FINAL PROJECT

Training program:
(To be fulfilled by the student)
Subject:
(To be fulfilled by the student)
Send to: accounting@eneb.com

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ENEB Business School

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 Final Project Guidelines

Please use this format to submit your final work. The paper must follow all the
guidelines as instructed in order to obtain full credit.

Remember that our team of tutors is available for any questions regarding your
final work. You must present the final version of your work as no previous
corrections will be carried out. To submit the final project, students must use
the template below, with their answers written after each statement.

Please present your final paper according to these requirements:

 Arial 12 Font.

 Margin: 2,5.

 Line spacing: 1,5.

 All fields on the cover page must be completed.

 The document needs to be properly paged.

Your final project must be authentic and individual. Any work that has been
plagiarized or papers written by others or with the help of others are likely to be
failed. If this occurs for the second time, you will not be permitted to obtain your
degree.

Be aware that you are permitted a maximum of two submissions per subject. If
both projects do not meet the standards and fail, the student must pay the
corresponding fee to be evaluated again.

When writing your final project please use Microsoft Office, Adobe or Apache's
Open Office Writer tools (DOC, DOCX, ODT, PDF, etc.). Please consult your

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tutor when using a different format. Additional information about the software
will be needed.

Please use the following format:

ddmmyyyy_Subject_LastNameandName.pdf

Example:

11052019_StrategicManagement_ElsaMoore.pdf

The project should not exceed more than 18 pages, excluding the cover page,
bibliography and the appendix.

Evaluation Guidelines

The final work will be evaluated based on the following criteria:

 Acquired knowledge (25%): the knowledge acquired throughout the

course of the subject will be evaluated through the analysis of the
theoretical data shown in the project presented by the student.

 Development of the Subject (25 %): the interpretation of the thesis

subject by the student and its development will be evaluated in a
coherent and analytical manner.

 Final result (25%): the final evaluation is based on coherent

solutions applied to solve objectives set out in the paper. The
presentation must be conclusive and formatting must meet
established parameters.

 Additional information and bibliography (25%): additional

information regarding the research and subject matter will be

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 evaluated and taken into consideration as a bonus. This consist of:
bibliography, visual graphics, charts, independent studies carried out
by the student, external academic sources, articles of opinion, etc. All
sources, both printed and online, must be referenced according
to the APA regulations.

BACKGROUND

The company, North S.L., has the following information in the Balance
Sheet and Profit and Loss Account for 2016, before calculating its
Corporate Tax:

BALANCE SHEET
ASSETS LIABILITIES
69.360,00 A) NON CURRENT ASSET A) NET EQUITY 105.130,00

4.860,00 1. Intangible asset A-1) Equity 60.000,00

4.860,00 1. R+D 1. Capital 60.000,00
4.860,00 201 DEVELOPMENT 1. Issued capital 60.000,00
64.500,00 II. Tangible Fixed Assets 100 SOCIAL CAPITAL 19.500,00

64.500,00 2. Technical facilities and others. III. Funds 12.000,00

52.000,00 213 MACHINERY 1. Legal y statuary 12.000,00
8.000,00 216 FURNITURE 112 LEGAL FUNDS 7.500,00
3.500,00 217 INFORMATION PROCESSING 2. Other funds 7.500,00
EQUIP.
25.000,00 218 TRANSPORT 113 VOLUNTEER FUND 25.630,00
-24.000,00 281 CUMULATIVE DEPRECIATION VII. Result of the fiscal year 32.000,00

104.050,00 B) CURRENT ASSET B) NON-CURRENT LIABILITY 32.000,00

20.500,00 II. Stock II. Long-term debts 32.000,00

20.500,00 1. Commercial 5. Other financial liabilities 32.000,00

20.500,00 300 GOODS 171 LONG-TERM DEBTS 36.280,00

16.250,00 III. Debtors C) CURRENT LIABILITY 6.100,00
11.850,00 1. Clients (sales and services) III. Short-term debts 6.100,00
11.850,00 b) Clients (sales and services) short- 5. Other financial liabilities 6.100,00
term
14.300,00 430 CLIENTS 523 SUPPLIERS 30.180,00

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1.800,00 431 CLIENTS, COMMERCIAL PURPOSE V. Creditors 11.200,00
-4.250,00 490 VALUE IMPAIRMENT 1. Suppliers 11.200,00
4.400,00 6. Other credits with Public Adminis. b) Short-term suppliers 11.200,00
4.400,00 473 PUBLIC FINANCES, WITHOLDINGS 400 SUPPLIERS 18.980,00
67.300,00 VII. Cash 3. Different Creditors 18.980,00

67.300,00 1. Treasury 410 Creditors 105.130,00

2.200,00 570 CASH FLOW, EUROS
65.100,00 572 BANKS AND CREDIT INSTITUTIONS
173.410,00 T OTAL ASSETS TOTAL NET EQUITY AND LIABILITIES
173.410,00

