Agree or Disagree? Explain your thoughts and add any new

It is surprising to me that the US GAAP is so different from IFRS in regard to costing concepts. If an analyst was to look at financial statements from other parts of the world and wishes to compare them to US financial statements, it is not a straightforward comparison. To me, the need for convergence is obvious -- but which way should we go and why?

A company expects to receive the following two payments from their client in China.
January 6,2021                               ¥1,000,000.00
April 6, 2021                                   ¥1,000,000.00                                                           

Given the follow data, answer the following questions.
Spot rate today (October 6, 2020)            $0.1455              Spot rate on Expiration
Jan 6, 2021 Futures                                     $0.1440              Spot rate on Jan 6, 2021= $0.1550
Apr 6, 2021 Futures                                     $0.1430              Spot rate on Apr 6, 2021= $0.1425

a) Should the company be worried of the dollar depreciating or appreciating?
b) How should the company hedge the two receivables using futures?
c) What will be the outcome of the hedges if the spot rate on expiration is as shown above? Show all work.
d) Explain margin requirements and maintenance margin when trading futures contracts.

On January 1, 2018, Byner Company purchased a used tractor. Byner paid $3,000 down and signed a noninterest-bearing note requiring $44,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 11% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Prepare the journal entry to record the acquisition of the tractor.
2. How much interest expense will the company include in its 2018 and 2019 income statements for this note?
3. What is the amount of the liability the company will report in its 2018 and 2019 balance sheets for this note?
  

In 1999 when Carlos was appointed CEO/COO for Nissan in Japan, he had to show results to the shareholders of Nissan and Renault. What do you think are the key performance criteria that Carlos must achieve as the CEO/COO for Nissan in 1999? Describe the THREE key performance criteria. Your answer must be relevant with the context.

Conch Republic Electronics Part 1

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company's finance department.

One of the major revenue-producing items manufactured by Conch Republic is a smart phone. Conch Republic currently has one smart phone model on the market, and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smart phone that has all the features of the existing smart phone but adds new features such as WiFi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smart phone.

Conch Republic can manufacture the new smart phones for $215 each in variable costs. Fixed costs for the operation are estimated to run $6.1 million per year. The estimated sales volume is 155,000, 165,000, 125,000, 95,000, and 75,000 per year for the next five years, respectively. The unit price of the new smart phone will be $520. The necessary equipment can be purchased for $40.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $6.1 million.

As previously stated, Conch Republic currently manufactures a smart phone. Production of the existing model is expected to be terminated in two years. If Conch Republic does not introduce the new smart phone, sales will be 95,000 units and 65,000 units for the next two years, respectively. The price of the existing smart phone is $380 per unit, with variable costs of $145 each and fixed costs of $4.3 million per year. If Conch Republic does introduce the new smart phone, sales of the existing smart phone will fall by 30,000 units per year, and the price of the existing units will have to be lowered to $210 each. Net working capital for the smart phones will be 20 percent of sales and will occur with the timing of the cash flows for the year; for example, there is no initial outlay for NWC, but changes in NWC will first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 12 percent.

Shelley has asked Jay to prepare a report that answers the following questions.

Conch Republic Electronics Part 2

Shelley Couts, the owner of Conch Republic Electronics, had received the capital budgeting analysis from Jay McCanless for the new smart phone the company is considering. Shelley was pleased with the results, but she still had concerns about the new smart phone. Conch Republic had used a small market research firm for the past 20 years, but recently the founder of that firm retired. Because of this, she was not convinced the sales projections presented by the market research firm were entirely accurate. Additionally, because of rapid changes in technology, she was concerned that a competitor could enter the market. This would likely force Conch Republic to lower the sales price of its new smart phone. For these reasons, she has asked Jay to analyze how changes in the price of the new smart phone and changes in the quantity sold will affect the NPV of the project.

Shelley has asked Jay to prepare a memo answering the following questions.

QUESTIONS

5.How sensitive is the NPV to changes in the price of the new smart phone?

6.How sensitive is the NPV to changes in the quantity sold of the new smart phone?

• in your own words please write an essay on a real case of actual fraud affecting a company that has occurred between 2010 and 2020 where you should mention The name and location of the company that was the victim of the fraud must be clearly identified and A clear explanation of what the fraud was and how it affected the company and The financial cost or estimated financial cost to the company of the fraud And lastly what actions the company took in response to the fraud

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.

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.

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.

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

A university surveyed recent graduates of the English department for their starting salaries. Three hundred graduates returned the survey. The average salary was $25,000. The sample standard deviation was $1,500. What is the 95% confidence interval for the mean salary of all graduates from the English department?

Company Alpha ltd has a market value of N$6 billion and an issued share capital of 60 million shares. Company Beta ltd, a company in the same industry as Company Alpha, has an issued share capital of 20 million shares and a market value of N$1 billion. Company Alpha wishes to take over company Beta, and believes that the combined company value will be N$8 billion. Company Beta has agreed to a takeover value of N$1, 5 billion.

Required:

Discuss the effect (s) the takeover of company Beta will have on the existing shareholders of company Alpha, if company Beta is acquired by:

a) An issue of new shares to existing shareholders;

b) An issue of shares to new shareholders;

c) Borrowing; or

d) A share exchange.

The following data relate to the Plant Assets account of Tamarisk Inc. at December 31, 2019:

Note: In the year an asset is purchased, Tamarisk does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Tamarisk takes a full year’s depreciation on the asset.

The following transactions occurred during 2020:

Prepare any necessary adjusting journal entries required at December 31, 2020, as well as any entries to record depreciation for 2020.

(To record depreciation on Asset A) (To record disposal of Asset A) (To record depreciation on Asset B) (To record cost of Asset E) (To record depreciation on Asset E) (To record depreciation on Asset D)