Rapide Boots Inc Is a Saskatchewan- Based Maker of Heavy-

question 50

Essay

Rapide Boots Inc is a Saskatchewan- based maker of heavy- duty winter boots. Recently it has been in talks with a potential Russian joint venture partner to manufacture boots in the former Soviet Union for use by Russian consumers. The joint venture would require Rapide to export some of its equipment to a pre- built plant in Siberia, where Rapide technicians would teach locals how to use it over a period of time. At the end of the period, all rights to the equipment transferred would vest in the joint venture. Rapide wants to know what it can do to protect its equipment in transit and its operation prior to the transfer of ownership.

---

Definitions:

Traditional Financial Accounting

The conventional method of recording, summarizing, and reporting the financial transactions of a business to provide a clear financial picture.

Valuation of Liabilities

The process of determining the present value of liabilities, often for financial reporting or when entities merge or are acquired.

Impairment of Assets

A reduction in the recoverable value of a fixed asset or goodwill, signifying that its carrying amount exceeds its recoverable amount or market value.