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Case 2: Hanson and ICI (United nation) In May 1991, Hanson, the United terra firmas most notoriously acquisitive corpo dimensionn, purchased a 2.8 per centum stake in ICI, the United Kingdoms largest nobleman and the worlds fourth-largest chemical corporation. Amid speculation about the hatchway of a takeover bid, the comparative performance of the two companies was a significant issue because of the claims of the respective management concerning their relative swank and success. From an accounting perspective, it is possible to assess performance in impairment of both U.S. and U.K. generally accepted accounting principles because Hanson and ICI ar listed in the United States and are required by the SEC, chthonian number 20-F, to provide expiation data. The comparative data below introduce net income and shareholders law data for the period 19982002 in unanimity with both U.K. and U.S. GAAP, unitedly with the data for long-term debt. Questions 1. C alculate the conservativism index and returns on equity for Hanson and ICI for the period 19982002 under both U.K. and U.S. GAAP. 2. Does it appear that U.S. GAAP is more or less ultraconservative than U.K. GAAP? What could be the main reasons for this? 3. To what extent do the results push your judgments of comparative incorporate performance? 4. Calculate the debt-equity (leverage or gearing) ratio for both corporations under both U.K. and U.S. GAAPs. 5. To what extent are the results belike to affect your assessment of the comparative riskiness of investing in Hanson and ICI? ICI and Hanson: Comparative selective information Under U.K. and U.S.

GAAP |(in £) |1998 |1999 |2000 |2001 |2002 | | | | | | | | |ICI | | | |...If you hope to get a full essay, assure it on our website: OrderCustomPaper.com

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