...the students: 1. To understand and appreciate of the accounting concepts and accounting practice. 2. To prepare the recording process and understand the whole accounting cycle. 3. To possess the technical ability in preparing basic financial statements. | 10. | Learning Outcome: | At the end of the course, students should be able to:Knowledge 1. Distinguish different forms of business and its reporting environment. 2. Explain the accounting principles and the role of accounting reports.Thinking Skills 3. Use accounting equation to analyse the economic effect of a transaction. 4. Use double entry system of accounting to record business transactions.Subject-based Practical Skills 5. Prepare trial balance. 6. Prepare adjusting entries and closing entries. 7. Prepare entry for special journals and subsidiary ledgers. 8. Prepare cash book and petty cash systems. 9. Value the stock using FIFO, LIFO and Weighted Average. 10. Prepare basic financial statements. 11. Prepare bank reconciliation. | 11. | Reading List: | Main Text:Andrew Thomas & Anne Marie Ward; Introduction to Financial Accounting (seventh edition, McGrawHill) 2011Additional Text :ACCA Study Text, F3 Financial...
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...North-Holland FINANCIAL STATEMENT ANALYSIS AND THE PREDICTION OF STOCK RETURNS* Jane A. O U Santa Clara university, Santa Clara, CA 95053, USA Stephen H. P E N M A N Universi(v of California, Berkeley, CA 94720, USA Received January 1988, final version received April 1989 This paper performs a financial statement analysis that combines a large set of financial statement items into one summary measure which indicates the direction of one-year-ahead earnings changes. Positions are taken in stocks on the basis of this measure during the period 1973-1983, which involve cancelling long and short positions with zero net investment. The two-year holding-period return to the long and short positions is in the order of 12.5%. After adjustment for 'size effects' the return is about 7.0%. These returns cannot be explained by nominated firm risk characteristics. 1. Introduction F i n a n c i a l s t a t e m e n t analysis identifies aspects of financial statements that a r e r e l e v a n t to investment decisions. O n e goal of the analysis is to assess firm value from financial statements. M u c h empirical a c c o u n t i n g research has a t t e m p t e d to discover value-relevant accounting attributes in o r d e r to enhance financial s t a t e m e n t analysis. T h e a p p r o a c h taken in this work assumes that m a r k e t price is sufficient for d e t e r m i n i n g firms' values a n d thus serves as a b e n c h m a r k against which to evaluate the i n f o r m a t i o n in...
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...Contents ANNUAL REPORT 2011 2 7 8 15 16 17 20 6 14 Notice of Annual General Meeting Corporate Information Corporate Governance Statement Statement on Corporate Social Responsibility Statement on Internal Control 24 26 27 87 92 25 Chairman’s Statement Corporate Structure 86 Financial Statements 91 List of Group Properties 94 Analysis of Shareholdings Proxy Form 19 Directors’ Profile 23 Audit Committee Report 2 UMS HoLDINGS BeRHAD (74125-V) ANNUAL RePoRt 2011 notice of ANNUAL GeNeRAL MeetING NotICe IS HeReBY GIVeN that the thirtieth Annual General Meeting of the Company will be held at Lumut 1 Room, Level 1, Vistana Hotel, No. 9 Jalan Lumut, off Jalan Ipoh, 50400 Kuala Lumpur on Monday, 26 March 2012 at 10:00 a.m. to transact the following business: Agenda 1. To receive the Audited Financial statements for the financial year ended 30 september 2011 and the Reports of the Directors and Auditors thereon. To approve the payment of Directors’ fees amounting to RM134,100.00 for the financial year ended 30 september 2011 (2010 : RM128,700.00). To declare a final dividend of 6% Gross (less Malaysian income Tax @ 25%) for the financial year ended 30 september 2011. To declare a special dividend of 4% Gross (less Malaysian income Tax @ 25%) for the financial year ended 30 september 2011. To consider and if thought fit, to pass the following resolution: “That Mr. Ng siow Hwa @ Ng Kok Hwa, who retires in accordance with section 129 (6) of the Companies Act, 1965, be and is hereby...
