Equity Restructuring Law
- Equity Restructuring Law
- What is contingency in accounting?
- What is a provision for restructuring costs?
- What is a contingent liability and examples?
- Nic 37
- When should a contingent liability be recognized?
- What are contingency expenses?
- How are contingencies classified in accounting?
- Nic 37 provisions, contingent liabilities and contingent assets
- What are provisions under IAS 37?
- Which IAS talks about liabilities?
- How is a provision and a contingency treated?
- Restructuring of assets examples
This document sets out the reaction to corporate restructuring undertaken by Bogota companies registered with the Superintendence of Companies of Colombia for the period 1995 – 2010, facing difficult economic times. Here, we used panel data methodology and literature review, finding that the companies in question run downsizing harmful procedures that shorten the periods of economic boom, and precipitate the closure of mainly large and medium sized companies, a fact that widens social gaps and reduces quality of life levels of the workforce in the Colombian capital.
Thus, with the analysis of the characteristics of the Colombian companies that enter the process of business failure, evidence is sought as to whether the Bogota companies registered with the Superintendence of Corporations in the period 1995-2010 carried out downzising processes in times of national economic crisis and if in effect these were contributors in the short periods of boom that this group of companies had during the period of analysis. But if it is found that such restructuring procedures were benign for the productive apparatus of the business group analyzed, it would be clear that the downzising processes carried out by this group of companies were profitable, so that the cause of the short periods of economic boom of this business group would be explained by another phenomenon that would be dealt with in a future study.
What is contingency in accounting?
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
What is a provision for restructuring costs?
146. Provision for restructuring: Estimated amount of costs arising directly from a restructuring, provided the following two conditions are met: They are necessarily imposed by the restructuring. They are not associated with the company’s continuing operations.
What is a contingent liability and examples?
A contingent liability would arise in the event that our company is sued and we are in litigation with third parties. … Fines and penalties imposed on the company by public bodies as a result of, for example, delays in the filing of taxes, Social Security payments…
The objective of this study is to establish the risk of financial crisis in companies according to life cycle stages and how life cycle stages explain the change in insolvency risk. The target population of this study are the companies listed on the Buenos Aires Stock Exchange in the period 2004 to 2012. The evidence shows the linkage of life cycle stages with insolvency risk,
Insolvency risk, also known as credit risk or financial crisis, refers to the uncertainty due to the possibility that the company will not be able to meet its financial obligations, mainly interest payments and amortization. Insolvency risk is understood as the state of financial vulnerability, ranging from the impossibility of meeting the payment of obligations to the state of bankruptcy and liquidation of the company.
An empirically little analyzed issue is the study of corporate insolvency with the stages of the life cycle. Dickinson (2011) validates the method of cash flow statement patterns to classify the stages of the company’s life cycle. In this study, it is of interest to analyze corporate insolvency from the life cycle stages in the Argentine economy. Although Kordestani and Bakhtiar (2011), and Shamsudin and Kamaluddin (2015) have conducted an analysis on corporate insolvency through cash flow patterns in emerging economies, the conclusions obtained are contrary to what is held by theory in general. Based on such background, this study aims to establish the linkage of insolvency risk with life cycle stages and to determine whether life cycle stages provide information on the change in future insolvency risk in Argentinean Capital Market firms. The firm life cycle provides a more contextualized approach to financial statement analysis, which would be an important complement to traditional studies.
When should a contingent liability be recognized?
when it is more likely than not that a present obligation does not exist at the end of the reporting period, an entity discloses a contingent liability unless it is unlikely that resources embodying economic benefits will have to be given up (see paragraph 86).
What are contingency expenses?
Definition of Contingent Expense
Meaning of Contingent Expense in the sphere of financial law, economics, accounting and the like: Expected, possible but not probable disbursement, subject to conjunctural situations or future events.
How are contingencies classified in accounting?
The Accounting Principles Committee classifies contingencies into 2 groups: Those of a repetitive nature. Those of an isolated nature.
Nic 37 provisions, contingent liabilities and contingent assets
The regulation of these companies is approached from two perspectives in Law 9/2012, of November 14. On the one hand, Chapter VI includes the generic regulation of the asset management company, which includes the rules relating to the legal regime applicable to the company, how to determine the criteria for defining the categories of assets to be transferred and the regime for transferring them.
This regulation will be applicable, with the pertinent vocation of permanence, to all those cases, present or future, in which the restructuring or resolution of a credit institution may require the incorporation of an asset management company. Therefore, although it is evidently applicable to the asset management company created at this moment to face the current financial crisis, its validity is not limited to the moment in which we now find ourselves, but transcends it, and constitutes the legal framework of reference that will be applicable in each and every one of the situations in which it would be necessary to resort to the creation of this type of company.
What are provisions under IAS 37?
19 Only those obligations, arising from past events, whose existence is independent of the entity’s future actions (i.e. future management of the entity) are recognized as provisions.
Which IAS talks about liabilities?
In accordance with IAS 37, a provision is a liability for which there is uncertainty as to its amount or maturity, and which requires a high degree of estimation in order to be quantified.
How is a provision and a contingency treated?
A provision is a liability for which there is uncertainty as to its amount and maturity, whereas a contingency is an obligation for which there is uncertainty as to its existence.
Restructuring of assets examples
The “Bidders” are obligated to carefully read and fully comply with the provisions of these terms and conditions, being aware that the omission or contravention of any of the points, requirements or documents requested will be grounds for disqualification, in compliance with the provisions of Article 33 Section XVI of the Procurement Law for the Federal District.
This bidding procedure will be carried out through Call No. 002, which is published on the website of “La Convocante” and in the Official Gazette of Mexico City, on October 26, 2018.
The consultation and, if applicable, delivery of the Bases will be made at Avenida de los Insurgentes Sur No. 235, 10th Floor, Colonia Roma Norte, C.P. 06700, Delegación Cuauhtémoc, Mexico, Mexico City, at the Jefatura de Unidad Departamental de Adquisiciones, from 10:00 to 14:30 hrs, on October 26, 29 and 30, 2018. The original receipt of payment at the Bank will be exchanged for the Bidding Terms and Conditions and a Bid Sale Receipt at the aforementioned address.