Accounting Archives - Page 11 of 20

What is ABC as used in Overhead cost calculations and applications.Why do companies use ABC instead of Traditional systems. How are over applied and under applied overhead handled. Also, it will be good if you use examples.

Chapter 4 – Traditional Costing vs. Activity Based Costing

Watch the video below and write a three to four paragraphs summarizing the contents of the chapter and video. In your posts you might want to discuss how Overhead is applied in traditional systems, What is ABC as used in Overhead cost calculations and applications.

Why do companies use ABC instead of Traditional systems. How are over applied and under applied overhead handled. Also, it will be good if you use examples.

Youtube video that you have to watch – https://www.youtube.com/watch?v=M-uGibLcQ-g&ab_channel=MarkTaylor

Also you don’t have to double space because will be posting it as a discussion.

What are the different ways in which IFRS might be used within a country?If the Federal Reserve raises interest rates during their next meeting, then what will happen to government bond prices?

ACC Questions

How does harmonization differ from Convergence?

What are the different ways in which IFRS might be used within a country?

How has the U.S. SEC policy toward IFRS changed?

If the Federal Reserve raises interest rates during their next meeting, then what will happen to government bond prices?

Discuss one point you like/agree with, and one point you dislike/disagree with, and why. (Do not just post “agree” as this will not count as a valid reply post and will not be graded or awarded points.)

Explain the deficiencies in Patel’s report as drafted. There are at least 15 deficiencies. Each student should identify only one deficiency in their original post and then respond to at least two other students posts sometime during the week. You can agree or disagree with other students but make sure you explain why you agree or disagree.

Discussion board topics are worth a total of 100 points for each discussion board assignment. The following points are what is looked for in your original posts to the discussion board and your replies to other students’ postings

Discuss one point you like/agree with, and one point you dislike/disagree with, and why. (Do not just post “agree” as this will not count as a valid reply post and will not be graded or awarded points.)

How U.K. taxes are “used to achieve government objectives”, giving examples of specific taxes and how they are designed to achieve particular government objectives;How U.K. taxes are used “to raise revenue to fund its public spending”; and

Taxation

Critically analyse the following in relation to the statement above:

1) How U.K. taxes are “used to achieve government objectives”, giving examples of specific taxes and how they are designed to achieve particular government objectives;

2) How U.K. taxes are used “to raise revenue to fund its public spending”; and

3) whether taxation in the U.K. “provides the foundation for an orderly, well managed country”.

Explain the accounting treatment of the shares issue if the issued shares are undersubscribed due to the current impact of COVID-19 pandemic affecting many economies across the world. How will this affect the company’s shareholders? How will this be different if you advice on the issue of a convertible debenture on the company’s capital structure and the shareholders?

Business accounting

Questions
Select two public companies which have been in a takeover or merger transaction in
recent years.
Question 1. Ratio analysis (30 marks)

Analyze the financial statements of these two companies in the year prior to the transaction, and
the consolidated financial statements 1 year and 3 years after consolidation using:
(a) Calculation of ratios:
(i) 3 Profitability and solvency (liquidity) ratios.
(ii) 2 Efficiency ratios
(iii) 3 Shareholder ratios
(iv) 3 Capital structure ratio

(b) Critically interpret and discuss the ratios in point (i) to (iv) above 1 year before and 3 years
after the takeover and merger transactions. Besides your qualitative explanations, use
figures, tables and graphs to present your data.

(c) Compare the ratios of consolidated financial statements with two of the main competitors
of the firm within the same industry and also with those of the industry.

(d) Would you invest in the company after the transaction? Why or why not? How does the
company compare to its competitors and the industry? Justify your answer by writing a
short recommendation to a potential investor. Structure your answer properly.

Question 2. Consolidation (30 marks)

A. The following are some of the elements which form part of the consolidated statement of
financial position:
a. Investment
b. Intra-group Assets and Liabilities
c. Intra-Group dividends (if any)
d. Unrealised profits
e. Non-controlling interest
Your task in this question is to:

(i) Identify the above elements in a statement of financial position from your case study
company and provide the excerpt where they are specifically shown (a print screen
supported by reference is sufficient). Where any of them is not clear or explicitly
shown, you can explain where they ought to be shown in the consolidated statement
of financial position.

(ii) Based on the lessons you learned in this chapter, explain how each of these
elements (‘a to e’ above) are determined/calculated so as to be shown in the
statement of financial position as illustrated in your case study statement of financial
position. Provide qualitative explanations based on what you learned in this chapter
i.e no need for calculations.

Note that your review should relate to the two companies you have chosen. Avoid
copying and redeveloping materials that are available via various information sources. If
the financial statements to the two companies you have chosen are not attached as an
appendix (Only the relevant part of the financial statements is required), your work will
not be graded.

