Diamonds

In: Film and Music

Submitted By amink
Words 1002
Pages 5
Before starting the discussion on determining the functional currency of Sparkle, the issue of hyperinflationary economies should be addressed, according to IAS 29 and FASB 52 it’s presented in countries in which “the cumulative inflation rate over three years is approaching, or exceeds, 100%”. If this condition is presented in a country where a parent has a subsidiary they must not use the local currency as their functional currency, instead, the currency of the parent should be adopted.

In this regard, the International Monetary Fund states that the average inflation over the past decade in Nigeriawas 12.45% and during the last three years the average was 12.61%. Thus, it can be decided that this condition doesnot take place in this country and should be dismissed as a point of discussion in determining the functional currencyof Sparkle.

2009

Under IAS 21, there is a hierarchical approach to determine the functional currency of a company operating with foreign currencies, below are items to consider during the decision making process in descending order of importance:

1. The currency that mainly influences sales price for goods and services.
2. The currency of the country whose competitive forces and regulations mainly determine the sales prices of its goods and services.
3. The currency that mainly influences labor, material and other costs of providing goods or services.
4. The currency in which receipts from operating activities are usually retained.
5. Whether the activities of the foreign operation are carried out as an extension or are autonomous.
6. Whether transactions with the reporting entity are high or low proportion of the foreign activities
7. Whether the cash flows of foreign operation directly affect the cash flows of the reporting entity.
8. Whether the cash flows from the activities of the foreign operation are sufficient to…...

Similar Documents

Diamonds

...Until the beginning of the eighteenth century all known diamonds came from the Golconda region near Hyderabad in India. Pliny wrote an incredible account of how diamonds were found in an inaccessible valley. The locals threw meat into the valley and the diamonds stuck to it. Eagles carried off the meat to their nests from which the diamonds were recovered. At their peak the Golconda diamond fields probably supported many thousands of workers but were practically exhausted by the late seventeenth century. In 1844 diamonds were discovered in Brazil and for a while the Chapada Diamantina, or Diamond Highlands, in the state of Bahia, became the diamond capital of the world attracting prospectors and adventurers in the same way that the California Gold Rush did. A series of major diamond finds in South Africa from 1867 onwards, coinciding with a decline in production in Brazil, soon made it by far the biggest source of diamonds. As in Brazil and Indian the first finds were alluvial but by 1869 diamonds were being mined in South Africa. Their value depended on their rarity and Cecil Rhodes realised that if suppliers competed against each other that would be threatened. By the end of his short life Rhodes had gained control of the diamond mines and extended British rule over much of southern Africa. Mark Twain said of him that when he stands upon the Cape of Good Hope, his shadow falls to the Zambesi (Twain, 1904). One area that was not under British rule was South-West Africa...

Words: 380 - Pages: 2

Blood Diamonds

... Diamond Road Assignment 1. Rebel forces control areas and often through the forced labour of people, they produce stones that are known as blood diamonds. These rebels oppose the government, and use the money from the diamonds to purchase weapons and fund their military actions. Blood diamonds are also known as conflict diamonds. 2. If the natives own the land, they rent it to diamond companies, which will agree to leave everything like it was once they are done, Example: they will put all the fish back in the water. The natives then grow prosperous from the mine and the diamond companies are able to rent a piece of land until they no longer need it, which benefits them because they will not have to purchase it which relieves them of any long term commitment. 3. This situation benefits the natives because they are able to rent their land to the diamond companies, which will pay them and also keep the land well maintained. The diamond companies have respect for their land which is important to the natives and they leave everything like it was untouched. This situation benefits the diamond companies because they are able to mine diamonds, without the hefty cost of purchasing land. They are able to use the land for as long as they need and give it back to the natives, which save them a lot of money. 4. You are able to find a copy of the Rappaport report online at: www.rappaportdiamondreport.com. Usually, only subscribers to their magazine have access to......

