special purpose entities‚ aggressive transaction structuring and accounting‚ rapid expansion of business through complex and unconventional ventures‚ extensive reliance on credit rating‚ and limitations in GAAP. The complex nature of the business model of Enron increased the likelihood of material misstatements. It enabled the management to overstate its revenue while not disclosing the actual value of its debt. The risk of fraud by management was high. The transactions involving SPE’s essentially involved
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ASSIGNMENT 2: Mergers and Acquisition Course title: Bus 508-Contemporary Business Use the Internet to research a publicly traded company in the United States that has undergone a merger or acquisition within the last three (3) years. Take note of the circumstances surrounding the merger or acquisition. I. Examine the circumstances that resulted in the merger or acquisition for the selected company. Speculate on two (2) reasons why the resulting decision to merge or
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Financial accountants and independent auditors commonly face challenges Abstract Financial accountants and independent auditors commonly face challenging technical and ethical dilemmas while carrying out their professional responsibilities. This case profiles an accounting and financial reporting fraud orchestrated by the chief financial officer (CFO) of a major public company and his subordinates. The CFO‚ who was a CPA‚ took extreme measures to conceal the fraud from his company’s audit
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investments * Strategic Investments (Investor intends to establish or maintain a long-term operating relationship with the entity in which the investment is made): * Control – Full Consolidation * Significant Influence – Equity Method * Joint Ventures – Proportionate Consolidation * Non-Strategic Investments: * Fair Value through Profit and Loss (FVTPL) – Fair Value Method * Available-For-Sale (AFS) – Cost Method * IFRS 9 requires
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APAX PARTNERS AND XERIUM S.A. 1. What tactics/actions did Apax take to enable it to acquire BTRP in an auction without over-paying? How did Apax add value to Xerium? Apax took a well-designed strategy to bid for Xerium. First‚ they understood it was not a competitive auction. Secondly‚ they took advantage of the momentum and circumstances of the seller that was under distress. Finally‚ they spent huge resources to analyze and calculate the value of Xerium to Apax. First‚ they analyzed
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1.INTRODUCTION TO RAYMOND LTD Raymond Ltd (formerly known as Raymond Woollen Mills) was incorporated in 1925. The company has five divisions comprising of Textiles‚ Denim‚ Engineering Files & Tools‚ Aviation and Designer wear Raymond Textile is India’s leading producer of worsted suiting fabric with over 60% market share. With a capacity of 25 million meters of wool & wool-blended fabrics‚ Raymond Textiles is the world’s third largest integrated manufacturer. The company exports its suitings
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FJ Benjamin Holdings Ltd# (SGX: FJB) 18 July 2012 Receding tides at the fashion and timepieces retailer UNDERWEIGHT Target Price: S$ 0.09 Price (as at 18 July 2012) | Bloomberg | 12-month Range | Market Capitalization | S$ 0.33 | SGD 0.3300 | SGD 0.26 – 0.365 | SGD 203 Million | 3 Points that convince us of a Sell rating: * Something 1 Explanation * Something 2 Explanation * Something 3 Explanation Year End: Jul | 3QFY11Results | 3QFY12Results | YoY % Growth
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perform to detect fraudulent entries made during the consolidation process? Most of the time‚ fraudulent activity is found by mistake. It is not the auditor’s responsibility to detect fraud‚ although they must assess internal procedures to establish if they are aligned with the company’s goals and needs. Preventative measures for detecting fraud during the consolidation process are applying ratios’ analyses‚ verification of a sample of transactions tracing unusual and unjustified entries close to
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Harnischfeger Corporation* Company Business and Products Harnischfeger Corporation was a machinery company based in Milwaukee‚ Wisconsin. The company had originally been started as a partnership in 1884 and was incorporated in Wisconsin in 1910 under the name Pawling and Harnischfeger. Its name was changed to the present one in 1924. The company went public in 1929 and was listed on the New York Stock Exchange. The company’s two major segments were the P&H Heavy Equipment Group‚ consisting
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period’s performance. Another important use of the income number is to help predict a firm’s future performance. In apparent acknowledgment of this fact‚ the accounting rules require three types of transactions to be presented differently than in the simple example above. The three types of transactions that are presented differently are extraordinary items‚ discontinued operations‚ and changes in accounting policy. The events that
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