Finance & Accounting Essays

The internal audit function seeks determine to express an opinion on whether an entity’s financial statements show a true and fair view of the companies operations. Inclusive in showing a fair view is the need to ensure that it has been prepared in accordance with accepted accounting standards.

However, it was argued that not all of the firms that have adopted the said strategies have experienced the intended performance. It is because of this that recent accounting literature has suggested the importance of accounting systems.

The author provides examples of company’s financial reports with the constructive information that should offer a fair, faithful presentation and should give a ‘true and fair view” of the financial position of business so that the stakeholders can take informed decision on such financial information.

The measure being used to estimate volatility is ‘beta’ whose reliability in examining historical volatility rates have been assessed and zeroed down upon in the literature review. The methodology aims at examining the degree of volatility in the market returns of the petrochemical industry.

Barings Bank has faced several market risks including concentration of power in a single hand, monitoring of the daily activities, funding allocation, hedging of the position of the bank in the market and checking of the closing position and trading limits.

The paper gives an idea about the two different confectionary companies operating in different parts of the world. Lindt and Sprungli are being stationed in Switzerland, Zetar plc in the UK. The paper analyses the company’s background to give an understanding of the operation of both the companies involved, the overview gives an idea of the strategies that the company follows along with the major markets in which it operates.

The officers may be reluctant to invest in the high-risk projects because this might put their job security in question. For this reason, there is a conflict of interest which leads to the principal-agent problem. A review of the principal-agent problem is useful in terms of creating an organizational structure which synergizes principal’s interest with the agent’s interest.

1. From the given data, it can be seen that Project ‘p’ has a higher NPV as compared to Project ‘q’. Hence, if NPV is chosen as the criterion, Project ‘p’ must be preferred. However, it is also seen that Project ‘q’ has a higher IRR. Thus, form IRR point of view ‘q’ is the preferred project.

As the capital expenditure is marked in negative, the NPV is computed by adding the Capital Expenditure to the summation of the PVs of the ten cash flows. The deduction of the capital expenditure value from the summation of the above mentioned PVs gives us the project’s NPV which is equal to 57.

The authors Thorbecke (Resident Scholar at The Jerome Levy Economics Institute of Bard College in 1995) and Coppock (Professor, Department of Economics, Hillsdale College in 1995) conducted the study with the aim to verifying what percentage of the stock market variation can be explained by macroeconomic factors and monetary policy.

In just one generation the private equity industry has grew to become a dynamo for growth, innovation and enterprise (Kolade. W, 2008). Britain is a world leader in this sector with one of the largest private equity markets globally, second only to the US.

This research study examines how two of the largest commodity traders in the world, Vitol and Glencore International, conduct their commodity trading activities through the commodity exchanges in the United Kingdom and in its OTC market.

By definition, a budget hotel targets to the lower end of the spectrum and differentiates itself through cost leadership. While on the other hand, a luxury hotel as the name denotes targets to the upper segment of the market offering endearing features.

Every company whether public or private runs on the funds provided by their stakeholders. Therefore they are not only responsible but also accountable for their stakeholders’ interest.

Unsystematic risk can be controlled by the organization like management problems, industrial relations, business or financial or default risk. Banking organizations also have to face these risks. These risks must be managed well in order to grow and sustain in the market.

Moreover they are fragmented and meet only when legally required to do so. These principals of the company have created an agency in the shape of management to carry out day- to- day affairs in order to meet strategic objectives of the company. This relationship of principal and agent has its own repercussions that create agency problems.

Beta is used to measure risk. A stocks beta indicates the sensitivity of the stock’s returns to the market returns (Madura 2006, p. 304). Madura (2006, p. 304) states that investors who have a diversified portfolio use beta to determine how well their portfolio reflects movements in the market.

Boatright (1999) divides organized finance under three broad categories in life – financial markets, financial services companies and non-financial organizations. Ethical dilemmas in finance surely impact us the most and hence the choice of this topic. An interesting aspect of this dilemma is to understand what is considered ethical and what is not.

The most important aspect of investment hovers around finding a suitable economy, the most appropriate industry type, and a specific company to invest in. After completing this, in order to make the right decision, valuation models must be used to come up with a correct recommendation of buying, selling, or holding the shares of the chosen companies.

In 2008 the world faced a financial meltdown. Globally the world faced major financial crisis and recession. The economic recession was a result of the US mortgage crisis. The subprime crisis of US caused ripple effect across the globe as a result most of the countries felt a financial crunch.

The rise and fall of organizations is dependent on the business practices adopted by them in a particular business environment. It is often assumed that the prime responsibility of any organization is to promote fair and honest business practices along with being transparent and honest to stakeholders in the short as well as in the long run.

