Calculate the loss suffered by the shareholders, Financial Accounting

Assignment Help:

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.


Related Discussions:- Calculate the loss suffered by the shareholders

The optimal distribution policy strikes, The optimal distribution policy st...

The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm's stock price

Analysis on the profitability, (a) You are working as the CFO of Jeans Co. ...

(a) You are working as the CFO of Jeans Co. The company is currently seeking a new supplier for their goods. There are two main suppliers of choice, XYZ Ltd and ABC Ltd. The contra

What is the net present value of this machine, A company is considering the...

A company is considering the purchase of new equipment for $45,000. The projected after-tax net income is $3,000 after deducting $15,000 of depreciation. The machine has a useful l

Business risk in company, Q. Business risk in company? Business risk is...

Q. Business risk in company? Business risk is the likelihood of a company experiencing changes in the level of its profit before interest as a result of changes in turnover or

#title. incomplete records, Assignments with the answer for tafe sa 4 editi...

Assignments with the answer for tafe sa 4 edition. Question 11, page 76 and question 39, page 89

Overhead efficiency variance, The following information is for the third qu...

The following information is for the third quarter of this year:   Planned Actual   Production 92,000 units

Company conversion features-partnership, Company conversion features If...

Company conversion features If the formation costs are to be bourne by the company then the profit or loss on realization will be the same as the company then the new company (

Help, I need help with my homework

I need help with my homework

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