The Value Of Books

The Value Of Books
There has been more than one occasion in life where I have made a quick, stupid decision when
buying things that was not well thought out. The dumbest of them all, the one that wins the prize of
dumbest thing I have done with my money, was back in either ninth or tenth grade. A new Rick
Riordan book had just been released and I was dying to get my hands on it, along with another book
that I honestly cannot remember. The books are not what I regret buying. What I quickly bought
without thinking while standing at the cash–register with a line of people behind me is what I regret
buying. Where I live, behind the counter of Indigo or Coles stores are most often things on sale. On
this particular day, I obviously was not paying much attention ... Show more content on
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I should have been able to tell the woman behind the counter that I decided I did not want the bag. I
should have been more mature when it came to handling my money. Now, I have learned my lesson.
Through this "dumb purchase," I have learned that it is okay to acknowledge your mistakes, it is
okay to ask to put something back, and I learned how to properly manage my money. The first thing
I learned after making that regretful purchase was that it is alright to acknowledge the mistakes you
make throughout life. Eventually, I had admitted my mistake to a few people and I do not regret
doing it. Everyone makes mistakes throughout their life. As human beings, it is in our nature to
make mistakes because no one is perfect. Being able to acknowledge the fact that you have made a
mistake–and accepting that fact–can strengthen a person. It also gives you the opportunity to learn
from your mistake, as I have with mine. By acknowledging the mistake I had made, I was able to
come up with ideas on what to do if I am ever in a similar situation. Being able to acknowledge the
mistakes you make in life can mature and strengthen a person, as well as teach them a strong life
lesson, which mine has done for me. Another lesson I have learned thanks to this disappointing
purchase is that it is okay to ask to put something back and not buy it. You are not obligated to buy
something you realize you either do not want or cannot afford. It is okay if you decide
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The Advantages Of The Discounted Dividend Model
Discounted Dividend Model
First advantage of discounted dividend model is conservatism. The dividend discount model only
values on what the company pays out to investors. Earnings of a company, the cash the company
holds, or anything other than the dividend is not considered by this model. Second advantage is
simplicity. The dividend discount model is one of the easiest ways to value a security. It requires
only three inputs, which almost any investor can reasonably determine or forecast. Because of its
conservatism, investors who value companies with a dividend discount model have more room for
error in the variables they forecast than do investors who use alternative, more finicky projections.
Limited use of discounted dividend model is this ... Show more content on Helpwriting.net ...
When accounting standards vary widely across firms, P/BV ratio can not be comparable across
firms. It can be misleading to investors when there are significant differences in the asset intensity of
production methods among the firms.Book value may not carry much meaning for service firms
which do not have significant fixed assets. The book value of equity can become negative if a firm
has a sustained string of negative earnings reports, which lead to a negative P/BV ratio. P/BV can be
misleading to investirs when there are significant differences in the asset intensity of production
methods among the firms.
In addition, book value for tangible assets are stated at historical cost which is not a reliable
indicator of economic value. P/BV ratio fails to reflect intangible assets such as intellectual assets
,brand value of the company or human capital of service companies. As a result, the balance sheets
of such companies fail to reflect the intellectual assets of the companies. In turn, this leads to low
book values and artificially high P/BV ratio and hence make the measurement not so accurately as
the book value does not reflect the current market value of the tangible

Chapter 8 Essay
Columbia Company, which manufactures machine tools, had the following transactions related to
plant assets in 2014.
Asset A: On June 2, 2014, Columbia purchased a stamping machine at a retail price of $12,000.
Columbia paid 6% sales tax on this purchase. Columbia paid a contractor $2,800 for a specially
wired platform for the machine, to ensure noninterrupted power to the machine. Columbia estimates
the machine will have a 4–year useful life, with a salvage value of $2,000 at the end of 4 years. The
machine was put into use on July 1, 2014.
Asset B: On January 1, 2014, Columbia, Inc. signed a fixed–price contract for construction of a
warehouse facility at a cost of $1,000,000. It was estimated that the project will be completed by ...
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Assume the benefits of capitalizing interest during construction exceed the cost of implementation.
Land Buildings Machinery and Equipment Other
Abstract company's fee for title search $ $ $ $
Architect's fees
Cash paid for land and old building
Removal of old building
Interest on short–term loans during construction
Excavation before construction for basement
Machinery purchased (subject to 2% cash discount, which was not taken). Company uses net
method to record discount.
Freight on machinery purchased
Storage charges on machinery, necessitated by noncompletion of building when machinery was
delivered
New building constructed (building

The International Accounting Standard ( Ias ) 33
Investors are particularly interested in a company's profitability. One way of measuring a company's
performance is to look at their profitability with their reported EPS. Since EPS can be used as a tool
(Little, 2015) for comparing profitability, 'between different entities in the same reporting period and
between different reporting periods for the same entity' (IFRS, 2015). The International Accounting
Standard (IAS) 33, 'Earnings Per Share' has stipulated how companies should calculate their EPS.
The IAS 33 rule applies to all company shares that are publicly traded. According to the IAS 33,
'Basic EPS is calculated by dividing profit or loss attributable to ordinary equity holders of the
parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the
denominator) during the period' [IASPlus, IAS 33.10]. Thus, basic EPS calculations should contain
'all items recognised in profit and loss' (Maynard, 2013, p. 315) and these are crucial information for
the investor. Britvic (2013) have disclosed full details of their calculation of their EPS in 'note 11'
(AR, 2013, p. 84). in their financial statement. They have clearly applied the IAS 33 EPS calculation
rule to their EPS. It has been pointed out that EPS is defined 'within fairly narrow limits' (Jennings,
p.271) to reduce the possibility of subjectivity in the reporting of such a figure. The IAS 33 stated
the requirement for the calculation of the Diluted EPS (DEPS). The DEPS 'is

Case Study: Arcadian Microarray Technologies, Inc.
FINANCIAL MANAGEMENT CASE STUDY: ARCADIAN MICROARRAY TECHNOLOGIES,
INC. EXECUTIVE SUMMARY As an investment manager from Sierra Capital Partners, Rodney
Chu is interested in purchasing a 60% equity interest of Arcadian Microarray Technologies, Inc., a
biotechnology firm. The bid is currently at $40 million. The Arcadian's managers have optimistic
projections for their firms' performance over the next 11 years. However, based on Sierra's
calculations, come up a much more conservative view. With the request of Mr. Chu, a fair bid price
could be calculated along with any appropriate counterproposals. Appropriate steady state growth
rates and terminal values would be included and explained. I. Objective The main ... Show more
content on Helpwriting.net ...
For instance, Book values might be realistic in mark–to–market accounting situations, where the
firm has just started up, or where the firm consists substantially of working capital. On the other
hand, Liquidation estimates would be more realistic in cases where the firm will indeed liquidate.
Replacement values might indicate market values where the firm experiences high inflation. In any
comparison to this, DCF and multiples give very direct estimates of market values. DCF will
dominate where the firm has no earnings to capitalize or when assets consist mostly of intangibles
that are not currently reflected in earnings. 2.3. Assessment on forecast horizons for the three
projects in Exhibit 5 Terminal Value Forecast Horizon Cash Flows beyond the Forecast Horizon All
future cash flows, not only the ones that you can forecast, determine value Terminal Value Forecast
Horizon Cash Flows beyond the Forecast Horizon All future cash flows, not only the ones that you
can forecast, determine value On the figure above, we can see that the terminal value is used as the
horizon in forecasting the three projects. We also have to consider the condition of when we should
set the terminal value. The key to set the horizon is when the stable growth of forecasted cash flows
begin. When the stable growth begins, stop forecasting the

