Lufthansa Group Case Study

1- What are the goals of Lufthansa group? And explain the two strategies the company is using?

The goals of Lufthansa group is Increasing company value, profitable growth and customer satisfaction are the strategic pillars.

There are two strategy in Lufthansa group:

1. Group strategy:

Primary mainstays of the procedure are affirmed also, will be extended:

Increase company value.

Profitable growth and active role in shaping the aviation industry .

Continuously increase customer satisfaction .

The Lufthansa Group’s objective is to be the first choice for customers ,employees, shareholders and partners.

The seven areas of action and their individual activities are directed at the overarching objective of ensuring that

Lufthansa remains the first

The organization compute it by if the estimation of Intangible Assets diminish the organization record it as Impairment Loss and on the off chance that it has an income the organization record it as Impairment increase b- Who is responsible for estimating the useful lives of intangible assets?

The way of the advantage itself next to troughs contract an expert individual to quantify it c- How do Lufthansa account for its intangible assets?

It relies on upon the Intangible Asset kind

1. Procured immaterial resource : Lufthansa ascertain it by its expense

2. Created Intangible Asset : Lufthansa figure it with its generation cost and amortize it on the off chance that it has a particular timeframe and in the event that it has not, the organization do yearly hindrance test d- What was the composition of identifiable and unidentifiable intangible assets reported

Identifiable intangible assets

Unidentifiable intangible

d.)

[Marks 20]

Case study: two

As of January 1, 2014 Silver Star Company has 1,600,000 outstanding shares. On May1, 2014 the company issued an additional 1,200,000 shares for cash, all 2,800,000 shares were outstanding as of December 31,2014.

On August 1, 2014, the company has also issued $600,000 of 20 year 8% convertible bonds at par. Each $1,000 converts to 40 ordinary shares. None of the bonds has been converted to date. The interest expense on the liability component of the convertible bond on December 31, 2014 was $30,000.

The company net income after tax was 3,080,000 ( the tax rate 40%)

Required:

• Calculate the Basic and Diluted EPS.

1/1 1/5 1/8 31/12

1,600,000 1,200,000 600,000 20 years 8% 1000 40 O.S

I.Ex 30,000

Net income 3,080,000

Weighted