hfc ltd’s shareholders, Accounting Basics

Assignment Help:

HOME Finance Company Limited made an after-tax profit of $3.172 million for the year ended June 30, 2008.

Chairman James Datta said this was a milestone for the company, with a dividend payout of $2.855m to shareholders.

Mr Datta said the key to their improved performance were a reduction in expenses, increase in income and running the overall organisation in a very tight manner.

This is the first time the company has adopted the International Financial Reporting Standard (IFRS) for the financial year and was able to achieve these results through effective management of its liquidity, interest rate risks and containment of operating costs in the main compared to previous years, he said.

Required:

a)   Consider the following syllogism:

Premise 1:    When a company reports higher profits, shareholders get a dividend payout.
Premise 2:    HFC Ltd makes an after-tax profit of $3.172 million for the year.
Conclusion:     HFC Ltd shareholders get a dividend payout.
Comment on the syntax and semantics of the above syllogism.

b)    Explain whether the HFC Ltd brandname can be recognized as an asset.

c)     Explain the nature of the dividend to HFC Ltd’s shareholders from the point of view of the following theories:
•    Entity Theory
•    Fund Theory

d)     Explain which “form of measurement” is employed in calculating the profit of $3.172 million?

 

 

 

 


Related Discussions:- hfc ltd’s shareholders

Dividing partnership income, Dividing Partnership Income Desmond Drury ...

Dividing Partnership Income Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $44,700 and that Wilkins is to invest $1

Code of ethics for auditor, The following situations involve a possible vio...

The following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code has b

General principles of accounting, Q. General principles of accounting? ...

Q. General principles of accounting? Organizations that have contributed towards the development of the principles are the 1)American Institute of Certified Public Accountants

Case Study Labor standards, Case Study Labor standards Geet...

Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The compa

Explain about closing process, Q. Explain about closing process? Expens...

Q. Explain about closing process? Expense, revenue and dividends accounts are nominal (temporary) accounts that are merely sub classifications of a real (permanent) account Ret

Goal of financial reporting, Q. Goal of financial reporting? The second...

Q. Goal of financial reporting? The second goal of financial reporting is to provide information to help present and potential investors and creditors and other users in assess

Shares of common stock - retained earnings, XYZ Technology had $640,000 of ...

XYZ Technology had $640,000 of retained earnings on December 31, 2010. The company paid common dividends of $50,000 in 2010 and had retained earnings of $500,000 on December 31, 20

Explain financial accounting information, Q. Explain Financial accounting i...

Q. Explain Financial accounting information? A Financial accounting information is precedent in nature that reporting on what has happened in the past. To facilitate comparison

Draw a stem-and-leaf plot for the data set, Draw a stem-and-leaf plot for t...

Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.)  Data set A: The annual wages of

What is dividend, Q. What is dividend? One idea of the statement of ret...

Q. What is dividend? One idea of the statement of retained earnings is to connect the income statement and the balance sheet. The statement of retained earnings describes the c

Write Your Message!

Captcha
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