Evaluate accounting method, Corporate Finance

Question 1: Collect a current annual report (2009) of an Australia listed company.

Select the firm that reported the following assets. Select BOTHtypes of assets.

  • Property, plant and equipment and
  • Intangible assets (select only one intangible asset e.g. goodwill or development expenditure or Licenses or brand names or patent etc).

Required:

1.1) Provide the name of the company. Briefly summarise the business nature and its financial profile.

1.2) Briefly summarise accounting treatments that are required by the AASB 116 (Property, plant and equipment) and 138 (intangible assets) and other relevant accounting standards.

1.3) Briefly summarise how the selected items are disclosed in terms of accounting methods, disclosures in note to financial statement and etc.

1.4) Critically evaluate whether the accounting method or disclosure is consistent with the requirements of the AASB 116 and 138 and other relevant accounting standards, that is whether the company is providing relevant and reliable financial information for the users of general-purpose financial reports (GPFRs).

Additional information:

  • All sales were on credit
  • Loans payable of $150 000 were paid back during the year
  • Equipment which cost $30 000 was sold during the year, accumulated depreciation of the equipment was $7 000. The sale of equipment created a loss on sale of $4 000
  • The land was revalued upwards by $50 000
  • The capital shares were issued during the year
  • Dividends were paid at the end of the year

Required:

Prepare the statement of cash flows for Altman Manufacturing Ltd for the year ending 30 June 2009, in accordance with AASB 107. Cash flow from three activities with a reconciliation of net cash provided by operating activities and net profit are required with necessary calculation or worksheet.

Posted Date: 2/23/2013 4:30:59 AM | Location : United States







Related Discussions:- Evaluate accounting method, Assignment Help, Ask Question on Evaluate accounting method, Get Answer, Expert's Help, Evaluate accounting method Discussions

Write discussion on Evaluate accounting method
Your posts are moderated
Related Questions
Question: (a) i. Expected loss= Exposure amount* probability of default* loss given default ii. Positive covenants= covenants that showing the direction to a company. P

Duke Power Corporation has $500 million (face value) of zero-coupon bonds, which will provide 6% return to the bondholders and will mature after 10 years. The stockholders of the c

The Minister of Finance decides to review the existing legislation regulating banks and non-banking entities. You have been appointed as Advisor to the Minister to work on the pro

differentiate between allocative efficiency and pricing efficiency

Hydra Multinational is a vast conglomerate firm involved in a wide array of business ventures ranging from satellite radio to cat food.  One of its many divisions, a restaurant cha

Syfy is considering investing in a project with the following details. The initial cost of investing in equipment is estimated to be Rs1,200,000. However, the project is deemed to

The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers

The management of Nelson plc wish to estimate their firm’s equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

Course assessment: Company directors often believe that the stock market fails "correctly" to value the firms they manage, while investors are often alarmed by the volatility i

Explain with proof that c >= max(S - X, 0), where c is the value of the European call option, S is the price of the underlying asset and X is the strike of the option. The follo