...ACCT 3302 Fall 2012 Exam 3 1 (20): 2 (10): 3 (10): 4 (16) 5 (16): 6 (8): 7 (5): 8(15): 9 (5): 10 (5): Total (100) _____ Name: INSTRUCTIONS 1. Your test should include 8 pages (cover sheet plus 7 pages of test). All pages should be turned in at the completion of the exam. 2. On the problems, include ALL computations, properly labeled in the space provided. Partial credit may be given at the discretion of the instructor. 3. Calculators may be used. They cannot be shared. You may not use the calculator on a cell phone. 4. If you have a question or problem, ask the instructor. 5. The minimum penalty for academic dishonesty on this exam will be a grade of 0 for this examination. Academic dishonesty includes giving aid to or receiving aid from another student during this exam. 6. No hats. No cell phones I certify by signing below that I have neither given nor received aid in completing this examination. Signature Date I. Accounting Concepts 20 points. A. Accounting Change. ABC Company has been using specific identification inventory method. However, it has grown and has a broader array of products. The company would like to use the greater efficiency of the FIFO method on a periodic basis for financial reporting. (a) Is ABC Company allowed to change its inventory methods? Why or why not? (b) Assuming that the company is allowed...
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...Part A Question 2.12 A) Total cash outlay = 500 000 x $6.10 + 4 300 = $3 104 300 Pimento Ltd General Journal Contingencies Reserve 700 000 Retained Earnings 1 000 000 Share Capital 1 404 300 Cash at bank 3 104 300 (Buy back of 500 000 ordinary shares at $6.20 per share and buy back costs of $4 300) B) Total cash outlay = 500 000 x $1.50 + 4 300 = $754 300 Pimento Ltd General Journal Retained Earnings 70 000 Share Capital 684 300 Cash at bank 754 300 (Buy back of 500 000 ordinary shares at $1.50 per share and buy back costs of $4 300) Question 2.14 Basil Ltd General Journal 2010 Nov 30 Cash at bank 46 800 B ordinary shares 46 800 (Issue of 18 000 shares at $2.60 under the rights issue) 2011 Jan 16 Call 180 000 A ordinary shares 180 000 (Call of $1.50 on 120 000 A ordinary shares x $1.50) Jan 31 Cash at bank 165 000 Call 165 000 (Cash received, 110 000 A ordinary shares x $1.50) Feb 5 A Ordinary Shares 30 000 Call 15 000 Forfeited shares liability 15 000 (Forfeiture of 10 000 A ordinary shares called to $3.00, paid to $1.50) Mar 31 Cash at bank 24 500 Share options (expiring 31/12/12) 24 500 (Issue of 35 000 options at $0.70) Dec 31 Cash at bank 75 600 Share options 75 600 (Exercise of 27 000 options into A ordinary shares at exercise...
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...daily routine of the strategic advisory business. As the financial, legal and tax environment in which the M&A Group operates is forever changing, periodic updates of this publication are intended. As such, any suggestions for improvement would be appreciated. Please direct your comments for improvement, but not your requests for copies of the book, to Eileen Smith at (77)6-8305. An online version of the book is available to Investment Banking professionals on the IB M&A Research database in Lotus Notes or through IB Today. The book is confidential, proprietary and the sole property of J.P. Morgan and should not be passed along to colleagues outside of Investment Banking or to people at competitor firms. Copyright © 1997 Morgan Guaranty Trust Company of New York. All rights reserved. June 1998 82890cl6 J.P. Morgan M&A Reference Manual Contents Valuation methodologies overview ............................................................... 1 Advantages and disadvantages ........................................................................ 1 Comparable company trading analysis ....................................................... 6 Selected trading statistics explained ................................................................ 8 Selected operating statistics explained............................................................. 13 Typical data problems ...................................................................................... 17 Summary of inputs and...
