Chapter 8: Usefulness of Accounting Information to Investors and Creditors Instructor’s Manual CHAPTER HIGHLIGHTS Chapter 8 is concerned with the usefulness of external accounting reports for decision making. The FASB emphasizes decision usefulness in both the conceptual framework project and in policy deliberations for specific standards. It focuses on the primary user groups‚ investors and creditors. Earnings‚ dividends‚ and stock prices are inextricably linked. Dividends are the cash
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ANNUAL REPORT 2011 Foster’s has unveiled a new brand identity For its iconic australian beer business We’re united by the bond only a beer can create and a belief that if a whole lot more people raised a beer in friendship‚ the world would be a better place. ABN 49 007 620 886 Foster’s GrouP limited FiNANCiAl report For the twelve moNth period eNded 30 juNe 2011 THE BEER COMPANY LOVED BY AUSTRALIANS As a beer company‚ we’re proud that we bring people together‚ in unguarded moments
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their similar nature i.e. the purchases and therefore an account shows net increase or decrease in the balance of similar entries / items (in the aforementioned example there was an increase in purchases balance) Example of accounts is payable or creditor account‚ purchases account‚ sales accounts‚ receivable or debtor account‚ cash account‚ bank account‚ machinery account‚ building account‚ vehicle account etc Each account is divided into Debit and Credit portions. Debit is the left hand side of
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(Prelim-Midterm) Chapter 1- General Provisions Art. 1156-1162 i – Definition of Obligation ii – Sources of Obligation Chapter 2 – Nature and Effect of Obligation – Art. 1163-1178 - Obligations of Debtor - Rights of Creditor - Breaches of Obligation - Liabilities of Debtor - Remedies of Creditor - Transmissibility of Obligation Chapter 3 – Different Kinds of Obligations Art. 1179-1230 Section 1‚ Pure and Conditional Obligation (Art. 1179-1192) Section 2‚ Obligation with a Period (Art. 1193-1198)
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their business are two very distinct character or entities; meaning that you cannot count Mr J and J Enterprise to be of one entity or body. What this concept further implies is that Mr J and J Enterprise is of the relationship of a debtor and a creditor; meaning that initially‚ Mr J had injected his own personal money into J Enterprise to start the business namely the capital‚ and J Enterprise should therefore treat Mr J as if it owes Mr J money. Throughout the course of an accounting period‚ Mr
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Consequences of Winding Up Upon the commencement of winding up proceedings‚ the following consequences shall apply: 1. The business of the company ceases from the commencement of the winding up‚ except so far as the liquidator thinks is necessary for the beneficial winding up of the company. In such an event‚ every invoice‚ order for goods or business letter issued by the company must have the words “in liquidation” added after the name of the company. The liquidator has no power to carry on
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merchant in Victorian England. He set up a company with the required seven shareholders (his wife and kids). He lent the company money (as a secured creditor) and then borrowed more money and got into financial trouble. The question of law was who should be paid first‚ unsecured creditors (like employees and utility bills) or himself as a secured creditor. The UK Court of Appeal was anti-semetic and felt Salomon was a fraud and his company was a "sham". But the House of Lords court stated that the
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Vivendi (2002) and Tyco (2002) - have shown that there are unresolved tensions. Whilst at the banquet of statutory protection‚ shareholders and creditors feast on regulation protecting their interests in the company‚ be it solvent or insolvent. Labour is noticeably absent. Whilst the commercial realities indicate that maintaining good relations with creditors‚ suppliers‚ customers and workers are all important parts of maximizing profitability‚ directors do not owe a fiduciary duty to these corporate
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but for the most part this should be your last result. Corporations are business associations that are publicly registered; they follow the corporation rules and have the same legal rights as of one individual. It exists of managers‚ employees‚ creditors and shareholders. When the corporations fail‚ everyone and everything will fail also. That is why the price to succeed and bring on investors and so important for all companies. A Liquidation of a company is when the assets of the company is taken
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29. Introduction 30. The decision of the House of Lords in Salomon v Salomon & Co Ltd [1] evinces the accuracy of Gooley’s observation that the separate legal entity doctrine was a "two-edged sword".[2] At a general level‚ it was a good decision. By establishing that corporations are separate legal entities‚ Salomon’s case endowed the company with all the requisite attributes with which to become the powerhouse of capitalism. At a particular level‚ however‚ it was a bad decision. By extending the
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