QUESTION THREE Dr. Nii Moi Thompson has questioned Dr. Bawumia's analysis on the depreciation of the cedi. "... He continued to say that in the example cited by Dr. Bawumia, "we seem to have a case of crossed-wire analysis and its associated faulty conclusions. Dr. Bawumia in his analysis said that at the end of December 2013 the cedi was GHC2.2 per US dollar. He added that the Cedi is averaging some GHC 3.8 on the interbank and forex bureau markets and that this represents a depreciation of over 40%." Required: Comment on the magnitude of the depreciation of the cedi in the story above and whether Bawumia's analysis is questionable? a. AngloGold Ashanti is a global gold producer headquartered in Johannesburg, South Africa with significant operations in Ghana. Identify and discuss the types of exchange rate exposures that AngloGold Ashanti might face. Use examples to illustrate how AngloGold Ashanti might face any of the exchange rate exposures you identify.

QUESTION THREE Dr. Nii Moi Thompson has questioned Dr. Bawumia's analysis on the depreciation of the cedi. "... He continued to say that in the example cited by Dr. Bawumia, "we seem to have a case of crossed-wire analysis and its associated faulty conclusions. Dr. Bawumia in his analysis said that at the end of December 2013 the cedi was GHC2.2 per US dollar. He added that the Cedi is averaging some GHC 3.8 on the interbank and forex bureau markets and that this represents a depreciation of over 40%." Required: Comment on the magnitude of the depreciation of the cedi in the story above and whether Bawumia's analysis is questionable? a. AngloGold Ashanti is a global gold producer headquartered in Johannesburg, South Africa with significant operations in Ghana. Identify and discuss the types of exchange rate exposures that AngloGold Ashanti might face. Use examples to illustrate how AngloGold Ashanti might face any of the exchange rate exposures you identify.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 5C: The following two statements concern depreciation: 1. Because our plant was shut down for part of...

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A Each of the following situations is independent: B CD F G H K L M N R. U V X Y 1 2 1. Change in estimated useful life and residualvalue. Company XYZ purchases equipment on 1 January 20x6 for 3 4 $ 42,000 The company uses the straight line method of depreciation, taking a full year's depreciation in the year 5 of acquisition. The equipment has an estimated residual value of $8,000.00 and an estimated useful life of 4 years. In 20x7, the company decides that the machine really has an origional total life of 5 years and 7 a residual value of $ 7,000.00 8 9 How much is the depreciation expense for 20x7? 10 11 Solution: 12 13 14 15 16 17 18 2. Retrospective change in accounting policy. A private company changes its method of accounting for long term 19 construction contracts from the percentage of completion method (PC) to the compelted contract method (CC) in 20x7. 20 The years affected by the change, and incomes under both methods, appear below (ignore income tax) 21 22 Year 23 20x5 24…
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Bell International estimates that a $10 million loss will occur if a foreign government expropriates some company property. Expropriation is considered reasonably possible. How should Bell report the loss contingency? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) The contingency is acrrued The contingency is not accrued This is a gain contingency This is a loss contingency It is probable that the confirming event will occur The contingency can be reasonably estimated A disclosure note should describe the contingency None of these
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