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...medium-term finance by issuing shares and debentures. Specialised financial institutions are also an important source of such finance. In this lesson, we shall discuss the role and functions of specialised financial institutions. 20.2 Objectives After studying this lesson, you will be able to :- l explain the need for and importance of specialised financial institutions; l identify the types of such institutions; l describe the functions and objectives of Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs); l discuss the role and objectives of Industrial Development Bank of India (IDBI); l state the functions of IDBI; l Recall the meaning of ‘investment trust’; 56 :: Business Studies l discuss the objectives and function of Unit Trust of India (U.T.I.) ; l Explain the objectives of Industrial Credit and Investment Corporation of India (ICICI) ; l describe the functions of ICICI ; 20.3 Need for and importance of Specialised Financial Institutions (SFIs) SFIs are institutions set up mainly by the government for providing medium and long-term financial assistance to industry. As these institutions provide developmental finance, that is, finance for investment in fixed assets, they are also known as ‘development banks’ or ‘development financial institutions’. These institutions receive funds for their financing operations primarily from the government or other public institutions. These institutions also raise funds from...
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...Strength. Momentum. Connectivity. 2011 ANNUAL REPORT BUILDING A BANK OF GLOBAL QUALITY WITH A REGIONAL FOCUS WHO WE ARE AND WHERE WE OPERATE OUR PROGRESS ANZ‘s ANZ‘s history of expansion and growth stretches over 175 years. We have a strong franchise in Retail, Commercial and Institutional banking in our home markets of Australia and New Zealand and we have been operating in Asia Pacific for more than 30 years. ANZ ANZ is the only Australian bank with a clearly articulated strategy to take advantage of Australia and New Zealand’s geographic, business and and cultural linkages with Asia, the fastest growing region in the world. Today, ANZ operates in 32 markets globally. We are the third largest bank in Australia, the largest banking group in New Zealand and the Pacifi Pacific, and among the top 50 banks in the world. OUR SUPER REGIONAL STRATEGY We We articulated our super regional strategy in late 2007. The rationale behind our strategy is simple – to deliver shareholders long-term growth and differentiated returns through connectivity with the growth markets of Asia – returns we do not believe to be available through a domestic-only strategy. Our aspiration is for Asia Pacific, Europe & America sourced revenues to drive drive between 25 and 30% of Group earnings by the end of 2017. Connectivity Connectivity is at the heart of ANZ’s strategy by being part of the growth within Asia and supporting the increasing trade, investment ...
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...Chapter 25 Canadian Taxation © CSI GLOBAL EDUCATION INC. (2013) 25•1 25 Canadian Taxation CHAPTER OUTLINE How does the Canadian Taxation System Work? • The Income Tax System in Canada • Types of Income • Calculating Income Tax Payable • Taxation of Investment Income • Tax-Deductible Items Related to Investment Income How are Investment Gains and Losses Calculated? • Disposition of Shares • Disposition of Debt Securities • Capital Losses • Tax Loss Selling What are Tax Deferral Plans? • Registered Pension Plans (RPPs) • Registered Retirement Savings Plans (RRSPs) • Registered Retirement Income Funds (RRIFs) • Deferred Annuities • Tax-Free Savings Accounts (TFSA) • Registered Education Savings Plans (RESPs) • Pooled Registered Pension Plans (PRPPs) What are Tax Planning Strategies? Summary 25•2 © CSI GLOBAL EDUCATION INC. (2013) LEARNING OBJECTIVES By the end of this chapter, you should be able to: 1. Describe the features of the Canadian income tax system, calculate income tax payable, and differentiate the tax treatment of interest, dividends and capital gains (and losses). 2. Calculate capital gains and capital losses and assess strategies for minimizing tax liability. 3. Describe and differentiate the different tax deferral plans and their uses. 4. Identify basic tax planning strategies and discuss their advantages. TAXES AND INVESTMENTS It is often said that there are only two certainties in life: death and taxes. Taxes are a reality of life...
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...wrong, I am culpable. Ali Arsalan Tariq September 2004 2 TABLE OF CONTENTS I. Introduction II. Islamic Financial Assets: Overview of Theoretical Aspects 2.1 Prohibitions 2.1.1. Prohibition of Riba (Interest) ` 2.1.2. Prohibitions of Gharar (Excessive Uncertainty) 2.1.3. Avoidance of Unethical Investments and Services 2.2 Alternative Basis of Financial Instruments 2.2.1 Partnership Contracts 2.2.2. Exchange Contracts 2.2.3. Financial Assets III. Evolution and Profile of Sukuk Structures and Markets 3.1 Types of Sukuk 3.1.1 Pure Ijarah Sukuk 3.1.2. Hybrid/Pooled Sukuk 3.1.3. Variable Rate Redeemable Sukuk 3.1.4. Zero-coupon non-tradable Sukuk 3.1.5. Embedded Sukuk 3.1.6. Expanded List of Sukuk 3.2 Recent Developments in Sukuk Markets 3.3 Cases: Ijarah: Sovereign Sukuks 3.3.1 Qatar 3.3.2 Malaysia 3.3.3 Ijarah Corporate Sukuks: Gutherie 3.3.4. Hybrid Corporate Sukuks: IDB 3.4 Assessment of Sukuk Structures IV. Risks underlying Sukuk Structures 4.1 Market Risks...
