Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

calculations of ratio Case Study of Brother and Olamide Limited You are the Group Chief Accountant Kolled and brede Limited. Kan medis de cerpany while

image text in transcribed

image text in transcribed

image text in transcribed

calculations of ratio

Case Study of Brother and Olamide Limited You are the Group Chief Accountant Kolled and brede Limited. Kan medis de cerpany while Om Lied is a twy company registered in Nigeria. Ko Listed as a medium- sd retailer of imported and retailer of land anders Guna Due to ELTETO Pasts from the women in Nigere for the comparty's praat, Kofi Limited deed to expand is wrats to persirease sales and make more profs for the shareholders le 2016 the business registered a new company Niger und unted lume mied. These purpose of incorporating On Limited in Nigera was to boost the company's market share and make more profiles for the sharedders. But the trance performance of Obide Litted trenerowaging to the margement of the business, and storekers have complained about the decision to expand into the Nigerian Market Storkers terwended with dismaya Olumide Liked his reported comic losses for the business for the past two years. The francaltatements show that the Nigeria espersion strategy was extremely bed and management is med for the last decision to expand into the Nigeria ariet. Manapement explained the past performance at the Amal General Meeting and provide forecast as the future performance of the business. At the meeting the management de surcoders that measures taken in 2019 poing to put on end to the boss making of One Lined The Managing Director explained that theses recorded were temporal and that the fine financial performance will be better Contrary to the promis made to the schokders, 2019 francal performance was abe not encouraging because Olable Limited has onded a neat of CH GHE 100,000 for the year ended 31 December, 2019. The Managing Director argued that unless something drasties done to the figures in the 2019 financial reports for the period under review, the going oncem assumption for Olamide Led has to becked. This nels recorded for 2019 was due to High expenditure or advertisement incurred for that period, while sales fell below the expected target. The Managing Director is concerned about Olamide Linted continue reporting of losses to the group and called for emergency meeting to be held is decides the figures to be included in the 2019 financial statements. At the Board meeting to discuss the line to be included in the financial statements, the following key managers made some statements for the consideration of the Managing Director Noahe among them were reprinted for the consideration of the board. The Group General Manager argued and was quoted here the figures to be included in the financial statement are always grey and that there are very little absolute figures in the financial statement. A start manager is able to save the reputation of the business in times of financial difficulties by simply changing accounting policies best performance of the business. Just a charge of the company's depreciation policy from staight line method to reducing balance method is enough to change the company's net koos is net prod for the business. The Group Operational Manager sided with the comment mode to curgent et profit using the company's policy and defended his position that Managers are engaged to maximize profits for the shareholders. therefore, wy financial performance taldes at how oft, simply means that management has failed. Therefore, there is the need to adjust the company's policy on depreciation in order to marimire profit for shareholders". 2 The Marketing the decade of Il lave mad til stranded we sed due to better performance meded by the business. Therefore, the performance of mind, there is the need to double the im nadace the operating perses by ta to boost profit of these lood furthur the states will now that the fees in the frenciales were mited less they are wet Aster Action profession is the making you red to come of the county we met een the concernina Francial Reporting Sunda IFRS regarding the sees of quali chures of al statement the meeting your concerns were due to several man you see on RS the concepto deploy framework used to prepare real by businesses that the financial prepared the comply with cence, as thet are referred to as ative characteristics Despre you want the Mug Drew bestely refused to take your viewin code and prepared the firala Oleride Linded the ethical and on considerations that show the wet proces the business Statement of Finance as "Thecember, 2019 kof Limited CHON NGOCLETEST 2400 14.00 Tutal Ass Stied Chic 1306 2830 Noncurre 10 Trade eyales 379X 39 WO 14,400 Total equity was saht to equt (and copted rahuss / arricht PIE And test rahor Crecht Sute of Competensive Incomes for the year ended December 2016 Ko Limited Limited CH Cooks 105 T500 340 Opening exper Frating profe France 3000 O pall for the year Note The ER depak i planeering the yearly 250 Is) Wherence to the new show. YEN LEITE Lies of sipas Men mark no Credits Smart sa Surden ( Cowent on the play rates, Elly id efficiency was called beton Koi Limited and One Lined for the period under review I bin the ages for ratio aralys 13 