Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do not exist.
Explanation:
IFAC has enacted a Code of Ethics for Professional Accountants (IESBA Code), the International Ethics Standards Committee for Competent. The latest IESBA Code edition was upgraded and modified in July 2009 and comes into force on 1 January 2011. The adjustments clarified and considerably strengthened the independence specifications for all competent accountants.
IESBA and AICPA are more comparable than they are, but there are substantial differences. In many instances it will produce similar effects if codes are added to the same pattern of truth.
The IESBA Code deals with a number of possible independence issues which are covered by the AICPA Conceptual Structure but not AICPA. Examples include the Long Senior Human Resources Group (including Team Rotation).
Certain independence restrictions are enforced by the IESBA Code representing the "extent of public interest in certain companies" (i.e. entities listed on an accepted stock exchange for whose shares are listed), and institutions whose auditors are legally or administrative authorities required to comply with the same requirements for independence as the listings).
The IESBA splits the conditions for freedom into two regions. Section 290 offers the toughest prohibitions and includes accounting reports and audits. Section 291 generally provides less stringent requirements of freedom for all other insurance obligations. The AICPA does not change the principles of equality.
Answer:
Current dividend per share paid (Do)
= <u>Total dividend </u>
No of shares outstanding
= <u>$1,600,000</u>
1,000,000 shares
= $1.60 per share
Current market price = $31
Growth rate = 8% = 0.08
Ke = Do<u>(1 + g)</u> + g
Po
Ke = $1.60<u>(1 + 0.08)</u> + 0.08
$31
Ke = 0.1357 = 13.57%
Interest rate on borrowing (Kd) = 10%
Tax rate (T) = 40% = 0.40
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 13.57(65/100) + 10(35/100)(1 - 0.4)
WACC = 8.82 + 2.10
WACC = 10.9%
The correct answer is A
Explanation:
In this case, we need to calculate cost of equity. The cost of debt has been given, which is the interest rate on long-term borrowing (10%). Since the debt proportion in the capital structure is 35% and equity proportion is 65%, it implies that the value of the firm is 100%. Then, WACC is the aggregate of cost of each stock and the proportion of each stock in the capital structure.
Answer:
Manufacturing cost: $
Direct material ($6.50 x 3,200) 20,800
Direct labour ($2.40 x 3,200) 7,680
Manufacturing overhead ($1.10 x 3,200) 3,520
Supervisory salaries 13,600
Depreciation 5,500
Other fixed costs <u>2,200</u>
Total manufacturing cost <u> 53,300</u>
Explanation:
Total manufacturing cost is the aggregate of direct material, direct labour,variable manufacturing overhead and fixed costs. Fixed costs include supervisory salaries, depreciation and other fixed costs. Direct material cost per unit, direct labour cost per unit and manufacturing overhead cost per unit should be multiplied by the budgeted units per month.
Answer:
It would be unethical and a conflict of interest for Solomon to let his uncle in on the details because it would give his uncle an unfair advantage against the other bidding contractors. It's a form of nepotism
Explanation:
hope this helps have a great day
<span>To find the compound interest of an investment you have to use this formula, A = P(1 + r/n)^nt, where A is the total amount you have after the investment period, P is the amount you invest or the amount you put in, r is the rate of the of the compound interest in this case 10%, n is the amount of time the interest will be compounded for example, 4 months a year(quarterly) or 6 months a year(semi annually), and t is the amount of time you invest in years.
So in this case you are going to substitute everything in the formula with their given value. So P = $700, r = 10%, n = 21 (because it is the number of months we invest for), and t = 2 years (because 21 months fit perfectly in 2 years, and t must always be in years). The resulting formula will be A = $700(1 + 0.1/21)^(21 x 2), which will give you an answer of $855 rounded to the nearest dollar.</span>
