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
Question: The following information was extracted from the books of William Noel for the year ended 30 April 2009.


The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as f

Q. What are Junk Bonds? Junk Bonds - DEBT SECURITIES issued by companies with higher than normal credit risk. Considered ‘non-investment grade' bonds, these SECURITIES ordinari

What is Acid-test ratio A measurement of the capability of a business to meet its short-term commitments. It is considered by dividing excluding stock, current assets, by curre

SF is a division of Sell.com, an internet retailer. SF operates two large server farms, each of which is a set of interconnected computers and hard drives that are used to process

The family next door just received a $300,000,000 cash payout after winning the lottery. You talked with them and are trying to convince them to let you manage a portfolio of inves

Construct the Market Value Balance Sheet XYZ, Inc., another company founded by Larry Davidson in 2005, is currently entirely equity financed. That means the company carries no

Items reducing the deficit: Items reducing the deficit would include: (a)    Profits from trading; (b)    Estimated profit on the realisation of assets. Notes: (a) Whe

Wider-range Investments (Requiring advice in writing from a properly qualified person) Quoted shares of a company with a paid-up capital of not less than Shs10m and has