In 1989, Jaguar Plc, an English company, was listed on the London SEAQ and on NASDAQ. At the time, one-fourth of Jaguar common stock was held in the form of American Deposit Receipts (ADRs) quoted on NASDAQ. Under U.K. accounting principles, Jaguar reported a 1988 net income (before extraordinary items) of £61 million, a decrease of 27% from 1987 net income. Under U.S. generally accepted accounting principles (GAAP), Jaguar reported a 1988 net income (before extraordinary items) of £113 million, an increase of 89% over the comparable figure for 1987. What would your reaction be as an investor?

Question

Quizplus · Accepted Answer

The Answer of In 1989, Jaguar Plc, an English company, was listed on the London SEAQ and on NASDAQ. At the time, one-fourth of Jaguar common stock was held in the form of American Deposit Receipts (ADRs) quoted on NASDAQ. Under U.K. accounting principles, Jaguar reported a 1988 net income (before extraordinary items) of £61 million, a decrease of 27% from 1987 net income. Under U.S. generally accepted accounting principles (GAAP), Jaguar reported a 1988 net income (before extraordinary items) of £113 million, an increase of 89% over the comparable figure for 1987. What would your reaction be as an investor?

In 1989, Jaguar Plc, an English Company, Was Listed on the London