Separate random samples were collected by a polling agency to investigate the difference in employee satisfaction at​ non-profit organizations and at​ for-profit companies. Data collected from 400 employees at​ non-profit organizations revealed that 365 of them were​ "highly satisfied." From the​ for-profit companies, 431 out of 509 employees reported the same level of satisfaction. Researchers want to test if the proportions of satisfied employees are the same at​ for-profit companies as at​ non-profit companies.

A) What is the difference in the proportions of the two types of​ companies? Assume P1 is the proportion of satisfied​ non-profit employees and P2 is the proportion of satisfied​ for-profit employees. P1 - P2 is ____ (round to 3 decimals).

B) What is the pooled proportion of satisfied employees in both types of companies​ combined?

C) What is the standard error of the difference in part​ a?

D) What is the Z statistic and P Value?

_____ the null hypothesis. There _____ sufficient evidence to conclude that the proportions of satisfied employees in​ non-profit organizations and in​ for-profit companies are different.

Thank you in advance for your help!

Colander Co is preparing its financial statements for the year ended 31 December 2018 and has a number of issues to deal with regarding non-current assets.

(1) Colander has suffered an impairment loss of €90,000 to one of its cash-generating units. The carrying amounts of the assets in the cash-generating unit prior to adjusting for impairment are:

(2) During the year to 31 December 2018 Colander Co acquired Sieve Co for €10 million, its tangible assets being valued at €7 million and goodwill on acquisition being €3 million. Assets with a carrying amount of €2.5 million were subsequently destroyed. Colander has carried out an impairment review and has established that Sieve Co could be sold for €6 million, while its value in use is €5.5 million.

(3) Colander Co owns property originally costing €100,000 with a 50-year useful life. It has accumulated depreciation to date of €20,000. The asset will be revalued to €130,000 at 31 December 2018.

Questions:

What is the post-impairment carrying amount of plant and machinery in (1) above?

Group of answer choices

€40,000

€50,000

€30,000

€20,000

The Finance Director has been asked to report to the Board on the reasons for the impairment review of the cash-generating unit. Which TWO of the following would be internal indicators of impairment of an asset?

Group of answer choices

The asset has been fully depreciated.

The market value of the asset has fallen significantly.

There are adverse changes to the use of the asset to which the asset is put in the entity.

The operating performance of the asset has declined.

What is the recoverable amount of Sieve Co in (2) above?

Group of answer choices

€4.5 million

€6 million

€500,000

€5.5 million

Which of the following effects will the revaluation in (3) above have on Colander's financial statements? (The property is used for administrative purposes and has not been revalued before).

Group of answer choices

There will be a gain on revaluation of €50,000 shown under other comprehensive income

There will be a gain on revaluation of €30,000 increasing the profit for the year

There will be a gain on revaluation of €30,000 shown under other comprehensive income

There will be a gain on revaluation of €50,000 increasing the profit for the year

The following information has been extracted from the financial statements of YDI Limited: Extract of Statement of Comprehensive Income for the year ended 31 December 2019 2018 R R Sales 2 000 000 1 600 000 Cost of sales 940 000 800 000 Operating profit 600 000 520 000 Profit before tax 520 000 450 000 Profit after tax 364 000 315 000 Extract of Statement of Financial Position as at 31 December Assets 2019 2018 R R Non-current assets 2 000 000 1 400 000 Inventories 600 000 800 000 Accounts receivable 400 000 400 000 Cash and cash equivalents 2 000 2 000 3 002 000 2 602 000 R R Equity and liabilities Shareholders’ equity 2 000 000 1 500 000 Long-term loan 700 000 800 000 Accounts payable 182 000 142 000 Bank overdraft 120 000 160 000 3 002 000 2 602 000

Note: 1. All purchases and sales of inventories are on credit. 2. Dividends paid during the year amounted to R218 400. 3. The issued share capital consisted of 500 000 ordinary shares. Required:

5.1 Calculate the following ratios for the year ended December 2019. Where applicable, round off answers to two decimal places.

