Date issued: 4 July 2011 The Centro Case has shone the spotlight on the duties of directors after the court found in favour of the Australian Securities and Investments Commission (ASIC) and ruled that the directors breached their duty of care in the preparation of the company’s financial statements. As the reporting season begins, members who are directors, chief financial officers or who are involved in preparing financial statements, will need to carefully consider the key messages in this
Words: 337 - Pages: 2
Case 10-2 Ida’s Impairment Ida Inc. (Ida) is a manufacturing company with operations in the United States and Spain. As a U.S. subsidiary of a U.K. entity, Ida prepares its financial statements in accordance with (1) U.S. GAAP for reporting to its U.S.-based lender and (2) IFRSs in reporting to its parent. U.S. Operations In addition to other assets, Ida owns and operates a commercial building in the United States that is carried at its cost less any accumulated depreciation and any accumulated impairment
Words: 969 - Pages: 4
Chapter 2 Worldwide accounting diversity Chapter Outline I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP. II. A variety of factors influence a country’s accounting system. A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have
Words: 3285 - Pages: 14
Financial Analysis [Name of the Writer] [Name of the Institution] Profitability and Liquidity Ratios It is important for any company to evaluate its overall profit performance in relation to the resources available. This is usually done by calculating financial ratios relating to the profit performance of the business to overall investments which is usually called as return on investment. The liquidity ratios include current ratio and the acid test ratio. The current ratio shows the short term
Words: 1013 - Pages: 5
1 MINING INDUSTRY - OVERVIEW AND RISKS FACTORS Definition of the Industry The mining industry encompasses a wide range of companies involved in different supply chain positions that represent exploration, development, extraction, processing, refining and sale of minerals and coal. With respect to the diverse set of business factors that affect the mining process, the business risk rating for the mining industry would be best qualified in terms of a credit rating of BBB (low). The justification
Words: 7759 - Pages: 32
Over the past week we have discussed several different topics. In this paper we will talk about several topics and how we learned and dealt with each section. Also which ones we struggled with and ones that we felt were easy. Depreciation and amortization work together in many ways, both accounting for and assessing an actual value to a company’s assets. Amortization is the process of spreading out payments for a particular asset for a set period of time, while also factoring in the accrued interest
Words: 743 - Pages: 3
Company Profile | The Interpublic Group of Companies, Inc. 1114 Avenue of the Americas New York, NY 10036 United States - Map Phone: 212-704-1200 Fax: 212-704-1201 Website: http://www.interpublic.com Details | | Index Membership: | N/A | Sector: | Services | Industry: | Advertising Agencies | Full Time Employees: | 43,300 | | Business Summary | | The Interpublic Group of Companies, Inc., through its subsidiaries, provides advertising and marketing services worldwide
Words: 2073 - Pages: 9
Cisco’s current assets as of Apri1 27, 2013 sits at $61.417.000 and Cisco’s current liabilities sits at $21,063.00 which makes the marketing capital $40,354,000. For the past 3 years Cisco’s assets has been on the up rise which shows that the company is has great potential and intellect. The ratio for current assets and current liabilities is 2.91 considering the economical state of the United States these numbers are pretty good. Working capital gives investors an idea of the company's underlying
Words: 548 - Pages: 3
Quantitative Business Valuation Other Titles in the Irwin Library of Investment and Finance Convertible Securities by John P. Calamos Pricing and Managing Exotic and Hybrid Options by Vineer Bhansali Risk Management and Financial Derivatives by Satyajit Das Valuing Intangible Assets by Robert F. Reilly and Robert P. Schweihs Managing Financial Risk by Charles W. Smithson High-Yield Bonds by Theodore Barnhill, William Maxwell, and Mark Shenkman Valuing Small Business and Professional Practices
Words: 214584 - Pages: 859
million in notes payable, and $25 million in long-term debt. What is the debt ratio? Equity Ratio = (1/2.5) = 0.4 Debt Ratio = 1 - .4 = 60% (3-3) Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Book value per share = $6 billion / $800 million
Words: 720 - Pages: 3