Words: 709 - Pages: 3

Blood Diamond

...lived through this reality from the later eighties through the early twenty first century. The film Blood Diamond is based on this politically volatile era in the history of Sierra Leone. Three places are of prominent importance in the film. In these places life changing decisions and choices are made. The significance of these palaces drives the characters to defy common human behavior, put their lives in extreme danger and seemingly achieve the impossible. Of great importance is a mining valley in the countryside which is a stronghold of the Revolutionary United Front (RUF), a rebel insurgency seeking to oust the current government. The government remains in control of the capital city of Freetown. A third significant place is the a United Nations meeting hall where the United States and other powerful Western countries make life altering decisions regarding the state of Sierra Leone. Despite the stark differences in the characteristics of these places, there’s one element that is present in all three – corruption. Greed and personal interest is the uniting factor in the three significant places in the film. So rampant is this self-interest attitude that it takes a reality of its own as TIA, short for “This is Africa.” Here, no one can be trusted and everyone strives for himself. On the RUF controlled mine field, enslaved men sift through muddy valleys for diamonds at gunpoint. With child soldiers holding rifles ready to shoot, any sign of theft or inability is......

Words: 1255 - Pages: 6

Diamond Ethics

...Diamond Ethics Blood Diamonds, also referred to as conflict diamonds, are diamonds that derive from areas controlled by forces or sections opposed to lawful and internationally recognized governments, and are used to fund military action in resistance to those governments, or in breach of the decisions of the Security Council. These radicals sell these diamonds, and the money is used to acquire weapons or to fund their military actions, and used to bribe foreign officials. Blood Diamonds are often created through the involuntary strained labor of men, women and children. They are also stolen during delivery or stolen by attacking the mining operations of lawful manufacturers. These assaults can be on the extent of a large military operation. The stones are then smuggled into the international diamond trade and sold as legitimate gems. These diamonds are often the main source of funding for the radicals, however, weapons businesses, smugglers and dishonest diamond traders enable their actions. Vast amounts of money are at stake and kickbacks, intimidation, torment, and murder are methods of maneuver. This is why the term "blood diamonds" is used. That diamond tainted and terminated many lives and the report of that stone bears a strong ethical significance. Angola Angola gained independence from Portugal on November 11, 1975. Although independent, the Popular Movement for the Liberation of Angola (MPLA), the National Union for the Total Independence of Angola (UNITA), and...

Words: 1514 - Pages: 7

Blood Diamond

...ENGL 1157 05/05/2013 Blood Diamond I think, Blood Diamond could have been little shorter. While the film includes a number of political and sociological insights, the story is tepid and loses momentum as the storyline bogs down. The main character, played by Leonardo DiCaprio, has an effective arc that is believable because it does not force him to act contrary to his nature, but it takes a long time for Blood Diamond to get us to DiCaprio's moment of recognition. Pacing issues aside, this is a well constructed movie and clearly the product of a director who understands how to make a top-notch motion picture. It looks great and sounds great. If only Edward Zwick's mastery of the medium had extended to pruning the screenplay and editing the final result, Blood Diamond might have been a great film rather than one worthy of only a lukewarm recommendation. The story takes place in 1999 Sierra Leone, when the country is embroiled in a civil war. In this case, it's hard to determine which side is worse: the government or the rebels. As is often the case in this sort of bloodbath, atrocities abound and it's the innocent farmers and villagers caught in between who pay the price. Diamonds, one of the country's largest exportable commodities, are being smuggled out and purchased on the open market despite a supposed international ban on the purchase of so-called "conflict diamonds" or "blood diamonds." This historical background is accurate, although the three primary......

