to determine the motivation for creating Disco. 1. The concept of control has a long and storied history, starting with the Committee on Accounting Procedure’s (CAP) Accounting Research Bulletin No. 51, Consolidated Financial Statements issued in 1959. This early statement did not use the term control, but controlling financial interest. This was generally evidenced by ownership of a majority of the voting shares, and over time, majority ownership became the de facto indicator of control. Within
Chapter 3 Lecture (Part III) In addition to forecasting cash flows, managers and investors are also interested in forecasts of the firm’s financial statements. These projected financial statements are called pro forma financial statements. They give both the management and investors an insight into what the financial statements will look like in the future and a signal as to any need to raise long-term funds. The starting point in the creation of the pro forma financial statements is the construction
Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership 2. What forces are driving changes in the movie rental industry and are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability? -The economy is one of the reasons why rental industry went down. Less people are able to rent a lot of movies. -Second and main reason that drives
Valuation of AirThread Connections Group 7 (Shaojin Ding/ Jin Wang/ Wenqi Gu/ Shijia Wu/ Tongtong Yin/ Canran Xie) Given the background of ACC and AirThread, do you think the acquisition is a good idea? Briefly explain your answer. Yes. First, American Cable Communication (ACC) and AirThread could help each other compete in the industry that was moving more and more bundled service offerings. Second, the acquisition could help both companies expand into the business market. Third,
Table Of Contents 1. Company Background and Strategies 1 2. EVALUATION OF KEY ACCOUNTING POLICIES 1 2.1 REVENUE RECOGNITION 1 2.2 RECEIVABLES 2 2.3 PROPERTY, PLANT AND EQUIPMENT 2 2.4 EMPLOYEE BENEFITS 3 2.5 INTANGIBLE ASSETS 4 2.6 FINANCIAL INSTRUMENT 4 3. ANALYSIS OF KEY ACCOUNTING NUMBERS 5 3.1 Questionable Accounting Numbers 5 3.2 Distortions in Accounting Numbers: 5 4. SUMMARY OF FINANCIAL PRESS DISCUSSION 6 Appendix-1 7 Appendix -2 7 Appendix 3 8 Appendix
is profit determined under (a) the cash basis of accounting and (b) the accrual basis of accounting? 3 Why are adjusting entries necessary? Surely they cause too much delay in preparing financial statements, and the financial effect of any entries made is immaterial in the long run.’ Respond to this criticism. 4 Compare and contrast the purposes of adjusting entries and closing entries 4
Problem set C PROBLEM 3-1C For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.) A. To record receipt of unearned revenue. B. To record this period’s earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue G. To record this period’s
Corporate Accounting III Assignment 2 Question 1: What is the difference between direct and indirect NCI? Under AASB127, the group is required to prepare the consolidation statement when parent entity acquires shares in the subsidiary. There are two parties who own shares in the subsidiary if it’s not a wholly-owned subsidiary consolidation. One is the parent entity while the other is non-controlling interest. Non-controlling interest (NCI) is defined as “the portion of the profit or loss and
of companies. 2. Draw a typical organization chart for a corporate finance department. Possibilities may or may not include: Chief Financial Officer, Marketing Analyst, Controller, Sales Administration and Analysis, Accounting Manager, Administrative Assistant, Accounting
Chapter 12 : 1/ As part of the initial investment , a partner contributes office equipment that had cost $20,000 and on which accumulated depreciation of $ 12500 had been recorded . If the partners agree on a valuation of $ 9000 for the equipment , what amount should be debited to the office equipment account? a/ 7500 c/ 12500 b/ 9000 d/ 20000 2/ Chip and Dale agree to form a partnership. Chip is to contribute $50000 in assets