5.1.1 Operating margin (2)

5.1.2 Debtors collection period (2)

5.1.3 Acid test ratio (2)

5.1.4 Return on equity (2)

5.1.5 Debt to equity (2)

5.1.6 Earnings retention ratio (2)

5.2 Earnings per share (2) 5.2 Suggest two (2) ways in which YDI Limited can improve on its collections from debtors. (2)

5.3 Comment on the current ratio which dropped from 3.98:1 in 2018 to 3.32:1 in 2019. (2)

5.4 Recommend two (2) ways in which YDI Limited can improve its profitability. (2)

Q1

Miss Law, a Hong Kong resident, is employed by an overseas airline company as air-hostess. She stayed in Hong Kong for 60 days, 48 days and 75 days during the years of assessment 2016/17, 2017/18 and 2018/19 respectively. Her Hong Kong salaries tax position is:

Select one:

a. She is not liable to salaries tax for any year of assessment.

b. She is liable to salaries tax for the year of assessment 2018/19.

c. She is liable to salaries tax for the year of assessment 2017/18 and 2018/19.

d. She is liable to salaries tax for all years of assessment.

Q2

Mr Cheng, a US resident, is under a non-Hong Kong employment. He spent a total of 62 days (including his days of arrival and departure) for a business trip in Hong Kong. He took 12 days annual leave during his visit in Hong Kong. What is the Hong Kong salaries tax position of Mr Cheng?

Select one:

a. He is exempt from salaries tax because he is a US resident.

b. He is exempt from salaries tax because he worked in Hong Kong for not more than 60 days during the year.

c. He is liable to salaries tax because he visited Hong Kong for more than 60 days and rendered some services in Hong Kong.

d. He is liable to salaries tax and will be 100% taxable because he rendered service in Hong Kong.

Q3

Henry Ltd is carrying on business in Hong Kong. It acquires funding from various sources in Hong Kong and makes investment in securities listed in overseas markets. Henry Ltd's directors carries out investment analysis in Hong Kong and instructs its overseas agents to execute the orders of purchase and sale in overseas stock exchange. During the year 2019/20, $10 million profits were derived from trading of these overseas listed securities.

Henry Ltd's assessable profits derived from trading of overseas listed securities for the year 2019/20:

Select one:

a. $3 million.

b. $10 million.

c. $5 million.

d. Nil.

From Ojekunle, A. (Dec 2018), for Pulse: “President Muhammadu Buhari on Wednesday presented $28.80 billion (N8.83 trillion) budget for 2019 to the Nigerian National Assembly for scrutiny. This is President Buhari's fourth and last budget for his first term in office as he is also seeking re-election for the February 2019 presidential poll. The 2019 budget is placed on the following assumption:

a. Oil price benchmark of $60 per barrel;

b. Oil production estimate of 2.3 million barrels per day, including condensates;

c. An exchange rate of N305/$;

d. Real GDP growth of 3.01%; and

e. Inflation Rate of 9.98%.

Nigeria is estimating a total revenue at N6.97 trillion (which is 3% lower than the 2018 estimate of N7.17 trillion), consisting of oil revenue projected at N3.73 trillion while non-oil revenue is estimated at N1.39 trillion. Projected revenue from taxes: Companies Income Tax (CIT) - N799.52 billion Value Added Tax (VAT) - N229.34 billion Customs Duties - N302.55 billion. Independent Revenues to N624.58 billion. By implication, this shows Africa's largest economy with crude oil as its cash cow will still do below average on its diversification policies as oil takes centre stage in government revenue. Fuel subsidy continues and in the 2019 budget proposal, Nigerian government set aside N305 billion ($1 billion) for under-recovery by NNPC on PMS in 2019 (note: this refer to fuel subsidies). The budget deficit is projected to decrease to N1.86 trillion (or 1.3% of GDP) in 2019 from N1.95 trillion projected for 2018. This reduction is in line with plans to progressively reduce deficit and borrowings.” Give all of the above, answer the following questions:

a) Unemployment in Nigeria is now at 23%. Represent the market of goods and services in Nigeria given this figure and the data for growth and inflation above.

b) Assume that the government scraps fuel subsidies. What should happen to the public deficit, economic growth and inflation?

c) Does the data indicate that the government is running a contractionary or expansionary fiscal policy? Explain your reasoning.

d) Given the data above, what would you recommend in terms of monetary policy for the Nigerian Central Bank? Explain your reasoning.

You are the Manager of Financial Reporting for your company. Your company is facing a number of reporting challenges as a result of an acquisition, COVID-19 and other activities. Although the CFO makes the final decision on accounting standard applications, the CFO relies heavily on your expertise (acquired in the Aurora University MSA program) and your years of research and experience.

