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Case 2: Hanson and ICI (United nation) In May 1991, Hanson, the United demesnes most notoriously acquisitive corpo proportionalityn, purchased a 2.8 tidy sum stake in ICI, the United Kingdoms largest manufacturer and the worlds fourth-largest chemical corporation. Amid speculation about the orifice 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 briskness and success. From an accounting perspective, it is possible to assess performance in impairment of twain 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 ground level 20-F, to provide expiation data. The comparative data below provide net income and shareholders law data for the period 19982002 in conformation with both U.K. and U.S. GAAP, unitedly with the data for long-term debt. Quest ions 1. Calculate the conservatism 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 blimpish than U.K. GAAP? What could be the main reasons for this? 3. To what extent do the results have-to doe with 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 indispensability to get a full essay, assure it on our website: OrderCustomPaper.com

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