...Introduction It is a requirement that, if an entity is defined as a reporting entity, it is required to release financial reports that comply with the Australian Accounting Standards Board (AASB) (Deegan 2008:83). Two companies have been chosen to analyse their reports, in particular the disclosures made in their respective reports. The two companies chosen to analyse are Commonwealth Bank of Australia (CBA) and Macquarie Bank Limited (MBL). CBA The Commonwealth Bank is one of Australia’s leading providers of integrated financial services including retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services. It is one of the largest listed companies on the Australian Stock Exchange (ASX:CBA). MBL On 13 November 2007, Macquarie Bank Limited was restructured to form the newly created Macquarie Group Limited. It businesses comprise a range of investment, commercial and selected retail financial services. It is a global provider of banking, financial, advisory, investment and funds management services. Macquarie Group Limited is listed in Australia (ASX:MQG) Both companies have subsidiaries and associated entities. The three disclosures that will be discussed and compared are 1) Foreign Currency transactions – AASB 121 2) Joint Ventures AASB 131 3) Segment Reporting AASB 114 Foreign Currency transactions AASB 121 governs foreign currency transactions. The disclosure requirements are: 1) Method used...
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...or electronic form. EDITH COWAN UNIVERSITY Use of Theses This copy is the property of the Edith Cowan University. However the literary rights of the author must also be respected. If any passage from this thesis is quoted or closely paraphrased in a paper or written work prepared by the user, the source of the passage must be acknowledged in the work. If the use desires to publish a paper or written work containing passages copied or closely paraphrased from this thesis, which passages would in total constitute an infringing copy for the purposes of the Copyright Act, he or she must first obtain the written permission of the author to do so. USERS AND ACCOUNTING INFORMATION PREFERENCES OF GOVERNMENT DEPARTMENT FINANCIAL REPORTS by Helen R Mignot B (Bus) A thesis submitted in partial fulfilment of the requirements for the award of Master of Business (Accounting) at the Faculty of Business Edith Cowan University Date of Submission: 05 February 1996 ACKNOWLEDGMENTS AND DEDICATION I wish to thank all those who provided...
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...unethical American executives, such as Bernie Madoff. Answer: C 4) Which of the following is true about the standards for publicly accountable enterprises in the CICA Handbook, Part I? A) The standards are similar to U.S. GAAP. B) The standards are adaptations of IFRS that have been tailored to Canadian circumstances. C) The standards are similar to ASPE. D) The standards are identical, word for word, to IFRS. Answer: D 5) Which of the following private companies is required to use IFRS? A) Investment companies B) Import/export companies C) Manufacturing companies D) Accounting firms Answer: A 6) What accounting standards are private banks and investment funds required to follow for their consolidated, general-purpose, publicly issued financial statements? A) IFRS B) ASPE C) NFP accounting standards D) PSAB recommendations Answer: A 7) Which of the following Canadian accounting standards are not included in the CICA Handbook? A) Publicly accountable enterprises B) Private enterprises C) Not-for-profit organizations D) Government Answer: D 8) What accounting standards should...
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...Xiamen University Advanced Financial Management Syllabus Instructor: Professor Yunlue Fu Semester: autumn 2010 -2011(September 12,2010 – January 30,2011) Instructor Information Office: Jiageng2-512 Phone: 2186201 E-mail: ylfu@xmu.edu.cn Course Description This is an advanced course in the financial management of the firm. Since the participants are assumed to be knowledgeable about the topics found in the first financial management course, the emphasis is placed on fully understanding the principles underlying a sound financial decision in the modern corporation. The course goal is to apply relevant knowledge, skills and exercise professional judgment as expected of a senior financial executive or advisor, in taking or recommending decisions relating to the financial management of an organization. The approach will be a combination of lecture and discussion, always with a focus on good managerial financial decision-making. Prerequisites: Financial management or equivalent. Topics Covered: 1. The role and responsibility of the senior financial executive 2. Evaluate potential investment decisions and strategic consequences 3. Acquisitions and mergers 4.Corporate re-organization strategies. 5.Advanced treasury and risk management techniques. 6.Financial management of multinationals. 7. Emerging issues in finance and financial management Lecture Format: Lecture/Discussion. Technical Requirements ...
