Baron Coburg Case
1. Whose financial statements should we prepare (e.g., the baron, vassals, farms, etc..?)
In this case I believe the financial statements should be prepared for each Farm (Piece of Land). My reasoning for this is that each section of land is the entity that is generating the ‘product’. The Vassal is acting as the resource that is managing it. In a current context, one would produce financial statements for a company (the Farm in our case) and not the individual resource or resources in control of the company.
2. What financial statements should we prepare?
a. Balance Sheets for both before and after the ‘growing season’ – This will allow us to determine the assets provided to each farm and how the assets have been utilised.
b. Income statement – We use this to see what assets have been used, what revenue has been received and how any withdrawals affect retained earnings. We have assumed for this case that all bushels produced are converted into revenue for each farm.
c. Return on Investment Analysis – This allows us to analyse how productive each farm was.
3. What period do these statements cover and why (e.g., year, quarter, month, etc..?)
Given the two time periods provided, ‘Spring’ and ‘End of Summer’. Normally we could assume this to mean a period of six months and therefore produce financial statements for the half year. Given this is an assumption I have described the statement period as the ‘Growing Season’, in case this assumption proves not to be fully accurate.
4. What currency are these financial statements going to use?
All values have been expressed in Bushels of Wheat and therefore this will be used to calculate the profitability of each farm.
5. Who/ What would be the modern day equivalent of the Baron?
Given the Baron is the sole contributor, providing all equity such as the land, raw materials and other assets, I would describe him in modern terms as the Sole Stockholder. There are potential arguments to describe him as a ‘Sole
In this case I believe the financial statements should be prepared for each Farm (Piece of Land). My reasoning for this is that each section of land is the entity that is generating the ‘product’. The Vassal is acting as the resource that is managing it. In a current context, one would produce financial statements for a company (the Farm in our case) and not the individual resource or resources in control of the company.
2. What financial statements should we prepare?
a. Balance Sheets for both before and after the ‘growing season’ – This will allow us to determine the assets provided to each farm and how the assets have been utilised.
b. Income statement – We use this to see what assets have been used, what revenue has been received and how any withdrawals affect retained earnings. We have assumed for this case that all bushels produced are converted into revenue for each farm.
c. Return on Investment Analysis – This allows us to analyse how productive each farm was.
3. What period do these statements cover and why (e.g., year, quarter, month, etc..?)
Given the two time periods provided, ‘Spring’ and ‘End of Summer’. Normally we could assume this to mean a period of six months and therefore produce financial statements for the half year. Given this is an assumption I have described the statement period as the ‘Growing Season’, in case this assumption proves not to be fully accurate.
4. What currency are these financial statements going to use?
All values have been expressed in Bushels of Wheat and therefore this will be used to calculate the profitability of each farm.
5. Who/ What would be the modern day equivalent of the Baron?
Given the Baron is the sole contributor, providing all equity such as the land, raw materials and other assets, I would describe him in modern terms as the Sole Stockholder. There are potential arguments to describe him as a ‘Sole