Go Party Ltd (GPL) is a successful New Zealand catering company, operating in South Island. It has a balance date of 30 June. During the preparation of the 30 June 2020 financial statements, the following two issues have come into the light. The details of these issues are as follows:

(a)   After a wedding party held by a customer in January 2020, 60 people became seriously ill, possibly as a result of food poisoning from food served by GPL. Legal proceedings were commenced seeking damages from GPL. The company lawyers advised that owing to developments in the case, and it was probable that the company would be found liable and the estimated damages were $85,000 that would be material to the company’s reported profits.

(b)   On 15 February 2020, the Department of Occupational Health and Safety undertook an audit against the complaints regards to the company’s unsafe storage practices. If found to be negligent by the court, the company will have to pay a fine and incur cleaning costs. At the end of the financial year, the outcome of the audit is unknown. The company directors are of the opinion that there is a 50% chance that Go Party Ltd will be found negligent.

Required:

Determine how GPL should treat the above two issues in its financial statements for the year ended 30 June 2020. Include in your answer the criteria as per NZ IAS 37, necessary journal entries (if required) or any disclosure note/s required.

A large, U.S. based supermarket chain wants to purchase a medium-sized European supermarket chain based in London. The U.S. supermarket has reached a point of saturation in the United States and they are looking for ways to grow. The U.S. based supermarket chain pursues a cost-leadership strategy in the United States and offers customers value through low prices and a vast variety of products. The U.S. based supermarket currently has a global market share of 2% and earns approximately 1.78% in operating income. All 32,500 stores are located in the United States. The company has core competencies in supply chain management and store operations. The leadership team is comprised of executives that worked a Walmart and K-Mart. The London based supermarket has grown year-over-year at a steady rate of 9% for the last 10 years. The chain has 11,500 stores in the U.K., France, Spain, Germany, and Italy. Yet, 10,000 of the stores are in the U.K. The company pursues a focused differentiation across its footprint. The London based supermarket has a global market share of 1.5% and earns approximately 6.2% in operating income. The company has strong capabilities and competencies in follow-up services, which allows the company to adjust its product and service offerings based on local preferences and tastes. This allows the company to charge premium prices that customers are happy to pay. The leadership team at the London based supermarket has core competencies in logistics and distribution that has translated well in sourcing items locally.

Utilizing the information in the question, address the following:

a) Why would U.S. based supermarket want to acquire the London based supermarket chain. Provide at least two points of support.

b) given your limited understanding of the potential transaction (the acquisition), what are some potential issues/challenges that may exist? Provide at least two issues/challenges

Discuss factors that an external auditor should consider in assessing the risk of fraudulent financial reporting committed by a public company CFO or CEO. In discussing this topic, please consider risks of fraudulent financial reporting that are related to the fraud triangle (i.e., incentive/pressure, opportunity, and rationalization.). Also, research factors that the PCAOB and the AICPA identify as fraudulent financial reporting risks.

Jack Dorsey (CEO of Twitter & Square) is donating $1 Billion of stock in Square to support the COVID-19 relief. However, he is doing it through an LLC, not directly to a non-profit to retain control of voting rights with his company and not have to pay capital gains on his donation. Do a bit of research on the topic and especially the ethical aspect of the transactions.

The Boston Bulb Company produces high-cost bulbs for expensive projection equipment. Johnson, the CEO, claims that a particular bulb type has an average life of at least 600 hours.

Fourteen of these bulbs were randomly selected and tested. The number of hours each bulb lasted was:

614,598,585,572,599,605,604,590,609,606,595,592,601,592

At the significance level, test Johnson's claim about the life of the bulbs.

2. What do the IVK Corporation exhibits (1-1 through 1-6) tell you about the current state of the company? Given this information, what does IVK need from a new management team under CEO Carl William? (this is a reflection question from an adventure of an IT leader book I want the answer to be in Analytical way )

Provide a full paragraph biography on each top/key executive for General Motors (Do not include the CEO) Include pictures if possible. The company website is a good source. Based on the photos and backgrounds, how diverse do you feel the make up of the top executives is? Consider the female/male makeup, the ethnic make up and the different races of board members.

