Summary of Article Outline and Evaluation of Major Issues. Explanation of Accounting Terms and Data. Relevance and Limitations of Accounting.

By:Chan Kwan LoongU025143J

Fang WeiweiU025686U

Low Lip HenU025695A

Ng Cai LingU022299Y

Quek Kwang TiU025095N

B24

20 March 2003

Contents

Report Title2

Main Body

3

Summary of Article

3

Outline and Evaluation of Major Issues

3

Explanation of Accounting Terms and Data

5

Relevance and Limitations of Accounting

6

References

7

Appendix8

Report Title

A.Financial accounting information is frequently used in newspaper and magazine articles. Scan the articles in the Business times or business pages of the Straits times or any business magazine (Far Eastern Economic Review, Business Review Weekly, Fortune).

a.Select an article which uses accounting terms and data.

b.Summarise the content of the article in one paragraph. Outline the point(s) that the writer is trying to make by using the accounting terms and data. Include in your answer an explanation of the accounting terms used and highlight any relevance and limitations of the accounting terms/data.

Summary of Article

In December 2002, ANZ, NatSteel's independent financial adviser (IFA), advised shareholders of NatSteel shares to sell their shares in the open market or to 98 Holdings.

English: Metropolitan Life Bldg., Manhattan, New Y...

English: Chart of the annual dividends on the comm...

English: H. H. Franklin Manufacturing Company - Pr...

This advice was made under the likelihood that the share price may crash should 98 Holdings fail to takeover NatSteel Limited or should another bidder join in the battle. In addition, the company's profit guidance had given the impression that the profit in the last six months of the year was only expected to be satisfactory. As a consequence of the above-mentioned reasons, many shareholders sold their shares last December at a price of $2.06 per share. However, things turned out quite differently. On 16 March 2003 Sunday, NatSteel announced that its pre-tax earnings were high at $16.1 million and $25.9 million for the first and second half of 2002 respectively. As a result, the company declared a high dividend of $1...