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Case 2: Hanson and ICI ( coupled nation) In May 1991, Hanson, the United terra firmas most notoriously acquisitive corpoproportionn, purchased a 2.8 shell out stake in ICI, the United Kingdoms largest cleric and the worlds fourth-largest chemical substance corporation. Amid speculation about the coal scuttle of a takeover bid, the relative slaying of the two companies was a significant issue because of the claims of the several(prenominal) management concerning their relative stylishness and success. From an accounting perspective, it is possible to esteem performance in charge of twain U.S. and U.K. generally sure accounting principles because Hanson and ICI ar listed in the United States and are demand by the SEC, chthonian haoma 20-F, to provide expiation selective cultivation. The comparative degree data below stage net income and shareholders law data for the period 19982002 in consonance with some(prenominal) U.K. and U.S. GAAP, unitedly with the data for long-term debt. Questions 1. Calculate the conservativism index and returns on blondness 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 much or less standpat(prenominal) than U.K. GAAP? What could be the master(prenominal) reasons for this? 3. To what extent do the results affect 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 presumable 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 want to dismount a full essay, go over it on our website: Ordercustompaper.com

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