LOSS AND PROFIT ACCOUNT

1. Net revenue 204.300,00
700 SALES OF GOODS 200.000,00
705 PROVISION OF SERVICES 5.500,00
708 SALES RETURNS -1.200,00
4. Supplies -69.800,00
600 PURCHASE OF GOODS -72.450,00
610 CHANGE IN INVENTORY 2.650,00
6. Staff costs -75.170,00
640 WAGES AND SALARIES -56.800,00
642 SOCIAL SECURITY -16.470,00
649 OTHER SOCIAL EXPENSES -1.900,00
7. Other operating costs -19.850,00
626 BANK SERVICES -700,00
627 ADVERTISING AND PR -3.600,00
628 SUPPLIES -3.800,00
629 OTHER SERVICES -7.100,00
631 OTHER TAXES -400,00
694 IMPAIRMENT LOSSES -4.250,00
8. Depreciation - 13.950,00
681 DEPRECIATION - 13.950,00
12. Other outcomes - 600,00
678 EXTRA COSTS - 600,00
A) ACTIVITY OUTCOME 24.930,00
13. Financial income 700,00
b) Other financial income 700,00
769 OTHER FINANCIAL INCOME 700,00
B) FINANCIAL OUTCOME 700,00
C) INCOME BEFORE TAXES 25.630,00
D) FISCAL YEAR OUTCOME 25.630,00

1. Make in each of the following points the adjustment needed to obtain

the tax base of the Corporate Tax, basing the response and

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establishing the amount that corresponds. You must also indicate if
you are facing a temporary or permanent difference. In points 8 and 9
you should not propose any adjustment, in these two cases you
should describe how they affect the liquidation of the Corporate Tax.

1. The machinery was acquired for € 52,000 in January 2014. An accounting

depreciation expense of € 7,000 is provided. Fiscally a maximum
amortisation coefficient of 12% and a maximum period of 18 years is
established.
The accounting depreciation is EUR 7,000; however, the tax depreciation
is EUR6,240 (EUR 52,000*12%). The distinction is EUR 760 in this case
(EUR 7,000 - EUR6,240). This difference is a tax asset that has been
deferred. It is a balance sheet item that indicates a tax overpayment in
the preceding year. This will end result in a decrease tax billthis year.
This is just a temporary distinction.

2. The transport element or vehicle was acquired on January 1, 2013, with a

price of € 25,000 and a useful life of 5 years. The accounting amortisation
is carried out using the method of decreasing digit numbers.

The tax base and accounting base are the same at the time of buy of the
car, implying that the quantity depreciated over the next 5 years will be
the identical for both purposes, which is EUR 25,000. A distinctive way of
depreciating the automobile may additionally be suggested by using
company tax legislation. Assume that the organisation tax regulations
dictate that the asset be depreciated using the straight-line method (EUR
5000 each year). The tax basis is now EUR 20,000; however the
accounting base is EUR 16,666 at the end of a year. However, at
the quilt of year 5, i.e., the give up of the beneficial life, the
difference is zero. An excel mannequin is connected for reference
YEAR Opening Decreasing digits Depreciation Closing
carrying carrying
amount amount
31/12/13 25,000.00 5 8,333.33 16,666.67
31/12/14 16,666.67 4 6,666.67 10,000.00
31/12/15 10,000.00 3 5,000.00 5,000.00
31/12/16 5,000.00 2 3,333.33 1,666.67

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 31/12/17 1,666.67 1 1,666.67 0.00
15

3. Provision of € 1,250 is provided for a debt that occurs on October 1, 2016.

The liability has not been claimed judicially.
To calculate income, the sum of € 1,250 will be approved as an price int
he Profit and Loss Account. The tax base of the agency tax will be
reduced. Once the obligation is claimed judicially as a reversal of
transient difference that is permissible in this year, the sum will be back
to the Profit and Loss accounts income.

4. A provision for insolvencies of € 3,000 is provided, an obligation that has

already been judicially claimed.

The sum of € 3,000 will be introduced lower back into the computation of
income as reported in the income and loss statements, so growing the
corporation tax base. .As it is an obligation that has formerly been
judicially claimed, this is a reversal of a prior transient distinction that was
granted beforehand this 12 months

5. The administrators have been paid for the performance of senior

management functions with € 10,000.

This is deductible for tax reasons, and the tax base will be decreased via
€10,000 because of it. The distinction between accounting profit and
taxes earnings is not permanent. As a result, a deferred income tax
asset/liability will arise.

6. An administrative penalty of € 600 has been imposed on the company.

This sum is now not deductible for tax purposes, and it will now not
decrease the tax base (or if it is already used as deduction, it will be
introduced back). The distinction between accounting profit and taxes
income is permanent. As a result, no deferred earnings tax asset or
legal responsibility will be created.

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7. The company has paid the posters for a sports conference for its
employees. This serves to advertise their products and services and has
cost € 1,200. The company gave the customers who attended the event a
batch of products worth € 2,200. Extraordinarily, he has given his
employees an assortment of products worth € 400.
The firm paid € 1,200 for posters to market their products and services
at a sports conference for their workers. This fee is chargeable to profit
and will be deducted in the earnings and loss account; it will not result in
any brief or permanent change.
In addition, the company supplied a batch of merchandise really worth €
2,200 to buyers who attended the event; this expenditure is chargeable
to income and will be deducted in the profit and loss account under
income promotion; it will no longer result in any brief or permanent
change.
The company has supplied its workers a choice of items costing € four
hundred - this fee is chargeable to profit and will be deducted
from the earnings and loss account as compensation to
employees; it will not incur any transient or everlasting differences.