Words: 1015 - Pages: 5

Report on Argyle Diamonds and the Diamond Industry

...Report on Argyle Diamonds and the Diamond Industry 1 INTRODUCTION India was the only known source of diamonds before the eighteenth century when diamonds were discovered in Brazil. The modern diamond industry was born in 1867 when diamonds were discovered in the Kimberley region of South Africa. The De Beers mining company was formed and they controlled 80-90 per cent of the rough diamonds entering the diamond market. The De Beers share of the diamond market fell in the 1990’s when the Soviet Union moved to a free market economy as Russian diamond mining companies were selling their diamonds on the open market. The Central selling Organisation (CSO) controlled by De Beers is responsible for regulating the price of diamonds on the market and marketing a large percentage of the world’s diamonds. The CSO protected the dominance of the diamond cartel but this monopoly was challenged by Argyle Diamonds when they refused to renew their marketing contract with De Beers. Argyle has been characterised by low value coloured diamonds, however their highly sought after pink diamonds has successfully differentiated their products from other diamonds the in the market (Vinciullo, Annear and Disbury, Not dated). 1.1 AIM OF THE ASSIGNMENT The aim of the assignment is to research and analyse the diamond industry and to evaluate Argyle Diamonds’ strategic position in the diamond industry. 1.2 OBJECTIVES OF THE ASIGNMENT • To research and evaluate competition in the......

Words: 2594 - Pages: 11

Botswana and Diamonds

...Botswana and Diamonds Table of Contents Cover Page 1 Table of Contents 2 Executive Summary 3 Global Business Analysis: Market of Botswana and Diamonds 4 Global Business Opportunities 4 Economic and Geographic Environment 4 Social and Cultural Environment 4 Political and Legal Environment 5 International and Local Competition 5 Economic and Geographic Environment 5 Managing International Financial and Business Risks 6 Characteristics of Global Management Information Systems (MIS) 6 Characteristics of Global Human Resources 7 Characteristics of Global Marketing 7 Product Target Market Planning for Foreign Markets 7 Designing a Global Distribution Strategy 8 Selecting an International Pricing Strategy 8 Determining Organizational Financial Results 9 Key Success Factors for Global Business 9 Monitoring and Control 9 Recommendations 10 Conclusion 10 Appendixes 12 Executive Summary This business analysis is in reference to a foreign direct investment into a diamond business within Botswana. This analysis provides the information to determine, if Botswana is a viable country for investment. The pertinent information is in reference to the country’s culture, economy, geography, resources and other factors that will assist with our analysis. In conclusion, a favorable recommendation is given for investment in a diamond mining business in Botswana. Global Business Analysis: Market of Botswana and Diamonds Botswana population is......

Words: 2142 - Pages: 9

Diamond Chemicals

...Diamond Chemicals: Merseyside and Rotterdam Project Investment decision analysis Group Name- fInatics Group Members- 1. Nishant Kumar (MP13037) 2. Rahul Naredi (MP13039) 3. Samardarshi Sarkar (MP13046) 4. Shadab Akhtar (MP13050) Summary About the case Diamond Chemicals is a leading producer of polypropylene, the polymer used in a variety of products (ranging from medical products to packaging film, carpet fibers, and automotive components) and is known for its strength and elasticity. Diamond Chemicals is producing polypropylene at Merseyside, England and in Rotterdam, the Netherlands. Both factories are identical in size, age, and plant design. Merseyside is a factory built in 1967. Merseyside production process is the production process that are old, the best semi-continuous, and therefore has a total workforce of more than the other plant competitors. Diamond Chemicals is under pressure from investors to improve the financial performance due to economic slowdown worldwide and also the accumulation of common stock of the company. Revenue per share has fallen to 30 Euros at the end of 2000 from around 60 Euros at the end of 1999. Original Assumptions |   |   | Suggested Assumptions |   | Annual Output | 250000 |   | Annual Output | 250000 | Output Gain/Original Output | 7% |   | Output Gain/Original Output | 7% | Price/ton (Pounds Sterling) | 541 |   | Price/ton (Pounds Sterling) | 541 | Inflation rate (Prices and costs) | 0% |   |......

