Write up your business plan. Your formal report should include all the results from Phase 2 as well as your financial plan and operating budgets and preliminary financial requirements. The second component of the assignment will consist of a video presentation of your business and your financing requirements.
The 1500 word assessment allows you to compile a report in a professional style which will interpret and explain a company’s financial statement to someone who may not have a good level of financial understanding.
1. Bonza Handtools Ltd. manufactures a popular power drill suitable for the home renovator. Financial and other data for this product for the last twelve months. 2. The Tassie Company estimates that next year it will manufacture and sell 150000 units of its product. On the basis of that level of activity, it has budgeted. 3. ABC Ltd makes trailers. It receives a special order to produce 350 trailers for a local retail outlet. The order will take 2,100 kg of material that costs $16.10 per kg and will require 1,400 direct labour hours and 525 machine hours. 4. Write around 500 words explaining how segmenting the overheads can help in allocating overhead costs to individual jobs or services. You must support your discussion by real world examples and acknowledge the source of your information (referencing).
Reuters announced that the European Private Equity,
Permira, had agreed to buy investment manager, Tilney, from Deutsche Bank. You are required to research the above deal from its initial inception to completion. You should pay particular attention to the following:
(i) Synergies and expected gains from the acquisition;
(ii) The potential motives of, and the investment strategy of, the providers of private equity,
Permira, in this acquisition.
Demonstration of early stage learning about:
– Explain and analyse the nature, underlying concepts and principles of auditing
– Identify, apply and critically analyse the processes and auditing standards used to determine appropriate audit procedures
– Apply an appropriate level of independent thinking and creativity, and critical analytical skills to be able to reach, explain and implement decisions relating to the audit function and critically evaluate selected audit issues (including auditing standards) that relate to different types of accounting transactions.
Describe interest rate risk and discuss both the objectives of interest risk analysis and the mechanisms used to measure it and manage it.
Determine the current fair value of the company (if the policy of having no debt is continued), and the expected increase in fair value if the debt-to-value ratio is increased to 30%. In this part of the assignment, you may assume that the Modigliani-Miller assumptions hold true.
(b) Explain how a shareholder currently holding (say) 1,000 shares in the company can undo the proposed leverage.
Discuss whether the work performed by your colleague can help you to decide on the optimal capital structure.
In light of the theories of capital structure that you have covered in the course, do you think your colleague’s suggestion represents a sensible approach to capital structure planning? In answering this part of the question, please outline and discuss capital structure theories that you feel may be relevant, and specify the circumstances under which you feel such theories are most relevant.
Compare the structure and activities of a public sector or not- for- profit organisation with a similar organisation in the private sector. In what ways are their activities different and how does this impact on the accounting and reporting activities of the public sector? (This question requires you to consider specific organisations, not just to explain the difference between public sector and not-for-profit organisations generally.
The process of selecting an accounting Information system to make informed decision for an investment in accounting software.
This assessment requires a financial business plan development if it is for a proposed new business, or a one-year forecast/ budget if the student’s chosen business already exists. Using the student’s chosen organisation, as we work through each part of the financial model, they should start creating the data and assumptions to build a business plan or forecast/budget in detail for the coming year. Cost structure will be a key input to the forecasting and budgeting for the Income Statement parts of the business plan, and Balance Sheet and Cash Flow elements will be developed based on assumptions and plans for the business. Outputs must include a projected set of the three financial statements which are then to be analysed and discussed to assess the financial feasibility of the plan.
For each project, calculate the NPV and the IRR. Also, advise on whether the pay-back period can be calculated for each project. If the payback period can be calculated, calculate it for each project.
(b) Using your answers to part (a), and any considerations you think may be important, advise TD Ltd on which project (if any), Option A or Option B, should be undertaken. As part of your answer, you should also discuss the usefulness of NPV, IRR and payback period in evaluating these investment opportunities, and explain any reservations you may have about the use of any of these techniques in this particular scenario.
Critically assess Options Futures and Derivatives as risk management and speculative tools in investment finance.
Evaluate the key factors and the interdependence of these factors in the design and use Derivatives instruments as both risk management and speculative tools.
