Description: Some shocking news emerged this week as we found out that Canada had arrested Huawei Chief Financial Officer Meng Wanzhou at the request of the United States. As the Canadian court held a bail hearing on Friday, it seems that the CFO faces possible fraud charges regarding Huawei’s use of a subsidiary to sell product to Iran. Meanwhile, the Chinese government is expressing considerable concern around the matter. Stock markets reacted negatively in fear that the event may trigger further trade troubles between the US and China.
Date: December 7, 2018
1) Do you or any of your classmates use a Huawei phone? What are its strengths and weaknesses?
2) How do you think this international situation will play out?
3) What are three common methods used to account for an investment in another company? Hint: see page 654 of Wiley’s Financial Accounting: Tools for Business Decision-Making.