marks) plato (3) dianges the series analysis. (2) Case Study of Brother and Olamide Limited You are the Group Chief Accountant Kolled and brede Limited. Kan medis de cerpany while Om Lied is a twy company registered in Nigeria. Ko Listed as a medium- sd retailer of imported and retailer of land anders Guna Due to ELTETO Pasts from the women in Nigere for the comparty's praat, Kofi Limited deed to expand is wrats to persirease sales and make more profs for the shareholders le 2016 the business registered a new company Niger und unted lume mied. These purpose of incorporating On Limited in Nigera was to boost the company's market share and make more profiles for the sharedders. But the trance performance of Obide Litted trenerowaging to the margement of the business, and storekers have complained about the decision to expand into the Nigerian Market Storkers terwended with dismaya Olumide Liked his reported comic losses for the business for the past two years. The francaltatements show that the Nigeria espersion strategy was extremely bed and management is med for the last decision to expand into the Nigeria ariet. Manapement explained the past performance at the Amal General Meeting and provide forecast as the future performance of the business. At the meeting the management de surcoders that measures taken in 2019 poing to put on end to the boss making of One Lined The Managing Director explained that theses recorded were temporal and that the fine financial performance will be better Contrary to the promis made to the schokders, 2019 francal performance was abe not encouraging because Olable Limited has onded a neat of CH GHE 100,000 for the year ended 31 December, 2019. The Managing Director argued that unless something drasties done to the figures in the 2019 financial reports for the period under review, the going oncem assumption for Olamide Led has to becked. This nels recorded for 2019 was due to High expenditure or advertisement incurred for that period, while sales fell below the expected target. The Managing Director is concerned about Olamide Linted continue reporting of losses to the group and called for emergency meeting to be held is decides the figures to be included in the 2019 financial statements. At the Board meeting to discuss the line to be included in the financial statements, the following key managers made some statements for the consideration of the Managing Director Noahe among them were reprinted for the consideration of the board. The Group General Manager argued and was quoted here the figures to be included in the financial statement are always grey and that there are very little absolute figures in the financial statement. A start manager is able to save the reputation of the business in times of financial difficulties by simply changing accounting policies best performance of the business. Just a charge of the company's depreciation policy from staight line method to reducing balance method is enough to change the company's net koos is net prod for the business. The Group Operational Manager sided with the comment mode to curgent et profit using the company's policy and defended his position that Managers are engaged to maximize profits for the shareholders. therefore, wy financial performance taldes at how oft, simply means that management has failed. Therefore, there is the need to adjust the company's policy on depreciation in order to marimire profit for shareholders". 2 The Marketing the decade of Il lave mad til stranded we sed due to better performance meded by the business. Therefore, the performance of mind, there is the need to double the im nadace the operating perses by ta to boost profit of these lood furthur the states will now that the fees in the frenciales were mited less they are wet Aster Action profession is the making you red to come of the county we met een the concernina Francial Reporting Sunda IFRS regarding the sees of quali chures of al statement the meeting your concerns were due to several man you see on RS the concepto deploy framework used to prepare real by businesses that the financial prepared the comply with cence, as thet are referred to as ative characteristics Despre you want the Mug Drew bestely refused to take your viewin code and prepared the firala Oleride Linded the ethical and on considerations that show the wet proces the business Statement of Finance as "Thecember, 2019 kof Limited CHON NGOCLETEST 2400 14.00 Tutal Ass Stied Chic 1306 2830 Noncurre 10 Trade eyales 379X 39 WO 14,400 Total equity was saht to equt (and copted rahuss / arricht PIE And test rahor Crecht Sute of Competensive Incomes for the year ended December 2016 Ko Limited Limited CH Cooks 105 T500 340 Opening exper Frating profe France 3000 O pall for the year Note The ER depak i planeering the yearly 250 Is) Wherence to the new show. YEN LEITE Lies of sipas Men mark no Credits Smart sa Surden ( Cowent on the play rates, Elly id efficiency was called beton Koi Limited and One Lined for the period under review I bin the ages for ratio aralys 13 marks) plato (3) dianges the series analysis. (2)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor

5th Edition

1405888210, 9781405888219

More Books

Students also viewed these Accounting questions

Question

Focus on the interview.

Answered: 1 week ago