QUESTION 3
a Kasapreko Company Limited is a wholly Ghanaian-owned company with branches in Nigeria, South Africa
and Germany. With relevant examples, explain the eclectic paradigm That Kasapreko might have fulfilled,
before venturing international.
b) Knowing that accounting and reporting laws diffce widely around the world thereby posing risks for the
international business, briefly explain for ezek how physical asset valuation (PAV) and research and
development (R&D) costs are likely to pose risks?
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Answer:
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Explanation:
B)
Physical assets include property, plant, and equipment etc. Now it is important to calculate the proper depreciation of physical asset with respect to the region where it is installed, means it should be assigned proper asset valuation. If this is done wrong, it can impact the overall balance sheet of the company, also the loans the company took to purchase the asset.
Similarly, it is important that company invest in R&D but in a rational way, because if R&D is not in right direction, it would destabilise the company operations
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