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...1) From the consolidation perspective, what would be the likely overall effect of adopting IFRS on the company’s financial statements? From the consolidation perspective, the likely overall effect of adopting IFRS on the company’s financial statements would preserve and strengthen the company’s global financial competitiveness. Moreover, it will simplify the accounting and consolidation process significantly and reduce financial reporting costs. 2) What potential effect would arise if Klugen were to select the option under IFRS 3 to value non-controlling interest at the proportionate share of its subsidiaries’ net identifiable assets? For business combination, the buyer can control without buying all of the equity, the remaining , so-called the non-controlling, equity interests are measure either at fair value or at the non-controlling interests’ proportionate share of its subsidiaries’ net identifiable assets. Under IFRS 3, the potential effect would arise is that it will result in benefits for users by improving comparability and will increase the relevance of information provided. Moreover, it identifies and evaluates the main costs and benefits for users. 3) Do you believe that an impairment of goodwill would be more likely under IFRS or under U.S. GAAP? Why or why not? There is a difference in goodwill impairment measurement. Under U.S GAAP, two-step approach is used. It looks to the reporting unit. However, under IFRS, one-step approach is used. It is based...
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...business it may be to launch a new product, set up a new plant, increase existing capacities etc. Projects may be ; New projects, Modernisation projects, Expansion projects, Diversification projects, Other miscellaneous projects. Project Appraisal: Project Appraisal is the process by which a financial institution makes an independent and objective assessment of the various aspects of the investment proposition for arriving at a financing decision. There are four broad aspects of appraisal: 1. Technical feasibility – Analysing the technical aspects of the projects like technical process. Design, size, technology used, availability of resources like labour, raw materials, packing materials etc.,availability of utilities like electricity, water, fuel etc, installed fixed assets and their capacities etc. 2. Financial feasibility – Analysing the financial aspects of the projects w.r.t cost of project, sources of finance, evaluation of revenues and returns on investments and their adequacy. 3. Economic feasibility – Analysing whether the resources commited to the project are effectively used w.r.t to the value of opportunity cost to the economy in their best alternative use. Financial Institutions use cost benefit analysis to evaluate the projects. This is also called as Social cost benefit analysis . The impact of project on distribution of income in the society level of savings and investments in the society, contribution of the...
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...FI-516 – WEEK 2 - HOMEWORK ASSIGNMENT PROBLEM BASED ON CHAPTER 15 – WACC AND THE HAMADA FORMULA Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its current Beta is 1.3, and its Market Risk Premium is 7.5% Points. The current Risk Free Rate is 3.5%. Bickley’s marginal tax rate is 40%. What is the Unlevered Beta of Bickley? Bickley’s management would like to change its capital structure to 15% Debt and 85% equity by retiring its bonds yielding 8%. The remaining long term debt will be at 7%. The marginal tax rate will remain the same. What will be Bickley’s new Beta with this new 15/85 capital structure? What is the WACC (Weighted Average Cost of Capital) of Bickely with its 30/70 capital structure?Bickley’s average borrowing rate with this capital structure is 7.5%. What will be Bickley’s WACC with its 15/85 capital structure? PROBLEM BASED ON CHAPTER 26 – MODIGLIANI & MILLER EXTENSION MODELS WITH GROWTH ASSUMPTIONS Yancey Industries’ Free Cash Flow for the past 12 months is $2.0 Million, and the future expected growth rate of this FCF is 6.5%. Yancey has no debt in its current capital structure. Its Cost of Equity is 11.5%. Its tax rate is 35%. (Hint use Equations 26-16 and 26-17 from the textbook.) Calculate the Unlevered Value of Yancey (Vu). Calculate VL and rsLfor the scenario whereby Yancey uses $8.0 Million Debt costing 8%. Using the Unlevered Value from above calculate VL and rsLby using the M&M...