B. Calculate the goodwill that has been explicitly explained or has implicitly been paid in the
transaction (State your assumptions). Elaborate on the acquiring company’s (explicit or
implicit) argumentation on the determined goodwill. In addition, show how much of this
goodwill has materialized in the results in the three years following the transaction.

Question 3. Financing of the transaction (30 marks)

You are a financial consultant and have been asked by the Board of the acquiring company you
selected to provide advice on equity financing, specifically the issue of shares. Your advice
should take into account the company’s current consolidated financial statements. Write a report
advising the management board on the following:

A. Describe the various types of shares which the company issued to raise capital. Illustrate
your answer with relevant examples (including the composition of the amount of capital
raised by each type of shares) as shown in respective section in the Balance sheet.

B. Based on your assessment of the company’s financial statement, what is your advice to
the Board of Directors in considering a rights issue. Provide a clearly argued rationale
consistent with the relevant IAS (International Accounting Standards) and the company’s
financial structure.

C. Explain the accounting treatment of the shares issue if the issued shares are
undersubscribed due to the current impact of COVID-19 pandemic affecting many
economies across the world. How will this affect the company’s shareholders? How will
this be different if you advice on the issue of a convertible debenture on the company’s
capital structure and the shareholders?

D. What is your comment on your case study company’s equity capital when you compare
its two consecutive financial years?

What implications do the deviations from plan and the general 2017 operating results have for the company and the bank? What financial strategies seem desirable during 2018? (Be especially aware of the implicit cost of trade credit.)

Case Study

Be prepared to address at least the following questions:

Is the company growing (i.e., calculate the year-to-year growth rate of sales)?

Are receivables in control? (Calculate days sales outstanding (DSO) through
time.)
Is inventory in control? (Calculate days of inventory through time.)

Are payables being managed prudently (Note: See footnote a to the income
statements)?

Is the company’s debt usage in control?

Is cost of goods sold in control?

Are operating and administrative expenses in control?

Is the company profitable? Is profitability improving?

In addressing these questions, calculate the ratios for each year’s actual financial statements
and for the forecast financial statements. In calculating ratios, use end-of-period balances
except for profit ratios. (Use the beginning of year balance sheet data in calculating profit
ratios.)

What implications do the deviations from plan and the general 2017 operating results have
for the company and the bank? What financial strategies seem desirable during 2018? (Be
especially aware of the implicit cost of trade credit.)

If you were WPS’s banker, what would you do?

How much should companies pay to motivate their employees after the pandemic crisis?Assume that the company was financially affected by the pandemic crisis; to what extent should the company provides benefits to their employees?

Issues of compensation and benefits in Malaysia

Relate what have been discussed in the articles with the issues of compensation and
benefits in Malaysia.

b. Based on the article by NSTP, entitled ‘Extensive study to revamp employee benefits amid
Covid-19 effects’, criticize;

i. How much should companies pay to motivate their employees after the pandemic
crisis?

ii. Assume that the company was financially affected by the pandemic crisis; to what
extent should the company provides benefits to their employees?

Article link : https://www.nst.com.my/business/2021/05/687400/extensive-study-revamp-employee-benefits-amid-covid-19-effects

Were the study participants representative of the U.S. population in current salary, when the Current Population Survey shows a median weekly wage/salary for adult full-time workers of $671?

Mini project

Were the study participants representative of the U.S. population in current salary, when the Current Population Survey shows a median weekly wage/salary for adult full-time workers of $671? To answer this question, you should run inferential statistics. You should run a comparison using SPSS.

Evaluate the demerger decision overall, taking into account the above financial and environmental impacts. How does Anglo American benefit from this demerger? Was this a good decision? Justify your answer. 20%

Final Exam

1. Impact on Balance Sheet
Discuss what Anglo American’s 2020 balance sheet would have looked like without the South African thermal coal operations. If you can quantify the impact, do so, and assume that any difference between the assets and liabilities to be removed in the demerger is applied to retained earnings. Discuss whether the loss of these assets and liabilities is material, and whether the financial position of the company is better or worse without them.

25%

2. Impact on Income Statement
Discuss what Anglo American’s 2020 income statement would have looked like without the South African thermal coal operations. If you can quantify the impact, do so. Discuss whether the loss of these revenues and expenses is material, and whether the financial performance of the company is better or worse without them.

25%

3. Quality of Disclosures
Discuss the appropriateness and usefulness of Anglo American’s disclosures regarding its thermal coal operations. Specify what information is missing, if any, that would have made more accurate answers possible for points 1 and 2 above.

20%

4. Environmental Goals
Discuss, in general terms, the overall impact of this demerger on Anglo American’s environmental goal of making “a responsible transition from thermal coal.”

10%

5. Overall Evaluation
Evaluate the demerger decision overall, taking into account the above financial and environmental impacts. How does Anglo American benefit from this demerger? Was this a good decision? Justify your answer.
20%

The essay must be broken down and structured with these 5 areas being addressed. Use subheading to indicate them in your paper.