New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
management accounting information
Financial Information Analysis The Role Of Accounting Information In Modern Society 3rd Edition Philip O Regan - Solutions
In the context of IAS 12, Income Taxes, distinguish between a timing difference, a permanent difference and a temporary difference, and give examples of each.
Explain why deferred tax arises and why it is signifi cant in an accounting context.
Identify the principal features of the corporation tax code in the UK and explain the meaning of“imputation system”.
“Lease accounting provides one of the most fertile areas for creative accounting practices.” Explain what is meant by this statement.
“That IFRS 2, Share-Based Payments, is now in place is evidence of the decline of political factors in the regulatory process.” Discuss.
IAS 19, Employee Benefi ts, introduced greater volatility to the statement of fi nancial positions of many companies. Explain how this is so and consider the view that this offsets any advantages championed by the IASB.
Explain why related party transactions are subject to such detailed disclosure requirements and identify a number of the disclosures that IAS 24, Related Party Disclosures, requires.
Explain the accounting treatment that applies to joint ventures and associates.
Explain why fair value is such an important concept in the context of business combinations.
Explain how the acquisition accounting method deals with each of the following and explain the rationale behind the accounting practice:• non-controlling interest;• goodwill;• unrealized profi ts on inventory traded between companies in the same group.
Explain the main features of the acquisition accounting method. Give examples of how it operates in practice.
Distinguish between the following:• wholly owned subsidiaries;• partly owned subsidiaries
Explain the signifi cance of IFRS 3 and IFRS 10 in the context of global regulatory developments.
Explain the signifi cance of the concept of “control” in determining the existence of a business combination. Distinguish between “control” and “interest”.
Identify the unique characteristics of an acquisition.
Explain why merger and acquisition activity is so prevalent in the Anglo-American world.
Explain the signifi cance of the fact that companies are increasingly engaging in share buy-backs.
Explain how share buybacks can often increase EPS and why CEOs might fi nd this an attractive option.
Explain the differences between dividend yield, dividend cover and dividend pay-out.
Identify and discuss the various considerations that a board of directors must take into account in determining dividend policy.
Explain why some investors place such importance on dividends. Also, account for their relative unimportance to investors in so-called “new economy” businesses.
Explain the usefulness of alternatives to EPS such as total shareholder return (TSR).
Identify the reasons for the continued importance assigned to EPS and explain why it has been the subject of so much regulation.
Explain why it is important to measure return on capital employed (ROCE) and distinguish between the interests of equity shareholders and other investors under this heading.
Compare and contrast what is measured by the gross profi t rate and the operating profi t rate.
“It is possible to survive several years of losses, but it is only possible for a business to run out of cash once.” Taking this statement as a starting point, consider the relative importance of liquidity and profi tability.
Explain the importance of understanding the interrelationship between activity, liquidity, gearing and cash-fl ow issues when interpreting a company’s fi nancial position and performance.
Assess the usefulness of gearing as a measure of risk.
Identify the unique characteristics of bonds as a form of funding and explain why they have become established as an alternative to bank funding for companies.
Explain the purpose of calculating WACC and the circumstances under which it might be best applied when assessing performance.
Derivatives have emerged in recent years as a complex form of fi nancing. Identify the unique characteristics of this type of funding and explain some of the accounting-specifi c issues that they raise.
Why is there such a range of preference shares available? Identify investors for whom each type might hold attractions.
Identify and distinguish between the various types of preference share that a company can issue.
What particular issues are raised by preference shares when considering whether they should be classifi ed as “equity” or “debt”.
Distinguish between “equity” and “debt” and explain why this distinction is necessary.
“When raising fi nance, it is imperative that the funding being considered should be appropriate in terms of both time-scale and structure. One would not attempt to fund a new factory with an overdraft.” Explain the funding implications of this statement.
Why has free cash fl ow (FCF) emerged in recent years as such a signifi cant measure?
Identify any additional information that would be necessary in order to properly assess Debenhams’performance under the headings of liquidity and activity.
Taking the relevant activity and liquidity ratios for Debenhams from the chapter, discuss what is revealed by these fi gures and whether they provide suffi cient information to allow any meaningful conclusions to be drawn regarding Debenhams’ performance and fi nancial position.
Explain the signifi cance of the cash and operating cycles and how they add a useful additional perspective when assessing company performance and management effi ciency.
Identify the specifi c aspects of cash-related activity that the following assess:• cash generation;• cash fl ow adequacy.
Comment on the advisability of arguing that there are “normal” results for the current and quick ratios.
Identify the particular elements of management effi ciency captured by the following:• debtors’ days;• stock days;• creditors’ days.
Distinguish between liquidity and activity measures, and explain how each targets different aspects of corporate activity.
Explain the importance of working-capital and the different aspects of corporate fi nancial performance and position that can be highlighted from its proper analysis and interpretation.
Cash has been described as “the lifeblood of business”. Explain what is meant by this.
Summarise why the fundamental analysis approach is favoured by this text.
Explain how using both fundamental analysis and technical analysis could yield complementary insights for investors.
What were the main features of the theories of Charles Henry Dow that have so strongly infl uenced modern technical analysis?
Identify at least three features of technical analysis that make it a unique approach to data analysis.
List the fi ve stages involved in a healthy decision-making process based on accounting data. Identify the role of fundamental analysis in this process.
List some of the qualities of ratios and identify some features of ratios that require that they be treated with caution.
Explain what each of the following terms mean and list examples of ratios under each:• activity;• liquidity;• fi nancing;• profi tability;• investment.
“It can be argued that fi nancial data and their various representations, for example ratios, only acquire their real signifi cance when placed in an appropriate context.” Explain what is meant by this statement.
Explain the use of common-size statements as a means of identifying trends within a company and of facilitating inter-fi rm comparison.
Identify the principal differences between fundamental analysis and technical analysis.
In your opinion, does the statutory audit add value for stakeholders?
The audit function has been the focus of considerable criticism in recent years. Explain why this is so and what auditors and regulators have sought to do to counter this criticism.
Explain how requirements in relation to narrative disclosures are likely to develop. For instance is it likely that there will be even greater disclosure requirements placed on companies? Is it possible that there might be resistance on the part of companies concerned at both the cost and the
To what extent do fi nancial analysts allow their analysis to be informed by the information contained in the narrative portion of annual reports?
“The strategic report means a signifi cant amount of additional information is now made available to readers of an annual report. The main importance of the strategic report is that it requires management to not only disclose information but also to comment upon it and give opinions as to its
Consider the implications for auditors of increasing disclosure and reporting requirements.
To what extent have the various additional disclosure requirements resulting from recent legislation and standards succeeded in remedying the “information defi ciency” identifi ed by many users?
Only some of the narrative elements of an annual report are subject to legislative control with regard to content, etc. Is this appropriate or should each element of the annual report be subject to closer regulation?
List the principal narrative elements of an annual report and for each indicate the component parts and the user group that would be most interested.
Explain why the narrative sections of annual reports have assumed such importance in recent years.
One focus of this chapter has been the excessive levels of remuneration being enjoyed by executives. The following long, but very thoughtful, article looks at some of the critical underlying issues and considers the merits and demerits of alternative perspectives. How do the points made impact on
Explain what “stakeholder theory” means and identify specifi c ways in which pressure from stakeholders other than shareholders has infl uenced corporate governance and reporting practice.
In the wake of the global fi nancial crisis the question of the diversity of boards has become a key consideration. Why do you think that is? To what degree do you think proposed solutions are mere tokenism and fail to address the fundamental problems confronting companies?
Explain why executive remuneration has become such a contentious issue. Do you think that it can be resolved by means of legislation and/or regulation?
For a variety of reasons “shareholder value” is the pervasive and dominant paradigm, especially in the Anglo-American world. Outline the signifi cance of this and explain how it informs so much of the agenda for change.
“In focusing attention on risk management and in requiring management to integrate this into the governance and operational aspects of corporate life, Turnbull will be seen in a few years time as having had the most profound effect upon corporate governance culture in the UK.” Do you agree with
Identify the principal contributions of the following to the corporate governance regime as it currently exists in the UK:• Cadbury;• Greenbury;• Hampel;• Turnbull;• Higgs;• Smith.