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...Question 1: Case analysis There are many similarities between IFRS and pre-IFRS Canadian GAAP, however there are also significant differences. They are both similar in terms of style and the form of the individual standards because they are based on similar conceptual frameworks. The main objective of both IFRS and pre-IFRS Canadian GAAP is for financial statements to give a fair presentation. When there is a choice of accounting policies, the one that can reflect the most accurate economic portrait should be selected. Since Extract Tar Sands it traded publicly, included in its stakeholders are international investors. It’s compliance with IFRS is necessary to be a global competitor. IFRS will allow easier financial performance benchmarking amongst competing companies. This in turn will provide better access to capital. With the adoption of IFRS it will also eliminate Extract’s need to reconcile information reported under different national standards while providing consistent information for decision making purposes. The two areas with IFRS that represent the greatest change for Extract tar sands are: 1. Impairment: With IFRS impairments are usually triggered more frequently and unlike pre-IFRS Canadian GAAP, impairments under IFRS can be reversed. 2. Revaluations: Some IFRS including Property, Plant and Equipment, Investment Property and Intangibles allow the revaluation of assets under certain circumstances. This is quite a change from pre-IFRS Canadian GAAP which...
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...Problem Set 1: Options 1. The strike price of a call option on GM common stock is $50. a) What is the payoff at expiration of this call if, on the expiration date, GM stock sells for $45? b) What is the payoff at expiration of this call if, on the expiration date, GM stock sells for $55? c) Draw the payoff diagram for this option. 2. Use the Black-Scholes model to price a call with the following characteristics: Stock price = $65 Strike price = $70 Time to expiration = 120 days Stock price variance = 0.35 Risk-free interest rate = 0.05 3. Suppose there is a call option on Go-East Airlines with a strike price of $22. Today’s date is May 3, 2015 and the call expires on May 18, 2015. The current risk free rate on a T-bill that matures the on the option’s expiration day is 1.8%, annualized. Go-East Airlines’ stock is currently trading $23 per share. The historical standard deviation for the stock is 22%. Assume that the option is European and that Go-East does not pay dividends. a) Use the Black-Scholes option pricing formula to determine the value of the call option. b) What is the value of a put option on Go-East Airlines that matches in maturity and strike price? 4. On August 7 2015, the Nokia Corporation’s stock traded at $15.36. At the time the stock price was quoted, the most actively traded option for this stock was a call option with September 2015 maturity and a strike price of $17.50. Assume that the option matures in...
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...ADVANCED FINANCIAL ACCOUNTING 260 IMPAIRMENT QUIZ QUESTIONS 1. When should an entity conduct an impairment test? (2 Marks) The following assets require an impairment test every year: • Intangible assets with indefinite useful lives • Intangible assets not yet available for use • Goodwill acquired in a business combination The impairment test is undertaken when there is indication that an asset may be impaired. This means that, at the end of each reporting period, an entity has to test for the probability that an asset has been impaired. An entity, therefore, has to determine after analysing certain sources of information whether there is sufficient evidence to suspect that an asset may be impaired. It is not automatically undertaken at the end of each reporting period or at the end of any set of period of time. 2. How is an impairment test undertaken? (2 Marks) The first step is to determine the fair value, costs of disposal, and value in use. Having determined the fair value less costs of disposal and the value in use, these two amounts are compared and the recoverable amount is the higher of these two amounts. The second step is then to compare the recoverable amount with the carrying amount of the asset as recorded by the entity. The second step is then to compare the recoverable amount with the carrying amount of the asset as recorded by the entity. If the recoverable amount is less than the carrying amount, an...
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...Paper P4 is the advanced financial MANAGEMENT paper at the Professional level. It follows on from Paper F9 at the Fundamentals level. As throughout the ACCA syllabus, the Fundamentals paper covers the main technical areas that all accountants are required to master, whereas the Professional paper builds on that knowledge and explores advanced skills and techniques. In particular Paper P4 expects candidates to have more depth of knowledge, better analytical skills, and to be able to exercise greater professional judgement than at Paper F9. Hence, instead of being asked to value a bond, a potential Paper F9 question, candidates will need to be able to recognise the need to calculate a bond value given the scenario. For instance candidates may be required to evaluate the potential gain to the shareholders of a target company, of various offers from a predator company. If one of these offers includes bonds then the value of the bonds will need to be calculated, unless of course it is given in the question. Another key distinction between Paper F9 and Paper P4 is that in general the scenarios that candidates will be faced with will refer to larger, more complex and more international organisations. A calculative example of this is the need to be able to appraise projects carried out overseas whereas a discursive example is the need to be able to discuss the role of key international organisations such as the International Monetary Fund. ------------------------------------------------- ...
