Evaluate the demerger decision overall, taking into account the above financial and environmental impacts.How does Anglo American benefit from this demerger?

Final Exam

This essay is a final exam, the professor has specified it shouldn’t take over 5-6 hours to complete.

These are the Professor’s Instructions and guidelines:

Background:
In June 2021, Anglo American plc, one of the worlds largest mining companies, announced a “demerger” of its thermal coal operations in South Africa. In the company’s press release, the CEO said this move was “a responsible transition from thermal coal.”

As you know, a merger is when one company buys out the shareholders of another company and takes over its assets and liabilities. A demerger is when a subset of Company A’s assets and liabilities are transferred to a newly created Company B, and the shares of Company B are distributed proportionally to the shareholders of Company A.

Anglo American transferred all the assets and liabilities related to its South African thermal coal operations, to a new company called Thungela Resources Limited. The shares of Thungela were given to the shareholders of Anglo American, who received one share in Thungela for every 10 Anglo American shares they owned.

Anglo American held onto all its other mining operations, including its metallurgical coal operations. Thermal coal is primarily burned in electrical power plants to produce steam which is then converted into electricity. Metallurgical coal is primarily used to heat blast furnaces in the steelmaking industry.

Scenario:
You work for an “green” investment firm with significant holdings in Anglo American. Because your firm tries to invest in environmentally friendly companies, senior management is excited about Anglo American’s move away from thermal coal. At an upcoming board meeting, the directors will be discussing the implications of Anglo American’s demerger. You have been asked to provide a briefing note to help the directors prepare properly for the meeting.

While the board is interested in knowing what the financial impact of the demerger will be on Anglo American, they also want to assess the quality of Anglo American’s financial disclosures. You have therefore been asked to base your note entirely on the most recent annual report of Anglo American, dating from six months before the demerger.

Requirements:
You have been instructed to address the following points in your briefing note. (The column of percentages indicates the weight of each section for grading purposes.)

1. Impact on Balance Sheet
Discuss what Anglo American’s 2020 balance sheet would have looked like without the South African thermal coal operations. If you can quantify the impact, do so, and assume that any difference between the assets and liabilities to be removed in the demerger is applied to retained earnings. Discuss whether the loss of these assets and liabilities is material, and whether the financial position of the company is better or worse without them.

25%

2. Impact on Income Statement
Discuss what Anglo American’s 2020 income statement would have looked like without the South African thermal coal operations. If you can quantify the impact, do so. Discuss whether the loss of these revenues and expenses is material, and whether the financial performance of the company is better or worse without them.

25%

3. Quality of Disclosures
Discuss the appropriateness and usefulness of Anglo American’s disclosures regarding its thermal coal operations. Specify what information is missing, if any, that would have made more accurate answers possible for points 1 and 2 above.

20%

4. Environmental Goals
Discuss, in general terms, the overall impact of this demerger on Anglo American’s environmental goal of making “a responsible transition from thermal coal.”

10%

5. Overall Evaluation
Evaluate the demerger decision overall, taking into account the above financial and environmental impacts.How does Anglo American benefit from this demerger? Was this a good decision? Justify your answer.
20%

The essay must be broken down and structured with these 5 areas being addressed. Use subheading to indicate them in your paper.

Guidance
No introduction is required for this essay. Just address the points indicated above.
A condensed copy of the 2020 Anglo American annual report is available for download below. Large sections of the original report have been deleted to make your task manageable. The copy you have includes:
The overview of the company (pages 1-3)
The MD&A discussion of thermal coal (pages 86-87)
The complete financial statements and notes (pages 149-231)
Summary data, performance indicators, a glossary of terms, and alternative performance measures, in case you find them useful (pages 235 onwards)

The easiest way to find Anglo American’s specific disclosures about thermal coal is to search the report for the word “thermal.”

No further research about Anglo American or this particular demerger is needed, nor would it be helpful because the company has not yet released any post-demerger financial results. You are free, of course, to use the internet to learn more about demergers or any other topic if you feel you need to.

No outside sources are necessary

Describe how your professional and personal experience has contributed to your interest in becoming a Chartered Professional Accountant.

Statement of Intent

Your statement of Intent should be less than 1000 words. You are required to answer each of the three questions below in your statement.

1. Outline your reasons for considering the Sprott MAcc Program.

2.Describe how your professional and personal experience has contributed to your interest in becoming a Chartered Professional Accountant.

3. If you are ultimately admitted to the Sprott MAcc program,describe how you believe completing the Sprott MAcc will enhance your ability to achieve your career goals

Explain how the best practices would impact the business’s operations and decision-making processes.

AIS and XBRL – Designing With Best Practices

Research an existing small to medium-sized business that does not have an established accounting information system (AIS). Make sure you clearly identify what business line, product type, and market position.
Implement at least 5 of the 23 best practices in the reporting process within the organization. Provide details to either enforce existing practices or introduce them if they do not exist. You can select any practices you like.
Explain the impact of the best practices you selected on the reporting process. Describe how the best practices align with the XBRL application.
Explain how the best practices would impact the business’s operations and decision-making processes.

Define the term “property rights” and explain why the lack of well-defined and enforceable property rights is detrimental to the smooth functioning of a market system.

Define the term “property rights” and explain why the lack of well-defined and enforceable property rights is detrimental to the smooth functioning of a market system.

