Financial impact that declaring the rebate

Assignment Help Financial Accounting
Reference no: EM131243758

Background
Carart Ltd is company established by the smash repair industry in Australia. Smash repairers fix and repair cars after they have been involved in an accident. Most of the revenue of the smash repair business comes from a small number of insurance companies and car paint is their biggest cost. The industry is very fragmented, comprising many small businesses across Australia. Therefore, the individual smash repairer businesses had very little bargaining power either with the insurance companies or with their suppliers. In order to combat this, Carart Ltd was established and has the following aims;

REQUIRED
You are required to write a Letter of Advice to the Board, together with a transmittal email to Nicole outlining

1) The financial impact that declaring the rebate before or after 30 June will have (calculations are required)

2) Whether or not this represents earnings management, and if it is good or bad earnings management? (academic references required)

3) Your recommendation as to which year the rebate should be committed to pre or post 30 June. (Hint: you may want to consider the AAA model discussed in the lecture) (The Letter of advice should be limited to 4 pages plus references).

For further details see additional file:

Attachment:- Written-assessment-.rar

Reference no: EM131243758

Questions Cloud

What is the maximum amount the banking system might lend : Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial banking system.
Explain the relevant external factors and influences : Describe the relevant external factors and influences (at least 3) which could affect the decisions the company makes about its direction, objectives, strategy, and business model.
What is the basic determinant of the asset demand for money : Use your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable
Identify and describe the stages of team development : Identify and describe the stages of team development. (Please reference and cite the text.) How might stronger team skills benefit you? How might you use teamwork skills in your job? Provide specific examples.
Financial impact that declaring the rebate : The financial impact that declaring the rebate before or after 30 June will have. - Whether or not this represents earnings management, and if it is good or bad earnings management?
What are some tips for spotting counterfeit currency : When was the last silver dollar minted? What have been the largest and smallest U.S. coin denominations since the Coinage Act of 1792?
Which board members are near the ends of their terms : What is the composition of the Board with regard to age, gender, education, previous employment, and ethnic background? Which Board members are near the ends of their terms?
How does a debit card differ from a credit card : How do Fedwire and ACH transactions differ from credit card, debit card, and stored-value card transactions?
Critically think and solve engineering design problems : This assessment will test your ability to meet the learning outcomes as described in your module booklet, specifically: Critically think and solve engineering design problems and Investigate and analyse client and user requirements, technical briefs ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd