ADVANCED CORPORATE ACCOUNTING

Advanced Corporate Accounting

Advanced Corporate Accounting

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant facts and figures related to the accounting knowledge to a real life case. In this paper, the author will analyze the asset values and compare them with their market capitalization as part of research. First, the annual reports of the Qantas, Billabong, BlueScope Steel, Harvey Norman and Channel 10 will be analyzed and compared to trace the share price movement and market capitalization of the selected companies over the same reporting periods. Secondly, the author will examine the essential features and requirements of the accountant standards discussed in this article. Moreover, each individual asset class reported by these companies and the valuation principles followed by the companies will also be examined.

Discussion & Analysis

Before tracing the share price movement and market capitalization of the selected companies over the same reporting periods, we will first determine the meaning and importance of market capitalization. Before investing in the stock market, we must first know where we will invest and meet prospects for companies investing in the stock market. Market capitalization is basically the current price of a stock multiplied by the number of shares for sale of a company traded on the stock market. It is noteworthy that the market capitalization does not equal the book value of the company as only the supply and demand for the shares on sale in the stock market is what determines a company once listed on the stock market is that the final share price is determined by the market. The market capitalization of a company reflects the current market consensus on the value of the equity of a listed company. It results from supply and demand of the company's shares. Market capitalization is thus significantly influenced by anticipated stock market in the future profitability of the company, they reflects (all) market participants reflect available information. Shares only a low free float can be volatile. This can lead to distortions in the calculated market capitalization. Therefore to determine the enterprise value of the business valuation method is adopted in which information from the balance sheets are published every year. Thus, the market capitalization is not usually the amount of money that would be needed to buy the entire company (Weygandt, 2011). The capitalization and the total value of the issued shares of a company (excluding those repurchased by the company 'itself) and is obtained by multiplying the market price of the shares by the total number thereof (excluding repurchased). Its price in the event of a merger or acquisition may be more or less the same and depends on the assessment based on different information, from buyer, the possible reward for the majority and the method of purchasing and operations in place. It is noteworthy that the market capitalization does not equal the book value of the company as only the supply and demand for the shares on sale in the stock market ...