Scenario 1 Energy Inc. has a present obligation (IAS 37-17) and probable liability (ASC 450-20-25-2) on December 31‚ 2011 as a result of a past event‚ the contamination of the land‚ because it is virtually certain that a draft law requiring cleaning up will be enacted. It is probable (more likely than not) that Energy Inc. will be required to transfer economic benefits in settlement which is an outflow of resources embodying economic benefits in settlement (IAS 37-23). The amount of the obligation
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than other traditional accounting measures do. Q2. What are the advantages and disadvantages of using an EVA to evaluate the firm’s performance?Advantages•WACC incorporates a premium for (market’s view of) risk. So EVA (unlike ROCE) takes account of risk. •Tax is more fully reflected by using a post-tax capital charge (WACC) and a notionally taxed PBIT. •Does not require cash flow estimation and discounting of cash flows. (Nor does ROCE.)•It makes use of the existing accounting and financial reporting
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Chapter 5 The Expenditure Cycle Part 1: Purchases and Cash Disbursements Procedures Accounting Information Systems‚ 5th edition James A. Hall COPYRIGHT © 2007 Thomson South-Western‚ a part of The Thomson Corporation. Thomson‚ the Star logo‚ and South-Western are trademarks used herein under license Objectives for Chapter 5 • Tasks performed during purchases and cash disbursement processes • Departments involved in purchases and cash disbursement activities and the flow of these transactions
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Grafica Inc.: Winning the New Jersey Lottery Designing and Managing Integrated Marketing Communications 14/12/2011 Marketing Submitted By Group-4‚ EXECUTIVE SUMMARY Grafica Inc. was an advertising firm started my Ms Debra Taeschler in 1986 with her colleague‚ working in Landmark Associates and her husband John Taeschler. By 1998 Grafica had grown in full-service advertising agency. It was located in Chester New Jersey and it was particularly well-known for its expertise in integrated
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Accounting Fraud at WorldCom 1) What are the pressures that lead executives and managers to “cook the books?” After the rapid evolution of the telecommunication industry in the 1990s‚ WorldCom shifted its strategy to focus on building revenues and acquiring capacity sufficient to handle expected growth. Their biggest goal was to be the No. 1 stock on Wall Street rather than capturing the market share. As a result‚ their Expense-to-Revenue (E/R) Ratio was their measurement for their main objective
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Case Study BLADE INC. CASE Submitted to Riyashad Ahmed(RyA) FIN-444 Sec-3 Submitted by Antu Biswas 102 0044 030 BLADE INC. CASE 1. What are the advantages Blades could gain from importing from and/or exporting to a foreign country such as Thailand? Ans: The advantages Blades could gain from importing from and/or exporting to Thailand could be Decrease their cost of goods sold‚ and increase Blades’ net income since rubber and plastic are cheaper when imported from a foreign country
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conglomeratesThis answer is correct. d. joint ventures with foreign investors "keiretsu" are corporate conglomerates. /1 1/1 Question 3 In Germany‚ prudence is an accounting principle established in commercial law. What does "prudence" mean in an accounting context? a. Reliability b. Comparability Selected: c. ConservatismThis answer is correct. d. Relevance In context of accounting "prudence" means Conservatism. /1 1/1 Question 4 By what title are professional accountants in Mexico known? a. Certified Public
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Case 3.1 Enron: Understanding the Client’s Business and Industry Price‚ Ria; Walters‚ Jessica 1. Inherent risk‚ a component of the audit risk model‚ refers to the susceptibility of the accounts to material misstatement‚ without regard to the systems internal controls. Inherent risk is a function of the nature of the client’s business‚ the major types of transactions‚ and the effectiveness and integrity of its managers and accountants. A clear understanding of the audit client’s business model is essential in assessing
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maximum length of your response is 3 pages. If necessary an additional two page appendix can be added for items such as illustrations‚ journal entries‚ financial statement items or IFRS or ASPE Standards extracts. The appendix should not contain discussion or analysis. [That is‚ the overall limit is three pages + a two page appendix‚ if needed‚ for a total of 5 pages (single spaced‚ minimum 12 font)]. For the most part‚ the background needed to complete the cases is readily available in the text
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Case 3-51 Pages 115 -117 1. Why might Koss management have placed so much trust in Sachdeva‚ along with minimal supervision and monitoring? Koss management might have placed so much trust in Sachdeva because she was is such a high position. She worked in the company as Vice President‚ when you are that high on the totem pole‚ you are given trust that you know what you are doing and that you want what is best for the company. Companies don’t hand out positions to people that
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