Friendly Card
ESTIMATION OF GROWTH RATES
The value of a firm is ultimately determined not by current cash flows but by expected future cash
flows. The estimation of growth rates in earnings and cash flows is therefore central to doing a
reasonable valuation. Growth rates can be obtained in many ways: they can be based upon past
growth; drawn from estimates made by other analysts who follow the firm; or related to the firm's
fundamentals. Since each of these approaches yields some valuable information, it makes sense to
blend them to arrive at one composite growth rate to use in the valuation. This chapter examines
different approaches to estimating future growth, and discusses the determinants of growth.
Question 1 – Arithmetic and Geometric Means
The ... Show more content on Helpwriting.net ...
ï It could reduce the dividend payout ratio to 50% and reinvest more back into the business.
A. What is the expected growth rate in earnings, assuming that 1993 numbers remain unchanged?
B. What is the expected growth rate in earnings, if the restructuring plan described above is put into
effect?
C. What will the beta of the stock be, if the restructuring plan is put into effect?
Question 6 – Adjusting Inputs For Firm Type
Computer Associates makes software that enables computers to run more efficiently. It is still in its
high–growth phase and has the following financial characteristics:
Return on Assets = 25%
Dividend Payout Ratio = 7%
Debt/Equity Ratio = 10%
Interest rate on Debt = 8.5%
Corporate tax rate = 40%
It is expected to become a stable firm in ten years.
A. What is the expected growth rate for the high–growth phase?
B. Would you expect the financial characteristics of the firm to change once it reaches a steady
state? What form do you expect the change to take?
C. Assume now that the industry averages for larger, more stable firms in the industry are as
follows:
Industry Average Return on Assets = 14%
Industry Average Debt/Equity Ratio = 40%
Industry Average Interest Rate on Debt = 7%
Industry Average Dividend Payout ratio = 50%
D. What would you expect the growth rate in the stable growth phase to be?

Question 7 – Weighting Different Estimates of Growth Rate
The following are a number of

The historical cost accounting convention.
INTRODUCTION
Realised–profit, matching–based, historical cost accruals accounting (HCA) has for over fifty years
been repeatedly challenged as being an inadequate basis for the measurement of "income" which
reports increments in the value of businesses. Such challenges continue unabated and are made by
both accounting standards regulators and by academic commentators. Despite its obvious
deficiencies for measuring valuation based income, and subject to concept of prudence,
internationally HCA remains the dominant basis for reporting and share prices appear to be
influenced by reported earnings.
This paper will go through few criticisms of our standard accounting model, look at possible
alternatives and finally will provide a detailed ... Show more content on Helpwriting.net ...
Opportunity costs are commonly used in economics and do not have much relevance here, however
accounting bodies and academic commentators have forwarded new methods of accounting using
the current asset value, as opposed to the conventional acquisition cost.
Replacement costs could be used as a possible alternative to historical cost method. In crude terms
Replacement costs (RC) may be defined as the estimated amount that would have to be paid in order
to replace the asset as the date of valuation (Page 46,Lewis & Pendrill, 2000). An advantage of
replacement cost is that it focuses on the services the asset will provide rather than the precise
physical asset. It therefore excludes speculative gains that might be made from selling a building to
a purchaser who will redevelop it for an alternative use; equally it allows valuations to reflect the
use that the current owner can make of an asset, even if a purchaser would not be able to employ the
asset as profitably.
However there is an immediate flaw noted in its definition, where the costs have to be estimated.
Estimation has to be carried out after reviewing the asset, the market, and if an identical asset is still
being traded in the market. Further difficulties inherent in the estimation are noted when the asset in
the market is either not identical or obsolete. In these cases usually the replacement costs are much
higher.

Worldview Approach: Major Values of Lakota Culture from...
Anthropology. Book Report On" Lame Deer Seeker Of Visions"
In this assignment, the topic I chose is "Worldview approach: Major Values of Lakota Culture". It is
about the relationship of Lame Deer book and the Lakota. In particular, the topic explores what the
Lakota values much and how this is portrayed in the book (Lame Deer Seeker of Visions). In the
essay, in exploring this topic, a summary of this book is first given. Second, I do explain why I
choose the topic and what I knew about it prior to reading this book. Finally, I examine what Lame
Deer says about the topic. The book Lame Deer Seeker of Visions authored by Richard Erdoes help
readers understand the American Indian community through a Sioux medicine man. The author's
relationship with the Lame Deer enabled him to portray this community from several interviews. He
portrays the culture, rituals and ceremonies, religious beliefs, main legends, the use of medicine,
environmental destruction, injustices in this land whose occupants hold it as sacred. The author
narrates about Lame Deer as a small boy and his experiences in the move to be a medicine man.
Lame Deer ability to recall critical symbolism in American Indian culture helps him to explain to the
author the significance of spiritual unification, and its need in his community beliefs and practices.
At the end, Erdoes argues oneness among human beings is significant. The author is also convinced
that Lame Deer is stable with his spiritual values.

Aol Case Study
Chapter 2 America Online, Inc. Teaching Note Introduction The America Online (AOL) case is a
comprehensive financial–statement analysis case. It enables students to do strategic analysis,
accounting analysis, financial analysis a: and prospective analysis in a rich context. It can he used
either as the first case in a course. on financial; statement analysis to set up the course framework or
towards the end of the course as a comprehensive case. If it is used at the beginning, the instructor
should be prepared for a discussion that raises more questions than answers. However, it can he an
excellent way to motivate the students to learn the course tools. If the case is used at the end, the
instructor should challenge the students to do an ... Show more content on Helpwriting.net ...
As a result, subscriber retention rates were high. Second, because AOL was able to act as a powerful
intermediary between a large subscriber base and high quality content providers, it had significant
bargaining power with both parties, increasing its profitability. Third, chat rooms, which were a very
popular part of AOL 's service offering, benefited from the large subscriber base. Chat rooms offered
the unique feature that the subscribers themselves created the content in real time. Question 2 By
1995, several important changes were taking place in the commercial online industry. First,
Microsoft decided to enter the industry with its Microsoft Network (MSN). Given Microsoft 's vast
installed base of operating systems, it had a natural advantage in gaining market share quickly if it
could bundle MSN with its MS–DOS or Windows operating systems. Given the considerable
financial resources available to Microsoft, MSN could be a source of formidable competition to
AOL. Another source of potential competition to AOL that began to emerge by 1995 was Netscape.
By offering easy–to–use Web browser programs, Netscape enabled free access to the Internet and
the vast array of data on the World Wide Web. As a result, commercial online services like AOL,
which charged a fee to access the same data, faced an important threat. 2 Many

Case 7-2 Joan Holtz
1. a) Architects' fees: capitalized
b) Snow removal costs: capitalized
c) Cash discounts earned: capitalized
d) The cost of building a combined construction office and toolshed: capitalized
e) Interest on money borrowed to finance construction: capitalized
f) Local real estate taxes: capitalized
g) Cost of mistakes: expensed
h) Overhead costs capitalized
i) Insurance & non–covered by insurance costs: expensed
2. a) Firstly, we need to match its depreciation to revenue still being earned from the theater, small
stores, and apartment buildings, until the building gets razed. This demonstrates that Archer
Company's intentions when purchasing the land and buildings, was to raze the old building and
construct a combined hotel and ... Show more content on Helpwriting.net ...
With customers paying the leases, the future revenue of "applications engineering" is certain. With
that being said, "applications engineering" can be capitalized to asset value of leased computers and
amortized over lease period.
5. The equipment was built to produce products at 65 ppm quality. The primary principle on
capitalizing costs for property, plant or equipment includes "all expenditures that are necessary to
make the asset ready for its intended use." This addresses the additional $50,000 for debugging,
fine–tuning, and testing, vital expenditures for the equipment to meet 65 ppm quality standard, its
intended use.
The larger issue would be customers purchasing products that do not meet the 65 ppm quality
standard. As units are being sold, related costs need to match with revenue, and one of the costs in
question is depreciation. To find the cost of depreciation, total cost of the fixed asset is a number
that cannot be determined until all costs to have the equipment reach the required standard, have
been accounted for. However, there are several methods to work around this problem.
There are two temporary alternatives that can be suggested to calculate the cost of the equipment.
First, depreciation is calculated at a cost–to–date. The cost–to–date is the total accumulated
capitalized cost of the equipment, on the day it starts

Jackson Enterprises Case
Xinyun Zhang
ACCT325
Individual Case
Goodwill Impairment at Jackson Enterprises Case
1. When is a company required to perform the two–step test for goodwill impairment? Explain in
your own words and provide citation from the ASC.
Goodwill is considered impaired when the implied fair value of goodwill in a reporting unit of a
company is less than its carrying amount, or book value, including any deferred income taxes. By
qualitative factors, if the fair value is less than its book value (likelihood more than 50%), two step
of the goodwill impairment test is necessary. According to ASC 350–20–35–2 and
3(A&B&D), if the company determines that it is not more likely than not that fair value is
less than the book value, it does ... Show more content on Helpwriting.net ...
| ASC 350–20–35–3C(a) | The stock price decreased from $27 to $23 in 2014. | ASC 350–20–35–
3C(e) |
ZD Qualitative Factors | Citation | Because of the enhancement of the competitive advantage of our
nation's farmers and ranchers, the government creates a business– friendly atmosphere for the
company. This could decrease operation cost. The government may give some grants to help
company. | ASC 350–20–35–3C(b) | ZD will dominate its competitors in manufacturing process
management which results in a cost advantage, as long as the patent is approved for manufacturing
process. | ASC 350–20–35–3C(c) | ZD has reduced its utility costs by 15% for two years. Due to
these utility cost reduction, ZD earns a state–administered manufacturer energy savings incentive
subsidy. | ASC 350–20–35–3C(c) |
According the above assessment of qualitative factors for both companies, I think that the goodwill
impairment test is necessary for Dynamic because Dynamic has many negative impacts. Although
the Dynamic has 3% of gross profit margins over competitors, it was not enough to offset the
negative impacts; I think that the goodwill impairment test is not necessary for ZD. Due to ZD
shows all positive impacts improving operation condition.
3. Based upon the information in the case, should Dynamic and ZD be combined or separated for

Nike
JOHN MOLSON SCHOOL OF BUSINESS | CASE ANALYSIS: NIKE INC. – COST OF
CAPITAL | FOR PROF. EDWARD WONG | | ARUN KUMAR DURAIRAJ – 27416008 NIDISH
PC – 27254423 VIPUL PARTI – 27246307 | 12/3/2015 |
|
Evaluation of Cohen's Report and Calculation of WACC
We do not agree with Cohen's report about the cost of capital because of the following reasons. *
Capital Structure (% equity vs % debt):
In calculating the capital structure of Nike Inc., Johanna ... Show more content on Helpwriting.net ...
is given below with the terminal value as above.
The present value for the cash flows is found as per the WACC (9.26%) to arrive at the enterprise
value. Free Cash Flow For Nike Inc. for 2002 – 2011 | | | | | | | | | | | | (All figures in millions) | 2002 |
2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Operating Income | 1218.4 | 1351.6 |
1554.6 | 1717 | 1950 | 2135.9 | 2410.2 | 2554.8 | 2790.1 | 2957.5 | Taxes | 463 | 513.6 | 590.8 | 652.5 |
741 | 811.7 | 915.9 | 970.8 | 1060.2 | 1123.9 | NOPAT | 755.4 | 838 | 563.9 | 1064.5 | 1209 | 1324.3 |
1494.3 | 1584 | 1729.9 | 1833.7 | Capex, Net Depreciation | – | – | – | – | – | – | – | – | – | – | Change in
NWC | 8.8 | –174.9 | –186.3 | –198.4 | –195 | –206.7 | –219.1 | –232.3 | –246.2 | –261 | Free Cash
Flow | 764.1 | 663.1 | 777.6 | 866.2 | 1014 | 1117.6 | 1275.2 | 1351.7 | 1483.7 | 1572.7 | Terminal
Value | – | – | – | – | – | – | – | – | – | 25876.69 | Total Flow | 764.1 | 663.1 | 777.6 | 866.2 | 1014 |
1117.6 | 1275.2 | 1351.7 | 1483.7 | 27449.4 | | | | | | | | | | | | Present Value of Cash Flows@ WACC |
699.34 | 555.46 | 596.17 | 607.82 | 651.23 | 656.93 | 686.04 | 665.57 | 668.64 | 8072.58 |
Enterprise Value = $17109.36 million
Total Equity Value = Enterprise Value – Total Debt = 17109.36–1296.6
Total Equity Value = $15812.76 million
Current Outstanding shares = 271.5 million
Equity Value per

Reflection On The Value Of A Book
Final Essay #3 Personal
In this class I learned how to judge a grate book. From my point of view a books greatness is judged
from the eye of the beholder. But taking this class has helped me to better articulate in my own mind
how a good book should be judged. What I mean is that I have always known if a book was good
when I read it but now I know how to quantify and explain why I think that way. In this way, I feel
that a really great book has something special it can teach everyone. One good quality of a good
book is that a good book is persistent in its storytelling and is written in such a way as to make the
story believable. I have seen this in the books we have read for class all of them are able to put the
story together without any potholes. A good book also helps you to feel empathy for the characters.
This is an important part of the book because it helps you to imagine the story and be able to enjoy
the story better. If the characters are interesting then the reader is able to disband disbelief easier.
Ever since the young age of second grade I have loved books. I was always found with a nose in a
book. Because of this I feel that I have a fairly good background on books and so therefore can
determine if, in my own opinion, the book is really good or not. But as in all things there is more to
learn and over the course of this semester I have had to stretch my reading capability to its very
limits. I have really enjoyed this opportunity to read some of the most

The Value Of Banned Books
The number of banned books for the past few years has gradually increase. Most of the books i
found on the recent list shocked me but also made me feel greatful. I went to a Catholic school
where teachers had the right to teach whatever they want. Scrolling down the list of banned books I
realized that I've read majorty of those books for school. I personally think it is wrong to banned
books because it's depriving students from learning. A lot of the books on the list had realistic
problems which readers, students could learn from. It taught life lessons and gave many of the
readers chance to see this from different perspecrtives. I think the reason why these books is banned
is becasue there is people of higher power who wants to keep these

Essay about finance
Introduction
In this report, I will analyze the financial performance of SDB by comparing it with its industry
peers. SDB's asset quality, earnings capability and capital adequacy are the three aspects I will pay
attention to when evaluate its financial performance. Then I will discuss whether it is appropriate for
Newbridge to pay 1.6 times book value for 18% shares in SDB. And what is appropriate range for
the price Newbridge can offer. The objective of this report it to assist Newbridge to make right
decisions on whether to invest SDB or not and if invest what is appropriate price to pay for each
share.
Part 1 SDB' financial performance
In order to analyze the financial performance of SDB, there are three aspects we ... Show more
Large amount of NPL may also on the other hand provide higher interest revenue for SDB on the
high–risk loan they made, so to determine its financial performance we have to also consider its
earnings capability.
Earnings capability
The key earnings measurements of SDB are ROAA (net income/average total assets) and ROAE
(net income/average equity). ROAA is called return on average asset. It is an indicator shows how
much bank earns as a percentage of total assets. ROAE is an indicator for return on equity. And
From 2000 to 2002, the SDB' s ROAA and ROAE are decreasing over time. Based on Exhibit 10
(Jin, Xuan, & Bai, 2009), the average ROAA for industry peers is 0.6%, higher than SDB'S ROAA,
which is 0.3%. The average ROAE for industry peers is 26.8%, which is much higher than 9.1% for
SDB. These data shows SDB is not a profitable bank as the profitability of both bank's total assets
and average equity are lower than industry peers. Moreover, the overall financial performance of
SDB is worse compare with its industry peers. This is because not only the ROAA and ROAE are
lower than other banks but also other measure of firm earning capability are performing poor than
industry peers. For example, the Operating expense/Operating income ratio for average industry
peers is 55.3% and for SDB is 58.3% (Jin, Xuan, & Bai, 2009). Which means for every operating
income SDB generated, it has to spend more than others.
There

College Admissions Essay: The Value Of Books In High School
Curled up under warm, weighty covers, propped up on a plump pillow or two, buoyed up by the
prospect of an uninterrupted hour, I open the cover of a book and immerse myself in the story. As a
child, this was the scene night after night as I devoured books as fast as my mother, or the library,
could provide them. I remember reading in the attic on warm summer afternoons, surrounded by
piles of books as flies buzzed lazily on the window panes; I remember reading in the car on visits to
Grammy's, plagued eventually by nausea as the miles ticked away under the tires; I remember
reading in my bed on Saturdays, undisturbed by parents, siblings–anyone– as the hours slipped away
into Sunday. I can't remember a time when I couldn't read. I believe the ability to read is a gift that
every person deserves. In elementary school the two best days of the month were the day the
bookmobile visited our school and the day the Scholastic Book order arrived. Our small, five–room
schoolhouse had a limited library, but once a month new titles were within my grasp. The Maine
State Library bookmobile, a huge delivery van lined with bookshelves, would roll into the parking
lot, and class by class we would climb the steps into the mini–library to select a book to check out
for the month. This day was only outdone by the day the Scholastic Book order ... Show more
Books have taken me to different places, different times, different worlds, and different experiences.
Thanks to Madeline L'Engle I have traveled across A Wrinkle in Time and visited with
mitochondria. Lauren Hillenbrand has taken me to the sometimes dark and dirty world of
depression–era racetracks and to the unimaginable reality of Japanese prisoner of war camps. Steve
Berry has grounded me in the reality of this world's history and then pulled me into a very
imaginable future. These and other author's words, their stories, are a bounty that every person
should be able to

Value Of Books In Fahrenheit 451
Montag rose from the ashes of his past self like a burning phoenix, and it was as though he was alive
for the very first time. The novel Fahrenheit 451, written by Ray Bradbury, tells of a firefighter
named Montag who lives in a society where books are illegal. Firefighters in this society are
responsible for starting fires and burning hidden stashes of books. Montag is different than his
fellow firemen and throughout the novel he struggles to learn the truth about books and why they
are illegal. The society in which Montag lives has a very different set of beliefs about the value and
worth of books. In the minds of the majority books are a thing of the past and technology is an
absolute necessity and basically the only thing worth entertaining ... Show more content on
Helpwriting.net ...
Before the world changed and firefighters changed their job description "Books were only one type
of receptacle where we stored a lot of things we were afraid we might forget"(Bradbury 74). Books
made sure we would never forget important ideas and lessons. They were a way for the average
person to learn about the world from their home. Faber reminds Montag of the value of books when
he says "Do you know why books such as this are so important? Because they have quality... This
book has pores" (Bradbury 74). Books were valued because they showed the pores and ugly truths
of society and made people think. The reason for why they were once valued is the reason why they
are now despised in Montag's society. Very little to no value is placed on books because the only
thing that is truly being valued is technology. To the average person books aren't worth reading or
writing. "The books say nothing! Nothing you can teach or believe" (Bradbury 56). They are seen as
a waste of time and the majority of people would rather burn them than try to understand them. The
only people who would find novels worth reading and writing are the remaining scholars who live
along the railroad

Essay about Eagle Impairment Case
Eagle Impairment Case
Question 1
IFRS
According to the facts provided for Eagle in Italy, we assume that the commercial building, which
represents a cash–generating unit (CGU), meets the requirement for a recoverable test under IFRS.
The impairment loss is required when the building's book value exceeds the higher of the asset's
value–in–use and fair value less costs to sell.
Carrying value 1,100 > 900 Higher of Value in use (900) Fair market value less costs to sell
(800)
Impairment Loss is the difference between book value and the recoverable cost (the higher of the
asset's value–in–use and fair value less costs ... Show more content on Helpwriting.net ...
Question 3. 2
The assumptions of discount rate and depreciation method are acceptable. However, the other two
assumptions described as below are considered to be inappropriate. Based on paragraph 33 (c) in
IAS 36, "estimate cash flow projections ... based on the budgets/forecasts using a steady or declining
growth rate for subsequent years, unless an increasing rate can be justified." With increasing
uncertainty in the future, the growth rate should be settled in a declining manner year by year.
However, in the case, the growth rates of discounted cash flows derived from Eagle's identifiable
asset demonstrated an increasing trend from 6% in 2011 to 12% in 2015. In addition, the case
indicated that external industry reports estimate no growth rate for the foreseeable, which means the
average growth rate equal to 0. In the same paragraph of IAS 36, "this growth rate shall not exceed
the long–term average growth rate for the products, industries, or country or countries in which the
entity operates, or for the market in which the asset is used, unless a higher rate can be justified."
However, the company estimates its average future 5 years growth rate at about 8.6%.
Unfortunately, no substantial evidence can justify that the company have the capability to keep an
upward growth over 5 years and outperform the external industry so well. According to paragraph
33 (b) in

The Value Of War In The Book Of My Life
When Hemon writes: "Only those who do not care, only those who find a way to diminish or
extinguish the value of other human beings, survive wars without damage and speak of warrior
honor afterward," he means those people who don't care about the war or value of other human
lives, are the people able to see the war in a positive light. Throughout "The Book of My Lives" by
Hemon, he describes the war through his own perspective, which sees war in a negative aspect.
Caring for his family and friends has become almost a burden as he deals with excessive depression
and anxiety. For Hemon, no good can or will come out of this war. The value he holds on the life of
a human being is too great for him to be accepting of the war. To make Hemon's emotions worse, he
explains ... Show more content on Helpwriting.net ...
With the raw emotion in Veda's letter, Hemon feels guilt and pain from the harsh realities of war
pinning his friend against in own father.
On the contrary, those who allow themselves to "diminish the value of other human beings," are
going to see the war as necessary and respect it. They don't care for people like Veda and his dad.
They disregard these victims lives and everyone else's. When they look at people from the opposing
side of the war, they don't see a human, they see a target, an enemy. They see the casualties as
statistics instead of dead fathers, brothers, and sons. Their perspective believes the propaganda
spread and pride themselves in their efforts during the war. People who don't care about human life
receive no damage in terms of

Advanced Financial Accounting
CHAPTER 4 Consolidation of Wholly Owned Subsidiaries Acquired at More than Book Value
ANSWERS TO QUESTIONS Q4–1 The carrying value of the investment is reduced under equity
method reporting when (a) a dividend is received from the investee, (b) a differential is amortized,
(c) an impairment of goodwill occurs, and (d) the market value of the investment declines and is less
than the carrying value and it is concluded the decline is other than temporary. Q4–2 A differential
occurs when an investor pays more than or less than underlying book value in acquiring ownership
of an investee. ... Show more content on Helpwriting.net ...
The existence of a large differential indicates the parent paid well over book value to acquire
ownership of the subsidiary. When the differential is assigned to identifiable assets or liabilities of
the subsidiary, both the consolidated balance sheet and consolidated income statement are likely to
provide information not available in the financial statements of the individual companies. The
consolidated statements are likely to provide a better picture of the assets actually being used and
the resulting income statement charges that should be reported. Q4–10 Consolidated net income is
equal to the parent's income from its own operations, excluding any investment income from
consolidated subsidiaries, plus the income of each of the consolidated subsidiaries, adjusted for any
differential write–off. Q4–11 An additional eliminating entry normally must be entered in the
worksheet to expense an appropriate portion of the amount assigned to buildings and equipment.
Normally, depreciation expense is debited and accumulated depreciation is credited. Q4–12 If the
differential arises because the fair value of land, or some other non–depreciable asset, held by the
subsidiary is greater than book value, the

Value Of The Book 'Fahrenheit 451'
The Value of Books Fiction has been around for years and years. Like the story of Robin Hood and
the Three Little Pigs. These small fictional stories have taught us so much. From stealing from the
rich to give to the poor to making a little pig think outside the box to save his own little tail.
However, like these stories, they will no longer be taught to elementary and middle school. The new
common core system believes that fictional stories are no longer valuable to be taught. I believe that
fictional books can hold the same meaning and sentimental value as non–fictional books. They can
teach the same things and even provide more depth from right and wrong. Nevertheless, even
though the common core system believes that fictional books no longer important to be taught,
fictional books are just as important as non–fictional books in every aspect, from the author's
message on society today, to how the books could actually affect the reader on a mental level, or
how the message that the author is conveying could change the perspective of the readers view. In
the fictional book Fahrenheit 451, it shows how people could become so distracted by technology
they can hardly see the real world around them. The wife of Montag, ... Show more content on
Helpwriting.net ...
The movie could be about chasing your dreams or overcoming overwhelming odds, and just like a
book, this could affect you on a mental level. It could inspire you to accomplish your dreams or
aspire to new heights. Just like a non–fictional books, fictional books could do the same thing.
According to The Writers Bureau, it is important for children to read fictional books. It can expand
their imagination and boost their self confidence. The Writers Bureau says that " It'll encourage the
children to realise that they can, and should, imagine what they want." Children should be able to
expand their imagination and use their own minds on how they see the

Retail Sales : The Largest Industry Essay
Retail sales was the largest industry in the United States prior to the 2000's recession. It was the top
employing industry from 2003 –2008 in nearly half of the U.S. states. Starting in 2009, every year
has shown a decline in number of states where this is the top industry; as of 2013, retail was down to
six from its peak of twenty–four. Retail is still a major industry but it will be interesting to discover
how individual firms, specifically the largest ones, have handled this decline and what they may be
doing to reverse the pattern. Kroger, Walmart, and Costco have the top revenues in the industry and
are similarly categorized as well. Kroger is a supermarket, a larger grocery store with small section
of general merchandise; Walmart is a hypermarket, contains a large range of products in both
grocery and general merchandise; Costco is a warehouse club, also a large range of products but
with a focus on selling large quantities at a discount with a small club fee. Since these three
companies overlap in much of their products, there is competition between them which also adds to
why they are respectable choices to analyze together.
Evaluating Market Value The start of this comparable analysis will be on value creation for their
shareholders, a primary role of a financial manager. In general, increasing sales, earnings, and using
those earnings wisely are the major ways to increase this value over time. With that in mind, the
value can be compared over time using the three

Rough Water Case
Re: Impairment Testing
We are writing to you regarding the inquiry we received over the possible impairment of your cruise
ship. Our response was formulated using our extensive knowledge of the U.S. Generally Accepted
Accounting Principles and referring to ASC 360–10 over the testing of impairment. After
preforming recoverability tests, we have concluded that your cruise ship is impaired, and an
impairment loss of $1.6 million should be recorded on December 31, 2010. In the second scenario,
the asset is recoverable because the expected future cash flows are greater than the carrying value;
therefore, the cruise ship is not impaired. The rest of this memo will describe how we calculated the
impairment on your cruise ship.
In order to ... Show more content on Helpwriting.net ...
The impairment loss is the excess of the asset group's carrying value over the asset group's fair
value. ASC 820 states that fair value is "the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants." The fair value of the asset
group consists of the cruise ship, which has a fair value of $3 million, and the net working capital of
$.1 million. The difference between the asset group's fair value of $3.1 million and the carrying
value of $4.7 million is an impairment loss $1.6 million, which should be recorded at the end of the
current period, December 31, 2010.
Per your request, we have also calculated probability weighted–average if of the second scenario.
The calculations for the recovery test for this circumstance are displayed in Table 2. After
performing the calculations, we concluded that the asset group is recoverable because the future
cash flows of $4.8 million are greater than the net carrying value of $4.7 million. The results of the
second scenario indicate that the asset is not impaired.
Table 2
Estimated Future Cash Flows (In Millions)
Option
2011
2012
2013
2014
2015
Total
Probability
Cash Flow
Continue to operate in current area
$1.0

$0.90
$0.70
$0.70
$0.70
$4.00
50%
$2.00
Operate in new area
$0.60
$0.80
$1.10
$1.60
$1.90
$6.00
40%
$2.40
Operate for 2011 and

Actg 351 Case 2
Case #2
Murong Feng, Duy Do, TJ Fritzgerald, Hayden Jacobs
2/13/15
Question 1
Given the facts provided for Eagle in Italy, the building is not impaired under IFRS as of December
31, 2010. The carrying value is 1,100,000, and undiscounted future cash flows are 1,150,000. The
carrying value is less than undiscounted future cash flows. According to IAS36 paragraph 12, "in
assessing whether there is any indication that an asset may be impaired, an entity shall consider, as a
minimum, the following indications: (d) the carrying amount of the net assets of the entity is more
than its market capitalization." Thus, there is not any impairment on the building under IFRS.
Question 2
Given the facts provided for Eagle in Italy, the ... Show more content on Helpwriting.net ...
According to IAS 36 paragraph 104 "(b) then, to the other assets of the unit (group of units) pro rata
on the basis of the carrying amount of each asset in the unit (group of units)." Fair value of CGU,
including goodwill and liability, is 1,300,000. Since there is an impairment loss on goodwill of
300,000. The new carrying value is reduced to its fair value, which is 1,300,000–
300,000=1,000,000.
Question 3 (GAAP)
1) In the case, a significant change in the legal environment. We need to perform a recoverability
test. According to ASC 360–10–35–21 "events or changes in circumstances indicate that the book
value of the asset or asset group may not be recoverable. (c) A significant adverse in legal factors or
business climate" The carrying amount of net assets is 1,400,000, more than its fair value, which is
1,300,000 (due to the revaluation of PP&E). There is impairment loss on total assets under
GAAP. We first indicate if there is a loss on goodwill. ASC 360–35–26 states" Goodwill shall be
included in an asset group to be tested for impairment under this Subtopic only if the asset group is
or includes a reporting unit. Goodwill shall not be included in a lower–level asset group that
includes only part of a reporting unit. Estimates of future cash flows used to test that lower–level
asset group for recoverability

Reeby Sports Essay
Use Tables 3 and 4 to forecast free cash flow for Reeby Sports from
2004 to 2010. What is the present value of these cash flows in 2003, including PV(terminal value) in
2010?
Free Cash Flow 2004 2005 2006 2007 2008 2009 2010 2011 Terminal
= After–tax profits 5,25 5,70 3,00 3,40 4,35 6,00 7,61 7,60
+ Depreciation 2,40 3,10 3,12 3,17 3,26 3,44 3,68 3,94
– CapEx 4,26 10,50 3,34 3,65 4,18 5,37 6,28 8,50
– Inc. In NWC 1,39 0,60 0,28 0,42 0,93 1,57 2,00
FCF 2,00 –2,30 2,50 2,50 2,50 2,50 3,01 3,04 108,53
NPV(FCF 2004–2010) 8,01
PV(Terminal) 55,69
PV(Total) 63,70
Annual growth rate g is given by following relationship g ✝RE
∙✈1− d ✉ g ✝0,12 ∙✈ 1− 0,40✉ ✝7,2
The terminal value is given by
T ✝
FCFt☞1
kE − g
T ✝
3,04
0,10− ... Show more content on Helpwriting.net ...
It would provide an improved basis for the value if multiples from more than one company would
be used – if data from other similar companies were available.
Methodology Estimated value (2003) Share Price
DCF 63,70 318,50
DCF(Conservative) 47,01 235,05
P/E 54,84 274,18
P/B 56,74 283,69
Dividend yield 59,99 299,93
The range would then be a price from 235,05 to 318,50 per share. We see that the valuation from the
DCF analysis gives the highest price estimate. If Reeby Sport really can outperform its competitor
on these ratios is something that we recommend to be further investigated.
The company have issued 200 000 stocks, and the value of a share follows directly from the
company value divided by the number of stocks issued.