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...Accounting for Leases Source: Solutions Manual t/a Australian Financial Accounting 7/e by Craig Deegan 11.1 Within AASB 117 a lease is defined as: an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. 11.2 We should capitalise a lease transaction (meaning that the leased asset and lease liability will be placed on the statement of financial position) when substantially all the risks and rewards of ownership pass to the lessee, and the lease payments are deemed to be material. AASB 117 describes the risks and rewards of ownership as follows: Risks include the possibilities of losses from idle capacity or technological obsolescence and of variations in return because of changing economic conditions. Rewards may be represented by the expectation of profitable operation over the asset’s economic life and of gain from appreciation in value or realisation of a residual value. AASB 117 dedicates a number of paragraphs (paragraphs 10 to 12) to assist in determining whether a lease is a finance lease or an operating lease. A finance lease is to be capitalised. These paragraphs state: 10. Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract. Examples of situations that individually or in combination would normally lead to a lease being classified as a finance lease are: (a) the lease...
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...80C. Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.- (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees. (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee— (i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4); (ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life of persons specified in sub-section (4): Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; (iii) by way of deduction from the salary payable by or on behalf of the Government to any individual being a sum deducted in accordance with the conditions of his service, for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum so deducted does not exceed one-fifth of the salary; (iv) as a contribution by an individual to any provident fund to which...
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...1983. The Islamic financing product of Murabahah was introduced to meet the above Quranic verse interpretation. It should be noted that BBA is a Murabahah product but the product name of BBA was given by BBMB to differentiate between a short term (below 12 months) and long-term (above 12 months) tenor financing products. Murabahah is for short term meanwhile BBA is for a long term financing products. 2.0 BAI’ BITHAMAN AJIL (BBA) 2.1 DEFINITION The Majallah refers to BBA as the Bai’ al Muajjal. In Pakistan the term is called Bai’ al-Muajjal, in Bangladesh it called bay’al-Muazaal. BBA means a "deferred payment sale". It is a sale contract in which the payment of the price is deferred and payable at a certain particular time in the future. It is a mode of Islamic financing used for property, vehicle, as well as financing of other consumer goods. It can be implicated in any sale contract, including Musawamah and Murabahah but it is not applicable for a Salam contract, as the payment of Salam must be settled in full at the beginning of the contract. Technically, this financing facility is based on the activities of buying and selling. The furniture that you wish to purchase for example, are bought by the bank and sold to you at an agreed to price, after the bank and you determine the tenure and the manner of the instalments. The price at which the bank sells you the furniture will include the actual cost of the furniture and will...
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...disclosed. A majority of the reference deals with the local currency and how it should be shown within the parent company, which in this case a US company based on the dollar therefore both foreign companies would need to be formatted with both local and US. b) ASC 926-330-35-1: This references how an entity, at each balance sheet date, is to evaluate their inventory at the end of that period; items that are in inventory and that the business is going to be selling to clients. The inventory can be evaluated at the net realizable value, meaning the sale of the product minus the cost associated with it. c) ASC 954-440-25-2: This references how a continuing care facility may attain losses when calculating their cost to its clients. These care facilities are required to show annual their future facility and service cost. They do this to see if there will be any liability that needs to be recognized. d) ASC 505-20-50-1: This references how stock dividends should be described to the public and the corporation should try to by all means not to describe it as a stock split. An example is given of how a corporation, because of a legal requirement, may be able to describe it. e) ASC 710-10-05-6: This section references deferred compensation with regards to a Rabbi Trust for employees. It gives the three ways through which the trust can be settled, which include - cash,...
