Other requirements of the project Comment on differences between the segment

Other requirements of the project comment on

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of origin, where its headquarters is located. Other requirements of the project - Comment on differences between the segment reporting practices of your two companies that could result from legal, regulatory, cultural or other differences between Australia and Hong Kong. - Comment on whether any differences between the segment reporting practices of your two companies could be associated with differences in who (if anyone) controls your companies and whether your companies use debt finance Leal, regulatory, cultural or other differences between Australia and Hong Kong – things to consider - Legal differences – both are Common Law countries but HK is a special economic region of the PRC o Company law in hk - Enforcement of accounting standards in both countries. Is it similar? o Reference on moodle - Cultural differences – cultural secrecy is a potential problem hindering good disclosures. Is this a problem in HK or Australia? Compare Russia vs EU countries where Russian companies are poor disclosers, EU companies are not. Compare Aeroflot and Lufthansa airlines o Notes on moodle – data on highly secretive or not Aeroflot segment report 2018 (extract)(in millions of Rubles)
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Lufthansa 2018 segment report (extract) - Other differences – language. Are HK financial statements originally in Chinese and you are seeing the English translation. o Is there anything lost in the English translation - Other differences – political sensitivity across industries, e.g. there is more mining in Australia than in HK. Some large Australian mining companies earn very large profits in certain mining sectors (e.g. iron ore, coal) and the government has tried unsuccessfully to tax these super profits. Do such mining companies appear to hide their profitability in such sectors? - Other differences – place of incorporation. Many HK companies and a few Australian companies are incorporated in tax havens such as Bermuda or the Caymen Islands to minimise tax but are headquartered in HK/Aust. - Research shows that US companies incorporated in tax havens have poorer geographic disclosures than US incorporated firms. Why? Because they do not want to show how much profit or revenue they earn (and thus tax saved) in the tax haven. - Does that apply to your companies? Reference: Hope et al 2013 (on Moodle) Are differences between the segment reporting practices of your two companies associated with differences in who (if anyone) controls your companies - Many Australian companies have large numbers of small shareholders, with no controlling shareholder. Does yours? o List of top 20 shareholders (notes of financial statement - % of shares they own) - Some (not all) HK listed companies are companies originating from China, and:
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o Have a large (controlling) PRC government shareholding, and are also listed in Shanghai and/or Shenzhen (A shares in PRC, H shares on HKSE) (will be shown in shareholders equity) o Are not listed in the PRC but have PRC government shareholding (Red chips) o Are not listed in the PRC and do not have PRC government shareholding but are controlled by a PRC-based family (P- chips) -
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