WORKSHOP 3 TASK 1 Bob Limited Income Statement for the year ended 30 June 2009 | | |£ | | | | | |Sales |
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Fair Amount Value Equipment (cost $80 000) $50 000 $53 000 Inventory $70 000 $80 000 Plant (cost $300 000) 186 000 190 000 Machinery (cost $18 000) 15 000 16 000 Trademark 100 000 110 000 Land 50 000 70 000 Fittings (cost $15 000) 10 000 10 000 Goodwill 25 000 52 000 Goodwill was written down by $5 000 in the 2008 year by Neptune Ltd as a result of an annual impairment test. The plant had a further five year life at acquisition date and was expected to be used on a straight line
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COST ACCOUNTING VS FINANCIAL ACCOUNTING http://www.tutorialspoint.com/accounting_basics/cost_accounting_vs_financial_accounting.htm Copyright © tutorialspoint.com Both cost accounting and financial accounting help the management formulate and control organization policies. Financial management gives an overall picture of profit or loss and costing provides detailed product-wise analysis. No doubt, the purpose of both is same; but still there is a lot of difference in financial accounting and cost
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Inventory $70 000 $80 000 Plant & Equipment (cost $300 000) 186 000 190 000 Machinery (cost $18 000) 15 000 16 000 Trademark 100 000 110 000 Land 50 000 70 000 At the date of acquisition, Beans Ltd had recorded goodwill of $25 000. Goodwill was not impaired in any period. The plant and equipment had a further five year life at acquisition date and was expected to be used evenly over that time. The trademark was considered to have an indefinite life. The machinery, which was estimated to have
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bond * when they want to finance huge project * * ex. ) CF = 100 * value of some of the hundreds are just few cents (CFs as years increases) * * Test? How come in infinite series has a finite answer? * * Firm Valuation and Profit Max * Maximize profit = PV of current and future * *Assumption = business that I buying is a mature business This mature business is going to grow at constant rate (g) Pit=Pit(1+g)^t G has to be less than I (what you want (i)
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value of a company’s assets. Both IFRS and GAAP require firms to include information regarding fair value measurement practices in the notes of financial statements. As a general rule of thumb, all assets in the same class must receive the same valuation treatment. In regards to the value of receivables, IRFS uses a two-tiered method that first analyzes individual receivables, and then looks at receivables as a whole to determine if there is any impairment. IFRS 9-1: What is component depreciation
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Harnischfeger Corporation Introduction Harnischfeger Corporation is a machinery company in Milwaukee, Wisconsin. Harnischfeger was founded in 1884 as a partnership and was incorporated in Wisconsin in 1910 under the name Pawling and Harnischfeger. There were two major segments in this company, Construction Equipment and the Mining and Electrical Equipment divisions and Material Handling Equipment and the Harnischfeger Engineers divisions. Harnischfeger experienced a rapidly growth during
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patterns of benefit. The reasoning behind this is that it provides a clearer picture of the asset’s book value. This method is also permitted under GAAP, but U.S. companies rarely use it in practice. Take for example, a large piece of manufacturing machinery
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Consolidation Description of the Company New Accounting Pronouncements Cash and Cash Equivalent Inventories Investments Property, Plant and Equipment and Depreciation Earnings per Share Revenue Recognition Research and Development Use of Estimates Income Taxes Annual Closing Date 2. Cash, Cash Equivalents and Current Marketable Securities 3. Inventories 4. Property, Plant and Equipment 5. Intangible Assets and Goodwill 6. Long-Term Liabilities 7. Income Taxes 8. Employee Related Obligations 9. Pensions
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times the face value of Equity Shares.The shares were valued as a multiple of 5 times the weighted average EPS for last three years i.e. 2010-2012 considering qualitative factors such as diversified business model and high growth prospects based on valuation of company. The weighted average EPS for 2010-12 is 3 (approx). • Thus shares are issued to PE @ Rs150 per share (EPS 3* 5 times*face value of share 10) • PE investment enables company to raise more loans. The capital thus raised, was also used
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