ABC Corp, a public limited company, operates in the energy and power sector. The company has experienced significant growth in recent years and has expanded its operation internationally by the acquisition of overseas subsidiaries. Group policy is to translate the financial statements of these subsidiaries using the closing rate method with goodwill calculated at the rate of exchange ruling at the date of acquisition.
One of these subsidiaries, XYZ, is incorporated in a country that is suffering from a very high inflation (120% over the last 3 years) as a result of political and economic problems. Additionally, it is difficult to repatriate funds from the country. ABC Corp owned 91% of the shares of XYZ, with the foreign government owning the balance. Most of the products produced by XYZ are sold locally, but approximately 10 % of the product sold at cost to ABC. Because of a dispute XYZ has created a provision for doubtful debt against an intercompany amount owing from ABC. As a part of its risk management policies, ABC hedges the profit made by XYZ and denominates XYZ’s Financial Statements in US $ rather than the local currency. XYZ non-current assets are carried at a US dollar valuation, which is prepared by the chief accountant.

Discuss and Comment the treatment by ABC Corp based on IAS 29

FINANCIAL ACCOUNTING

PROJECT

This project is meant for you to incorporate the semester’s learnings into an actual scenario. You should work on this project as the topics are covered in class.

During the month of October of the current year, Dan’s Accounting Service was opened. The following transactions occurred.

Oct 1   Dan sold $70,000 worth of stock (50 shares) to start the business.

Oct 1   Dan purchased $9,500 worth of office equipment on account from Keene’s

            Furniture Supply.

Oct 1   Dan paid October’s rent on the office. He wrote a check for $2,500.

Oct 2   Dan purchased $400 worth of office supplies for cash.

Oct 4   The telephone was installed. We paid $95 (Utilities Expense).

Oct 4 Dan placed an advertisement in the Anoka County Shopper. It cost $150 (cash).

Oct 4   Dan started a petty cash fund with $50 for a fund balance.

Oct 5   We purchased (for cash) $45 worth of stamps (Miscellaneous Expense).

Oct 5   A three-month umbrella insurance policy was purchased for $720 (cash).

Oct 7   Bebus’s Automotive Supply Company paid us $2,800 (cash) for setting up their

            books.

Oct 9   We earned $3,200 from Dietz’s Fine Furniture Company for setting up their

books. They will pay us later.

Oct 12 We paid a part-time employee $90 for running errands. There are no taxes to be

withheld.

Oct 14 Smith’s Food Service, Inc. paid us $1,700 for helping them with their taxes.

            The actual bill was for $3,500. They will pay us the rest next month.

Oct 19 We paid our part-time employee $80 for running errands. There are no taxes to be

withheld.

Oct 23 We sent a check for $1,000 to Keene’s Furniture Supply for the office equipment

            purchased on October 1st.

Oct 26 We earned $800 for consulting with Anderson’s Clothing Outlet. They will pay

us later.

Oct 26 We paid our part-time employee $50 for running errands. There are no taxes to

be withheld.

Oct 30 Dietz’s Fine Furniture Company paid us $900 on account for the work we did

            for them on October 9.

Oct 30 Dan paid the stockholders $600 in dividends.

Oct 31 Dan paid the electric bill which was $90.

Oct 31 Dan replenished the petty cash fund. He had used $12 for office supplies and $18

for miscellaneous expenses.

REQUIRED:

1) Prepare an Income Statement (don’t forget the Earnings Per Share)

2)  Statement of Retained Earnings

3) Classified Balance Sheet

Your consulting services have been requested by the CEO of a large international corporation. The CEO is concerned about ethical issues surrounding corporate governance from a global perspective. A common example may be where a corporate board of directors breached one or more duties, such as the duty of loyalty, to its shareholders—although there are many other areas where business ethics are at the center of a case that originated at the governance level of an organization. You are asked to conduct research and analyze a case involving ethical issues surrounding corporate governance from a global position.

Briefly describe the facts of the case, the legal issue, and the decision of the court. In addition, discuss the effect of the case from a global business perspective, on society in general, and how the corporation could prevent such issues in the future. Incorporate the legal terminology from your textbook where appropriate, in both your original post and in your responses to your classmates. Use academic or legitimate news sources such as The New York Times, the Los Angeles Times, the Washington Post, CNN, MSNBC, and/or Fox News, for example. Please include the link or links used for your research in your post for your fellow classmates to review and to comment on

As the following table shows, projections indicate that the percent of U.S. adults with diabetes could dramatically increase.

(a) Find the logarithmic model that best fits the data in the table, with t as the number of years after 2000. (Round each coefficient to three places after the decimal.) D(t) = (b) Use the model to predict the percent of U.S. adults with diabetes in 2042. US adults with Year Diabetes (percentage) (

1. Explain the difference between an incorporated and non-incorporated company in the US and give examples of the latter

Should US substantially limit its global involvement? As the leader of the world, do you think US needs substantially revise its foreign policy in this century. Please consider the following issues:

Does the world need a leader and why?

Why the US has played the role in the past decades?

Does the US benefit from its position as the world leader?

If the US really limits its global involvement, what would be the consequences?

Greek Tavern Co was established on July 1, 2020 by a cash investment of $100,000. The following is the Trial Balance prepared on September 30, 2020.

During the three month period, the following activities occurred: 1. The physical checkup revealed that $4,000 worth of supplies is still on hand on September 30. 2. The annual depreciation of office equipment is $15,000. The equipment were purchased on August 1, 2020. 3. The unearned revenue was created on September 1, 2020 by an advance payment from a major customer for services extending over the period August 1 till December 31, 2020. 4. The loan was borrowed on July 1, 2020 for 5 years from BOND Bank. The bank charges 9% interest. 5. The firm pays its 5 employees a weekly salary of $6250. The policy is that it pays every Monday of the week for the previous 5 days' work, Monday through Friday. September 30, 2020 is a Tuesday. Last time the firm paid salary was on Monday September 29, 2020 for the week from 22 till 25. 6. Rogelio paid $50,000 cash on July 1, 2020 for 2 years' office rent.

Rogelio Legal Advisory firm follows the fiscal year extending from July 1 till September 30 and adjust Quarterly.

A. Journalize all the necessary adjusting entries on September 30, 2020 showing all the calculations.

B. Compute the Net Income.

Shamrock Company reports pretax financial income of $76,100 for 2020. The following items cause taxable income to be different than pretax financial income.

Shamrock’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

(a)

Compute taxable income and income taxes payable for 2020.

On January 1, 2020, Harrington Company has the following defined benefit pension plan balances.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.

Prepare a pension worksheet for the pension plan for 2020 and 2021.