Identify and evaluate a range of derivatives tools appropriate for risk management and speculation
Apply and assess the effectiveness of derivatives options and futures in finance and investment Grading
Identify and critically analyse the relative importance of different types of drivers of M&A and Private Equity
2. Identify value creation and critically assess the success or otherwise of a range of M&A transactions and Private Equity
3. Analyse the current M&A and Private Equity strategies of a selected global organisation and critically appraise suggestions for improvement of current practices
4. Critically evaluate the relative importance of the key elements in successful M&A and Private Equity transactions
5. Perform critical analysis of comparative issues in M&A and Private Equity
1. Identify and discuss the characteristics of your chosen industry’s external environment by applying Porter’s Five Forces Analysis.
2. Identify and discuss the best generic business strategy that you would advise Freedom travel to follow. Your strategy needs to relate to the conclusions that you reached in requirement 1.
3. Compile a Balance scorecard for your chosen industry by:
1. identifying the four critical business perspectives and for each perspective:
Identify 2 objectives which will assist to achieve the chosen business strategy (from requirement 2) and explain why you have chosen these objectives in light of the results from your external environment investigation from requirement 1
You have graduated with your business degree and recently commenced work with a leading firm of public accountants. A number of important clients have become aware of possible changes to the reporting of Other Comprehensive Income (OCI) as highlighted in the IASB’s Conceptual Framework Discussion Paper 2013/1. They have expressed concern regarding the implications of these changes.
While the partners of the firm have been able to communicate with clients about this issue, and are aware that it is by no means resolved, they have asked you to prepare a background report for presentation to other staff members to brief them on:
On 1 July 2014 Kiama Ltd issues $2 million in six-year debentures that pay interest each six months at a coupon rate of 8 per cent. At the time of issuing the securities, the market requires a rate of return of 6 per cent. Interest expense is determined using the effective interest method.
Required:
Determine the issue price of the debentures. Show workings.
Construct a schedule in the format indicated below. Show the periodic interest expense over the entire life of the debentures, using the effective interest method.
Provide journal entries at the following dates (Note: narrations are not required):
1 July 2014
30 June 2015
30 June 2020
Explain the important elements that Tillmann, K., and Goddard, A. (2008) discuss in the Literature Review (section 2) and its relationship to Strategic Management Accounting context. (4 marks)
The authors have adopted a case study approach to answer the research questions. How did the authors address the issue of validity and reliability in data analysis and explain how that was integrated into the paradigm model of sense-making in a strategic context (figure 2). (8 Marks)
Tillmann, K., and Goddard, A. (2008) suggests that sense-making is core to understanding SMA in organisations. Describe the important elements for contextual conditions of sense-making (section 5.4). What impact did they have on the study and how?
1. The asset manager wants to fully hedge the interest rate risk on the bonds by using bond futures and to hedge the equity risk by using index futures. Calculate the appropriate number of bond and equity futures that should be sold. You may assume that the portfolio of German equities has a beta of one to the German DAX index (bond and index future data can be found at www.eurexchange.com ).
2. Explain the risks of the interest rate swap position and should it be hedged in this scenario? What impact might it have on the rest of the portfolio?
3. The asset manager would like to hedge the receipt of $50,000,000 to be received in one years time from the maturity of the one year interbank deposit. Using current data from www.ft.com, calculate a one year forward rate and explain how it could be used to hedge the currency risk.
QUESTION 1:
Determine and analyse the duration and convexity approach to interest rate risk.
QUESTION 2:
Operational risk can be assessed either by using a quantitative approach. Explain and analyse that statement.
QUESTION 3:
Value-at-Risk (VaR) is defined as the probability of suffering a loss in excess of a given threshold or confidence interval. Can you analyse and appreciate the existing VaR methodologies in terms of market risk evaluation?
QUESTION 4:
The Basel 2 Agreement defines Counterparty Credit Risk (CCR) as the risk that the counterparty to a transaction could default before the final settlement of the transaction’s cash flows. Do you think the new Credit Value Adjustment (CVA) methodology is the most appropriate approach to assess the CCR related to over-the-counter transactions?
PART 2
You have been asked to write a financial risk brief report for National Trust Banking Corporation’s senior management. Your work should both address the bank’s potential concerns and questions, and take into account the fact that your audience’s participants are NOT necessarily risk management experts.
Your brief report will have to answer the following questions:
Determine and analyse the bank’s liquidity risk situation, between 2010 and 2011, by using traditional liquidity ratio analysis, and evaluate its potential change with respect to the new Basel 3 approach of liquidity (See Exhibit 1, 2, and 3).
