Advanced Financial Accounting Unit 3 Solutions Solution to question 1 1. Prepare the equity accounting entries for 20x5 EA1: Recognize share of post-acquisition R/E of A Dr Investment in A 21,000 Cr RE RE of A as at 1 Jan 20x5 RE of A as at date of acquisition Change in RE 30% Share of A's change in RE 21,000 100,000 30,000 70,000 21,000 EA2: Recognize share of impairment loss on intangible asset (note a) Dr RE 4,800 Cr Investment in A 4,800 (30% Asso x 50% impair x (1-20% tax) x 40K)
Words: 4886 - Pages: 20
CHAPTER ONE THE THEORETICAL FRAMEWORK: CONCEPTS AND PROBLEMATICS OF THE KNOWLEDGE SOCIETY CHAPTER ONE THE THEORETICAL FRAMEWORK: CONCEPTS AND PROBLEMATICS OF THE KNOWLEDGE SOCIETY Introduction This chapter presents a general theoretical framework for the knowledge society, based on four major axes linked by the concerns and issues invoked by the project to create a “knowledge society” as an integral part of a comprehensive programme of Arab renaissance. The first of these axes presents the
Words: 20875 - Pages: 84
ProjectA Cumulative cash Year -1 3,000 3,000 2,000 2,000 Year -2 3,500 6,500 2,500 4,500 Year -3 3,500 10,000 2,500 7,000 Year -4 1,500 11,000 2,500 9,500 Year -5 1,500 13,000 3,000 12,500 Year -6 3,000 16,000 5,500 18,000 Example • Payback period for Project A = 3 years (cumulative cash inflows = outflows) • Payback period for Project B = 4 years + 500/3000 = 4 years and 2 months. (Note: Interpolation technique is used here to identify
Words: 309 - Pages: 2
METHODS OF EVALUATING CAPITAL INVESTMENTS Non-discounted cash flow methods * Payback period * Payback reciprocal * Payback bail-out period * Accounting rate of return Discounted cash flow methods * Net present value * Present value index (profitability index) * Annualized net present value or Equivalent annual annuity * Present value/discounted payback * Internal rate of return *
Words: 1416 - Pages: 6
¥þ ²y ¦æ ¾P ±M ÃD ´Á ¥½ ÃD¥Ø¡G eBay ªºµ¦²¤¦æ¾P¤ÀªR «ü¾É±Ð±Â¡Gªô§Ó¸t ³Õ¤h ²Õ§O¡G²Ä¤T²Õ ¤é´Á¡G 2002 ²Õ-û¡G ¦~ 1 ¤ë 08 ¤é ¬ìºÓ¤G ¤ý-³µ¾ ¥øºÓ¤G ³¯¨q¬Â ¶TºÓ¤G ¬x ¸© ¶TºÓ¤G ¼B¤Ö¿¢ ´Á¥½³ø§i ¥Ø¿ý 1.«e¨¥...................................................................................................... 3 2.¬ã¨s¬[ºc .............................................................................................. 4 3.¤½¥q²¤¶............................................
Words: 10880 - Pages: 44
flows: YEAR PROJECT A PROJECT B 0 –$195,000 –$1,200,000 1 240,000 1,650,000 1. Calculate the net present value. 2. Calculate the profitability index. 3. Calculate the internal rate of return. 4. If there is no capital-rationing constraint, which project should be selected? If there is a capital-rationing constraint, how should the decision be made? Cash Flows Present value Year Project A Project B PV factor @10% Project A Project B 0 -195000 -1200000 1.0000 -195000
Words: 1148 - Pages: 5
Google’s main brands in a GE Matrix University of Lincoln Author: Submission date: Subject: Words: Max Adler 11th January 2010 International Marketing Strategies / MKT 3084 3018 Table of contents List of figures 1 Introduction 2 Google’s major brands 2.1 Search engine 2.2 YouTube 2.3 Chrome Browser 2.4 Maps, Earth and Street View 2.5 AdWords and AdSense 2.6 Other Google brands 3 Portfolio analysis via matrices in the 21st century 3.1 Why portfolio analysis? 3.2 Portfolio analysis and Google
Words: 3842 - Pages: 16
Professor’s name: Dr. Wright Course: AF 211 Accounting for Planning and Control Managers in making investment decisions are faced with the problem of limited resources. This, therefore, necessitates an understanding of the topic of capital budgeting. Capital budgeting is the process of determining and pursuing investments which cash flows are expected in the future period usually more than a year. It entails the decision on the acquisition of new assets or equipment that is to be utilized by the
Words: 946 - Pages: 4
An essay on Capital budgeting Man's greatest achievement? Perhaps not, but can you afford not to read on when I am about to tell you about Capital budgeting? Many an afternoon has been enjoyed by a family, bonding over the discussion of Capital budgeting. While much has been written on its influence on contemporary living, Capital budgeting is not given the credit if deserves for inspiring many of the worlds famous painters. It still has the power to shock so called 'babies', whom I can say no more
Words: 484 - Pages: 2
his team has begun analyzing these changes that are affecting his business. Mr. Navallez does have a few ideas on how to move forward but will have to research more on the correct capital budgeting that is best for his organization. Capital budgeting is defined as the process of choosing the organizations long term capital investment strategy, this often consist of things like land, property and equipment (Emery, Finnerty, & Stowe, 2007). Alternatives With the changes the Mr. Navallez and his
Words: 1123 - Pages: 5