2 REEBY SPORT*The book value for 2010 is calculated using the following formula
Book valuet
✝Book valuet−1☞ grossinvestments – depreciations
Book value2010✝Book value2003☞ ∑ i✝2003 2010
Grossinvestmentsi – depreciationsi
Book value2010✝63,31
Reeby Sports will have to raise $4.3 million in 2005. Does this prospective share issue affect the per
share value of Reeby Sports in
2003? Explain.
We note that the FCF in 2005 is –2,3M and dividends of 2,0M are given to the shareholders. This
requires 4,3M in outside equity financing. Whether it is current or new shareholders that contribute
with the new equity will not affect the share price differently.
The

Persuasive Essay On The Value Of Books
Books have slowly faded out into the mainstream in our modern age. In an age where technology
overpowers anything from the past, children have everything done for them and are not required to
use the imagination that has been exercised over many years. I remember when I was a child I
would be given these toys that did nothing at all, and I would have to use my imagination to make
up stories and scenarios to entertain my boredom. I would read books and imagine the scenes play
out in my head as if I was watching a movie unfold. Children now simply watch television or stream
videos on their devices. Books are key in expanding children's understanding of the world, and
opening horizons which were previously locked to them. They teach lifelong lessons and help solve
problems by offering solutions never thought of before. Most of all, they are an escape from the
outside world in a way provided by nothing else. In an effort to reward books which encompass
everything a book should strive to be, I nominate Roald Dahl's creation, titled Charlie and the
Chocolate Factory, for the "Imaginative Discovery" award. A book which entertains, a book which
teaches both child and adult alike, a book which expands and develops imagination like no other
book can. Charlie and the Chocolate Factory follows the story of Charlie Bucket and his family, who
have never sought for more than they can. They are a poor family, a mother, father, and several
grandmas and grandpas who all live in one bed

Fosters Case
SCHOOL OF
ACCOUNTING
BAO2203
Corporate Accounting Assignment
Hao Cheng 3781727 Yang Siyu 3778363 Tutor: Ghazaleh Shokrollahi Thursday 10 a.m. – 11 a.m. 1
p.m. – 2 p.m.
Question 5:
Fosters, the beverage giant of Australia has been all over the news recently, as the company has
reported a huge loss and the stock price keeps falling. All of these problems might be brought by its
troublesome wine business. This report will try to explain why Fosters is under this infaust
circumstance by answering the eight following question.
Question 1: Why is an impairment test considered ... Show more content on Helpwriting.net ...
The most important influence comes from the hope of overtake or demerge, which requires the
company to have an impairment test.
Question 4: What assumptions need to be made when undertaking an impairment test, and what
effect would these have for evaluating the performance of Fosters and its competitors?
The first assumption need to be made when undertaking an impairment test is to make sure all assets
that may be impaired are included in the test. IAS 36 has a list of external and internal indicators of
impairment. If there is an indication that an asset should be impaired, the calculation of the asset's
recoverable amount should be done. [IAS 36.9]
The recoverable amounts of the following types of intangible assets should be measured annually
whether or not there is any indication that it may be impaired, which means all intangible assets in
Foster have to be included. An intangible asset with an indefinite useful life means: * an intangible
asset not yet available for use * goodwill acquired in a business combination (Patell and Wolfson,
20009)
If the company does not include all intangible assets, the impairment test for written down value
would be underestimated, resulting in the performance of Fosters being overestimated while the
performance of its competitors might be underestimated.
Second, the impairment test should be true and fair. If the company does not reflect true and fair
test, the test would be

Retail Industry : Walmart, Kroger, And Costco Essay
Retail Industry – Walmart, Kroger, and Costco
Retail sales was the largest industry in the United States prior to the 2000's recession. It was the top
employing industry from 2003 –2008 in nearly half of the U.S. states. Starting in 2009, every year
has shown a decline in number of states where this is the top industry; as of 2013, retail was down to
six from its peak of twenty–four. Retail is still a major industry but it will be interesting to discover
how individual firms, specifically the largest ones, have handled this decline and what they may be
doing to reverse the pattern. Kroger, Walmart, and Costco have the top revenues in the industry and
are similarly categorized as well. Kroger is a supermarket, a larger grocery store with small section
of general merchandise; Walmart is a hypermarket, contains a large range of products in both
grocery and general merchandise; Costco is a warehouse club, also a large range of products but
with a focus on selling large quantities at a discount with a small club fee. Since these three
companies overlap in much of their products, there is competition between them which also adds to
why they are respectable choices to analyze together.
Evaluating Market Value The start of this comparable analysis will be on value creation for their
shareholders, a primary role of a financial manager. In general, increasing sales, earnings, and using
those earnings wisely are the major ways to increase this value over time. With that in mind, the

The Value Of Loyalty In The Book Of Job
Loyalty is a complicated virtue. It is generally understood as an individual's intrinsic motivation
towards a commitment resulting from their selfhood. Loyalty has the potential to serve as the basis
for strong relationships. Yet, it also has the potential to be warped into complacency. In the Hebrew
Bible, The Book of Job connects the virtue of loyalty to faith. In Homer's Odyssey, loyalty is
expressed through infidelity and faithfulness. Despite my expectation of loyalty in terms of
justifying unethical actions with cynicism to serve as a constant in all settings, these two texts
demonstrate that the role of loyalty rather depends on the theistic context because of the difference
regarding reward and punishment being dependent upon divine beings. To defend this argument, I
will analyze the different perspectives regarding the loyalty of divine beings in both texts. I will then
explain the impact of immortal characters in both texts, and I will finish by indicating the
differences between them, and how they shape the value of loyalty within each text. Loyalty as a
virtue is often expressed in loyalties, or actions that showcase our willingness to support a specific
cause. In the Book of Job, we see Job's initial reward for his loyalty to Yahweh with his ten children,
along with his servants and sizeable livestock. His situation describes him as "...the greatest of the
men of the East. (Hebrew Bible, Job 1:3)" These loyalties were presented to Job as a gift for his
loyalty

Welling
Wellington Chemicals Division
Teaching Commentary
Overview
THIS CASE DEALS WITH ONE OF THE CLASSIC MANAGERIAL DECISIONS–MAKE
VERSUS BUY. MOST COURSES IN MANAGERIAL ACCOUNTING INCLUDE AT LEAST
ONE "MAKE/BUY" PROBLEM TO ILLUSTRATE THE APPLICABILITY OF "RELEVANT
COST ANALYSIS" IN THINKING ABOUT SUCH DECISIONS. This case is rich enough to
support a fully–articulated "relevant cost" analysis. It also will support a "strategic" analysis with a
little more digging by the students. It is a great case to illustrate different cost analysis frameworks
for a classic management decision.
Case Analysis
THE FOLLOWING LIST INCLUDES INTERMEDIATE CALCULATIONS/ESTIMATES
WHICH CAN BE DERIVED EITHER FROM THE CASE OR FROM SOME ... Show more
Such an analysis is presented below using a four–year horizon–the remaining life of the equipment
and the GHL inventory.
1 2 3 4 Make Make Containers Buy Containers Buy
Options Both Buy Maint. Make Maint. Both
A. Costs Not Relevant Allocated Space Cost 4,500 Allocated Overhead 22,500 Depreciation 15,000
GHL 20,000
B. 4 Year Total Cash Flows (000) Materials (steel only) 200 200 0 0 Workers 180 144 36 12
Foreman 20 20 20 0 Manager 32 32 0 0 Other Expenses 63 37 26 0 Machinery Maintenance 14.4
14.4 0 0 Purchase Contract 0 150 500 650 Sale of GHL 0 (6.4) (57.6) (64) Sale of Equipment 0 0
(20) (20) Saved Outside Rent ____ ____ ____ (34) Net 509.4 591 504.4 544
C. Fold in Tax Considerations
1. Options 1 and 2 are enhanced by the shelter from 15,000 depreciation per year. [15,000 × .4 =
6,000.] 2. There is also tax shelter from the GHL which is a noncash charge. [8,000 for option 1