Demonstrate an understanding of applied a research problems infinancial and management accounting, and prepare strategies for their solution. Demonstrate an understanding of applied research methods. Collect and analyse accounting research data using applied, Designing applied accounting research methods
Question on measurement:
The objectives of financial reporting and the qualitative characteristics of useful financial information affect measurement are discussed in paragraphs 6.6 – 6.35 (it is at the bottom of the page). If financial reporting is to be useful, accounting information must be relevant and faithfully represent what it purports to represent
INTERNATIONAL FINANCIAL REPORTING STANDARDS [IFRS]: PRO AND CONS FOR INVESTORS”
You are a banker working for Westpac Banking Corporation. Your neighbour is retired and has invested some of his superannuation in a share portfolio that includes Westpac shares. Although he is not unhappy about the bank’s share performance he believes Westpac can do better by its shareholders. In particular he is not sure about the values of socially responsible projects Westpac undertakes. As you are to present a brief in an issue of your own choice in next monthly staff meeting you decide to write the brief on the following topic:
“Is maximising the value of the firm to its shareholders consistent with the firm exercising
considerable social responsibility?”
Write the brief incorporating various social obligations undertaken by Westpac to illustrate your argument. (Word limit 1000 words)
Compare and contrast the two mainstream histories identified by Macve, i.e. FAT is rationally derived from a basically coherent conceptual framework
Conservative, historical cost based accounting ; provide an anchor on which to base appraisal of firms and managers performance
Are both these histories merely a myth? Provide your own opinion here but justify with examples and with references.
Quantitative Research Method in Finance download stock market index data from yahoo finance (http://uk.finance.yahoo.com/). Your data should be monthly observations from 01/1987 to 12/2012 ( Close Column) A) Test for the stationarity of the FTSE100 and Nikkei225 and comment on the results. Find at what level they become stationary. B) Test for linear correlation in the stock returns of the FTSE100 and Nikkei225. C) Test for nonlinear correlation in stock returns of the FTSE100 and Nikkei225. The answer must be by Eviews 6 and you must send all output Eviews file to me
Answer the questions based on the case study.
1. Provide an outline of agency theory and its assumptions and its influence on approaches to executive compensation. (Provide some examples to the board in your report from your e-readings for topic 7 as well as other readings where you think it is appropriate.)
2. Discuss and evaluate research that questions the assumptions of agency theory and its approaches to executive compensation. (Your evaluation should include e-readings for topic 7 as well as other readings where you think it is appropriate in your report to the board.)
3. To answer the question from one member of the board “Is it appropriate to use the same proportions of different benefits for each of our executives, when they appear to have very different personalities and motivations?”
Answer the questions based on the case study.1. Provide an outline of agency theory and its assumptions and its influence on approaches to executive compensation. (Provide some examples to the board in your report from your e-readings for topic 7 as well as other readings where you think it is appropriate.)
2. Discuss and evaluate research that questions the assumptions of agency theory and its approaches to executive compensation. (Your evaluation should include e-readings for topic 7 as well as other readings where you think it is appropriate in your report to the board.)
3. To answer the question from one member of the board “Is it appropriate to use the same proportions of different benefits for each of our executives, when they appear to have very different personalities and motivations?”
Map the strategy and create a performance scorecard for your business.
Design the integrated report for your business – must include social, governance, and environmental performances, and make explicit the links between these aspects of value and the financial aspects of value in the business plan.
Assignment on Coles and Woolworth. Please companies in the same industry and work on the criterion mentioned below:
a) Business Overview
b) Risk
c) Short Term Financial Policies of the business
d) Current Capital Structure
e) Current Dividend Policy
Assume you have been employed as a corporate governance consultant by the Association of Institutional Investors (AII). The AII is concerned with the risks associated with investments in corporations sponsoring FIFA. In order to minimise this risk the AII wants to know how the corporate governance of FIFA should be reformed to meet contemporary standards of best practice in corporate governance. Prepare a report to be published on the AII web site recommending the corporate governance changes required to be made by FIFA so that AII members can continue to invest in FIFA’s corporate sponsors without exposure to investment risk associated with FIFA’s current alleged corporate governance deficiencies.
1: Demonstrate an understanding of applied a research problems in management accounting, and prepare strategies for their solution
2: Demonstrate an understanding of applied research methods
3: Collect and analyse accounting research data using applied research
4: Designing applied accounting research methods
1) Summarise the views of each of the participants in Panel 1
2) To what extent do you agree with the view expressed that fair value accounting has been pro-cyclical and has therefore contributed in part to the severity of the global financial crisis.
