Analyse the economical performance and monetary position, Financial Accounting

Assignment Help:

The statement of comprehensive income for the year ended 31 December 2009 and its comparative is shown below:

2009

2008

$m

$m

Revenue

1,430

1,022

Cost of sales

(1,058)

(705)

Gross profit

372

317

Administrative expenses

(74)

(62)

Distribution costs

(158)

(100)

Finance costs

(60)

(30)

Share of profit of associate

80

-

Profit before tax

160

125

Income tax expense

(40)

(33)

Profit for the year

120

92

Other comprehensive income:

Revaluation gain on property, plant and equipment

45

15

Gains on Available for sale investments

16

6

Tax effects of other comprehensive income

(14)

(5)

Other comprehensive income for the year, net of tax

47

16

Total Comprehensive income for the year

167

108





Required:

(a) Analyse the economical performance and monetary position of KER for the year to 31 December 2009 and comment on the Chairman's claims on growth (8 marks are available for the calculation of relevant ratios).

(b) Diversity in accounting policies and estimates can influence the comparison of financial statements of two or more entities. Explain three examples of where such differences could affect comparability between entities.


Related Discussions:- Analyse the economical performance and monetary position

Determine the amount of retained earnings, From the information provided, d...

From the information provided, determine: 1.) The amount of retained earnings at December 31 and 2.) The amount of revenues for the period. Additional data: 1.)Expenses

Derive the optimal value of loss function, Derive the Optimal Value of Loss...

Derive the Optimal Value of Loss Function A speculative attack and the consequent currency crisis may not be due to excessive money-growth or other misaligned fundamentals, bu

T-account, Received 10,000 contribution from bill london in exchange for co...

Received 10,000 contribution from bill london in exchange for common stock What 2 accounts are used

Trustees right to be indemnified-trusts laws and accounts, Trustees right t...

Trustees right to be indemnified Trustees have, however, a right to be indemnified: 1. Out of trust property, for all expenses properly incurred in the execution of the tru

Calculate the npv for the purchase, 1. Lease vs. Buy Trasky Company is t...

1. Lease vs. Buy Trasky Company is trying to decide whether it should purchase or lease a new automated machine to be used in the production of a new product. If purchased, the

Adjusting Entries, How do I treat with Expenses Outstanding, for example, M...

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.

Monetary policy, Monetary Policy Unlike fiscal policy, monetary policy...

Monetary Policy Unlike fiscal policy, monetary policy is set by unelected officials. A group of economists is appointed by the executive branch and confirmed by the Senate to

Determine estimated cost, XYZ Company is a large manufacturer of auto parts...

XYZ Company is a large manufacturer of auto parts for the auto manufacturers and parts distributors. XYZ has plants throughout the world, but most are located in North America. XYZ

The fair-value method of accounting for nci., In the current year, Company ...

In the current year, Company A is formed with $630,000 in capital from the sale of 21,000 shares of stock at $30 a share. Company A, which has no other operations, immediately acqu

What should be the basic earnings per share, Information concerning the cap...

Information concerning the capital structure of Piper Corporation is as follows: December 31, 2011 2010 Common stock 150,000 shares 150,000 shares Convertible preferred stock 15,00

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd