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NEW QUESTION: 1
Galena Petrovich, CFA, is an analyst in the New York office of TRS Investment Management, Inc.
Petrovich is an expert in the industrial electrical equipment sector and is analyzing Fisher Global. Fisher is a global market leader in designing, manufacturing, marketing, and servicing electrical systems and components, including fluid power systems and automotive engine air management systems.
Fisher has generated double-digit growth over the past ten years, primarily as the result of acquisitions, and has reported positive net income in each year. Fisher reports its financial results using International Financial Reporting Standards (IFRS).
Petrovich is particularly interested in a transaction that occurred seven years ago, before the change in accounting standards, in which Fisher used the pooling method to account for a large acquisition of Dartmouth Industries, an industry competitor. She would like to determine the effect of using the purchase method instead of the pooling method on the financial statements of Fisher. Fisher exchanged common stock for all of the outstanding shares of Dartmouth.
Fisher also has a 50% ownership interest in a joint venture with its major distributor, a U.S. company called Hydro Distribution. She determines that Fisher has reported its ownership interest under the proportioned consolidation method, and that the joint venture has been profitable since it was established three years ago. She decides to adjust the financial statements to show how the financial statements would be affected if Fisher had reported its ownership under the equity method. Fisher is also considering acquiring 80% to
100% of Brown and Sons Company. Petrovich must consider the effect of such an acquisition on Fisher's financial statements.
Petrovich determines from the financial statement footnotes that Fisher reported an unrealized gain in its most recent income statement related to debt securities that are designated at fair value. Competitor firms following U.S. GAAP classify similar debt securities as available-for-sale.
Finally, Petrovich finds a reference in Fisher's footnotes regarding a special purpose entity (SPE). Fisher has reported its investment in the SPE using the equity method, but Petrovich believes that the consolidation method more accurately reflects Fisher's true financial position, so she makes the appropriate adjustments to the financial statements.
What are the likely effects on return on assets (ROA) and net profit margin (ignoring any tax effects) of correctly adjusting for Fisher Global's investment in the SPE using the acquisition method?
ROANet profit margin
A. Decrease No change
B. No change Decrease
C. Decrease Decrease
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The acquisition method results in higher assets and higher sales, but the same net income. Therefore, both ROA (net income divided by assets) and net profit margin (net income divided by sales) will decrease.
(Study Session 5. LOS 21.c)

NEW QUESTION: 2

A. Option C
B. Option A
C. Option B
D. Option D
Answer: B

NEW QUESTION: 3
組織は1人のIAMユーザーを作成し、下記のポリシーをユーザーに適用しました。 IAMユーザーはこのポリシーでどのような資格を利用できますか?

A. ポリシーにより、ユーザーはEBSを除くすべてのEC2リソースをリストできます。
B. このポリシーにより、ユーザーはEC2サービスでloadBalancingを除くすべての読み取り専用アクティビティを実行できます
C. ポリシーにより、ユーザーはEC2サービスですべての読み取りおよび書き込みアクティビティを実行できます。
D. ポリシーにより、ユーザーはEC2サービスですべての読み取り専用アクティビティを実行できます
Answer: B
Explanation:
Explanation
AWS Identity and Access Management is a web service which allows organizations to manage users and user permissions for various AWS services. If an organization wants to setup read only access to EC2 for a particular user, they should mention the action in the IAM policy which entitles the user for Describe rights for EC2, CloudWatch, Auto Scaling and ELB. In the policy shown below, the user will have read only access for EC2 and EBS, CloudWatch and Auto Scaling. Since ELB is not mentioned as a part of the list, the user will not have access to ELB.



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