Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

In May 1991, Hanson, the United Kingdom's most notoriously acquisitive corporation, purchased a 2.8 percent stake in ICI, the United Kingdom's largest manufacturer and the world's fourth-largest chemical corporation. Amid speculation about the possibility of a takeover bid, the comparative performance of the two companies was a significant issue because of the claims of the respective management concerning their relative efficiency and success.

From an accounting perspective, it is possible to assess performance in terms of both U.S. and U.K. GAAP because Hanson and ICI are listed in the United States and are required by the SEC, under Form 20-F, to provide reconciliation data. The comparative data below show net income and shareholders' equity data for the period 1998-2002 in accordance with both U.K. and U.S. GAAP, together with the data for long-term debt.

problems

1. find out the "conservatism" index and returns on equity for Hanson and ICI for the period 1998-2002 under both U.K. and U.S. GAAP.
2. Does it appear that U.S. GAAP is more or less conservative than U.K. GAAP? What could be the main reasons for this?
3. To what extent do the results affect your assessments of comparative corporate performance?
4. find out the debt-equity (leverage or gearing) ratio for both corporations under both U.K. and U.S. GAAPs.
5. To what extent are the results likely to affect your assessment of the comparative riskiness of investing in Hanson and ICI?

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M940417

Have any Question? 


Related Questions in Accounting Basics

Full conditionals let x y z be random variables with joint

Full conditionals: Let X, Y, Z be random variables with joint density (discrete or continuous) p(x, y, z) ? f(x, z)g(y, z)h(z). Show that a) p(x|y, z) ? f(x, z), i.e. p(x|y, z) is a function of x and z; b) p(y|x, z) ? g( ...

B bakery is a family owned firm with around 70 employees

B Bakery is a family owned firm with around 70 employees and sales revenue increased to more than $ 13.5 million during the past year. It has been in business for over 50 years and supplies bread and confectionary produc ...

Accounting helpkelloggk8286nyse general millsgis7295nyse

Accounting Help Kellogg K $82.86 NYSE General Mills GIS $72.95 NYSE Target TGT $70.12 NYSE Choose three of the stocks - two within the same industry plus one additional stock - from the Company Selection and Stock Watch ...

Accounting assignmentplease read the following points

Accounting Assignment Please read the following points carefully. o The assignment must be lodged using USQ's online submission system (MOODLE). o The assignment must be made by word processing software like MS Word (200 ...

Practical assessment- case study assignment question 1 case

Practical Assessment- Case Study Assignment Question 1: Case study You are a financial adviser and the following information is an extract of data you gathered as part of fact finding during an initial client consultatio ...

Accounting for business decisions melbourne assignment-the

Accounting for Business Decisions Melbourne Assignment- The assignment will undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that y ...

Assignment detailsas at the 1stmay katy perry establishes a

Assignment Details: As at the 1stMay, Katy Perry establishes a new business Katie's Bridal Services as a sole trader. The business will hire out bridal gowns and other accessories as well as provide professional services ...

Example of manual accounting - the bad old daysthe benjamin

Example of Manual Accounting - The bad old days The Benjamin Company completed these transactions during January of the current year: January 1, Began business by selling stock for $750,000.00.   January 1, Rented office ...

Lamp light company maintains and repairs warning lights

Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2016, the end of the fisca ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate