7101AFE Financial Accounting Theory and Practice Tutorial Questions for Tutorials 1- 6: Semester 1 2015 TUTORIAL 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements‚ would you have developed a positive theory or a normative theory? The first of all‚ it is important to understand the mean by a ‘theory’. According to Contemporary
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Contents Background 3 Introduction 3 Financial result 4 Percentage changes and Index number 5 Industry sectors and competitors analysis 6 Financial strengths and weaknesses of Primark 8 Where Primark would be ranked financial within its sector on the LSE 9 Forecast Primark’s 2011 post tax profits 10 Techniques (ratio analysis) evaluation 12 Corporate governance recommendations 13 Conclusion 16 Appendix 17 References 31 Background At present‚ the Primark Ltd has 162 stores
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INTRODUCTION In 1975 the Corporate Report was published‚ this was the outcome from the Accounting Standards Steering Committee’s wide ranging discussion paper and in part considered the usefulness of financial statements (Dunn‚ April 2002) discusses that to meet their basic objective financial statements must be useful; and the information relevant and reliable. Information will have relevance if it influences the decisions of the users. Relevance and reliability are primary characteristics relating
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BAO3309 Advanced Financial Accounting Semester 2011 Non-Graded Assessment There are 1 Multiple Choice Questions and you have 13 minutes to complete this assessment 1) Which of the following is true about theories in general? A. Theories can include any coherent set of ideas or statements to explain‚ or provide guidance in respect of‚ certain phenomena B. Theories must be empirically based to describe what is‚ rather than what should be C. Theories must be based on
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Wesfarmers : Financial Analysis Wesfarmers main focus is very simple but an effective objective of providing a satisfactory return to its shareholders. The beauty of this objective is that it is measurable‚ and they seek to achieve a return on equity‚ which ranks Wesfarmers in the top 20 percent of Australia’s listed companies and able to manage the portfolio of businesses which make up the group with strong financial focus (Australian Securities Exchange‚2008). The ongoing success of Wesfarmers
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Weygandt‚ Paul D. Kimmel‚ and Donald E. Kieso‚ accounting principles 2012 Microsoft Corporation‚ Template http://office.microsoft.com/en-us/templates/pro-forma-income-statement-TC101877359.aspx A Securities and Exchange Commission Staff Paper November 16‚ 2011‚ A Comparison of U.S. GAAP and IFRS http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan University of Washington‚ Financial Accounting‚ http://f2.washington.edu/fm/fa/internal-controls
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Financial Statements Analysis Interpretation of Financial Ratios Financial statements analysis is the process of examining relationships among elements of the the company’s "accounting statements" or financial statements (balance sheet‚ income statement‚ statement of cash flow and the statement of retained earnings) and making comparisons with relevant information. Financial statements analysis is a valuable tool used by investors‚ creditors‚ financial analysts‚ owners‚ managers and others in their
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Qualitative Analysis 3 1. Company Profile 3 2. Analysis of the Company’s Accounting Policies 10 Part 2: Quantitative Analysis of Financial Statements 17 1. Scope of the Analysis 17 2. Examining Credit Worthiness of IBM 17 2.1.1. Short Term Paying Ability 17 2.1.2. Long Term Solvency 22 3. Examining IBM Stock as a Investment Opportunity 23 Part 3: Conclusion 25 References 27 Appendix 1: Calculations for Financial Analysis 28 Part 1: Qualitative Analysis 1
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II. Alternative Decision Criteria Payback Period‚ IRR‚ Profitability Index NBA6060‚ Spring 2014 Hyunseob Kim 1 Which investment decision criteria to use? NBA6060‚ Spring 2014 Hyunseob Kim 2 1 Potential interview question: “What’s the difference between IRR and NPV?” NBA6060‚ Spring 2014 Hyunseob Kim 3 Alternatives to NPV rule • The NPV rule leads to investment decisions in the shareholder’s best interest. • But‚ alternative investment rules have been
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1. IBM: A Systematic Financial Analysis. 1.1 Introduction In order to make informed investment decisions‚ potential investors should carefully analyze all available information about the company (or companies) that they are planning to add to their portfolios. One such way is by performing a systematic financial analysis for each of the companies in question (Giroux 2003). The results of this analysis can then be used to determine whether or not the company presents a sound investment
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