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Case 2: Hanson and ICI (United nation) In May 1991, Hanson, the United lands most notoriously acquisitive corpo dimensionn, purchased a 2.8 pct stake in ICI, the United Kingdoms largest producer and the worlds fourth-largest chemical corporation. Amid speculation about the possible action 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 smart and success. From an accounting perspective, it is possible to assess performance in toll of both 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 fork over net income and shareholders law data for the period 19982002 in accordance of rights with both U.K. and U.S. GAAP, unitedly with the data for long-term debt. Questions 1. Calculate the conservativism 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 bourgeois than U.K. GAAP? What could be the main reasons for this? 3. To what extent do the results strike 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 probable 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 expect to get a full essay, assure it on our website: OrderCustomPaper.com

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