Sillic case study ( write the positive and negative ) Essay Example

Silic Case Study

Advantages (Positive)

Disadvantages (Negative)

There is a better comparison of the income that is gained from the local market as well as the international market. The local market is well stratified and Silic organization can easily predict the trends. The international market is additionally extended due to increased number of customers who benefits from goods and services of Silic.

The organization has failed by not setting up a time frame for implementation of the decisions made by the Board of Directors of Silic. According to the analysts, failure to plan for the company’s activities may lead to losses.

Silic has moved to the accounting method of fair value, especially in the firm’s operation in France. The fair value has benefits to the firm as the appraisals will not depend on the third party for approval.

The dividend policy that exists in the firm is not in line with the accounting policy of fair value, rather, it is most convenient with the traditional accounting method of the firm hence posing a challenge.

The firm has thrived through avoidance of the false analyst who in one way or another predicts the failure of the company. The CEO with the team is working towards making Silic an internationally known firm for the best services to the customers. The financial analyst community preferred the cost accounting that has been used for a long time by the firm without sustainability. The firm has stuck to its sustainable decisions despite the critiques from the analysts.

Failure of the new policy to include the third party decision makers is risky to the financial management of the firm. Errors and misappropriation of funds are likely to occur where the manager of the firm is the final decision maker. Additionally, sharing of prices is not fully covered by adoption of fair value policy