http://www.thestar.com/business/article/709304--siemens-gets-ontario-wind-turbine-order
Summary
Siemens AG has been picked to supply 250 wind turbines, worth US$ 888 million, to the United States and Canada. One fourth of the orders are going to unspecified projects in Ontario, while the other turbines will be sent to California, Oklahoma, Washington, and Wyoming. To undergo this project, Siemens in North America needs all 900 workers, and is planning to increase that amount. Wolfgang Dehen, chief executive of Siemens, said that this proves a lot to the wind industry. He believes that the wind industry has a definite standing in the market and having the support from Canada and US is helping out the wind project development.
Connections
There were several connections I made between this article and the book. Revenue Recognition Criteria is the GAAP that will determine when Siemens Ag will recognize expenses and revenue. Revenue will be recognized when Siemens AG has completed the turbines or when there is a high chance that the project will be completed. Selling these 250 wind turbines of assets is considered an operating activity for the company because the wind turbines being produced have value to the company and will be of economic benefit in the future are eventually going to be sold, generating profit (or loss). Selling these assets will cause an increase in the cash flow statement of Siemens AG, resulting in an increase in the retained earnings. Lastly, Siemens AG as of right now has approximately 900 workers. When wages are not paid out yet in cash but it is the end of the period, the wages are going to be recognized in the income statement. That is an example of an accrued expense, where expenses are recognized in the income statement prior to being paid out in cash during that period.
Reflection
The wind project development’s goal is to use natural power, in this case the wind, to generate the electricity we use. I love how US, and Canada, are supporting the wind project development. This sends a message to the rest of the world that the leading producer of carbon dioxide, the US, is moving towards becoming a green country.
However, why has US and Canda turned to Siemens, a German-based company, to do the making of the turbines? Doesn't Canada and US also have the man power to create those machines? That was one thing that stumped me as I was reading the article. Nonetheless, one thing is for sure, and that is Siemens is the leading invester in ecofriendly projects. They will play a major roll in helping Canada and the US to establish a green reputation
Clement Ip
Thursday, November 26, 2009
Tuesday, October 13, 2009
Chapter 2- Siemens AG receives big orders from Canada and US
http://www.thestar.com/business/article/709304--siemens-gets-ontario-wind-turbine-order
Summary
Siemens AG has been picked to supply 250 wind turbines, worth US$ 888 million, to the United States and Canada. One fourth of the orders are going to unspecified projects in Ontario, while the other turbines will be sent to California, Oklahoma, Washington, and Wyoming. To undergo this project, Siemens in North America needs all 900 workers, and is planning to increase that amount. Wolfgang Dehen, chief executive of Siemens, said that this proves a lot to the wind industry. He believes that the wind industry has a definite standing in the market and having the support from Canada and US is helping out the wind project development.
Connections
There are 3 relations to the book. Firslty, when Siemens AG sells these turbines to the various places, Siemens AG will find out its profit by subtracting the expenses used to create the wind turbines with the actual worth of the turbines. That is called the net income. The net income is then debited to the cash account on the balance sheet, and credited to the retained earnings. Secondly, selling these 250 wind turbines is considered an operating activity because the wind turbines being produced are eventually going to be sold, generating profit (or loss). Selling these assets will cause an increase in the cash flow statement of Siemens AG, resulting in an increase in the retained earnings. Finally, when Siemens AG pays wages to their 900+ workers, the transaction that will be recorded is a credit to cash account and a debit retained earnings(expenses).
Reflection
The wind project development’s goal is to use natural power, in this case the wind, to generate the electricity we use. I love how US, and Canada, are supporting the wind project development. This sends a message to the rest of the world that the leading producer of carbon dioxide, the US, is turning towards becoming green country. Right now, as the economy is trying to recover from the slump it was in last year, it is all about business. In order to get people to start buying, factories, agencies, offices, and stores need to be open up a later than usual, therefore consuming more electricity. Where is this electricity going to come from? By generating this electricity with wind, expenses used to keep the wind turbines would be kept low, and a lot more within the business world can be done.
Clement Ip
Summary
Siemens AG has been picked to supply 250 wind turbines, worth US$ 888 million, to the United States and Canada. One fourth of the orders are going to unspecified projects in Ontario, while the other turbines will be sent to California, Oklahoma, Washington, and Wyoming. To undergo this project, Siemens in North America needs all 900 workers, and is planning to increase that amount. Wolfgang Dehen, chief executive of Siemens, said that this proves a lot to the wind industry. He believes that the wind industry has a definite standing in the market and having the support from Canada and US is helping out the wind project development.