(20,000 × .4), 7,200 for option 2 and 800 for option 3.] 3. All the operating cash flows are only 60%
as high, after taxes. 4. Losses on Sale of Machinery and GHL create tax savings in year 1:
GHL Machinery
Book Value 80 60 Salvage (64) (20) Book Loss 16 40 Tax Saved (40%) 6.4 16
D. After Tax 4 Year

All American Pipeline
ALL–AMERICAN PIPELINE CASE WRITE–UP
EXECUTIVE SUMMARY
The business nature of the project–pipelines–affected many of our assumptions and approaches to
our calculations for our ultimate decision. The case provided two sets of cost estimates from an
outside consultant and from Goodyear after hiring a general contractor. We utilized both sets of costs
that directed us to the same decision that Goodyear should not go ahead with the Pipeline Project.
Once we obtained the UFCF, the terminal value was calculated in three different ways, treating the
pipeline as an asset on our books, finding the value of project if cash flows are received for
perpetuity an finding the annuity value of cash flows for 30 years by assuming that after 1992 cash
... Show more content on Helpwriting.net ...
We made projections and calculations using estimates of Goodyear's contractors as well as did a
sensitivity test using the data of outside consultants, and the negative NPVs of both the projects
showed that Goodyear should not go ahead with the project.
ASSUMPTIONS
Working Capital:
In the CF statement given, no separate values for working capital accounts are given so the
calculations are done assuming working capital to be 0.
Contingency:
We disregarded contingency. We did not treat it as a cash component of working capital or as a
capitalized expense because it was unclear in the case if the contingency was ever spent.
Growth:
We assume that the revenues from pipelines grow at the rate of inflation which is 5%, after reaching
capacity.
Tax credit:
We assume that Goodyear benefits from tax credits from this project and therefore the benefit is
added to the cash flows.
For calculating terminal value:
Using the Asset Method
The Depreciable PPE calculated for North American Pipeline was sum of total cap ex in 1985 and
1986 excluding the land and right of way, contingency fund. 50% of Investment tax credit was not
subtracted from the value of depreciable PPE because it does not affect the value of assets. This is
unlike the calculation done for tax purpose, as shown in Exhibit 8.
As mentioned in the case, PPE is depreciated on a straight line method for 30 years, for calculating

the remaining asset worth.
Value of land is added to the

Big Bath Accounting Is The Opportunity
1. Introduction Walsh, Craig, and Clarke (1991) describe big bath accounting as recording large
profit reducing write offs to "wipe the slate clean" in the current year, thus allowing enhanced
profitability and rates of return in the future. They note that the big hit would be taken in a year
when earnings are already low because "making things just a little bit worse by cleaning out the
rubbish does little harm to either reputation or prospects" (Walsh et al., 1991, p. 174). The
researchers also indicate that a crucial factor in employing big bath accounting is the opportunity to
make it happen. AbuGhazaleh, Al–Hares, and Roberts (2011) indicate that International Accounting
Standard (IAS) 36, Impairment of Assets, provides such an opportunity relative to recording
goodwill impairment, which requires numerous discretionary choices by management. For example,
when a business acquisition is made, any ensuing goodwill must be arbitrarily allocated to each of
the acquiring entity's cash generating units (CGUs) expected to benefit from that business
combination. Then, goodwill associated with each CGU must be tested at least annually for
impairment by comparing the recoverable amount of the CGU with its carrying value. A CGU's
recoverable amount represents the higher of the CGU's fair value less the costs of disposal or its
value in use, which is the present value of the cash flows expected from operating the CGU. If the
CGU's carrying value exceeds its recoverable amount, an

Nike Case Study Essay
Case Study Nike
Introduction
Good morning ladies and gentlemen and thank for taking the time to meet with us. Nike was
founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight. The
company officially became Nike, Inc. on May 30, 1978. Nike has various products which include
footwear as well as other apparel that compliment the former. This accounts for 92 percent of the
company's revenue. The other 8 percent comes from equipment and non Nike brand products, such
as Cole Haan. When we were considering on whether it was more appropriate to use multiple cost of
capitals for each segment we believe that they all mostly share similar risk factors. We therefore
decided to calculate two different costs of capitals, ... Show more content on Helpwriting.net ...
We took this data and ran regressions for each. We found that weekly gave us the most accurate beta
under these conditions to use for CAPM. The beta that the regression gave us is .74 EXHIBIT 3.
After choosing the beta, we wanted to use both approaches of CAPM to calculate the cost of equity
and compare. When using the arithmetic approach, we found that the cost of equity is: 10.97%.
When using the geometric approach we found that the cost of equity is: 9.78% EXHIBIT 8 PART 2.
We also wanted to include in our analysis finding the cost of equity using the dividend growth
model as well as the earnings of capitalization method. When using the dividend growth model we
found that the cost of equity is: 6.64% EXHIBIT 9. The earnings of capitalization method gave us
5.51% EXHIBIT 10. Both of these methods DGM and ECM are irrelevant to our analysis of Nike
for the reason that given the recent history of Nike we aren't dealing with a stable better yet mature
company, therefore the choosing of those methods would be inaccurate.
Our Recommendation Given that we used an analytical approach to determine if Nike is
undervalued or overvalued we wanted to assure our investors that we took diligent steps in
determining this. As we mentioned earlier in the report we used two different methods to calculate
the WACC. The geometric and the Arithmetic both were higher than Joanna's but they still prove
that the stock is

Fair Value or Cost Mode Drivers of Choice for Ias 40
European Accounting Review
Vol. 19, No. 3, 461– 493, 2010
Fair Value or Cost Model? Drivers of Choice for IAS 40 in the Real
Estate Industry
A. QUAGLI∗ and F. AVALLONE∗∗
∗
Department of Accounting and Business Studies (DITEA), University of Genova, Genova, Italy and
∗ ∗ Department of Computer and Management Science (DISA), University of Trento,
Trento, Italy
(Received September 2008; accepted February 2010)
ABSTRACT The IFRS mandatory adoption in European countries is an excellent context from
which to assess the validity of accounting choice theory, which postulates that information
asymmetry, contractual efficiency (agency costs) and managerial opportunism reasons could drive
the choice. With this aim, we test the impact ... Show more content on Helpwriting.net ...
Our findings suggest that all the rationales described by accounting choice theory (information
asymmetry, contractual efficiency and managerial opportunism) drive the decision to adopt fair
value. Indeed, regarding contractual efficiency reasons in particular, we find that the larger the size
(proxy of political costs), the less likely fair value is to be chosen, while leverage and consequent
lenders' protection seems to be insignificant for the choice.
Furthermore, our results show that market–to–book ratio (MTBV) (proxy of information
asymmetry) is negatively related to the fair value choice. This finding, that conflicts with existing
literature, could be accounted for in the real estate industry due to the fact that high levels of MTBV
in this context reveal growth opportunities associated with a fair estimation of investment properties
and therefore with a low information asymmetry. Managerial opportunism behaviour, measured by a
dummy variable for earnings smoothing, seems to have an influence on fair value choice.
While all these variables seem to have an influence on the fair value choice, the same variables do
not explain the choice of historical cost with the IFRS1 revaluation option in preference to the cost
maintenance approach.
This paper offers various contributions to current

