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A comparison of the structure, objectives, status, and scope, as well as the most salient concepts and provisions of the conceptual frameworks, is made, in order to assess the possibility of development of a successful and effective converged conceptual framework. A converged framework is possible with the adaptation of certain principles.
Throughout the preparation of statements, the Ethical rules must be followed, which are significant for the smooth running of a company. According to Labspace.com (2006), the Prudence concept instigates a firm to overestimate the expenses and underestimate the incomes, in order to provide leeway in the worst scenario case.
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In this discussion, the external and internal environments will be evaluated. Coming to these sections, a SWOT analysis will be undertaken and the issues pertaining to sustainability, societal environment, task environment, corporate structure, corporate culture and corporate resources will be addressed.
The author states that the shareholders are the most prominent investors of the company. The market has become liberalized and money from the capital market is one of the prime methods of financing the company. Therefore, it has become important for the companies to project the values to attract the shareholders.
There is enough body of evidence which indicates that there were important theoretical contributions both in the field of finance as well as accounting that advocated the development and implementation of a comprehensive framework which can help assess the investors a true nature and value of the assets of the company.
As the paper highlights, some examples of fixed costs are insurance, rent, and depreciation and fixed utility charges. Even if the firm is not operating, it will have to bear these costs. For your company, the fixed costs are: insurance, rent of premises, utility charges and salaries of those personnel who are on fixed wages.
According to the paper, Aéropostale’s customer base consists of teenagers along with young adults. The company provides customers with high-quality merchandise at an affordable price, and only sells their products at their stores. Aéropostale currently has around 950 mall-based stores and sells teen outerwear using his famous trademark.
Weak form of efficiency outlines that the future behavior or future prices of the shares cannot be predicted with the help of observing past trends in the prices. As such past is not considered as the effective means of predicting the prices of the shares and any kind of technical analysis may not result in abnormal profits to be obtained by the investors.
Maria Hernandez is making a profit of $4600. But the cash at the bank declined by $5400. Firstly, Maria has paid rent in advance for 2 months and this has reduced her cash flow for the current 2 months. Maria has earned project revenue of $47000 but she hasn’t yet received the $7000 of that revenue which she will receive in the coming months.
The exchange rate of a country is expressed in the form of a ratio or a multiplier depending on the central bank’s policy of the particular country. The exchange rate regime is the way that a particular country manages its local currency in respect with foreign currencies in the foreign exchange market.
This case study has been segmented in three different parts. The first part takes into account the business orientation of the organizations through the process of international strategy development. The latter part deals with the discussions on the economic environment of the two regions with a focus on the two organizations. Financial analysis will be included in the last part.
The study finds that customers overwhelmingly prefer alternative banking to traditional banking, although there are aspects of traditional banking that, combined with the alternative, meet customers’ needs. The most important consideration in the conceptualization of non-traditional banking services is the safety and security of customers’ accounts.
The corporations are largely separate entities, the foundation of which is based on the way they are financed and supported. Capital structure intends to define the way the company has been financed, that is, how its assets have been bought: whether through equity, debt or hybrid security options or a combination of these options.
Rolls Royce and GE are two of the most renowned names in the global engineering sector. The GE is based in the US while the Rolls Royce has its origins in Europe. Due to the difference of the regions, the companies follow different accounting principles in reporting their performances. The GE uses the US GAAP and the Rolls Royce uses the IFRS.
Given that CGT is computed when a chargeable person, chargeable disposal and a chargeable asset it is of utmost importance that the meaning of the mentioned terms are made clear to concerned taxpayers. The disposal of an asset does not always have to be voluntary, since even the unexpected destruction of a property.
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An analysis of the major players in the US aviation industry- Boeing Company (BA) and Lockheed Martin Corporation (LMT) highlights the financial strengths and weaknesses of the two companies. The financial statements for the years 2009, 2008 and 2007 have been analyzed to give an idea about the financial performance of the companies.
