Consider each of the following independent and material situations. In each case: • the balance date is 30 June 2020. • the fieldwork was completed on 25 August 2020. • the financial report and audit report were signed on 28 August 2020. • the financial report and audit report were mailed to the members on 1 September 2020. (i) Your client, Central Mining, owns a mineral exploration licence in Central Australia. At 30 June 2020 this licence was valued by an independent expert at $50,000,000. This valuation is reflected in the financial report. On 8 September 2020 Central Mining received notice that a claim was being lodged under the Native Titles Act for land which included that subject to the exploration licence. If the claim is successful the exploration licence will be worthless. (ii) Your client, Bird Pty Limited, derives approximately 10% of revenues from selling aviary supplies to city-based bird breeders. A draft copy of a government report, leaked to the press and reported in the media on 11 September, recommends that strict limits be placed on the number of birds that are allowed to be kept in suburban areas. Bird Pty Limited estimates that if the recommendations are enacted, about 70% of its customers will have to cut their flocks by 50% or more. This would affect not only future sales but also their ability to pay existing debts. No further information, other than the draft report, is available as at 15 September. (iii) Your client, Gem Pty Limited, made an out of court settlement on 1 August 2020 of $300,000. The settlement related to a litigation case dating back 4 years. A provision of $150,000 was recorded in the 30 June 2020 financial report. Ans; Since the settlement was done before the closing the Financial Statements so balance of $150000 (300000-150000) should be provided in the current year Financials. (iv) On 14 September 20X7, you discover that a debtor of your client, Galaxy Ltd, was placed in provisional liquidation on 8 September. The debtor owed $600,000 as at 30 June 2020; at this date the amount had been considered collectable by the company. (v) A flood occurred in the warehouse of your client SuperSpring Ltd on 21 September 2020. Inventory valued at $2m was destroyed. The directors believe only half of this value will be recovered from the insurers. Required: For each of the above events (i) to (v), state the appropriate action that the auditor would need to carry out in order to find out about the above and what the company would need to do for each of the above

On December 1, 2017, Ringling Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,010,000 pesos on March 1, 2018. The following U.S. dollar per peso exchange rates apply:

Ringling's incremental borrowing rate is 9 percent. The present value factor for two months at an annual interest rate of 9 percent (1 percent per month) is 0.9852.

Which of the following correctly describes the manner in which Ringling Company will report the forward contract on its December 31, 2017, balance sheet?

Multiple Choice

a. As an asset in the amount of $1,990.

b. As a liability in the amount of $995.

c. As an asset in the amount of $2,985.

d. As a liability in the amount of $2,985.

Watson Company purchased assets of Holmes Ltd. at auction for $1,260,000. An independent appraisal of the fair value of the assets acquired is listed below:

Required:
Prepare the journal entry to record the purchase of the assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2018, the company switched to the double-declining-balance depreciation method.

What is depreciation on the building for 2018?

BUSINESS FINANCE

Question 1

As companies grow in size, it is inevitable for the shareholders to hire management to run the operations of the business. The entire team of

management, starting from the CEO and other top-level management, all the way to the middle and bottom level management are expected to

perform towards the growth of the business. Since the shareholders of large companies are scattered across geographies, they appoint certain

members as representatives who are elected to represent them on the company board. The board of directors of a company, along with the

Chairman, are expected to keep the actions of the management in check.

Explain the above in context of agency theory and corporate governance. What can companies do to ensure adequate corporate governance?

BUSINESS FINANCE

Question 1

As companies grow in size, it is inevitable for the shareholders to hire management to run the operations of the business. The entire team of

management, starting from the CEO and other top-level management, all the way to the middle and bottom level management are expected to

perform towards the growth of the business. Since the shareholders of large companies are scattered across geographies, they appoint certain

members as representatives who are elected to represent them on the company board. The board of directors of a company, along with the

Chairman, are expected to keep the actions of the management in check.

Explain the above in context of agency theory and corporate governance. What can companies do to ensure adequate corporate governance?

Delisha Berhad is planning to acquire Zahra Berhad. The exchange will be based on the current market price per share of the two companies. Under Delisha Berhad balance sheet, the price earning ratio (PER) and earning per share (EPS) is 4 times and RM3.00. While Zahra Berhad PER and EPS is 3 times and RM2.00.

1. Calculate market price per share (MPS) for both acquired and surviving companies.

2. From market price per share (MPS) values in question 1, calculate share exchange ratio (SER).

3. Share exchange ratio (SER) from acquiring process is 0.5 times, common stock of acquired company is RM13,000,000, and par values at RM2.00. Calculate the new number of share (NOS).

Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:

Acquired $35,000 cash from the issue of common stock.

Borrowed $47,000 cash from National Bank.

Earned cash revenues of $63,000 for performing services.

Paid cash expenses of $52,500.

Paid a $2,500 cash dividend to the stockholders.

Acquired an additional $35,000 cash from the issue of common stock.

Paid $12,000 cash to reduce the principal balance of the bank note.

Paid $46,000 cash to purchase land.

Determined that the market value of the land is $64,000.

Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimal places.) Just need investors and Earnings please

Identify whether each of the following would or would not be recorded as an intangible asset in the financial statement of Hummings as at the end of the reporting period of 30 June 2016 according to AASB 138 intangible assets.

1. Hummings has acquired copyrights for $240,000, The copyright (intangible)has a useful life of 50 years and over this time period is expected to generate future economic benefits well in excess of its cost of purchases.

2. Hummings spent $600,000 over the past 5 years on the design and promotion of its brad. It is expected that such expenditure will provide significant economic benefits well in excess of the costs of promoting the brand.

3. On 1 July 2015 Hummings acquired another company (XYZ Ltd). Goodwill of $35,000 has been recognized on the purchase.