Pontecaster Car Rally case report Essay Example | Topics and Well Written Essays - 3000 words

Pontecaster Car Rally case report - Essay Example The advice that could be given to Pontecaster depends on its rights or responsibilities in the contract. But before the obligation could arise from the contract, there is a need to establish whether there is a contract. A contract exists when the following elements occur: offer and acceptance, consideration, certainty of agreement and intention to create legal relations (University of London, 2007). If such a contract does exist between the parties, it could now be asked whether the rights of Pontecaster are being protected. On the other hand, Pontecaster may have responsibilities to be done under the contract which may make it at fault. As far as the issue on whether there is a contract between the parties on the basis of the presence or absence of offer and acceptance, consideration , certainty of agreement and intention of create legal relations, this paper submits that they parties are presumed to have a contract because the question presupposes the existence of such contract. As far as its rights under the contract (which is presumed to exist based on the question), it becomes an issue whether it can it ask â€Å"Grubs up† to pay for breach of contract. The case facts provide that there was confusion as to actual date of the sports event but it was also provided that Pontecaster had already contracted â€Å"Grubs up† (Emphasis supplied). The fact that there was contract already, â€Å"Grubs up† must have been ready to meet the obligations including the day when the car rally event would have been held. As far as its responsibilities in the contract is concerned, Pontercaster may be held liable for its failure to conduct the event in its earlier designated time, if there is any, as per its contract with â€Å"Grubs up†. On the other hand, in the absence of the of a definite dates of the event that was agreed upon, such may indicate lack of intention to be bound for which â€Å"Grubs up† may not be liable.

Financial Statement Analysis. Financial Statements reformulation and Essay

Financial Statement Analysis. Financial Statements reformulation and equity valuation - Essay Example 1). The Corporate Reporting Users’ Forum is right with all their comments. In terms of accounting valuation models, a better picture would be presented if the United Kingdom companies listed in the stock exchanges would prepare financial performance reports classified under the areas of operating, financing and investing activities. The operating activities would pertain to the daily production of sales as well as services offered to their clients. Financing activities refers to those that are infused into the business by creditors and stockholders. Investing activities refers to the sale and purchase of property, plant and equipment accounts (Watkins 1998, p.51). One of the important tools in the hands of professional accountants for ascertaining changes in funds at the disposal of the company, during the course of every accounting year is the Cash Flow Statement. A cash flow statement is mainly categorized in to three heads like, cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. Cash flow from operating activities is mainly dealing with the deduction of major operating expenditure from the revenues attained. Cash flow from financing activities dealing with major receipts and payments, and cash flow from investing activities alludes to the acquisition and disposal of assets or properties. Further, the CRUF group is right in affirming that financial statements should have coherent and cogent classifications that include the balance sheet, income statement and statement of cash flows. The new accounting standards recommended by the IASB and FASB group led by Sir David Tweedie and Bob Herz respectively would definitely resolve perennial problems using the traditional financial reporting standards. The current reporting standards focus on the net income as the benchmark for every business endeavor. The new standards are better because the new