Identify and list the question you are answering.
Outline your thoughts to provide a framework for your response.
Use a standard essay response to answer the question.
While you may use other sources to help you answer the question, the primary source for answering the
question must be your textbook.
The average length is 2 pages and 300-500 words
Double space your work using a standard font and 12 point type

Textbook: Survey of Accounting Carl S. Warren, 2018 Cengage

Who are the stakeholders that are harmed or benefited in this situation?

Unit 9 Assignment

Assignment Details

Assignment Instructions

You are to write a 2–3 page paper. Use the ethics resources

For accounting. Make sure to cite atleast and reference them (in your separate reference page) following APA guidelines.

Respond thoroughly to the following questions in your reflective essay:

What are the ethical considerations in this case?
Who are the stakeholders that are harmed or benefited in this situation?
Should Tiffany continue the practice started by Jay? Does she have any choice?
Which Code of Conduct principle would you act on from the professional codes of conduct guiding
the name of the organization, and the code of conduct that pertains to why you act, and then prov
Based on your chosen code of conduct principle(s), what would you do (step-by-step) in order to a
principle to address this situation?

View the rubric for full assignment details

Submit your paper to the Unit 9 Assignment Dropbox.

Discuss the impact of the pro forma financial statements for predicting ability to meet future expansion goals.

Prompt: First, review the Final Project Scenario document and the accompanying Final Project Workbook. Follow the instructions below and complete the workbook with the information provided in the scenario. Using your review of the scenario, develop a management analysis brief that addresses the critical elements indicated below. Use information from your accounting workbook to support your claims in the management analysis brief.

Note: Milestone Two is a draft of some critical elements of the final project. Note that the management analysis brief informs the management analysis memo in
the final project.

Specifically, the following critical elements must be addressed:

I. Accounting Workbook: Your accounting workbook must include appropriate calculations and statements:
A. Create pro forma financial statements for predicting ability to meet future expansion goals. Pro Forma Statements are “what if” statements. If
the company opens the second location, what will the budgeted income statement and budgeted balance sheets be?
II. Notes to the Financial Statements: You will find an example for how to format these notes located in the module resources. Your notes must contain
the following:
A. Create appropriate notes as year–to–year documentation for managing depreciation, supplies, and inventory.
B. Create appropriate notes for long–term debt.

III. Management Analysis Brief: Your management analysis brief should explain financial information to management. Provide evidence from your accounting workbook to support your ideas where applicable.

A. Discuss the impact of the pro forma financial statements for predicting ability to meet future expansion goals.

B. Describe the implications of inventory costing, contingent liabilities, and revenue recognition.

C. Identify potential issues in interpretation of financial information, providing examples to support your ideas.

What is the difference between expenses and expenditures and why do they (only) sometimes equal each other?

Governmental Reporting, Foreign currency translation and remeasurement

You have recently graduated from an accounting program and been hired for a position in the administrative office of the City of East Chester. The city has just elected a new mayor who was a local football hero and is fond of saying he is “not good with numbers.” However, he is interested in learning about the city’s financial situation because he made a lot of expensive campaign promises and needs to figure out whether he can keep them.

He has been given four statements – the government-wide statement of net assets, the government-wide statement of activities, the balance sheet for the General Fund, and the statement of revenues, expenditures and changes in the fund balances of the General Fund. He needs help with the following:

He has noticed that sometimes the expenses on one statement equal the expenditures on another.

What is the difference between expenses and expenditures and why do they (only) sometimes equal each other?

He has also noticed that assets minus liabilities equals net assets on one statement but assets minus liabilities equals the fund balance on the other. How can this be? Shouldn’t they be the same? What is the difference between the two? Explain.

The total fund balance seems to have increased in the past year, but total net assets decreased. How could this happen?

He decides he doesn’t want to look at all four statements and wants to know which one he should look at to figure out how much he can spend on his campaign promises. What is your response?

What are the main principles of project management?How long has project management been practiced?

Project Management

Conduct a literature review (library and Internet) on Project Management and include all that you can find on that subject in the current professional and pedagogical literature.

What are the main principles of project management?
How long has project management been practiced?
What industries is project management widely used?
Is project management consistent globally?

Aiming to use this topic to get a full understanding of handling projects, especially as it relates to the wider understanding of production and operations management. Project management deals with planning, organizing, motivating, and controlling resources to achieve specific goals. This includes identifying and managing the lifecycle to be used, applying it to the user-centered design process, formulating the project team, and efficiently guiding the team through all phases until project completion.

Describe five external business environment challenges which might affect Iwoca’s business model. 

Business studies

Assignment task

TMA 01 is made up of two parts: Part A and Part B. You need to complete both parts of the assignment.
Part A: Case study – Iwoca
Part A of this TMA will be marked out of 80 marks. Your answer to this question should be no more than 1000 words.

Read the case study and answer the following questions:

Iwoca’s stated mission is to ‘to make financing available to a million customers’. Drawing on evidence from the case study evaluate their mission statement against the ‘six successful tests of a mission statement’ (Wilson and Gilligan, 2005). (30 marks)

What might have been the advantages and disadvantages to Iwoca in raising investment through family and friends as opposed to other forms of finance? (25 marks)

Describe five external business environment challenges which might affect Iwoca’s business model. (25 marks)