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UGANDA MANAGEMENT ISTITUTE

COURSE: MASTER OF BUSINESS ADMINISTRATION

MODULE: MBAF7212 ADVANCED FINANCIAL REPORTING

COURSEWORK QUESTIONS (40Marks)

Question One

A company that owes you money has in the recent three years made operating losses consistently. According to the audit report prepared by a reputable world class audit firm, it was discovered that this trend is caused by but not limited to the following:

1. Inefficient management
2. Poor client retention

• Deteriorating good will

1. Competition from the other industry players
2. Poor liquidity position
3. Insolvency due to a large long term debt.

As a result, the auditors have advised the board to exploit one of the    following options:

1. To send the company in to Receivership and Liquidation
2. To appoint an Administrator who can turn the company around.

Required:

1. With the use of relevant examples and scenarios, distinguish between Receivership and Liquidation ( 5 marks)
2. In a bid to exploit the second option, the board has decided to appoint an administrator to turn the company around in to profitability. The board has been informed that you are the best candidate for that job. Basing on the above 6 factors, show how you would address the above challenges in order to turn the company around in to profitability. ( 15 Marks)

Question Two

Measurement of the elements of Financial Statements is the process of determining the monetary amounts at which these elements are recognized and carried in the Statement of Financial Position and the Statement of Profit or Loss and Other Comprehensive Income.

Required:

Enumerate the four major bases of measuring the elements of financial statements in accordance with the IASB Conceptual Framework for Financial Reporting and the circumstances under which each one of them is used. (20 marks)

N.B

1. i) Avoid as much as possible presenting the same work by different people and plagiarism. Use citations as much as possible.
2. ii) Your coursework should be typed and should not be more than 5 pages.

References:

1. Elliot,Barry and Jamie Elliot, 2011, Financial Accounting and Reporting, 12^th Edition (UK Prentice Hall
2. Internet
3. Sulton,Tim, 2004,Corporate Financial Accounting and Reporting (Pearson Education)
4. Institute of Certified Public Accountants of Uganda, 2017 Paper 8 Financial Reporting Study Pack.
5. Discussion

Timeline: Hand in by 25^th October 2022.