3) Is the fact that the FASB shortly after the hearing eased the rules a cause for concern?
Learning objective 1: Demonstrate an understanding of applied a research problems in management accounting, and prepare strategies for their solution
Learning objective 2: Demonstrate an understanding of applied research methods
Learning objective 3: Collect and analyse accounting research data using applied research
Learning objective 4: Designing applied accounting research methods”
We need to take a dummy statistical data from a relevant website and come with an aim to find some observations. In order to find some conclusive observations, we should apply some statistical tools as mentioned in your document (excluding confidence interval and hypothesis testing).
The data could come from the U.S Census website or somewhere else that is credible and can be cited in APA format.
Discuss whether or not the three payments are income from personal exertion. Would your answer differ if she wrote the story for her own satisfaction and only decided to sell it later? Discuss the effect on the assessable income of the parent.
a) Based on the information above, determine Scott’s net capital gain or net capital loss for the year ended 30 June of the current tax year.
b) How would your answer to (a) differ if Scott sold the property to his daughter for $200,000?
c) How would your answer to (a) differ if the owner of the property was a company instead of an individual?
Letter addressing certain financial issues as raised by the Board of Directors
The Role of Investment Banking towards Economic Development
The Concept of Investment Banking in Finance
The reason behind the growth of Investment Banking System in the Field of Finance Your research proposal must be written and presented in the format outlined below:
Title
Background
Industry Background
Research aim, research questions or hypotheses and objectives
Research Methodology
Timescale
Resources
References
Part 1: Assume you have been employed as a corporate governance consultant by the Chairman of BHP Billiton Ltd. Your assignment is to prepare a report for the Chairman recommending best practice corporate governance guidelines for the company to adopt so that it can manage and prevent any future issues of alleged corporate malpractice or other actions that could be classified as corrupt practices by executives or directors of the company.
Part 2: Assume you have been employed as a corporate governance consultant by the Association of Institutional Investors (AII). The AII is concerned with the risks associated with investments in corporations sponsoring FIFA. In order to minimise this risk the AII wants to know how the corporate governance of FIFA should be reformed to meet contemporary standards of best practice in corporate governance. Your assignment is to prepare a report to be published on the AII web site recommending the corporate governance changes required to be made by FIFA so that AII members can continue to invest in FIFA’s corporate sponsors without exposure to investment risk associated with FIFA’s current alleged corporate governance deficiencies.
After you have read the background to the Commonwealth Bank Scandal, write your thoughts and views as to what aspects of the bank’s culture allowed this scandal to develop. If you were on the Board of the Commonwealth Bank, what governance changes would you make to minimise this situation?
What function does “feedback†play in the work of the manager and how does accounting help the managers in this regard? Explain using examples to support your discussion. Is it possible for costs such as salaries or depreciation to end up as assets on the balance sheet? Explain using examples to support your statements.
a. XYZ Company has high fixed expenses and is presently operating somewhat above the break-even point. From this point on, will percentage increases in net income tend to be greater than, about equal to, or less than percentage increase in total sales? Why? Explain. Estimated or budgeted cost and operating data for three companies for 2015 are given below: Calculate the predetermined overhead rate to be used in each company during 2015.
b. Assume that three jobs are worked on during 2015 in company X. Machine-hours recorded by jobs are: job 23, 21,000 hours; job 29, 16,000 hours; and job 31, 11,000 hours. How much overhead will the company apply to work in process? If actual overhead costs total $149,000 for 2015, will overhead be over- or under-applied? By how much?
Develop a financial model and prepare five-year financial forecast for a business; prepare a valuation of a business using both DCF methodology and multiples; use the model to analyse financial performance and the robustness of the forecasts used in the valuation; and prepare recommendations about appropriate financial strategy.