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...AUDITING AND ASSURANCE STUDY TEXT Copyr i ght ALL RIGHTS RESERVED. Nopartofthispublicationmaybereproduced,storedinaretrievalsystemortransmittedinanyformorbyany means,electronic,mechanical,photocopying,recordingorotherwisewithoutthepriorwrittenpermissionofthe copyright owner. ISBN NO: 9966-760-23-7 © 2009 Strathmore University Press First Published 2009 Strathmore University Press P.O. Box 59857, 00200, Nairobi, Kenya. Tel: +254 (0) 20 606155 Fax: +254 (0) 20 607498 Acknowledgment We gratefully acknowledge permission to quote from the past examination papers of the following bodies: Kenya Accountants and Secretaries National Examination Board (KASNEB). v ACKNOWLEDGMENT ................................................................................................................. ii CHAPTER ONE ........................................................................................................................... 1 ThE GEnEral aUDiTinG EnvironmEnT .............................................................................. 3 CHAPTER TWO ......................................................................................................................... 23 ThE aUDiTor anD ThE CompaniES aCT............................................................................. 25 CHAPTER THREE ..................................................................................................................... 47 aUDiT planninG, ConTrol & rECorDinG (iSa 300)............
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...Financial Statement Analysis and Interpretation FIN/571 Corporate Finance November 23, 2015 Financial Statement Analysis The goal of any business regardless of its size should be to obtain and maintain financial profitability and maximize its shareholder’s wealth. The goal of a good manager is to have a solid understanding of his organization’s financial functionality in order to achieve the aforementioned by others. With a thorough understanding of a company’s financial statement managers can monitor cash flows, identify upcoming and changing trends as well as monitor a company’s financial performance in order to anticipate any changes that will affect a company’s profitability and the shareholder’s equity. Within the confines of this paper Team A will compare, contrast, and compute the financial statement analysis of three companies, which are Toyota, Southwest Airlines, and J C Penney. Team A will analyze each company’s financial statement by utilizing liquidity ratios, efficiency ratios, leverage ratios, and profitability ratios. We will also discuss the differences of the income statement in regards to the specific industries of the companies that we have chosen as well as the differences in accounting practices of the International Financial Reporting Standards (IFRS), the Financial Accounting Standard Board (FASB) and the Generally Accepted Accounting Principles (GAAP). Industry Differences Although most income statements are essentially...
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..._____________ We thank Wendy Hsu, Tasha Grieve, Dessalegn Mihret, Lalith Seelanatha and Anthony Vu for data collection assistance. We also acknowledge the financial support of the Accounting and Finance Association of Australia and New Zealand (AFAANZ), UWA Business School and the University of Southern Queensland. We thank Millicent Chang, John Holland, Izan and seminar participants at Monash University and the University of Queensland for their helpful comments. We particularly acknowledge the assistance of Philip Brown and John Preiato in the preparation of this paper. IFRS adoption and analysts’ earnings forecasts: Australian evidence Abstract We study 145 large listed Australian firms to explore the impact of IFRS adoption on the properties of analysts’ forecasts and the role of firm disclosure about IFRS impact. We find that analyst forecast accuracy improves and there is no significant change in dispersion in the adoption year, suggesting that analysts have benefited from IFRS adoption. We measure firms’ IFRS impact disclosures in their financial statements issued at the end of the transition and adoption years. Transition year disclosure was not associated with forecast error and dispersion in the adoption year. However, more disclosure by firms during the adoption year (proxied by their adoption year-end financial...
