Cash flow consequences indirectly
Why may accounting policies with no direct cash flow consequences indirectly affect investors or creditors? Why may accounting policies with no direct cash flow consequences indirectly affect investors or creditors?
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Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made, EVA is equivalent to residual income.
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Calculate the net assessable income of Mr. Ching for the year of assessment 2011/12. Give explanations for the tax treatments of items stated in the question.
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