Accounting Analysis

INDIVIDUAL – Assignment TWO
ACT 450- Financial Statement Analysis– Spring 2020 P a g e 1 | 3
INDIVIDUAL- Assignment TWO
Semester : Spring 2020 Year / : 2019-2020
Course Title : Financial Statement Analysis
Course Code : ACT450 Version : A
Instructor(s) : Dr. Serdar OZKAN
Date : Start Time :
Exam Duration : No. of Pages :
(includes cover page) (Student Must Verify)
To be completed by the students
Student Name : Student ID:
Section :
Major :
Grading Scheme
Question Earned Points Max. Points Question Earned Points Max. Points
1 100 6
2 7
3 8
4 9
5 10
Total Earned Points Total Available Points Instructor Signature
100
INDIVIDUAL – Assignment TWO
ACT 450- Financial Statement Analysis– Spring 2020 P a g e 2 | 3
1) Download the 2019 Annual Financial Report of Integrated Holding Company (IHC) at the
following link at Boursa Kuwait. (The yearly one announced on March 20, 2020)
2) Download the 2018 Annual Financial Report of Integrated Holding Company (IHC) from Boursa
Kuwait. (The yearly one announced on March 16, 2019)
The links for the financial reports are at the following page of Boursa Kuwait website
https://www.boursakuwait.com.kw/stock/824/financial-statement
Requirement:
Apply Accounting Analysis (SETP 6) – (100 pts – 800 words)
(STEP 6 of the Accounting Analysis in Chapter 4) Refer to the Integrated Holding Company example you
solved in Assignment I.
The followings are taken from footnotes in 2019 financial report (page 34)
2018 2019
Cost of PPE
Accumulated Depreciation
And we know that IHC did not change depreciation method and zero residual value policy but extended
average useful life of the PPE from 13 years to 18 years. And the peers of the company use 10 years useful
life to depreciate their PPE.
The question of this assignment is “What adjustments are required on the 2019 balance sheet and income
statement to see if IHC did not change the useful lives of the PPE?”
Show the calculations clearly. And summarize the results for last year (2019) only using the flow given in
EXAMPLE 2: Turkish Airlines attached the following link. Ignore deferred tax
https://aeduemy.sharepoint.com/:b:/g/personal/aum_accounting_aum_edu_kw/EUlCmCP5vc1MutTucJ_56wMBe02T
qf6XX2WLPvPaaEO9lA?e=9LoyRT
Bonus (10 pts) Corporate tax rate for IHC is 5% . If you solve the case considering deferred tax accounts,
you will gain 10 % bonus.
INDIVIDUAL – Assignment TWO
ACT 450- Financial Statement Analysis– Spring 2020 P a g e 3 | 3