Calculate the loss suffered by the shareholders, Financial Accounting

In June 2004, Feltex Carpets Limited raised NZ $254 million in an initial public offering. Twenty seven months later the company was in receivership, its share price having collapsed from $1.70 per share to 3 cents per share.

a) Summarise the history of the FeltexCarpets Limited case.

b) Critically discuss the roles played in the FeltexCarpets case by:

i) the directors of FeltexCarpets Limited

ii) the auditor of FeltexCarpets Limited

In particular, discuss fully, referring to the relevant legislation, common law and any other appropriate sources, whether or not you believe that the directors and/or auditor should be held liable for the losses suffered by the shareholders.

b) Furthermore, discuss fully, by consideringeach of the fundamental principles of

PES 1 Ethical Standards for Assurance Providers, whether you believe that the auditor of FeltexCarpets Limited was responsible for any breach(es) of this Standard.

Posted Date: 2/20/2013 12:38:49 AM | Location : United States







Related Discussions:- Calculate the loss suffered by the shareholders, Assignment Help, Ask Question on Calculate the loss suffered by the shareholders, Get Answer, Expert's Help, Calculate the loss suffered by the shareholders Discussions

Write discussion on Calculate the loss suffered by the shareholders
Your posts are moderated
Related Questions
Q. Stock dividends and stock splits have the following effects on retained earnings: Stock Splits Stock Dividends a. Increase No change b. No change Decrease c. Decrease Decrease d

Consider two individuals with endowments of 60 hours per week of leisure, nonlabour income of $Y per week, and a wage of $7.50.  At this wage assume that workers are constrained by

Question Capital Expenditure Decisions and Investment Criteria Bodmin plc Bodmin plc is a highly profitable electronics company that manufactures a range of innovative produ

How do I treat with Expenses Outstanding, for example, Marketing Expenses outstanding at year end is $1250. How do I adjust?. It is a note under the trial balance.

I need help with assignment completeion

Greek Debt Exchange On the evening of February 20, 2012 private institutional investors, representatives of the IMF, ECB, and European governments agreed to a major "intervention"

DEEDS OF ARRANGEMENT (D of A) 1. Nature of a D of A : To avoid the expense and delay involved in a bankruptcy, a debtor in trouble may make a private arrangement with the

Business start up accounting transactions: Jane Whitfield, a sole proprietor, established the JW Flower Shop on January 2, 2010. The following transactions have occurred during

The net present value has been computed for Proposals A and B. proposal A proposal B invested amount 75000 125000 total present value of cash 84000 136250 net present value 9000 11

Calculation of the actuarial gain/losses in year to 31 December 2010 FV of plan assets PV of plan liabilities $000