A CA in ... Madrid

Article Abstract:

UK companies spent 445 million pounds sterling for Spanish companies in 1989, representing 27% of all foreign acquisitions in Spain. The UK firms doing business in Spain will encounter three major difficulties: language barriers, a lack of market and financial information, and complex fiscal matters. Few owners or managers in Spain speak English, although a wide number of professionals do. As a result of the high fragmentation of the Spanish corporate sector, it also is difficult to obtain reliable market data, and the fiscal contingent liabilities of Spanish companies are difficult to ascertain due to the high incidence of personal and corporate tax evasion. In addition, many owners split a firm's sale price into a black money contract and a white money declared price to avoid a 56% capital gains tax. A tax efficient structure will have to be created by an acquiring UK company.

Foreign investments, Economic aspects, Acquisitions and mergers, Accounting, Spain, British foreign relations, Spanish foreign relations

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Debt recovery

Article Abstract:

The recession has meant that many UK firms are experiencing difficulties in collecting debts owed them by customers. In light of the recession, debt recovery can become a crucial factor ensuring a firm's survival. Firms should implement good credit control systems in order to minimize debt collection problems. The terms at which business conducted should be clearly delineated, and the terms of payment should be strictly enforced. Firms can also turn to external services such as factoring, in which a firm hands over the control of its sales ledger to the factor. The factor advances the firm up to 80% of the value of invoices and collects the firm's debt for a fee.

Methods, Analysis, Usage, Finance, Financial management, Collection (Accounting), Debtor and creditor, Factoring (Finance), Great Britain

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Profit and Loss Account Disclosures

Article Abstract:

The format of the profit and loss accounts have changed little since the passage of the United Kingdom's Companies Act 1981. Most of the companies' reports are similar to past formats with the detail included in the notes. Some companies are concerned that new disclosure will provide competitors with information. This is not a problem with this provision except perhaps if Format One is chosen as it requires disclosure of cost of sales and gross profit. Accountants are treating the headings differently. This inconsistency is a criticism of the Act. Examples of balance sheets are included to illustrate differences in compliance with the Act.

Planning, Financial statements

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