The Effect of Deferred Taxes on Firm Market Value: Evidence from Hong Kong BY GAO Fan 09050353 Accounting Concentration JIANG Wei 09050337 Accounting Concentration An Honors Degree Project Submitted to the School of Business in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honors) Hong Kong Baptist University Hong Kong April 2012 Supervisor: Dr. H. K. Daniel Ho Acknowledgement We would like to use this opportunity
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The Matching Principle: Insights into Earning’s Usefulness to Investors.$ Harm Sch¨tt u Haas School of Business University of California at Berkeley Abstract This paper argues that matching expenses to revenues increases earnings’ usefulness to investors by providing an accounting rate of return (ARR) closer to current economic profitability. To test this‚ I estimate a proxy for a firm’s internal rate of return (IRR) in order to approximate the distortion between ARR and IRR. Results show that
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Balance Sheet and Income Statement Jennifer Grayson BSA/500 June 4‚ 2011 Brian Keltch Balance Sheet and Income Statement The following four companies are related to the companies that have been in review over the last four weeks. These four following companies show how well the company has been doing over the last two years or not so well. The company has pulled their balance sheets and income statement to see if all the company’s financial needs are being met. If the company’s needs are
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Sarbanes-Oxley Act in 2002‚ the topic of internal control systems never came to rest. The current subprime crisis is just one example of internal control failures and their negative consequences. Other severe cases‚ where internal control failures lead to earnings management‚ fraud and misstatements of financial reports‚ are Enron‚ WorldCom or Global Crossing. This paper analyses causes and effects of internal control outcomes. Corporate governance structures might influence the effectiveness of internal controls
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described as rule-of-thumb approaches and are commonly categorized as naive techniques. Additionally‚ Pandey (1999) figures out two types of CBTs and grouped them as follows. 1. Discounted cash flow (DCF) criteria NPV‚ IRR‚ profitability index (PI) and discounted payback period (DPBK) 2. Non-DCF criteria PBK and ARR Discounted Cash Flow Criteria The DCF is a cash flow summary that has been adjusted to reflect the time value of money. It is an important criterion in evaluating or comparing investments
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generalized to other asset markets. EMH has also been a subject of debate since its inception in the 1960s. INTRODUCTION This essay critically discusses’ A market is efficient with respect to a particular set of information if it is impossible to make abnormal profits by using this set of information to formulate buying and selling decisions.’(With respect to Technical & Fundamental Analysis). In this essay‚ firstly‚ the Efficient Market Hypothesis (EMH) is given an appraisal in relation to random walk
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Section E: Accounting Analysis Key accounting policies The key success factors for a company which operates in consumer discretionary sectors‚ such as OrotonGroup‚ are product differentiation through brand‚ product quality‚ and product innovation. Therefore‚ the important accounting policies for achieving those factors are: Accounting Policies | OrotonGroup Policies | Revenue recognition | OrotonGroup recognises revenue when a group entity sells a product to the customers. Revenue from
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2ACCT 455 CHAPTER 2 Solutions 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Then‚ its year 2 opening net assets are $276.36‚ and net income would be: P.V. Ltd. Income Statement For Year 2 Accretion of discount (10% × 276.36) P.V.’s balance sheet at time 2 would be: P.V. Ltd. Balance Sheet As at Time 2 $27.64 Financial Asset Cash: (140 + 14 + 150) $304.00 Shareholders’ Equity Opening Balance: 276.36 (286.36 - 10.00 dividend)
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ratio /Profitability index: is the present value of a project’s future cash flows divided by the initial investment. The project will be accepted if this index is more than 1.0 and vice versa. Hurdle rate: is the required rate of return in a discounted cash flow analysis‚ above which an investment makes sense and below which it does not. Often‚ this is based on the firm’s cost of capital or weighted average cost of capital‚ plus or minus a risk premium to reflect the project’s specific risk characteristics
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statement D) Footnotes Answer: B 2. Which of the following would not be considered a source of financing? A) notes receivable B) common stockholders’ equity C) retained earnings D) capital lease obligations Answer: A 3. Wilco Company reports the following: 2005 2004 Retained Earnings $2‚000‚000 $ 1‚300‚000 Common Stock $ 500‚000 $ 500‚000 Paid-in Capital $3‚000‚000 $ 3‚000‚000 Net Income for year $ 900‚000 $ 400‚000 Dividend payout ratio for 2005
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