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...Categories or From Our Search Bar (http://hwguiders.com/ ) Problem P2-12 Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm’s financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek’s recent financial statements (on the facing page), evaluate and recommend appropriate action on the loan request. Ratio Definition Calculation Creek Industry Debt 0.73 0.51 Times Interest Earned 3.00 7.30 Fixed Payment Coverage + {[(Principal + Preferred Stock Dividends)] ´ [1¸ (1 – t)]} + {[($800,000 + $100,000)] ´ [1¸ (1 – 0.4)]} 1.19 1.85 Because Creek Enterprises has a much higher degree of indebtedness and much lower ability to service debt than the average firm in the industry, the loan should be rejected Problem P2-13 Common-size statement analysis a common-size income statement for Creek Enterprises’ 2005 operations follows. Using the firm’s 2006 income statement presented in Problem 2–12, develop the 2006 common-size income statement and compare it to the 2005 statement. Which areas require further analysis and investigation? Creek Enterprises Common-Size Income Statement For the Years Ended December 31, 2005 and 2006 2006 2005 Sales Revenue 100.0% 100.0% Less: Cost of goods sold Gross profits FIN 320 Week 2 Individual Assignment Assignments from the...
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...CHAPTER 5—BASICS OF ANALYSIS MULTIPLE CHOICE 1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed: a. vertical Statements. b. horizontal Statements. c. funds Statements. d. common-Size Statements. e. None of the answers are correct. \. 2. In financial statement analysis, ratios are: a. the only type of analysis where industry data are available. b. absolute numbers converted to a common base. c. fractions usually expressed in percent or times. d. the only indication of the financial position of the firm. e. None of the answers are correct. 3. Denver Dynamics has net income of $2,000,000. Oakland Enterprises has net income of $2,500,000. Which of the following best compares the profitability of Denver and Oakland? a. Oakland Enterprises is 25% more profitable than Denver Dynamics. b. Oakland Enterprises is more profitable than Denver Dynamics, but the comparison can't be quantified. c. Oakland Enterprises is only more profitable if it is smaller than Denver Dynamics. d. Further information is needed for a reasonable comparison. e. Oakland Enterprises is more profitable if it is a larger firm than Denver Dynamics. 4. Which of the following can offer a type of comparison in financial statement analysis? a. Past ratios and figures b. Industry averages c. Statistics of competitors d. All of the answers are correct. e. None of the answers are correct. 5. Which of the following...
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...CHAPTER 5—BASICS OF ANALYSIS MULTIPLE CHOICE 1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed: a.|Vertical Statements| b.|Horizontal Statements| c.|Funds Statements| d.|Common-Size Statements| e.|none of the answers are correct| ANS: D 2. In financial statement analysis, ratios are: a.|the only type of analysis where industry data are available| b.|absolute numbers converted to a common base| c.|fractions usually expressed in percent or times| d.|the only indication of the financial position of the firm| e.|none of the answers are correct| ANS: C 3. Denver Dynamics has net income of $2,000,000. Oakland Enterprises has net income of $2,500,000. Which of the following best compares the profitability of Denver and Oakland? a.|Oakland Enterprises is 25% more profitable than Denver Dynamics.| b.|Oakland Enterprises is more profitable than Denver Dynamics, but the comparison can't be quantified.| c.|Oakland Enterprises is only more profitable if it is smaller than Denver Dynamics.| d.|Further information is needed for a reasonable comparison.| e.|Oakland Enterprises is more profitable if it is a larger firm than Denver Dynamics.| ANS: D 4. Which of the following can offer a type of comparison in financial statement analysis? a.|past ratios and figures| b.|industry averages| c.|statistics of competitors| d.|all of the answers are correct| e.|none of the answers are correct| ANS:...
