Chapter 1 – A way of viewing business
Recording of a firms transactions are important. I was amazed how the concept of cut and paste is similar to the double entry accounting concept. Double-entry accounting is to minimise the mistakes used in accounting, it is similar to trace where the mistakes happen. I guess this is why accountants use it.
Each and every accounting transaction has its effect on the accounting equating. Every transaction modifies the apparatuses present in the accounting equation which is Equity = Assets – Liabilities, is satisfied after every alteration.
In Chapter 1, I noticed its emphases on the five elements of accounting, which is Assets, ...view middle of the document...
1. Why do we look at firm’s income statements separate to its owners?
2. Why isn’t there a proper format for all the financial statements?
Forge Group Blog – http://eneeshawijayawardena.pbworks.com/w/page/64113597/Forge%20Group
Please refer to my blog to view the company annual reports and other important websites.
Key Concepts & Questions
* Goodwill of the company is allocated as a cash-generation which is expected to benefit from the synergies of the business combination.
* The liquidity ration of net less than 1.23 times at all. This is strength to the company.
* At shareholder’s meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
* Revenue has increased from 2011 – 2012 by $ 355,903,580 this is an important aspect for the company.
* When comparing the profits for 2011-2012 it has increased by $ 13,329,39
* The group has a number of customers to whom it provides both products and services. The group has three external customers during the year which contributed more than 10% of the group’s external revenues, this was $166 million, and this was recognized in the Cimeco segment.
* The earnings per share had increased from 2011 by cents 11.3.
Challengers the company is facing
* The company main risk is exposed through its financial instruments are...