Connections
There are 3 relations to the book. Firslty, when Siemens AG sells these turbines to the various places, Siemens AG will find out its profit by subtracting the expenses used to create the wind turbines with the actual worth of the turbines. That is called the net income. The net income is then debited to the cash account on the balance sheet, and credited to the retained earnings. Secondly, selling these 250 wind turbines is considered an operating activity because the wind turbines being produced are eventually going to be sold, generating profit (or loss). Selling these assets will cause an increase in the cash flow statement of Siemens AG, resulting in an increase in the retained earnings. Finally, when Siemens AG pays wages to their 900+ workers, the transaction that will be recorded is a credit to cash account and a debit retained earnings(expenses).
Reflection
The wind project development’s goal is to use natural power, in this case the wind, to generate the electricity we use. I love how US, and Canada, are supporting the wind project development. This sends a message to the rest of the world that the leading producer of carbon dioxide, the US, is turning towards becoming green country. Right now, as the economy is trying to recover from the slump it was in last year, it is all about business. In order to get people to start buying, factories, agencies, offices, and stores need to be open up a later than usual, therefore consuming more electricity. Where is this electricity going to come from? By generating this electricity with wind, expenses used to keep the wind turbines would be kept low, and a lot more within the business world can be done.
Clement Ip
Wednesday, September 16, 2009
Summary
Scotiabank recently introduced its Small Business Banking initiative to Greater Toronto Area. This is a 5 month tour that will include Scotiabank’s Small Business Banking tools, services, and experts, all for the purpose of hoping to give financial advice and strategies to small business owners in the Greater Toronto Area to help their businesses grow. Scotiabank is targeting GTA because Ontario is still suffering from the effects of the U.S. downturn and a slight increase in gas and oil prices, and small businesses being able to prosper in the Greater Toronto Area will definitely help out Ontario’s economic state. The GTA remains an attractive place and expanding business in the area is not a problem because it is a very well-educated and service-oriented economy.
http://www.accountingworld.ca/aw_new_2008_09_23_2.htm
Connections
In order for Scotiabank to fully understand the financial status of the businesses in the Greater Toronto Area, accountants have to prepare different financial statements including balance sheets and income statements. Both of these statements are able to fully identify the business’s assets, liabilities, earnings, and ultimately the financial status of the business. Also, the information Scotiabank obtains from the financial statements can also be passed on to other external users such as credit-rating agencies. Credit- rating agencies give a credit rating of businesses based on how well they are able to pay off their debts. After knowing all the necessary information, this is when Scotiabank experts step in and provide knowledgeable judgments about possible business related events. Accountants will play a big role in preparing financial information to Scotiabank in order for their Small Business Banking initiative to be a success.
Reflection
It is great that Scotiabank is campaigning in such a big project. What this does is it is setting a spark into Toronto and Ontario’s economy. Toronto is a well known place, and being able to prosper the area with small businesses can really make a difference. However, can this little spark in a small area of Toronto help Canada the nation itself? Scotiabank has started something very crucial to our economy, and I think that it is just a matter of time until other banks would follow. A little action in the Greater Toronto Area might be able to bring Toronto out from economic adversity, so maybe a little action everywhere can truly recover Canada from economic slump.
-Clement Ip
Scotiabank recently introduced its Small Business Banking initiative to Greater Toronto Area. This is a 5 month tour that will include Scotiabank’s Small Business Banking tools, services, and experts, all for the purpose of hoping to give financial advice and strategies to small business owners in the Greater Toronto Area to help their businesses grow. Scotiabank is targeting GTA because Ontario is still suffering from the effects of the U.S. downturn and a slight increase in gas and oil prices, and small businesses being able to prosper in the Greater Toronto Area will definitely help out Ontario’s economic state. The GTA remains an attractive place and expanding business in the area is not a problem because it is a very well-educated and service-oriented economy.
http://www.accountingworld.ca/aw_new_2008_09_23_2.htm
Connections
In order for Scotiabank to fully understand the financial status of the businesses in the Greater Toronto Area, accountants have to prepare different financial statements including balance sheets and income statements. Both of these statements are able to fully identify the business’s assets, liabilities, earnings, and ultimately the financial status of the business. Also, the information Scotiabank obtains from the financial statements can also be passed on to other external users such as credit-rating agencies. Credit- rating agencies give a credit rating of businesses based on how well they are able to pay off their debts. After knowing all the necessary information, this is when Scotiabank experts step in and provide knowledgeable judgments about possible business related events. Accountants will play a big role in preparing financial information to Scotiabank in order for their Small Business Banking initiative to be a success.
Reflection
It is great that Scotiabank is campaigning in such a big project. What this does is it is setting a spark into Toronto and Ontario’s economy. Toronto is a well known place, and being able to prosper the area with small businesses can really make a difference. However, can this little spark in a small area of Toronto help Canada the nation itself? Scotiabank has started something very crucial to our economy, and I think that it is just a matter of time until other banks would follow. A little action in the Greater Toronto Area might be able to bring Toronto out from economic adversity, so maybe a little action everywhere can truly recover Canada from economic slump.
-Clement Ip
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