Vinke Air Freight Service Company Essay Example | Topics and Well Written Essays - 750 words

Vinke Air Freight Service Company - Essay Example A brief market analysis will inform the company of the value of its services to current clients and how these factors might differ from the customer base within the overnight small package delivery market. Vinke currently serves large- and mid-sized companies who occasionally need to ship parts to meet emergency needs. The present client base certainly must value the fact that their large packages can be delivered to an airport and Vinke will transport the parts as well as arrange final delivery. In an emergency, industrial delivery scenario, Vinke’s personal attention to clients is a major benefit. In the overnight letter and small package market, however, customers are not seeking the specialized attention that has built the company’s current market. They are more interested in having their letters picked up at their location and timely delivered to the intended destination. Neither are they faced with the issues of industrial shipping. These customers are consumers f or whom overnight delivery has become ubiquitous. They don’t need specialized personal care nor are they constrained by the logistics involved in moving large manufacturing parts to meet emergency timeframes; they simply want their letters to be picked up and delivered on time.   In considering the organizational changes required by the proposed entry into the new market, and the competition already in place there, the task could prove daunting. Vinke’s current client base is industrial or manufacturing companies. These organizations can be serviced from the airport to destination. For overnight letters and small packages, the company will not be able to expect its customers to drive to their airport; Vinke will need to implement a pick-up service. They won’t be competing for a relatively small pool of clients; they will be forced to serve the general public. This will require extraordinary organizational changes. Further, rather than the occasional and urgent nature of  delivering large industrial parts that easily fill up planes with just a few orders, the new market demands will centre upon frequent handling of routine letters and small packages.  

The Proper Accounting Treatment of Auto World Inc Essay

The Proper Accounting Treatment of Auto World Inc - Essay Example However, there is still a need to verify, through certain audit procedures and audit evidence if Pit Stop is really a component of an entity. This includes assessing if the cash flows subsequent to the disposal can be classified as direct or indirect cash flows in accordance with EITF No. 3 – 13 and if Auto World will still have a significant influence on Pit Stop’s operations after its disposal. The major accounting issue for Auto World is the proper accounting treatment, presentation and disclosure for Pit Stop’s operations in Auto World’s financial statements for the period ended June 30, 2007. All these will depend on whether or not Pit Stop is really a component of Auto World and whether it will qualify as discontinued operations. According to Paragraph 41 of SFAS No. 144, â€Å"a component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity†. Another definition in paragraph 10 of SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, stated that an operating segment is one that has its own business activities where it derives and incurs revenues and expenses, respectively. One factor to determine whether it is an operating segment is that its operating results are consistently viewed and analyzed by top management for decisions related to resource allocation and to performance assessment. Lastly, a â€Å"component of an entity† (SFAS No. 144, par. 41) can also be a reporting unit, that is, â€Å"an operating segment or one level below an operating segment† (SFAS No. 142, par. 30). Using the above definitions, it seems that Pit Stop is a â€Å"component of an entity (SFAS No. 144, Par. 41). This is based on the facts that one, all 30 branches of Pit Stop will be disposed one time and two, Pit Stop is distinguishable from the  other operations of Auto World, both in terms of physical branches and in terms of revenues and expenses.