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...KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Directors' Report and Audited Financial Statements as at 31 December 2010 Registered Office Level 18, Tower 2, Etiqa Twins, 11 Jalan Pinang, 50450 Kuala Lumpur KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) CONTENTS PERFORMANCE OVERVIEW STATEMENT OF CORPORATE GOVERNANCE DIRECTORS' REPORT STATEMENT BY DIRECTORS STATUTORY DECLARATION REPORT OF SHARIAH COMMITTEE INDEPENDENT AUDITORS' REPORT STATEMENTS OF FINANCIAL POSITION INCOME STATEMENTS STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN EQUITY STATEMENTS OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS PAGE 1 1 - 18 19 - 23 24 25 26 - 27 28 - 29 31 - 32 33 34 35 36 - 37 38 - 139 KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) 1 PERFORMANCE OVERVIEW The Group and the Bank registered a loss after taxation of RM75.6 million and RM97.3 million respectively for the financial year ended 31 December 2010 due to the more challenging operating environment in 2010 as the Group and the Bank embarked on its business realignment and restructuring plans in early 2010. The total assets of the Group has decreased by RM661.5 million to RM10.9 billion as at 31 December 2010. Despite the anticipated full year results, the Group made marked progress in Quarter 1 to Quarter 4 of 2010 profit/(loss) before taxation and the Group stood on a strong capitalised position with a...
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...Disclosures in IFRS Evidence from Infosys financial statements Abstract: INTRODUCTION: To reassure the position of a globalised economy, India is all set to implement IFRS .This paper attempts to show cause the disclosures as per the new accounting standard IFRS. Infosys, the software giant is one of the early movers in India to prepare the financial statements as per IFRS. This company has carved a niche in itself in good practices in financial reporting. Though India has missed the earlier deadline of converging to IFRS from April 2011, has shown its commitments to implement IFRs compliant accounting standards once few ambiguities are addressed to The main thrust of IFRS prepared by IASB (internal Accounting standard Board) is the “fair value accounting and detailed disclosures to make the financial statements more useful for the stakeholders. With the paradigm shift in the accounting standard there might be volatilities of the numbers reported. Right from the classification of assets, liabilities, equities until principle differences of asset valuations, revenue recognitions IFRS differ from existing GAAP. There were inquisitive analysts, accounting experts who would want to capture the transition difference of the two accounting standards. Hence, it will be of academic interest to study the difference between local GAAP and IFRS. This paper analyses the IFRS statement of Infosys from Financial year 2009 and makes comparisons with the Indian GAAP numbers. This study...
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...w w w. e l s ev i e r. c o m / l o c a t e / d s s Detection of financial statement fraud and feature selection using data mining techniques P. Ravisankar a, V. Ravi a,⁎, G. Raghava Rao a, I. Bose b a b Institute for Development and Research in Banking Technology, Castle Hills Road #1, Masab Tank, Hyderabad 500 057, AP, India School of Business, The University of Hong Kong, Pokfulam Road, Hong Kong a r t i c l e i n f o a b s t r a c t Recently, high profile cases of financial statement fraud have been dominating the news. This paper uses data mining techniques such as Multilayer Feed Forward Neural Network (MLFF), Support Vector Machines (SVM), Genetic Programming (GP), Group Method of Data Handling (GMDH), Logistic Regression (LR), and Probabilistic Neural Network (PNN) to identify companies that resort to financial statement fraud. Each of these techniques is tested on a dataset involving 202 Chinese companies and compared with and without feature selection. PNN outperformed all the techniques without feature selection, and GP and PNN outperformed others with feature selection and with marginally equal accuracies. © 2010 Elsevier B.V. All rights reserved. Article history: Received 20 November 2009 Received in revised form 14 June 2010 Accepted 3 November 2010 Available online 12 November 2010 Keywords: Data mining Financial fraud detection Feature selection t-statistic Neural networks SVM GP 1. Introduction Financial fraud is a serious problem worldwide and...