PLEASE USE LOTS OF DETAILS AND EXAMPLES!

Cameron Mechanical & Automation, Inc. (CMA) is a fictional company that has been in business and operating in the Silicon Valley since 1998. The company began as a successful Internet-based company (dot-com) and experienced great success with the introduction of high technology. The company also experienced decline with other dot-coms in 2001. As a result, CMA restructured and focused on its primary products; that is, computer components. The early changes in the company were done quickly to downsize. Although many other companies failed during this time, CMA managed to move forward.

CMA rebounded and continued to manufacture and sell its components to computer manufacturers worldwide. The company structure was divided into product divisions, with each division focused on specific components. For the company, this structure was meant to streamline sales and delivery worldwide.

In 2008, the economy had an effect on company profits, but the chief executive officer (CEO), Jared Smith, was in a position to focus on several internal strategic areas, including structure, work design, motivation, conflict, and company culture as a whole. To stay profitable, the company had to eliminate several management positions in an effort to flatten the organizational chart. Many of the responsibilities fell to the employees, and many people resisted the change.

As the economy recovers, CMA continues to rebuild. Since 2012, the company has been divided into a functional structure that includes four departments: Research and development (R&D), marketing, production, and finance. Each department is headed by a vice president who has responsibility over each of the functional areas. The company currently sells components to computer manufacturers. As technology continues to advance, the CMA R&D department and its vice president, Kevin Adams, are feeling pressure to keep up with the competition. However, because of the differentiation and separation between the departments, the CEO is concerned that communication is hampered.

Because of the current structure and culture, the vice presidents who run each division of the company have autonomy and are able to use different leadership styles. For example, the vice president of marketing, Jim Stevens, uses a more democratic leadership style, while the vice president of production, Melissa Simons, is adamant that her autocratic or transactional style is the only way to get results. Each leadership style has advantages, but the lack of consistency between divisions may be causing problems for the company as a whole. Further, the CEO is concerned that the workforce may not be as diverse as it should be, but he is not sure how to address the issue.

It is the end of the day, and you are meeting in Jared's office to talk about his conference with the vice presidents.

Jared, the CEO, says: "We talked about how we can change the infrastructure so that it helps organizational culture run efficiently and consistently. Everyone is getting the same message now about how structure and culture need to work in a healthy company."

"You know, it would help if I had something that explained the link between culture and structure. I need to talk to the board about the changes we're making, and I will be talking to staff about what they can expect to happen over the next 6 months. You're a better writer than I am, and I could use a well-written explanation for my discussions."

Jared also says, "Besides explaining the link between culture and structure in this assignment, and based on the problems that CMA has had, what additional changes would you suggest for the company? I want to include your recommendations in the agenda for the next quarterly meeting with the board."

Problem 2-03A a-d (Video)

Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2019 (the end of its fiscal year).

Summarized transactions for January 2020 were as follows.

Post the journal entries to the accounts in the ledger. (Post entries in the order of journal entries presented in the previous part.)

Problem 19-13 (Algo) EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend; options; convertible bonds; contingently issuable shares [LO19-4, 19-5, 19-6, 19-7, 19-8, 19-9, 19-10, 19-11]

On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 317,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $570,000 and $86,000 to common and preferred shareholders, respectively, on December 15, 2021.

On February 28, 2021, Dow sold 68,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,950,000. The income tax rate is 25%. Also, as a part of a 2020 agreement for the acquisition of Merrill Cable Company, another 35,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2022, if Merrill's 2022 net income is at least $670,000. In 2021, Merrill's net income was $800,000.

As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows:

The market price of the common stock averaged $48 per share during 2021.

On July 12, 2019, Dow issued $900,000 of convertible 8% bonds at face value. Each $1,000 bond is convertible into 40 common shares (adjusted for the stock dividend).

Required:
Compute Dow's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "Earnings per share" answers to 2 decimal places. Do not round intermediate calculations)