The present study aims to discover the greatest challenges faced by the governments in respect of managing and allocating specific funds for the maintenance of prisons as well as for the welfare of the prisoners so that the criminals could be turned out as useful citizens on their relieving from the prison houses.
Causes of crisis, according to the HSBC Chairman Mr. Green, were complex and inter-related. A number of reasons include global financial imbalance that was created by speeding transfer of global economy towards emerging markets. It was the macro
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A good number of relevant literature on the subject are available in many accounting, auditing and investment books. For example, the outline of the users of financial information, as well as their profiles and their strategies, objectives and motivations, could be found in Accounting Information by Albrecht et al.
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Leasing practices formulated by the government are meant to achieve optimum resource development with goals of a particular country. This provides a share of income to the resource owners. Among the many cities of the world, London is the most culturally diverse.
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Its strength is its capability to adjust with the inflation to set the prices at equilibrium. The ability to even out the prices despite barriers in terms of location and inherent market factors creates smooth product exportation among countries.
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The research provides new insights particularly since the time duration under study includes the period of economic shocks that have redefined the way banks do business and how they are regulated. The Middle East has been the location of some of the fastest growing economies in the world.
All the banks under the Federal Reserve System have to maintain a minimum balance with the Federal Reserve Bank (FRB). Federal Funds are the amount that the banks have to deposit at FRB to maintain the balance. Few banks in major cities like New York City and San Francisco often failed to maintain the reserve and in such cases.
The company, in other words, does not want the stakeholders to analyze the risk which is associated with investing in their company. It is the analysis of their financial statements, that encourages the investors to invest money in the short run, but in the long run, they have to pay the cost of management practices by losing their money.
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Reportedly, as an entity-level concept, the motivational measures can be enforced to explicate the authority of culture on opinions and determinations in accounting. The reality of cultural variety in the accounting sub-culture renders proof of the significance of intra-country cultural fluctuations.
To overcome such apparent impediments, multinational corporations often initiate elaborate market research in the domain and among rival competing firms to discern whether they can establish a competitive advantage in the foreign market. Financial statements are normally the primary sources for rival company’s performance.
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The organization provides asset management globally. In the UK region, the organization also offers private medical insurance through its employers. The company operates most of its business under the banner of Aviva. However, the organization operates its local business under some local brands including RAC (Hoovers, 2010).
The question so posed cannot be answered by keeping one party’s perspective in mind. Each stakeholder’s response to earnings management has to be undertaken. Beginning with the economic point of view, managing earnings helps companies to establish a stronger position, which in turn improves activities in the stock exchange.
Organic growth means that growth which leads to the expansion of business on its own. On the other side, acquisition refers to the process by which an organization expands its business by acquiring some other company of its interests. By expanding the business on its own, the organizations have better control over their operations.
At the time of making an investment the benefit of diversification must be taken into consideration. Like in the case of investing in shares the investor takes care of not putting the money in one stock rather a rational investor allocates the funds across the various sectors so as to immunize the portfolio from any adverse happening in a specific sector.
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A number of companies have entered in this industry and it is the largest industry in the world. The financial regulatory bodies have implemented a wide range of regulation in this industry causing changes in its features. Financial Services Authority is responsible for the introduction of regulations in the financial services industry.
Arriva Plc. is one of the largest transport service providers in Europe. The financial performance of the company in 2009 when compared to that of 2008 is quite commendable. The financial ratios and their analysis bear to support this. In a recovering economy, to grab a large market share, the management should consider certain aspects.
To interpret information present in financial statements of various companies, analysts employ fundamental accounting concepts, which help them to form uniform assumptions while comparing performances among different companies. Therefore, in order to properly analyze and interpret financial statements, it is important to understand the meaning and implication of key accounting concepts.
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Currency depreciation is the value depreciation of currency relative to gold. The smaller amount of gold that can be purchased with a certain amount of currency from one time to another. For instance, if 100 units of currency can be used to buy one gram of gold this year whereas 120 units of currency can buy the same unit of gold the next year.
