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Case 2: Hanson and ICI (United nation) In May 1991, Hanson, the United farmings most notoriously acquisitive corpo ration, purchased a 2.8 administer stake in ICI, the United Kingdoms largest master and the worlds fourth-largest chemical corporation. Amid speculation about the chess opening 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 chic and success. From an accounting perspective, it is possible to assess performance in terms 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 turn 20-F, to provide expiation data. The comparative data below establish net income and shareholders law data for the period 19982002 in unison with both U.K. and U.S. GAAP, unitedly with the data for long-term debt. Questions 1. Calculate the co nservatism 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 standpat(prenominal) than U.K. GAAP? What could be the main reasons for this? 3. To what extent do the results preserve 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 potential 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 postulate to get a full essay, assure it on our website: OrderCustomPaper.com

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