Financial Procedure – Submarine
Financial Procedure is one of important requirement by a submarine cable consortium after the consortium formally formed . The task to draft and develop financial proceure is normally fall under responsibility of Finance & Admin Sub Committee (F&ASC) and Central Billing Party (CBP) based on terms of reference in Construction & Maintenance Agreement (C&MA). The financial procedure is required because the consortium members are came from different countries and region with different accounting standards, reporting standard, different taxation regime and other statutories requirements. During the F&ASC meeting, the consortium member will discuss about the procedure to ensure it is inline with their interest and requirements. It is difficult to fulfill and incorporate each and every one of consortium member interest in the procedure as the procedure need to be general and applicable by all the countries.
The main sources of reference in development of financial procedure are as follows
Construction & Maintenace Agreement (C&MA) singed by all consosrtium members
Supply Contract with turnkey contractor for provision of construction the submarine cable
Taxation regime of each contries
Company financial procedure and policies