive Income

ABSTRACT The purpose of this study is to analyze the presentation of other comprehensive income and its components in the trade, service and investment industries after the implementation of the International Financial Reporting Standard in Indonesia. The sample is the trade, service and investment industry sectors listed in Indonesia Stock Exchange 2012-2015. Other Comprehensive Income (OCI) shall be presented separately in the statements of income since 2013 and re-review for 2012 on the reporting of the relevant year. The components presented include asset revaluation, translation of foreign currency financial statements to reporting currency, actuarial changes in defined benefit obligations, changes in fair value in available-for-sale investments, fair value changes to current, joint and joint venture hedges. The result of the research shows that there is difference of presentation value of other comprehensive comprehensive component. Future research can examine the antecedents and consequent accounts of OCI components in public companies in Indonesia. ABSTRAK Tujuan penelitian ini adalah menganalisis penyajian other comprehensive income dan komponennya pada industri perdagangan, jasa, dan investasi pasca penerapan International Financial Reporting Standard di Indonesia. Sampel adalah sektor industri perdagangan, jasa, dan investasi yang terdaftar di Bursa Efek Indonesia tahun 2012-2015. Other Comprehensive Income (OCI) wajib disajikan secara terpisah pada laporan laba rugi sejak tahun 2013 dan saji ulang untuk tahun 2012 pada pelaporan tahun yang besangkutan. Komponen yang disajikan mencakup revaluasi aset, penjabaran laporan keuangan mata uang asing ke mata uang pelaporan, perubahan aktuarial dalam imbalan kerja manfaat pasti, perubahan nilai wajar dalam investasi yang tersedia untuk dijual, perubahan nilai wajar terhadap lindung nilai arus, asosiasi dan ventura bersama. Hasil penelitian menunjukkan terdapat perbedaan nilai penyajian komponen other comprehensive income. Riset mendatang dapat meneliti anteseden dan konsekuen akun komponen OCI pada perusahaan public di Indonesia. JEL Classification: M41, M48

Choosing a Production Joint Venture Partner

2020 ◽  
Vol 176 (4) ◽  
pp. 665
Author(s):  
Rong Ding ◽  
Chiu Yu Ko ◽  
Bo Shen
Keyword(s):  
Joint Venture ◽  
Joint Venture Partner

scholarly journals 1MDB: The Audit Firms’ Questions

2016 ◽  
Vol 6 (1) ◽  
pp. 73
Author(s):  
Azham Md. Ali
Keyword(s):  
Subject Matter ◽  
Joint Venture ◽  
Audit Failure ◽  
Auditor Switching ◽  
Audit Firms ◽  
The Subject ◽  
Joint Venture Partner

The 1Malaysia Development Berhad (1MDB) has had three auditors since it started its operation several years ago. The issues of interest are related to the subject matter of auditor switching and the audit failure allegations made against its two latter auditors: KPMG and Deloitte. When it concerns Deloitte, it was accused of hiding 1MDB’s insolvency. As for the KPMG, it was accused of failing to expose the allegedly suspicious transactions between 1MDB and its joint venture partner Petrosaudi International Limited (PSI) to the relevant authorities. As for the auditor switching from KPMG to Deloitte, questions arose on the reasons for and its timing.

Nurturing a talent pipeline

2019 ◽  
Vol 184 (2) ◽  
pp. i-ii
Keyword(s):  
Joint Venture ◽  
Joint Venture Partner

Vet nurse Rachel Smith, who is a joint venture partner with Vets4Pets, has created a talent pipeline to develop her practices’ staff and help with long-term recruitment.

Fragmented Liberalization in the Chinese Automotive Industry: The Political Logic behind Beijing Hyundai's Success in the Chinese Market

2013 ◽  
Vol 216 ◽  
pp. 920-945 ◽  
Author(s):  
Seung-Youn Oh
Keyword(s):  
Automotive Industry ◽  
Joint Venture ◽  
Central Government ◽  
Municipal Government ◽  
National Level ◽  
Chinese Market ◽  
Operation Phase ◽  
National Governments ◽  
Joint Venture Partner

AbstractThis paper explains the extraordinary rise of the Beijing Hyundai Motor Company (BHMC), a joint venture between a state-owned enterprise run by the Beijing municipal government and Hyundai Motor Company. Within the span of three years, the BHMC soared to become China's second-ranked automotive manufacturer in terms of units sold. I highlight the role of the Beijing municipal government in creating favourable market conditions for the BHMC during its initial operation phase (2002–2005). The Beijing municipal government selectively adopted protectionist measures and liberalizing measures to promote its locally based company. I characterize this practice asfragmented liberalization,a system through which sub-national governments discriminately apply WTO or central government regulations to promote their local joint venture partner. In so doing, I also challenge the existing assumption that multinational companies are the drivers of economic liberalization, by showing Hyundai's support for local protectionism and industrial policy at the sub-national level.

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