Words: 636 - Pages: 3

Blood Diamonds

...The documentary, Blood Diamonds – The True Story, that I just watched broke my delicate heart. I pity all the victims of the heartless act done by the rebel groups, National Union for the Total Independence of Angola (UNITA) and the Revolutionary United Front (RUF). I just cannot imagine how many innocent lives perished for the sake of funding civil wars in Central and Western Africa. In addition, I felt guilt within me for patronizing diamonds without knowing the real price and deeper reality behind these precious stones. Without any doubt, the film was very effective in achieving its purpose and intention through the techniques that was used. In fact, it presented firsthand accounts of the survivors and the culprits of the African diamond-funded wars, including testimonies from industry experts and journalists. Moreover, it shows actual footages of rebel groups attacking the diamond areas. With these, the viewers are now aware of the deeper reality that these diamonds has caused violence, slavery and killing of millions of people. Definitely, the film changed my perspective about diamonds. I realized that behind the shining and shimmering beauty of these valuable gems are bloodsheds among many people in Africa. Furthermore, I realized that not all that glitters are considered to be treasures. This just proves that awareness is very important. In patronizing products, one should first be knowledgeable on how these products came into existence. Finally, if I were......

Words: 284 - Pages: 2

Conflict Diamonds

...Conflict Diamonds in the early 2000s, a common concern emerged among members of an oddly matched group : the diamond industry, the united nations, several goverments, and human rights campaigners. All wished to end the trade in conflict diamonds, gemstonesthat are mined or stolen by rebels fighting internationally recognized goverments. The $6 billion a year diamond industryhas long been dominated by the De Beers Corporation. Founded in south Africa by Cecil Rhodes in the 1880, the beers strategy has been to own as many diamond mine as possible and to sell its rough (uncut) stones exclusively to a small group of preferred dealers at prices set by the company. To maintain its control over supply, De Beers operated buying offices all over the world, “sweeping up” diamonds produced in mines operated by others. The result, for many years, was a virtual monopoly. De Beers has also been a shrewd marketer, pouring millions of dollars over the years into advertising. Using the slogan “a diamond is forever”, the company cultivated and association between diamonds and romance. The company first promoted solitaire engagement rings, later, it shifted its marketing focus to the so called eternity ring, a band of multiple smaller stones aimed at older married couples. In the early 1990s, event in several diamond-rich African nations converged to tarnish the gem’s carefully cultivated image of love and purity. During the cold war, many partisans in civil conflicts in Africa received......

Words: 1080 - Pages: 5

Blood Diamond

...the movie Blood diamond. Edward Zwick displays the complete transformation of Archer over the course of the movie, from a greedy anti-hero to a selfless hero who puts others before himself. Archer’s epiphany starts after meeting Solomon Vandy in prison, the local fisherman who found the rare pink diamond. Another person that play a huge role in determining the identity of Archer is Maddy Bowen, the reporter from New York. I will be discussing the specific scenes in which I think Archer starts his transformation into becoming a better person (IMDb.com). Solomon is captured and forced to work in an RUF diamond mine. Soon after, his elementary-school-aged son is also captured. Later he is shown at an RUF camp, being taught with a group of children his age to forget their families, pledge absolute loyalty to the RUF, fire weapons, and to kill without shame. At the mine, Solomon discovers a remarkably large and valuable pink diamond and buries it for safekeeping. The Sierra Leone army launches a deadly air strike against the rebels and the survivors, including Solomon, are arrested and brought to a jail in the capital. Because of a diamond-smuggling deal gone wrong, Danny Archer ends up in the same jail and learns about Solomon's pink diamond. He arranges for Solomon's release, hoping to get the diamond for himself in return for helping Solomon to find his family. Archer then tracks down Maddy Bowen, an American journalist looking to do a story on blood diamonds, and promises......

Words: 1241 - Pages: 5

Blood Diamond

...May 4, 2010 How do conflict diamonds fuel the conflict in regions they come from? From my impression of the films Blood Diamond and Lord of War, the illegal act of trading arms for diamonds seems like business as usual. It’s not until you look at, where the diamonds come from, how they are mined and who controls/owns the gems, that you begin to understand why these precious stones are called “Blood Diamonds”. Most diamonds on the market come from expensive mining operations run by large corporations, who drill into large bodies of volcanic rock containing diamond deposits, known as kimberlites. Sources like these are not easily accessible to anyone and in the case of Africa, “conflict diamonds come primarily from places where rivers have washed over kimberlites and spread their wealth down river in thick deposits of mud and gravel”. (stemming the flow) In west Africa, there are many well known regions which contain some of the world’s largest diamond deposits. INTRODUCTION The link between diamonds and armed conflict in Sierra Leone is obvious, and has been exposed, investigated, and deplored by humanitarians, journalists, politicians, and diamond industry leaders. Less obvious are the complex, entrenched relationships between exploitative systems of financial intermediation and resource management, poverty, and the spectacular, mysterious wealth of the diamond trade. Diamonds have facilitated, not caused, and armed conflict. Pre-war economic and social......

