Multinational Acquisition Research Paper Example | Topics and Well Written Essays - 1750 words

Multinational Acquisition - Research Paper Example In 2010, the world witnessed the acquisition of a famous multinational company Cadbury by Kraft Food Products. Kraft Foods, an American multinational, which deals in food products acquired Cadbury, a British multinational dealing in confectionary products, as a way to diversify its holdings. As such, in January 2010, Kraft Foods acquired Cadbury for ?11.9 billion ($19.6 billion) (Merced & Nicholson, 2010). This made Kraft Foods the biggest confectioner in the world. It has been recorded as the biggest food and beverage deal in European history according Reuters. The initial offer of Kraft Foods was 745p, per share which was increase by 14 percent to 850p per share. Initially the acquisition was opposed by the trade unions because they had the prescient concern that such an acquisition would necessarily lead to job cuts. However, Kraft Foods confirmed that the combined company would be able to create more jobs in UK, apart from the existing employees that Cadbury currently employed (J ones, & Dorfman, 2010). Research Objectives The objective of this research is to focus on the issues that arise after a multinational acquisition acquires a different organizational culture, framework, process and system in comparison to the company which has acquired it. The motive would be to analyze the accounting requirements after acquisition, difficulties that arise with reference to preparation of combined financial statements, as well as to separately assess the goodwill of the business combination and other key issues. The objective would also be to study the IFRS and GAAP guidelines which are applicable in cases such as the one that will be studied. Outline of the Study The research study includes a detailed study of the multinational acquisition of Cadbury by Kraft Foods. General analysis of the scenario before acquisition is done; furthermore, the study will discuss the after effects of acquisition within the new business combination. As such, the study will begin with a brief overview of the acquisition that took place in January 2010. The research objective is stated to describe the motive behind conducting the research. Furthermore, a literature review will include analysis of the accounting requirements and the challenges faced by the company in preparing the combined financial statements. Apart from this discussion on the process of evaluating the intangible assets of the company and key changes that are made in the acquired company would be revealed, the study will attempt to give a complete view of the successful objectives required by such an approach. LITERATURE REVIEW Accounting Requirements and Challenges in preparing Financial Statement In the case of the acquisition of Cadbury by Kraft Foods, the holding company is Kraft Foods and Cadbury is the subsidiary. Therefore, the companies in this business combination need to apply for acquisition accounting to the newly united business. Similarly, the holding company is the one which holds ma jority of the shares of the subsidiary company. The holding company must also become responsible for the balance sheet and profit and loss statements of the subsidiar

How accurate is it to suggest that the Labour goverment promised much Essay

How accurate is it to suggest that the Labour goverment promised much but delivered little in terms of social policy during their period in office from 1964 - 1970 - Essay Example The lack of delivery and the inability to create the necessary changes to those who were interested in social policy was one which led to expected alterations; however, this changed to theoretical alterations instead of practical solutions for the country. The social policy which took place in the 1960s was based specifically on the alterations which were happening in society and the need to alter what was occurring with the economy and political status. The economic and political alterations led to welfare states that needed to be approached, specifically with the social beliefs that were from the lower class. The social constraints which followed the economic and political status were consistent with unequal rights which were taking place in the work region and which were based on the need to change the status of those in society. The movement from industrialization and into the modern era was the main force which caused the social rights to become a part of the economic and governmental association. The shocks which were occurring during this time led to a combination of economic and social changes, all which were meant to redefine the status of individual’s within society while promoting equal rights within the nation (Scha rpf, Schmidt, 2000: 19). The main association with social policies that were created during this time was a bridge to the modern belief systems that are currently a part of the governmental and economic order. From the 1960s to the 1980s there was a third order and second order change which occurred. The policies were based on taking basic human and social rights and moving them into the main institutions, specifically to protect the rights of workers in the region. The change was one which pushed to develop new tools that would enhance the human rights of those in the work space while adding in goals and alterations for the social movement that