In a meeting (brainstorming session), a list of potential reporting issues is developed and are listed below. You have been asked to select the three you feel may be most important and prepare a memo to be reviewed and to guide proper accounting treatment for each.

Your memo should include:

Organization-Appears neat and organized; logical; no spelling or grammar errors; guides the reader to the point(s).

Facts/Issues-States area being reviewed and identifies importance (“issue”) to a company.

Applicable Literature-Identifies all applicable literature. It is properly linked to the issue noted above. Citations are to adequate depth that it represents support, not the start of a new search.  Please remember, some areas have guidance in more than one area of ASC. Some topics have conflicting direction. These should all be identified.

Remember as you prepare your memo to be complete but concise.  Like most executives, the CFO has the attention span of an ant. Your goal is to get the key points summarize and supported, having a significant impact on the decision-making process.

Here is the list of topics developed in the brainstorming session:

1. Balance Sheet classifications
2. Valuation of Assets and Liabilities in an acquisition
3. Valuation accounts
4. Impairment of long-term assets
5. Contingent liabilities
6. Non-recurring items
7. Cash flow impact of refinancing
8. Related party transactions
9. Revenue recognition-over time (maintenance agreement)
10. Principal/Agent definition

You can answer any three BUT your answers must be in numerical order (eg. 4, 7, 10). DO NOT submit your answers out of order (eg. 7, 4 , 9).

The Securities and Exchange Commission (SEC) is mandated to regulate the financial statements of publically traded reporting corporations.   Recently, the SEC has renewed their focus on Non-GAAP reporting issues that are impacting the valuation process of regulated companies.

In 2003, the SEC issued Reg G which restricted a company’s ability to deviate from compliance with GAAP regulatory pronouncements. Prior to the issuance of REG G, major reporting issues pertaining to ENRON had resulted in the SEC becoming aware of misleading reports due to Non-GAAP Compliance Issues. Recently, 380 out of the S & P’s 500 reporting entities reporting a DECREASE to GAAP Net Income but an INCREASE to Non-GAAP Net Income. WHY? The primary differences were the result of EXCLUDED EXPENSES on the Non-GAAP Compliant reports. Many reporting entities were classifying certain routine, recurring operating expenses as NONRECURRING items. For example: Restructuring Costs and / or Impairment Costs are NOT included in the Non-GAAP reports because the management team felt the financial value of the company’s results were undermined by these rare costs. This process is allowed by the SEC…but…redefining operating expenses as Non-Recurring expenses in an attempt to enhance their financial results has become a motivating driver to this problematic process.

The SEC brought their first “Pro Forma Financial Reporting Case on January 16, 2002 against Trump Hotels & Casinos. The case centered upon the abuse of Pro Forma earnings which resulted in a misleading Q3 1999 Pro Forma Earnings Release which was inflated to exceed the analysts expectations. In 2009, the SEC brought similar charges against SafeNet Inc’s management team charging them with a scheme aimed at reclassifying recurring operating expenses as non-recurring (Nov 2009.)

Groupon, in their Initial Public Offering (IPO) filings in 2011 stated …”they do not measure themselves in conventional ways.” The result was overstated profits that lead to inflated stock valuation prices and the need to restatement prior financial reports. Many in the business world believe that many companies are focused on reported EBE = Earnings BEFOR Expenses…rather than EBITA = Earnings Before Interest , Taxes & Amortization.

In an article dated June 29, 2016, the financial reporting community stated that reporting companies “inflated profits by $164 Billion using Non-GAAP Measures” which clearly indicates the problem is on-going and material.

Start your research process by reading SEC 100 Gen rules. You can also refer to Sarbannes-Oxley (SOX) legislation where the pronouncement “strongly discourages Non-GAAP reporting. Read the issues the SEC had with Trump Casinos, SafeNet Inc and Groupon. I want you to discuss the GAAP vs. Non-GAAP compliance issue and integrate the following questions into your response.

1.) Does the use of Non-GAAP reports impair the ability to compare prior periods and competitors reports?

2.) Does the Non-GAAP numbers provide a reasonable source of reliable information?

3,) Should corporations be REQUIRED to report ALL numbers in accordance with GAAP…even during the quarterly, non-audited venue?

4.) Is there a need to translate complex GAAP based information into more useful financial data?