Words: 436 - Pages: 2

A Diamond Personality

...Running head: DIAMOND PERSONALITY Diamond Personality 11/09/11 Belinda There are a few principles for positive interpersonal communication that I see as very important. There is a sense of the richness of communication on a face to face level, is much more effective and personal. You experience the conversation on a higher level. You are physically seeing the facial expressions, body language, and movements of the person in which you are sharing this conversation with. In my culture, we kiss and hug each other at each visit. This means a lot in my culture, it makes your conversation much more meaningful. In relationships you allow yourself to advance to a much more intimate and personal level when you spend time together, in person. I believe that at work we create a option to work closer as a team by meeting in person, rather than through email or video conferencing. When we talk about interpersonal communication, there is a certain process that is followed. According to (Reference.com) “The basic process of communication begins when a fact is observed or an idea formulated by one person. That person (the sender) decides to translate the observation into a message, and then transmits the message through some communication medium to another person (the receiver). The receiver then must interpret the message and provide feedback to the sender indicating that the message has been understood and appropriate action taken.” So, in more simple terms, the......

Words: 843 - Pages: 4

Diamonds in Retail

...Introduction Emphasizing its focus on the diamond retailing industry toward the end of 2008, Blue Nile and Diamond Retailing have aggressively risen as a concern for businesses in the United States due to an economic downturn. The vast majority of diamond retailers are affected by this downturn. Given the basic performance information on Blue Nile, Zales, and Tiffany, our group will be analyzing all three companies and examining their business situations. Blue Nile is emphasizing how it has taken advantage of the internet and gaps left by the brick-and-mortar retailers, in order to build a new channel of distribution and emerge as a competitor to established retailers. Whereas Tiffany Co. who has primarily decided to open small retail outlets that will focus primarily on high-value products in small prosperous areas, and Zales whose primary concern is securing demographics as its market share. In our research we will include important drivers of supply chain performance, assumptions and uncertainties of the supply chain design, an assessment of the current supply chain design and our recommendations on improved performances in regards to each company’s strategy and structure. This will help us consider most importantly how each company affects the firms ability to respond during periods of strong and weak demand. Assumptions, Factors and Uncertainties Making our strategic recommendation we are assuming that the diamond industry has been heavily impacted by the......

Words: 629 - Pages: 3

Blood Diamonds

...business, the diamond industry has taken pains to evade questions about its connections with Israel’s human rights abuses — and so far has escaped scrutiny from watchdog organizations. Representatives for 75 countries affiliated to the United Nations-based Kimberley Process Certification Scheme meeting in Kinshasa this week failed to reach agreement on the export of blood-stained diamonds from Zimbabwe. The elephant in the room was Israel’s burgeoning diamond exports which evade the human rights strictures imposed on Zimbabwe’s diamond exports. A “letter of the month” that I authored and which was published in the April edition of Retail Jeweller magazine exposes these double standards in the Kimberley Process regulations that facilitate the trade in blood-stained diamonds from Israel and Zimbabwe (Letters, Retail Jeweller Magazine, April 2011). The letter caused “consternation” to some in the diamond industry and resulted in the withdrawal of the magazine from a major jewellery trade fair in Switzerland (“Gems editor sorry for ‘blood diamond’ boycott letter,” The Jewish Chronicle, 7 April 2011). The letter drew the wrath of vested interests and leaders of the Israeli diamond industry. Their response via the Letters page in the May edition of the magazine demonstrated the sensitivity of the global diamond industry to any exposure of the links between Israeli diamonds and Israeli war crimes. Three letters, signed by six prominent members of the global diamond......

Words: 336 - Pages: 2