Explain what “best practice” means in the context of UK corporate governance. Identify the reasons why this became an issue in the 1990s.
Identify the role, if any, which the following may play in the future in the area of international corporate governance practice:• UK government;• EU;• SEC;• IASB;• stock exchanges;• international accounting bodies;• shareholders;• other stakeholders.
Explain how corporate governance impacts upon notions of accountability and, consequently, upon the nature and form of accounting practice.
Explain what is meant by the term “corporate governance” and identify specifi c reasons for divergences in corporate governance cultures.
One of the key theories supporting EMH is portfolio theory, the key elements of which were outlined in this chapter. The following article looks at its role and argues that, partly as a result of it, “inertia is a signifi cant factor” in many so-called investment strategies. Having reviewed
The short-termism of the fi nancial sector was identifi ed as a key factor in enabling and prolonging the recent fi nancial crisis. One of the ways in which the excesses of the fi nancial sector might be addressed would be to impose a tax on its transactions. The following article provides a useful
The following article elaborates on the impact that behavioural fi nance perspectives are having on our understanding of the market and market dynamics. After reading this consider whether behavioural fi nance has the capacity to signifi cantly change our view of how accounting information impacts
Summarize the contribution of positive accounting theory to accounting thought.
Identify the sources of recent challenges to the previously dominant EMH paradigm. In respect of each of these, indicate whether they can be refuted by champions of EMH or whether they represent fundamentally irrefutable observations. Do you think that the widespread acceptance and application of
One of the implications of EMH is that there is no advantage to users in analysing the accounting information contained in an annual report with a view to identifying mis-priced securities. This represents a challenge to the role of the fi nancial analyst. However, EMH assumes that relevant
Identify the challenges that EMH brings to the traditional understanding of the role of accounting information in the market. How does this affect the way in which accounting information is perceived by users?
“The contribution of APT was to provide a complex model that approximated more closely to reality.This gave it a credibility that CAPM lacked.” Explain what this means.
CAPM builds upon portfolio theory and incorporates a measure of the relationship between risk and return. Explain how it achieves this.
Explain what is meant by each of the following terms:• diversifi cation;• effi cient market;• portfolio;• beta;• riskiness.
Explain how changes in fi nance theory gradually impacted upon the way in which academics and practitioners began to think about the role of accounting information in the market.
Identify and distinguish between the three dominant paradigms that have been prevalent within accounting over the course of recent decades.
Explain why theory can be useful in aiding an understanding of the broader issues involved in any particular practice or series of events.
As mentioned in this chapter, the issue of “Going Concern” and its place in the panoply of accounting concepts has been raised recently by the report of Lord Sharman, whose approach was informed by the fi nancial crisis and the various liquidity and solvency issues that emerged. Taking the
The following article is particularly interesting because it links the specifi cs of issues like prudence, accountability and stewardship to underlying philosophical considerations that should inform debate about the Conceptual Framework. Taking this article as your starting point, research what
As indicated in the text, the topic of fair value has been developed in more depth on the website. Having read the additional information there as well as reviewed the various articles alluded to, give your assessment of the extent to which this move towards fair value accounting sacrifi ces too
Explain the signifi cance of the Joint Conceptual Framework project commenced by FASB and IASB.
Explain what is meant by “fair value” and why its acceptance as a valuation paradigm by IASB has proven so controversial.
Identify the role of the Corporate Report, the Sandilands Report and various other contributions in identifying both a need for, and the likely elements of, a conceptual framework.
To what extent could SSAP 2, Disclosure of Accounting Policies, be considered to have provided an adequate conceptual framework for the UK?
Compare and contrast the conceptual frameworks developed by both IASB and FASB. Is it appropriate to talk about an overarching “Anglo-American” framework?
“In providing defi nitions for such key elements as assets and liabilities, SFAC 6 represented a seminal document in the development of an accounting framework.” Explain.
Summarize the key elements of SFACs 1, 2, 5 and 6. Identify themes common to each as well as internal inconsistencies.
Showing 2100 - 2200
of 4138
First
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Last
Step by Step Answers
Get 50% OFF
Claim Now
