10+ Kesseböhmer Interview Questions and Answers

Transfer pricing is the practice of determining the value of goods or services exchanged between related entities in different tax jurisdictions.

• Transfer pricing is used to determine the price of goods or services transferred between related entities in different countries.

• It is important for companies to ensure that transfer pricing is done at arm's length, meaning the price is similar to what would be charged between unrelated parties.

• There are several methods of transfer p...read more

Contract manufacturing is when a company hires another company to produce their products, while toll manufacturing is when a company provides raw materials to another company to produce a product.

• Contract manufacturing involves outsourcing the production of a product to a third-party manufacturer.

• The company that hires the manufacturer retains control over the design and distribution of the product.

• Toll manufacturing involves providing raw materials to a third-party manufactu...read more

Bonus shares are issued by companies to reward shareholders by giving them additional shares at no cost.

• Bonus shares are issued from the company's reserves or profits.

• They are given to existing shareholders in proportion to their current holdings.

• Bonus shares do not increase the value of the company, but they do increase the number of shares outstanding.

• The purpose of issuing bonus shares is to increase liquidity and make the shares more affordable for small investors.

• Bonus s...read more

Discount on issuance of bond is treated as an expense and is amortized over the life of the bond.

• Discount on issuance of bond is the difference between the face value of the bond and the amount received by the issuer.

• It is treated as an expense and is amortized over the life of the bond.

• The amortization of the discount reduces the interest expense on the bond.

• For example, if a bond with a face value of $1,000 is issued at $950, the discount on issuance is $50.

• This $50 discoun...read more

Operating leverage refers to the degree to which fixed costs are used in a company's operations.

• Operating leverage measures the impact of fixed costs on a company's profits.

• A company with high fixed costs and low variable costs has high operating leverage.

• Operating leverage can magnify profits in good times, but also magnify losses in bad times.

• Examples of fixed costs include rent, salaries, and equipment costs.

• Operating leverage can be calculated using the formula: % change ...read more

IFRS 9, IFRS 15, IFRS 16

• IFRS 9 - Financial Instruments

• IFRS 15 - Revenue from Contracts with Customers

• IFRS 16 - Leases

IFRS stands for International Financial Reporting Standards.

• IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• It is used by companies to prepare and present their financial statements.

• IFRS is designed to provide a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

• Examples of financial statements prepared using IFRS include balance sheets, income s...read more

Dividend is a distribution of a portion of a company's earnings to its shareholders.

• Dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock.

• It is a way for companies to share their profits with their investors.

• Dividends are typically paid out regularly, such as quarterly or annually.

• The amount of dividend paid to each shareholder is usually determined by the company's board of directors.

• Dividends can be a sour...read more

Bonus share is a free additional share given to existing shareholders by a company as a reward for their investment.

• Bonus shares are issued by a company to its existing shareholders at no cost.

• They are given as a reward for the shareholders' investment in the company.

• Bonus shares do not result in any cash inflow for the company.

• They increase the number of outstanding shares, but do not affect the ownership percentage of existing shareholders.

• For example, if a company issues a...read more