Goodwill Impairment Essay
Case 1 Goodwill Impairment Testing
Should management have performed an interim goodwill impairment test as of September 30, 2010?
Galaxy Sports Inc. (Galaxy) is a U.S. based manufacturer of sports equipment. It is an SEC
registrant with one operating segment with three separate reporting units: fitness, golf and hockey.
The fitness is the largest division of Galaxy with allocated goodwill of $200 million. The golf
division reports $130 million of goodwill and the hockey has $30 million of goodwill. Each division
has been a reporting unit for a number of years. Due to the complexities involved with the
calculation of goodwill and resource restraints in 2009, Galaxy decided to hire Big Time LLC (Big
Time) to perform three annual ASC ... Show more content on Helpwriting.net ...
An example is a recent significant acquisition or a reorganization of an entity's segment reporting
structure that might significantly change the composition of a reporting unit, b) the most recent fair
value determination resulted in an amount that exceeded the carrying amount of the reporting unit
by a substantial margin, and c) based on an analysis of events that have occurred and circumstances
that have changed since the most recent fair value determination, the likelihood that a current fair
value determination would be less than the current carrying amount of the reporting unit is remote.
In 2008, Harris Interactive performed an interim test based on the following reasoning: * operating
losses in its reporting unit for the fiscal quarters ended September 30, 2008 and December 31, 2008
* potential declines in market research spending for calendar year 2009 based on industry analyst
forecasts * headcount reductions and related charges as announced in October and December 2008,
the details of which are described in Note 4, "Restructuring and Other Charges" to these unaudited
consolidated financial statements, and a 62% decline in the Company's per share stock

Questions on Company Accounting
1. award: 0 out of
0.00 points
On January 1, Puckett Company paid $2.64 million for 88,000 shares of Harrison's voting common
stock, which represents a 40 percent investment. No allocation to goodwill or other specific account
was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies
the equity method. Harrison distributed a dividend of $2 per share during the year and reported net
income of $613,000. What is the balance in the Investment in Harrison account found in Puckett's
financial records as of December 31?
$2,709,200.
Acquisition price
$
2,640,000 Equity income ($613,000 × 40%) 245,200 Dividends (88,000 shares × $2) (176,000
)
Investment in Harrison ... Show more content on Helpwriting.net ...
→
$845,400.
The 2012 purchase is reported using the equity method.
Purchase price of Goldman stock
$
735,000 Book value of Goldman stock ($1,500,000 × 40%) (600,000
)
Goodwill
$
135,000 Life of goodwill indefinite
Annual amortization 0
Cost on January 1, 2012

$
735,000 2012 Income accrued ($182,000 × 40%) 72,800 2012 Dividend collected ($90,000 × 40%)
(36,000
)
2013 Income accrued ($182,000 × 40%) 72,800 2013 Dividend collected ($90,000 × 40%) (36,000
)
2014 Income accrued ($182,000 × 40%) 72,800 2014 Dividend collected ($90,000 × 40%) (36,000
)
Investment in Goldman, 12/31/14
$
845,400
5. award: 0 out of
0.00 points
Panner, Inc., owns 20 percent of Watkins and applies the equity method. During the current year,
Panner buys inventory costing $84,700 and then sells it to Watkins for $121,000. At the end of the
year, Watkins still holds only $26,000 of merchandise. What amount of unrealized gross profit must
Panner defer in reporting this investment using the equity method?
→
$1,560.
$12,360.
$7,560.
$5,460. Gross profit rate (GPR): $36,300 ÷ $121,000 = 30%
Inventory remaining at year–end $
26,000
GPR
× 30
%
Unrealized gain $
7,800
Ownership
× 20
%

Intra–entity unrealized gain–deferred $
1,560
6. award: 0 out of
0.00

Investment Essay on Breadtalk
Executive Summary BreadTalk Group Ltd is a Singapore–based Food and Beverage operator that
was founded in 2000 and was listed on the Singapore Exchange (SGX) in year 2003. The entire
business revenue is segmented into four categories namely, Bakery, Restaurants, Food Atriums and
Franchise. The objective of this report is to assess BreadTalk's current position and future prospects
through a series of valuation models. The key competitors of BreadTalk are namely Auric Pacific
Group and Food Junction Holdings Ltd. We have used the Michael Porter Five Forces to help us
understand the BreadTalk's position in the market industry. We have also examined the current
issues and problems faced by BreadTalk to see how it would affect the progress and ... Show more
11 4 Financial Analysis
................................................................................................................................ 12 4.1 4.2 Recent
Financial Performances................................................................................................... 12 DuPont
Return on Equity (ROE) Analysis .................................................................................... 13
Importance of ROE .............................................................................................................. 13 ROE
analysis for BreadTalk & its competitors..................................................................... 13 Net Profit
Margin (Net Income / Net Sales) ........................................................................ 16 Total Asset
Turnover (Net Sales/ Total Assets) ................................................................... 17 Financial Leverage
Multiplier (Total Assets/ Common Equity) ........................................... 18 Return On Equity
................................................................................................................. 19 4.2.1 4.2.2 4.2.3 4.2.4
4.2.5 4.2.6 5 Valuation
............................................................................................................................................. 20 5.1

Blockbuster Essay
Criticisms of Blockbuster by Seidler
1. The bulk of 1988 per share earnings were due to
a) Very slow goodwill amortization
b) Stretched out life for "hit" tapes
c) Nonrecurring items of initial franchise fees, area development fees and sales to new franchises.
2. Steeper growth curve resulting from acquisitions that were treated as pooling
3. Inflation of sales in the fourth quarter. Revenues are recognized when products are shipped with
no indication that the stores purchasing were actually open for business.
4. Running out of cash
Our position –
1. On the EPS related issues
a) Regarding the goodwill amortization issue, we suggest a position that is in between the current
BV practice (40 years) and Bear's recommendation (5 ... Show more content on Helpwriting.net ...
We do not agree with BV's practice of recognizing the revenue upon shipping the supplies because
without acceptance of supplies by stores, it does not satisfy the requirement of completing all
activities that lead to completion of the critical event.
4. We agree that BV ran out of cash. The net working capital was –$10384M and Accounts Payable
tripled. We also agree with the double counting and mismatch in financial statements.
A3
Part 1 – Concerns that have been addressed
1–b. The "hit" tapes are now being amortized over a much shorter period – The costs of non–base
stock videocassettes (generally greater than four copies per title for each store i.e. "hits") are
amortized on an accelerated basis over three months to an estimated $4 salvage value.
2. Acquisitions treated as pooling – All acquisitions were accounted for under the purchase method
and accordingly the operating results of the acquired businesses are included in the consolidated
results of operations of the company since their respective date of acquisition.
3. Critical event for sale of supplies to stores – BV is using a rental library approach for supplies for
the new stores. Revenue–sharing allows BV to purchase videocassettes at a lower product cost than
traditional buying arrangements.

Part 2 – Concerns that remain
1–a. The goodwill continues to be amortized over a period of 40 years.
1–c The nonrecurring items mentioned by Seidler

The Value Of Books: Values To Our Life
T
Introduction
–Background: We are living in a technological era, where people live too rushed and ignore the
value of life, we always focus on our job, our works that make money, but the joy of life, and yet,
books are one of the most joyful things that human created.
–Hook: Books play an important role in human existence. We were told a lot of fairy tales when we
were babies, we read and do exercises in the textbook when we are older, and when we become an
adult , we swallow every single word, every single page in an exciting book that we love, books
stand by our side entire life.
–Thesis statement: In this paper, we will show you the values that books bring to our lives.
Sửa các đề mục, không hiểu ý nghĩa từng phần???
Body
Paragraph 1 ... Show more content on Helpwriting.net ...
+As soon as we open a book, we can feel not only the story that the author want to tell, but also the
soul of the writer putting into the story although they have died for a long time. While we read a
book, we are taken to a different world, a world that the author lived, the society that he was a part
of, we think what the author thought, we love whom he loved and sometimes, we die as the way the
author died in his story.
+This is not exaggerated to say that book is a time machine, a handheld time machine, as William
Styron said "A great book leave you with many experiences, and slightly exhausted at the end. You
live several lives while reading" or "Everyone who says they only have one life to live must not
know how to read a book" by an unknown author (Kowalczyk, 2014). Because whenever we read a
book, we travel to another place and time, according to the story of the book, "books are for people
who wish they were somewhere else" Mark Twain once said. Never thought that a time machine
could be so simple, did not you?
–Concluding sentence: However, human is always a mortal, but thanks to books, we become
immortal and

The Value Of Books

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