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...September 2010 Background The enclosed DAMM Good! Lemonade stand (DGLs) accounting summary is a quantitative snapshot of financial transactions that have occurred during the first season of operation of DGLs. This accounting summary report has two aspects: to generate common accepted financial statements that reflect the health of the business and to provide concise but insightful interpretations and necessary recommendations deduced from the data (Larson, 2008). Financial Position Summary Appendix I: Daily Seasonal Data * The seasonal data was used as an “ad hoc” journal or daily receipts record to build each of the financial worksheets. Appendix II: Financial Journal The DGLs Financial Journal is the formal recording of five aspects of a transaction that is found in the Daily Seasonal Data: (1) its date, (2) brief description of the transaction, (3) ledger account to be debited and amount, (4) ledger account to be credited and amount, and its (5) cross-reference title for other financial reports. It also includes additional data entries such as the weather condition on that day and number of hours the stand was open to help “flush out” the other factors affecting the DGLs. This approach provides an audit trail and a means of analyzing the effects of daily transactions on DGLs’s financial position. * The DGLs first season Financial Journal reflects the initial foray of the enterprise purchasing the requisite capital equipment (pitchers & spoons) to...
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...in reflection ANNUAL REPORT 2011 contents 4 00 CORPORATE INFORMATION CORPORATE INFORMATION 6 00 NOTICE OF ANNUAL GENERAL MEETING NOTICE OF ANNUAL GENERAL MEETING 8 00 CHAIRMAN’S STATEMENT CHAIRMAN’S STATEMENT 12 00 GROUP CORPORATE STRUCTURE GROUP CORPORATE STRUCTURE 13 00 GROUP FINANCIAL HIGHLIGHTS GROUP FINANCIAL HIGHLIGHTS 14 00 PROFILE OF DIRECTORS PROFILE OF DIRECTORS 18 00 CORPORATE GOVERNANCE STATEMENT CORPORATE GOVERNANCE STATEMENT 24 00 CORPORATE SOCIAL RESPONSIBILITY STATEMENT CORPORATE SOCIAL RESPONSIBILITY STATEMENT 26 00 STATEMENT OF DIRECTOR’S RESPONSIBILITIES STATEMENT OF DIRECTORS’ RESPONSIBILITIES 27 00 ADDITIONAL COMPLIANCE INFORMATION ADDITIONAL COMPLIANCE INFORMATION 28 00 STATEMENT ON INTERNAL CONTROL STATEMENT ON INTERNAL CONTROL 31 00 AUDIT COMMITTEE REPORT AUDIT COMMITTEE REPORT 35 00 FINANCIAL STATEMENTS FINANCIAL STATEMENTS 02 00 LIST OF PROPERTIES 1 LIST OF GROUP’S PROPERTIES 05 00 ANALYSIS OF SHAREHOLDINGS 1 ANALYSIS OF SHAREHOLDINGS PROXY FORM - ENCLOSED PROXY FORM - ENCLOSED ONE South ONE South, the latest mixed development in Seri Kembangan, Selangor which comprises of shop offices, service apartments and office towers. This new development is strategically located along the KL-Seremban highway and right next to Besraya highway. The ground floor suits an array of retail lots, ranging from lifestyle outlets...
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...01/09/2013 International Accounting, 7/e Frederick D.S. Choi Gary K. Meek Chapter 6: Foreign Currency Ch 6 F i C Translation 1 Learning Objectives Why do firms translate from one currency to another? What is the difference between a spot forward and swap spot, forward, transaction? What exchange rates are used in the currency translation process and what are their financial statement effects? How does a translation gain or loss differ from a transactions gain or loss? Is there more than one way of translating financial statements from one currency to another? If so, what are they? y , y How does the temporal method of currency translation differ from the current rate method? What is the relationship between currency translation and inflation? 2 1 01/09/2013 Why do Firms Translate? Facilitates the preparation of consolidated financial statements that allow readers to see the performance of a multinational company s total operations both domestic and company’s foreign. Facilitates the measurement of a firm’s exposure to foreign exchange risk. Facilitates the recording of foreign currency transactions; i.e., f foreign currency sales, purchases, borrowing or lending in the consolidated entity’s reporting currency. Facilitates reporting domestic accounts to foreign audiences-of-interest. 3 Types of Transaction Rates Spot transactions: the physical exchange of one currency for another in which delivery takes place...
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