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A business desiring to establish itself as a market leader must first of all chalk out the financial benefits arising from this initiative and then the manager has to decide the ways of raising the necessary finance. Finance can be raised from various sources like equity and debt.
Company Profile The Coca-Cola Company was founded in 1886 as a fountain pop beverage sold out of a pharmacy for five cents a glass. Today the enterprise has become a global icon with a wide variety of products sold across 200 nations. Its best
The acquirer can cash on the market reputation of the acquiring firm. Moreover, the company can establish itself as a market leader and negotiate better terms with the suppliers. With the rise in sales, the company can raise the production levels thereby enjoying better economies of scale. On account of bulk purchase of materials the company can ask for higher discounts.
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The depreciation of the rupee has increased the costs of imported raw materials, therefore the total costs of business have soared in recent years. Also, the surge in inflation in the Indian market has increased salaries and wages expense that also adds a financial burden to the company. The company now focuses less on market research.
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It is proved that the existing framework in regard to the monitoring of a firm’s financial report is inadequate; therefore, the alignment of the Chinese accounting standards with the international accounting standards is required – it is assumed that such a decision could lead to the increase of effectiveness of Chinese accounting standards.
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The wonderment of the Reagan era and its resentment of Authoritarianism were shaken. On the verge of becoming a full-blown depression part 2, all eyes are directed to the next steps the government will take to ensure the future of the United States of America as a solid economy capable of withstanding these tough economic times.
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When the cost generated by a transaction is higher than the private cost, then the excess cost is borne by the society and is called a negative externality. When the benefit generated by a transaction is more than the benefit enjoyed by the transacting parties, then the excess of benefit is passed on to society and is called a positive externality.
According to the paper, accounting is important in ensuring that the various stakeholders function harmoniously to promote effective and efficient processes in the firm. The main function of the theory is to predict how firms are going to react to the proposed or newly introduced accounting standards and principles.
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The author states that positive accounting theory focuses on relationships of individuals that provide resources to the organization. It also focuses on how accounting is used to support these relationships. Theses relationships can be between managers and creditors or owner and mangers.
The given paper demonstrates that the cycle is taken to be complete when the actual payment is made whereby the terms of the purchase have been adhered to and the same recorded appropriately in the corresponding accounting records. It is after this that entries with respect to discounts and returns are entered.
The project appraisal techniques use ratios except for the net present value while cost-benefit techniques use purely absolute monetary value. The project appraisal techniques use the cash flows that are directly associated with the projects while the cost-benefit analysis uses both indirect and direct cash flows.
Specifically, the report will give information about profit, tax and other calculation methods to be used. The costing portion will also be considered in this report. The usage of full costing and activity-based costing are also dealt with in this report. This report will give an idea about the type of ownership and identity the business should be given.
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In 1976, Dr. Muhammad Yunus, an economics professor in Bangladesh, started a research project to give out credit to the rural poor. Dr. Yunus believed that farmers could efficiently use small loans without collateral and would repay it on time and that giving credit can allow borrowers to think for themselves how to best enhance their incomes.
The foregoing discussion provides concrete situations when the budgeting can actually help keep a company in good financial condition. In all business sectors, budgeting has become an essential tool that is widely used during both the planning and implementation stages of the company’s operations.
Dividend policy is irrelevant for raising the value of the firm under the assumptions of no transaction costs, no taxes, and no agency cost. Many believe that a high dividend increases the stock value as the dividend is more predictable than the capital gain; while others feel that low dividend policy increases the stock value as after-tax returns are more than high dividend payout policy.
Bureaucracy is killing innovation at NBD Bank. Innovation as a marketing strategy can save a sinking ship and the NBD Bank seems to be that sinking ship because it is depending solely on traditional methods of doing business. The NBD Bank needs to shift away from the bureaucratic structure to one of a matrix-oriented one.