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ACC701 - Financial Accounting - Assignment

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Dallas County Community College

   

Accounting Financial (ACC701)

   

Added on  2020-03-02

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In the past few decades, there have been many cases of companies that have gone into liquidation and the major reason became the immense growth of liabilities. The noteworthy cases were observed in Australia when eminent companies like HIH Insurance, OneTel and ABC underwent liquidation. In this report, the main emphasis is on the process of liquidation. The report sheds light on the issue faced by the companies, followed by an analysis of the factor that led to the event. As per the discussion and the report, it can be commented that the failure of both the companies was liquidation. The liabilities ran huge and the company failed to have sufficient assets to meet the liabilities.

ACC701 - Financial Accounting - Assignment

   

Dallas County Community College

   

Accounting Financial (ACC701)

   Added on 2020-03-02

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FINANCIAL ACCOUNTING
ACC701 - Financial Accounting - Assignment_1
Financial accountingExecutive summaryIn the past few decades, there have been many cases of companies that have gone into liquidation and the major reason became the immense growth of liabilities. The noteworthy cases were observed in Australia when eminent companies like HIH Insurance, OneTel and ABC underwent liquidation. In this report, the main emphasis is on the process of liquidation. The report sheds lighton the issue faced by the companies followed by an analysis of the factor that led to the event. As per the discussion and the report, it can be commented that the failure of both the companies was liquidation. The liabilities ran huge and the company failed to have sufficient assets to meet the liabilities. 2
ACC701 - Financial Accounting - Assignment_2
Financial accountingContentsIntroduction.................................................................................................................................................4Analysis........................................................................................................................................................4Financial reporting issues............................................................................................................................5Events for Liquidation..................................................................................................................................5Future claims.......................................................................................................................................5Immense growth of liabilities..............................................................................................................6Lack of adequate planning...................................................................................................................6Concealment of secrets.......................................................................................................................6Liquidation for OneTel.........................................................................................................................7Liquidation for ABC learning........................................................................................................................8Conclusion...................................................................................................................................................8References...................................................................................................................................................93
ACC701 - Financial Accounting - Assignment_3
Financial accountingIntroductionThe whole Australian business society was in a state of upset when they saw the crumple of HIH Insurance in March 2001. Since 1997 it was visible enough that the second biggest employer, HIH was at the border of a huge achievement according to which the company was to buy important insurance operation in Argentina, New Zealand,Switzerland, and the US. It was in theyear 1999 that the company was successful in buying one of its major competitors, FAI Insurance. With this action, they also gave Rodney Alder the throne of the throne of corporate directors. HIH earned the title of a perfectly reliable and successful company with an estimated asset of $8.1 billion. But according to the internal reports, it was found that the debt power and insurance liabilities were so high that it really has the huge threat of bankruptcy. Finally, it was in 2001 that the company went defenseless against its shaky financial situations, and the Australian business society saw the biggest corporate downfall with losses of $5 billion and higher. The Australian Financial Regulators finally stood up with a series of processes that led tothe downfall of HIH due to the fact that the company was only servicing its old claims and has no new business transactions onboard. AnalysisOneTel appeared to be the fourth biggest telecommunication company based in Australia. However, it failed miserably due to ineffective pricing strategies and feeble developments along with the failure of anticipations. Moreover, the company even failed in terms of corporate governance practices like financial reporting, improper audit, and weak mechanism of internal control with poor communication. All the incidents happened within the company leading to the downfall (Mock, 2013).Similar liquidation issue was noted in the case of HIH. Going the enormous asset base of $8.1 billion in the year 2000, the investors tagged it as dependable and proper. Nevertheless, in the year 2001, the company failed to owe to the debt and insurance liabilities. It is common that too much reliance on debt burdens the company and mars the smooth performance. As per the evaluation, it is observed that the failure of the company happened due to improper interpretationand knowledge in terms of business risks (Cook, 2001). The acquisition of assets was done at a 4
ACC701 - Financial Accounting - Assignment_4

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