Apply the different phases of the audit to practical scenarios, working in teams in
Evaluate the different audit opinions that could be expressed following the completion of an audit as they apply to different audit scenarios, working in teams in some instances.
a. Discuss the level of gearing of the group and evaluate whether there is sufficient operating cash flow to support more or less debt at the average interest rate that the group currently pays
b. The advantages and disadvantages of issuing a fixed rate bullet bond. How a bullet bond is priced,
how a credit spread involved is. What are the risks and costs to the company of issuing such debt?
c. Should the bond be callable or puttable? Explain what is meant by these terms and how does it
affect the pricing of the issue. (15 marks)
d. Should United Utilities PLC consider a convertible bond issue? What are the mechanics of convertible bonds and what are the cost and payoff implications to both United Utilities PLC and the Investors?
e. Should United Utilities PLC consider an inflation linked bond? What are the mechanics of inflation linked bonds and why might this be very suitable for United Utilities PLC. What would be the cost and payoff implications to both United Utilities PLC and the Investors? (15 marks)
f. From you’re your discussion points so far, write a brief on the advantages and the disadvantages of investing in utility companies. You should make reference to issues concerning the regulation of such companies in the UK (15 marks)
What does the statement tell you about the financial position of the business? Prepare an accrual-based income statement explain the difference between accrual and cash based income statements and why accrual income statement is more useful? Question 3 (10 marks)
Question 3: A criticism of ratio analysis is that it provides only part of the financial picture being reviewed. What part of the picture is missing? Explain using some examples to support your statements. (5 marks)
You are employed as accountant for PMDR P/L and observed an improved gross profit margin, a declining net profit margin, a stable return on assets, an improved return on owner’s equity in 2014. (5 marks)
Discuss the possible implications of these ratios in relation to:
1) the selling price of inventory
2) the buying price of inventory
3) operating expenses
4) assets turnover
5) interest costs.
1. What are the variables in this database (name them), what scale of measurement is used for each variable, and what are the types of these variables?
2. Is the data collected in this sample cross-section or time series? Explain your answer.
3. Provide a table in which you summarise complete descriptive statistics on Sale (including but NOT limited to: measures of central location, measures of variability, identify any outliers etc), then use the information in the summary table you prepared to calculate the coefficient of variation for Sale.
4. What insights could you potentially gain from the results of question 3?
5. Develop complete frequency table/s to make inferences on the gender and type of customer (Loyal or Regular) in the sample data. Carefully interpret your table/s.
6. Is there any correlation between the amount of the Sales and the use of the promotional card?
7. Create a histogram to compare the times when purchases were made in the sample data (where the vertical axis is the frequency and horizontal axis represents times grouped in two hour periods).
8. Create another bar chart to show comparisons between types of customers in the sample data and the amount they spent (remember the 20% discount has been taken off the sale for Loyal customers).
9. Using your findings for question 8 do you think the promotional program has been effective and/or successful? Explain.
Based on case study answer the following question. What should Jenny do? Use the Accounting and Professional Ethical Standards and one of the ethical decision models presented in your text to help you answer the question.
Research on Journal Article – 1. You are required to analyze the literature review (section 2) and explain why Emsley (2005) is emphasizing on Theory Development (section 3) in the framework for management accounting innovation. 2. Emsley (2005) suggests that acceptance of innovations by business unit managers (section 3.3.2) and incentives to innovate (section 3.3.3) are some of the keys features of role involvement’s effect on innovativeness. Do you agree/not agree with Emsley (2005) suggestions? Explain your reasons. 3. Do you think the Method (section 4) that Emsley (2005) has adopted for his study is adequate/not adequate for the research in terms of strengths or weakness of the study, and how it can be made better?
Corporate Governance: Concepts and Practices
Assignment Question 1 (7.5%)
Explain how the implementation of cloud computing relates to an organisations strategy and how it could affect a company’s value chain. Use a recent announcement by a company to illustrate your explanation. Present your answer in essay format.
Assignment Question 2 (7.5%)
Your manager has requested a report explaining how ERP can value add. Using the blog post as a starting point, include in your report the following issues:
-The impact of cloud computing on data analysis within an organisation
-The role that cloud computing can have in an organisation’s network
-The role cloud computing has within an Accounting Information System
-Any potential risks that should be avoided when implementing a cloud based ERP solution in an organisation.
– Explain key provisions of a term sheet and a commitment letter.
– Explain key elements that are determinative in courts’ decisions on whether a term sheet or a commitment letter constitutes a binding agreement.
– Understand the structure of the LMA loan agreement.
– Explain the way in which interest rate calculation is documented under the loan agreement.
– Explain the way in which LIBOR is calculated and the ways in which banks have been able to manipulate the LIBOR index, as well as proposals that have been put forward to address the current system of LIBOR setting.
– Describe the risks associated with the default interest provisions.
– Describe the burden of proof the borrower must satisfy in its claim for damages in consequence of the lender’s wrongful refusal to lend.
– Describe the recoverable losses the borrower may be entitled to claim in consequence of the lender’s wrongful refusal to lend.
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