Uowwww Essay

1243 Words5 Pages
| | Assignment Due on 5 October 2015 at 5pm. Submit in SS114. This assignment is worth 15 and each question is worth 7.5 marks. There are two questions and you have to answer both. Total word length 1000 words | | | FINANCIAL ACCOUNTING IN THE NEWSAssets understated by fruit company Leonie WoodThe Australian Financial Review, 21 February 1992Audited accounts for the Shepparton-based fruit-packaging and trading company Geoffrey Thompson Holdings Ltd indicate the company's balance sheet significantly understates the current value of the group's plant and property holdings.The consolidated balance sheet for the year to October 31 indicates the unlisted public company has property, plant and equipment valued at $2.37 million based on a historical-cost accounting method.But notes to the accounts show that independent reviews conducted in October and November last year show an existing use or replacement value for property of $4.73 million, compared with a net consolidated book value of just $1.47 million.Plant and equipment was valued independently at $4.98 million, compared with a net book value of $788 487.The total market valuation of $9.7 million for property, plant and equipment is not brought to book, and the accounts show the properties were last revalued by directors in 1973.Directors said the valuation surpluses were not brought to account as, in their opinion, the sale of the assets under different market conditions, or for a different usage, ‘may result in a considerably lower realisation than indicated’.The valuations are becoming a sticky issue with the company's smaller shareholders who believe their shares have been grossly undervalued in recent years.Shares in Geoffrey Thompson Holdings have changed hands in recent years for $2 and $3 each, with almost half the turnover picked up by 41 per cent major shareholder, Geoffrey Thompson Investments Pty

    More about Uowwww Essay

      Open Document