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...Copyright © 2013 by McGraw-Hill Education. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-180360-1 MHID: 0-07-180360-2 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-180359-5, MHID: 0-07180359-9. E-book conversion by Codemantra Version 1.0 All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill Education eBooks are available at special quantity discounts to use as premiums and sales promotions or for use in corporate training programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com. Trademarks: McGraw-Hill Education, the McGraw-Hill Education logo, 5 Steps to a 5 and related trade dress are trademarks or registered trademarks of McGraw-Hill Education and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property...
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...Interface * Intra-LTE (Intra-MME/SGW) Handover Using the S1 Interface * Handover Measurements * Handover Optimization and Design Principles * Handover Parameters * Handover Evaluation Mechanisms * Handover Failures in LTE * Conclusion. References: 1. Han, J., & Wu, B. (2010, October). Handover in the 3GPP long term evolution (LTE) systems. In Mobile Congress (GMC), 2010 Global (pp. 1-6). IEEE. 2. Iñiguez Chavarría, J. B. (2014). LTE Handover performance evaluation based on power budget handover algorithm. 3. Rao, V. S., & Gajula, R. (2010). Interoperability in LTE. White Paper Continuous Computing, published in webbuyersguide. com. 4. Cox, C. (2012). An introduction to LTE: LTE, LTE-advanced, SAE and 4G mobile communications. John Wiley & Sons. 5. Kreher, R., & Gaenger, K. (2010). LTE signaling: troubleshooting and optimization. John Wiley & Sons. 6. Network, E. U. T. R. A. (2011). S1 Application Protocol (S1AP)(Release 10). *More...
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...computer teacher at Garfield High School in downtown Los Angeles, California. To his surprise, the school lacked the computers he needed for the class, so he took an alternative position as a math teacher. In that first year of teaching, Mr. Escalante was confronted with many obstacles. The school was in the verge of loosing its operative certification; many students scored poorly in their academics, had problems with drugs or were involved in gang violence. As a new teacher, he constantly felt frustrated, with a sense of guilt for not inspiring his class to love math the way he did. Subsequently, and against all the odds, Mr. Escalante made a great contribution in the lives of students, and transformed the face of the College Board’s Advanced Placement Program® (AP®). Most...
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...OMNITEL PLAN 1) OPERATING MARKET: Market sector: Telecommunication After the collapse of Soviet Union in 1991 the first Lithuanian telecommunication company was organized by two Lithuanian entrepreneurs -Doctor of Economics J. P. Kazickas and Victor Gediminas Gruodis. Today JSC “OMNITEL” is recognized as the leading mobile communication service provider in the Baltic countries. From 2004 the company was joined to international telecommunication and network service provider SC “TeliaSonera” which is considered to be listed in Europe’s 5th largest telecom operators. According to the Communications Regulatory Authority (CRA) in 2010 in the latest quarterly report Omnitel in revenue covered: * 35.4% of the Lithuanian mobile market * 39.7% of active subscribers * 56.7% of Lithuanian mobile broadband PC market Omnitel Businesses: GSM mobile services, mobile Internet access and integrated data transmission solutions. JSC „Omnitel“ activities includes data transfering, GPRS ( General Packet Radio Service), web services, mobile and radio service, voice transfering. 2) COMPANIES ORGANIZATIONAL STRUCTURE: (gavau informacija is draugu, kurie ruose diploma apie omnitel) Company constantly improves and develops the organizational structure towards horizontal one, thus ensuring the optimum flow of information from top management to the lowest level of management. However, the detailes of organizational structure of the company are not publicized. ( neisitikinus...
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