Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Afrobank limited is a Microfinance bank that has been operating in Rundu Namibia in the last two decades. The operation of the bank is to accept deposits and lend to small and medium enterprise businesses at a variable rate of 3.05% above prime rate on an annual basis. Business has been good for Afrobank but not until recently that the SMEs have been struggling due to economic downturn in the country leaving the bank with excess cash in their till. The Board of the bank hence decided to commit the excessive fund to to the following investment on the 2nd of January 2020 rather than leaving them to lie idle.
Point 1. Afrobank acquired 20 000 10% bonds at N$46 per bond from Whiteboard ltd. The fair value of the bond on the 2nd January and 31st of December 2020 are N$50 and N$55.50 per bond respectively. Afrobank intend to hold the bonds in order to sell them, no brokerage fees was incurred for the acquisition. The interest on the bond was received on due date, 31 December.
Point 2. A 10 000 ordinary shares was purchased from Jackson ltd at N36.50. The fair value of the shares are N$30 and N$42 respectively on 02/01/2020 and 31/12/2020. The investment in Poker Limited's ordinary shares was made at N$36.50 per share despite a lower fair value of N$30 per share. This is because the fair value of N$30, determined by a consultancy, did not reflect the synergy that this investment was expected to generate. The fair value is determined using a discounted cash flow analysis. The transaction cost on the investment was N$2 per share and Jackson did not declare any dividend as at the year end. Afro intend to sell the shares.
Point 3. An investment in 30 000 ordinary shares in IUM ltd was made at N$85 per share. The share has a fair value of N$87.50 on 02/01/2020 and N$94 on 31/12/2020. A brokerage fee of N$100 750 was paid on the acquisition. IUM declared dividend of N$3 per share on 20/12/2020 and these were received on 30/12/2020. The intention of the board of Afrobank is to hold the investment to collect and to sell.Afrobank ltd has a financial year end of 31 December every year.
Problem 1: The closing balance of the bond in whiteboard as at 31/12/2020 is
Financial Statement Analysis and Preparation
Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?
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 and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
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 Ltd
Prepare the journal entry to record the acquisition of the assets.
Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
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 Framework's perspective of users and their decisions.
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
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd