CONVEX Ltd. is a new company that was established on 1st January, 2020 to oversee the production of coronavirus vaccines for Ghana. On 1st July, 2020, CONVEX Ltd. acquired 75% shares in CONCAVE Ltd., a pharmaceutical company, to speed up the vaccine production. As a new graduate from UGBS, CONVEX Ltd. has employed you as their accountant. At a management meeting held, a number of issues were raised about how CONVEX Ltd. should deal with its transactions and investment in CONCAVE Ltd. and the need to conduct financial ratio analysis to determine the profitability and sustainability of CONCAVE Ltd. In a memo to management, provide your views on how the following issues should be addressed. Issue C CONVEX Ltd. is planning to sell 30% of their shares to another company who wants to support local production of the vaccine. How will this transaction affects the preparation of CONVEX Ltd. financial statements for the next accounting period?

In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market.The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Answer the following three questions  .   Baker Tilly MKM (Oman) LLC is the auditor of United Power Company SAOG (Company) and has stated that the financial statements has  fairly presented the financial performance and the cash flow for the year. The preparation of financial statements is the primary responsibility of     Baker Tilly MKM (Oman) LLC  Management at United Power Company SAOG Board of Directors    Internal auditors of United Power Company SAOG

The OakTree Group is a 75-year old company founded in Hong Kong. The Group comprises of two majorbusinesses: a publishing business known as Fairmont Publishing and an insurance business namedGeneralife. The Group is currently organized in a decentralized manner with two businesses running asinvestment centers. However, with the recent retirement of many senior staff in OakTree, the CEO is verymuch concerned regarding the performance of the company under a new generation of leadership. In fact,the CEO is considering the possibility of restructuring the Group into a centralized structure.Fairmont Publishing is organized as a divisional structure with the presence of two divisions: Printed Mediaand Online Media. The following are summary financial information for 2019 and 2020:   printed media Online Media   2019 2020 2019 2020 sale $18900 $19320 $25200 $26880 SG&A expenses $6590 $6520 $6092 $8564 Current assets $5670 $6600 $4050…

A retail company is planning to list on a stock exchange within the next three months, and management has been advised by the company’s auditors about the need for compliance with corporate governance provisions. In particular, the finance director is looking to recruit non-executive directors as he understands that Angel will need to establish an audit committee. The finance director has two potential non-executive directors whom he is considering approaching to join the board of Angel. Joseph Lindon is currently an executive sales director of a listed multi-national banking company; he sits on an audit committee of another company as a non-executive director and is agreeable to being paid a fixed fee which is not related to profits. Mark Curly is currently a finance director of a small retail company, which does not compete with Angel; he has expressed an interest in a fixed seven-year contract, and he is the brother of Angel’s chief executive.   Required: a)  Define an audit…

You have just been employed as the new Chief Executive Officer of a medium-sized company that is listed on the Ghana Stock Exchange. At the maiden Board Meeting, the chairman advised you and your management team to avoid what he termed as “Agency problem”.Explain the term “Agency Problem”, and identify four (4) ways by which shareholders can deal with it.

The Ministry of Magic, the regulator of businesses, is concerned about the public financial reporting that was produced by Eeylops Owl Emporium Ltd. The Ministry was aware that the emporium had not indicated that it was discontinuing a division of its business and that for the last financial year it had not included an acquisition of a new building in its balance sheet, which it had purchased some three months before the end of the financial year. Explain why the regulator is concerned with such oversights and what the emporium is required to do in each case.

Muffins LLC is a leading software solutions company in Oman, established in the year 2003. The company has branches in Dubai, Qatar and Malaysia. The company has received “the Malaysia best employer award” in the year 2020.  Moreover, the company has reported 3% growth in their consolidated income during the first quarter of 2021. However, the internal auditing department of the company has raised concerns about the Business and financial risk of the companies. As a result, the board of directors has instructed Mr. Miras Ahmed to analyse the operating, financial and combined leverages of the company to take necessary steps to minimize the overall risk. Data Extracted from the financial reports of the companies are given below Item Amount / Quantity Sales 200,000 OMR Unit Sold 1000 Nos Variable cost 70 OMR Fixed Cost 30,000 OMR Interest Expenses 10,000 OMR   Additional Information The corporate tax applicable for the previous assessment year was…

What is the required treatment of each of the below events in the financial statements? Justify your decisions.    a) On 25 July 20X9, Carey settled and paid a claim involving prior employees alleging sexual discrimination as a result of promotions announced at the Christmas party in 20X8. Five women who had been overlooked for management promotions undertook legal action in March 20X9.   b) On 1 August 20X9, Carey Ltd made an announcement to the Singapore Stock Exchange of its intention to take over a private engineering partnership. This would increase sales revenue of Carey Ltd by 15%. It was to be funded by a 1:10 rights issue.   c) On 12 August 20X9, a fire damaged the head office of Carey. The buildings, fixtures and fittings were only partly insured.   d) At its 5 September 20X9 meeting, Carey’s board of directors voted to double the advertising budget for the coming year and authorised a change in advertising agencies.

Brookwood Pines Hospital Question C5.4 is based on the following case. Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2022, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for-profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2023. BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered discounts of up to 100% of charges based on their income as a percentage of the federal poverty level guidelines. BPH does not pursue collection of these accounts; therefore, they are not reported in patient service revenue and accounts receivable. The cost of providing the charity care is included in operating expenses. BPH’s investments consist of mutual funds, common equities, corporate and U.S. government debt…

Brodaddy LLC is a leading software solutions company in Oman, established in the year 2013. The company has branches in Dubai, Qatar and Malaysia. The company has received "the Malaysia best employer award" in the year 2020. Moreover, the company has reported 3% growth in their consolidated income during the first quarter of 2021. However, the internal auditing department of the company has raised concerns about the Business and financial risk of the companies. As a result, the board of directors has instructed Mr. Aslam Ahmed to analyse the operating, financial and combined leverages of the company to take necessary steps to minimize the overall risk. Data Extracted from the financial reports of the companies are given below Item Amount / Quantity Sales 150,000 OMR Unit Sold 1000 Nos Variable cost 70 OMR Fixed Cost 30,000 OMR Interest Expenses 10,000 OMR