English homework help
English homework help. COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF UNDERGRADUATE PROGRAMME
B.Sc. in Accounting, Auditing and Finance/ Bachelor of Business Administration
ASSIGNMENT BRIEF – Spring 2019-20
Individual assignment 3
Weightage: 50 %
| Student Name | |
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| Student no. | Year | Spring 2019-20 | |
Assignment Title |
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Module |
Financial Accounting 2 | Assessor: |
Dr Mohammed Ali Al Lawati Mr. Gnanendran |
| Start Date: | 1st May 2020 | Internal Verifier | Dr.Ahmed Al Hadi |
| Due Date: |
30th May 2020 |
| Required Work, Format and Grading |
You must submit the following by the assignment due date:
§ Answer all questions separately. |
| Resources: You need to demonstrate a confident application of the theories to the assignment task. The theoretical underpinning of your observations and deliberations should also demonstrate a good understanding of the subject by the way that your analysis is structured. You can access the Internet to research about the topic. You should demonstrate good academic practice by the appropriate use of academic texts and journals that are properly referenced. |
| Guidelines and further information about assignment: |
| Assignment must be submitted with the “Turnitin” report. If the report generated indicates a similarity index percentage of 20% or more, a review of your assignment is necessary to ensure the same is reduced to less than 20%. |
Class ID: 24806903
Enrolment Key: FA2-3-Sp2020
Student declaration:
I certify that the work contained in this assignment was researched and prepared by me:
Signature: ______________________________ Date: ___________________
| Grades given are subjected to External Verification. No grades are Final |
Submission time and date
You should submit the assignment by the time and date mentioned otherwise a ‘NA’ will be awarded. Fill in the form cover and staple it with your assignment. Make sure that all the relevant details are complete. Assignments must be submitted by the due date. You may include diagrams, figures etc without word penalty.
Plagiarism Writing
Summary
- Plagiarism occurs if you use somebody else’s work in an assignment or exam answer, but fail to state where you got the material from. You need to be also very careful about the amount of words you are using from somebody else’s work.
- It can happen in any type of assessment where you are given the questions or tasks in advance.
- If another student uses your work in his/her answer(s), both you and he/she will be punished when caught.
- Punishments for committing plagiarism can be very severe.
Details
Plagiarism is a form of cheating in which students use the work of others and present it as their own. It may include all or any one of the following –
- Copy extensively from the work of others (from sources such as books, magazines, journal, web-sites etc) and submit the work as your own.
- Copy another students’ work and submit it for assessment under your own name.
- Allow another student to copy your work and then submit it for assessment under their own name.
What happens if you get caught?
The examining body of CBFS may punish offending students in any manner that they deem fit. Typical punishments may range from reduction in grades, making students re-sit modules and even failing students on a module or an entire award. The college considers this form of cheating as a serious offence. Therefore be forewarned!
Q1)
“The sale of an asset for disposal purposes is like a regular asset sale and a proper
accounting treatment is required in the books of accounts.”
- Explain with example the capital nature and revenue nature expenses with reference to International Accounting Standard – Property Plant and Equipment (IAS 16)?
(4 marks)
- Jet Co. purchased a machine on 1 July 2017 at a cost of OMR51,000. The machine had an estimated salvage value of OMR3,000 and a life of eight years. The machine was sold for OMR48,600 on 31 December 2019, the last day of the accounting year of the business. To make the sale, the business had to incur dismantling costs and costs of transporting the machine to the buyer’s premises. These amounted to OMR1,200. The business uses the straight-line method of depreciation. What was the gain or loss on disposal of the machine?
(Answers should show clear steps and calculations). (6 marks)
Q2)
“Companies amortize intangible assets which are having definite life.”
- Explain the process of amortisation of an intangible asset? Your answer should be accompanied with a suitable example. (4 marks)
- On September 1, 2019, Simon Corporation acquired Jumbo Enterprises for a cash payment of OMR 970,520. At the time of purchase, Simon Corporation’s balance sheet showed assets of OMR 520,000, liabilities of OMR 100,000, and owner’s equity of OMR 420,000. The fair value of Jumbo’s assets is estimated to be OMR 620,000. Compute the amount of goodwill acquired by Simon Corporation.
(Answers should show clear steps and calculations). (6 marks)
Q3)
“Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized.”
- Identify and explain the four possible measurement bases? (4 marks)
- XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation on the machine to date is OMR 32,000. Depreciation rate is 10% per annum straight line method.
XL Co. can sell the machine to another manufacturer for OMR 50,000. In order to make the sale, XL Co. must incur a transportation cost of OMR 2000.
If XL Co. replaces the machine with a new version, it would cost OMR120,000.
The cash flows from existing machine are estimated to be OMR 25,000 for the first two years and OMR 20,000 for the remaining 4 years of the machine’s life.
The discount rate at 10 % is: –
Year -1 0.909, Year -2 0.826, Years- 3 to 6 inclusive 2.619 (annuity rate)
Calculate the value of machine under the four methods identified in Q a.
(Answer should show clear steps and calculations). (8 marks)
Q4)
“A company needs to analyse its financing needs formally before raising finance.”
- Explain any two ways in which a company can raise Finance? (4 marks)
- Supa Inc. is considering plans A and B for financing their new Systems project of OMR 6 million. Plan A involves issuance of 250,000 shares of common stock at the current market price of OMR 2 per share. Plan B involves issuance of OMR 5 million, 8% bonds at face value. Income before interest and taxes on the new plant will be OMR2.5million. Income taxes are expected to be 20%. Supa, Inc. currently has 100,000 shares of common stock outstanding.
Advice Supa Inc. as to which plan would be better and why?
(Answer should show clear steps and calculations). (6 marks)
Q5)
“Financial Statements are used by different stakeholders for different purposes. It helps to make economic decision by different stakeholders”
Discuss the use of financial information by internal and external stakeholders? Your answer should identify the different stakeholders and explain their specific need of financial statement.
(8 marks)
Marking scheme:
| Q1 | 10 marks |
| Q2 | 10 marks |
| Q3 | 12marks |
| Q4 | 10 marks |
| Q5 | 8 marks |
| TOTAL = | 50 marks |
This is a “Group Assignment”.
NOTE:
Instructions to candidates:
-
- Your submissions should be through Turnitin.
- You should write your answers clearly and show relevant workings.
- Use Times Roman / Arial font of 12 size, 1 ½ spacing.
- Downloading information and pasting it in assignment is prohibited.
- Plagiarism is an academic offence. Avoid plagiarism.
- Assignment word limits: no word limit
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