8. The company is entitled to a deduction for having made investments

affected to R & D of € 1,200.
This suggests that the employer has taken a tax deduction for the
investment in the yr it was once made. The asset's tax base is zero, and
the carrying amount exceeds the tax base. Because the Carrying
quantity exceeds the Tax Base, there is a Taxable Temporary
Difference, and the company should create a Deferred Tax Asset.

9. The company has made instalment payments of € 4,400.

The firm has made € 4,400 in instalment payments, which will have no
impact on attaining the Corporate Tax base due to the fact there
is no brief or permanent difference. It is a mortgage repayment, and
the interest issue will be delivered to interest expenditures which is
chargeable to profit. The fundamental element will be removed from the
super loan.

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2. Calculate the liquidation of the Corporate Tax in a word document,
using the following scheme.:

$
Accounting result 100,000
+/- Permanent differences
Interest in exempted municipal bond -15000
Penalty charged by Tax Authority 9000
+/- Temporal differences
Depreciation as per accounting 8000
Depreciation as per Tax Law -12000
Set-off for tax bases from previous - tax -30,000
years.

Tax Base 60,000

Tax Base is adjustment of
all above
Tax rate 30%
Tax 18,000

Tax deduction, bonus and other 3,000

withholdings

Withholding and part payments 5,000

Tax difference 10,000

(18000-3000-5000)

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3. North S.L. is thinking of making an international expansion. However, you
need to determine whether to start big in a new market or expand into a
potentially large market, but at a slower and safer pace. The options that the
company's management has are:
a. Enter the North American market, where it is known that their services
can work, but they do not know in depth. They can enter through
Canada and expand across the United States or vice versa.
b. Open slowly but firmly in the Portuguese-speaking market. Due to its
proximity, they know the Portuguese market perfectly, and this would
allow North S.L. access to the Brazilian market, a country with a
thriving economy.
To find out which option is more beneficial for North S.L., compare the
possibilities that arise and justify which of the two is better, considering
which country offers better fiscal conditions and that North S.L. seek the
most significant benefit.

The choice to develop internationally and which foreign places market to

enter first must be made after a thorough examination of the numerous
hurdles and opportunities. The above-mentioned firm's administration is
introduced with a hard dilemma that may additionally be resolved by means
of evaluating what factors make one market most appropriate to the
other. The North American market, especially the United States and
Canada, is a full-size one for the company. The Portuguese market, on the
other hand, has a susceptible economy, but it approves the organisation to
enter the Brazilian market, which is a doubtlessly enormous market.

The similarities between the Canadian and US markets outnumber the

differences. Both markets are substantial. However, there are severe
policies and guidelines that might make doing commercial enterprise in the
usa hard for a overseas corporation. Due to increasing compliance costs,
complexity of regulations and regulations, taxation, intellectual property
laws, and different related criminal fees, the two markets are surely

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impossible to access. Aside from the felony expenditures, present rivals in
the Canadian and US markets pose a big threat. If a overseas organization
wishes to be a part of the Canadian or American market, it ought to be
capable to strengthen some thing that is awesome from what is presently
available. The firm's capacity to make bigger market share in these two
markets may be hampered by means of the fierce competition.

Even though the Canadian and US markets have a full-size purchaser base,
buyers in the two markets may also have distinct tastes and views on
overseas items. The US market is more difficult to penetrate than the
Canadian market considering the fact that most customers are unlikely to be
persuaded to gather a foreign product. However, by way of imparting
excellent objects that satisfy the needs of nearby consumers, this can
also be addressed. Another obstacle might be cultural and linguistic
differences. Even if the US market is more varied, the agency originates
from a location where the culture is extra intact than the US market. To
compete in the US market, the agency might also want to adapt its business
model. Expanding into the Portuguese market may additionally be pretty
simple for the company. The company may additionally incur decreased
costs in conquering this market due to lower entry boundaries and the fact
that the countries are near neighbours. It additionally has extensive
appreciation of Portuguese culture, resulting in less cultural and linguistic
hurdles. With a higher draw close of the neighbourhood market, the
employer can also increase and implement strategies to enter the
Portuguese market that are like those used in the home market.

However, as in contrast to the Canadian and American markets, the

patron base is smaller. The company's growth charge would be slower.
Given the prices of overseas operations, such as compliance and different
related expenditures, this market, while less profitable than the Canadian
and US markets, may additionally not be as profitable. To break in to the
Brazilian market, the us of a would matter on this market entrance. If it
succeeds in the Portuguese market, it will be easier to wreck into the
Brazilian market, albeit it will take some time

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I would recommend the second choice since it is less expensive
and allows the company to establish a market presence in South America.
It can readily reach the US and Canadian markets from the Brazilian market.

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