Bright Pharmaceuticals SE: Accounting for a Business Combination under IFRS 3

This instructional resource familiarizes students with the accounting for business combinations under IFRS 3 and illustrates the uncertainty and professional judgment involved in asset valuation and consolidation. First, students need to assess the quality of information generated under IFRS 3 and fair value accounting. Second, they are asked to account for a business combination by identifying possible input parameters to measure several intangible assets and a contingent liability. Based on their valuation results, they compute the amount of goodwill recognized on the acquisition and assess the effects of their parameter choices on the values of different assets and liabilities. As an optional third task, the case asks students to consolidate the financial statements and evaluate the impact of the acquisition on the financial position of the acquirer.     

Kapitalgebundener technischer Fortschritt: Ein überblick

Ohne Zusammenfassung     

Macroeconomic Impacts of an Agro-Ethanol Industry in Canada

This paper presents estimates of the macroeconomic impacts on the Canadian economy of an ethanol industry based on Jerusalem artichoke, an agricultural feedstock. It is assumed that this industry would not be grain-based, since other studies indicate that such an industry would not be economically viable in the absence of government intervention and would suffer from fluctuating prices tied to world grain markets. Moreover, Jerusalem artichoke has agronomic characteristics that make it potentially attractive for inclusion in rotations to improve soil quality. Results of the research indicate that this crop could be grown to the economic advantage of farmers and processed into ethanol, which could be used economically as an octane enhancer in gasoline. Based on the results for western Canada, the operation of an ethanol plant with a capacity of 100 ML a year would increase indus- trial output by $154 million, raise gross domestic product at factor cost by $50 million, and create 1,365 jobs. Cette etude analyse les impacts macro-economiques qu'aurait une industrie d'extraction d'tthanol provenant de la culture du topinambour. L'Ctude suppose I'utilisation du topinambour comme intrant puisque d'autres etudes ont demontrt que I'utilisation de grains ne serait pas viable sans I'intervention gouvernementale; de plus l'industrie serait soumise aux fluctuations des prix internationaux des grains. D'autre part le topinambour prtsente des qualitCs agronomiques intkressantes du fait qu'il s'intkgre bien dans une rotation de cultures visant I'amClioration de la qualit6 du sol. Les rCsultats obtenus indiquent que les topinambours pourraient recultives avec succtts par les fermiers pour treensuite trans- form& en tthanol. Ce dernier pourrait fournir un octane enrichi pour I'essence a prix concurrentiel. Selon les rtsultats etablis pour I'ouest canadien, I'exploitation d'une wine d'tthanol, de 100 millions de litre par annee de capacitk, augmenterais la production industrielles de 154 $ millions, pousserais le produit national brut de 50 $ millions et crCerais 1 365 emplois.     

Trade Liberalization and Spatial Inequality: a Methodological Innovation in a Vietnamese Perspective

The authors calibrate two static computable general‐equilibrium (CGE) models with 16 and 5999 representative households. Aggregated and disaggregated household categories are consistently embedded in a 2000 social accounting matrix (SAM) for Vietnam, mapping on a one‐to‐one basis. Distinct differences in poverty assessments emerge when the impact of trade liberalization is analyzed in the two models. This highlights the importance of modeling micro‐household behavior and related income and expenditure distributions endogenously within a static CGE model framework. The simulations indicate that poverty will rise following a revenue‐neutral lowering of trade taxes. This is interpreted as a worst‐case scenario, which suggests that the government should be proactive in combining trade liberalization measures with a pro‐poor fiscal response to avoid increasing poverty in the short to medium term.     

U.S. policy in the euro crisis and the institutional deepening of the monetary union

ABSTRACT

Theoretical approaches to European integration often downplay and sometimes ignore the role of external actors. But the regime complex through which the euro crisis of 2010-2015 was prosecuted involved the United states directly and indirectly through the IMF. Tracing such external involvement shows that, although they preferred greater deepening of euro area institutions than was achieved, U.S. and IMF officials nonetheless contributed substantially to the creation of the EFSF/ESM, robust ECB action and launch of the banking union project. The conclusion formulates falsifiable expectations on which a theory of external influence in regional integration can be developed and tested.     

Islands in the stream? The challenges and resilience of the Danish industrial relations model in a liberalising world

Nordic industrial relations models have often been highlighted as being successful ‘highroads’ in advanced capitalism. However, the economic crisis has increased pressures to liberalise and deregulate labour markets. Although this challenges the Danish industrial relations model, there are several countermeasures, in particular strong unions and the supportive institutional context, which have prevented erosion indicating the resilience and adaptability of the model.