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...Toggle SGML Header (+) Section 1: 10-K (10-K) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 2014. OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-303 THE KROGER CO. (Exact name of registrant as specified in its charter) Ohio (State or Other Jurisdiction of Incorporation or Organization) 1014 Vine Street, Cincinnati, OH (Address of Principal Executive Offices) Registrant’s telephone number, including area code (513) 762-4000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered 31-0345740 (I.R.S. Employer Identification No.) 45202 (Zip Code) Common Stock $1 par value NONE (Title of class) New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No Yes Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding...
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...420% decrease from the previous year (or -$533.1 million); pre-tax income for 2010 was $127 million. In addition to high research and development costs, Zynga’s net loss can also be attributed to “stock-based compensation expenses associated with ZSUs (Zynga’s restricted stock units) that vested in connection with their initial public offering (IPO).” As a result, income tax benefit for the year ended December 31, 2011 was $1.8 million, yielding a net loss of -$404.3 million. Deferred tax asset (current and noncurrent) as of December 31, 2011 and December 31, 2010 was $77.9 million and $36.1 million, respectively. Deferred tax liabilities (current and noncurrent) as of December 31, 2011 and December 31, 2010 was $68.2 million and $25.9 million, respectively. Therefore, net deferred taxes (assets) for the year ended December 31, 2011 was $9.7 million. A major part of deferred tax assets can be attributed to “accrued compensation,” which is reported at $112.4 million. With that said, the reason deferred tax assets is not as high as it should be is because Zynga’s valuation allowance account is $113.3 million and...
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...Question 1 Date | Account Name | Dr | Cr | 1-Apr-12 | No entry required until shares are allotted | | | | | | | 30-Apr-12 | Cash Trust | 1,700,000 | | | Application | | 1,700,000 | | | | | 5-May-12 | Application | 1,700,000 | | | Share Capital | | 1,500,000 | | Allotment | | 200,000 | | Cash at Bank | 1,700,000 | | | Cash Trust | | 1,700,000 | | | | | 8-May-12 | Cash at Bank | 550,000 | | | Allotment | | 550,000 | | Allotment | 750,000 | | | Share Capital | | 750,000 | | | | | 10-May-12 | Formation Cost | 2,000 | | | Share Issue Cost | 1,000 | | | Cash at Bank | | 3,000 | | (Forming the company and share issue cost) | | | | | | | 8-Aug-12 | First Call | 375,000 | | | Share Capital | | 375,000 | | Cash at Bank | 347,500 | | | First Call | | 347,500 | | | | | 8-Nov-12 | Second Call | 375,000 | | | Forfieted share account | | 375,000 | | Cash at Bank | 3,325,000 | | | Second Call | | 3,325,000 | | | | | 10-Mar-13 | Share Capital | 340,000 | | | First Call | | 27,500 | | Second Call | | 42,500 | | Forfieted share account | | 270,000 | | | | | 25-Mar-13 | Cash at Bank | 306,000 | | | Forfieted share account | 34,000 | | | Share Capital | | 340,000 | | Forfieted share account | 2,500 | | ...
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...Islamic Modes of Finance Theory and Key Shariah Principles Modes Of Finance • Two are ideal modes which provide an alternative to interest banking and if implemented on a national level will result in much fairer distribution of wealth in society 1. Mushaarakah – رآ (equity finance) 2. Mudhaarabah - ر (equity finance - sleeping partner) • Two are not ideal as they replicate the effects of conventional banking but nevertheless are tolerated in Shariah 3. Ijaarah - ( إ رةleasing) 4. Muraabahah - ( اcost plus pricing) We will also briefly analyse Salam - , Istisnaa‘ – ع Tawarruq – رق اand 1 Mushaarakah • “Mushaarakah” literally means sharing • “Mushaarakah” is derived from “shirkah” which means “being a partner”. • Mushaarakah is “a joint enterprises formed for conducting business in which all partners share the profit according to an agreed ratio while the loss is shared according to the ratio of investment” • It is an ideal alternative for interest based financing with far reaching effects on the economy. Types of Shirkah SHIRKAH SHIRKAT-UL-MILK joint ownership SHIRKAT-UL-‘AQD joint enterprise OPTIONAL via joint purchase NON OPTIONAL inheritance SHIRKATUL-AMWAAL SHIRKATUL-‘AMAL SHIRKATUL-WUJOOH mushaarakah Mushaarakah • The term Mushaarakah has been introduced recently by those who have written on the subject of Islamic modes of financing • It is normally restricted to a particular type of “Shirkah”, i.e. Shirkat-ul-amwaal...
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