LVMH MOET HENNESSY LOUIS VUITTON SA

LVMH Moet Hennessy Louis Vuitton SA case study



LVMH Moet Hennessy Louis Vuitton SA case study

Autorité des Marchés Financiers

The Autorité des Marchés Financiers (AMF) is the body formed under the Québec Government to regulate financial sector of the region and provide necessary support to investors who are investing in financial products and services. The body was established by the Act Autorité des Marchés Financiers on 1 February 2004. The newly incorporated regulatory body is differentiated by an integrated management of financial sector of Québec, mainly in the fields of deposit institutions, insurance, securities - other than banks - and the division of financial products and services. Additionally, the authorities and its responsibilities under its legislation, the Authority enforces the laws proper to each of the fields it monitors. It can also make use of self-regulatory organizations (SROs) who are delegated certain powers of supervision. The financial autonomy of the Authority is provided by contributions and fees paid by individuals and businesses affected by the laws. The Authority is headed by a CEO appointed by the government. For the purposes of its governance rules, the Authority is supported by an Internal Auditor and the Advisory Council of direct labor.

This paper discusses Autorité des Marchés Financiers and its role in development of financial reporting in France. Legal reserve has emerged as a importance notion and frequently appears on the financial reports followed by a brief discussion on the Similarities and differences between LVMHs accounting policies based on IAS and US GAAP. Other topics on which the paper has shed some light includes global impact. In the last section, financial performance is assessed with the help of three key ratios.

As provided in its legislation, the Autorité des Marchés Financiers 's main task is to implement laws relating to the supervision of the financial sector, particularly in the fields of deposit institutions - other than banks, insurance, securities, and the allocation of financial products and services. In particular, the Authority must:

Make available support to investors and users of financial product and services;

make sure that financial institutions and other stakeholders in the financial sector comply with Prescribed standards of financial and compliance with the obligations that the Act imposes on them;

Supervise the distribution activities of financial products and services;

Supervise the activities of stock market and clearing, and that of securities markets;

Oversee derivatives markets, comprising stock exchanges and clearing houses for derivatives, by Ensuring that regulated entities and other stakeholders in the derivatives markets are complying with its obligations under the law;

Ensure the realization of programs of protection and compensation of consumer products and financial services users, and administer the compensation fund under the Act.

Legal Reserve

The concept of legal reserve can be used to appoint the assets to a financial institution must deposit with the central bank as a guarantee of their liabilities. The amount of the reserve varies according to the law, but usually it is a percentage applied to a given ...