Jeff needs to be very careful to use the money in such a way that he may fulfill his plans after retirement. Obviously he would like to use his money to earn some profit on it. The financial institutions are there to help such people.

Depending on the attributes of the technological concept in use they are divided into either sustainable or disruptive forms. Those technological concepts which help in the development of existing business processes and thereby augments the quality of products or services are mainly sustainable in nature

Either banking system deals with assets and borrowers from a location other than the institutional head quarter of the bank. More phenomenally, the difference is identified between the fund raising and distribution stream of both of them while they deal with foreign deposits and borrowings.

Engro Corporation is one of the leading organizations in Pakistan- a developing country, involved in diversified range of businesses. Its primary business is that of fertilizer manufacturing however, over the period of time, it has diversified itself into other sectors such as Food, Energy, and Power Generation etc. (Reuters 2011).

Mortgaged Backed Securities: Literature Review Introduction Securitisation is an accepted technique developed to “finance collection of assets which by their very nature are non-tradable and therefore non-liquid” (Vink & Thibeault, 2008, p. 3). In this way, repayment depends only on the amount of the collateral of the issue and not on the entire financial assets of the parent company or sponsor (Vink & Thibeault, 2008).

One of the obligatory things for the auditor to execute the analytical procedures for risk assessment through out the audit practices to evaluate all the financial records whether they are reliable and satisfy the auditor. There are number of non-audit practices where analytical procedures are being used commonly.

The present paper attempts to assess the extent to which monetary policies are influenced by fluctuations in stock market index values. Many papers have found that the extent to which monetary policymakers react to stock market changes are often driven by other factors such as the rate of inflation and output gap.

The measuring framework must take into consideration the factors of effectiveness and efficiency (measured through cost effectiveness and achieving the desired procurement results), confidence of the civil society (which is reflected in the system accountability and transparency factors), and the policy acquiescence and stability factors.

It is always expected that the capital structures vary considerably across industries. And the optimal capital structure is also different for different industries. Many researchers and practitioners have come up a number theorise and some of them are explained in the following sections.

The simultaneous use of empirical evidence can increase the credibility of the choices made. Current paper tries to identify the motivational theories available to a management accountant who has to set a budget.

The development of critical business decisions is a complex and demanding activity. The use of appropriately customized management tools and practices can reduce the relevant risks. In any case, the current status of the organization needs to be taken into consideration – referring especially to the potential of the firm.

There is growing concern about the excessive managerial remuneration which was highlighted because of recent financial recession. There is much anxiety about making the remuneration packages highly controlled and avoid unnecessary risk or encourage corporate insatiability.

Introduction A merger is a business process by means of which, two or additional number of companies can pool their business assets and form a single organization. In general the stocks of the parent companies’ are given up and instead the stock of the new company is issued.

A comparison will then be made to ascertain the reasons for variations in any of results obtained as the price of crude oil varies. Analysis of liquidity, solvency, asset anagement and leveraging results will form part of this process.The research will provide undisputable evidence to support the proposed hypothesis.

Efficient Market Hypothesis: Is the Stock Market Efficient? Introduction Efficient Market Hypothesis (EMH), introduced four decades ago, was the dominating theory in the academic community that explained how the financial market works. Nowadays, although it is challenged by both the theoretical and practical studies (e.g.

The potential Sprint-T-Mobile merger is one of most discussed topic in the US telecom industry. More than the merger between the two, the cause of concern is the future of T-Mobile which will have to merge with either of other service providers for survival.

Indirect costs refer to costs that are not directly associated with the product and do not apparently increase the cost of the product. Indirect costs include overhead costs that are incurred by the organization to keep the organization running and are usually incurred under joint usage of more than one product.

The FJE Limited is a public limited company which has recently converted from a private limited company. As the company has become public limited it wants to list itself in the Australian Stock Exchange. FJE is an exploration company which has three leases in Mali, Niger and Wiluna area of Australia.

The paper presents the methods through which the researcher has addressed the company’s record-keeping practices, credit approval policies, existence of supervisory control, extent of segregation of duties, application of accounting laws, reconciliation exercises, year-round uniformity in practices, and timeliness.

The corporate bond market can help in improving the financial stability of an economy and provide competition in the private sector as well. The corporate bond market can also help in enhancing the financial sector stability by reducing or mitigating the interest risk and rollover risk for the borrowers.

This paper sought to have a clear knowledge on the financial risk faced by the firm; to study the effective application of derivative by various multi-national firms in risk management; to analyze in-depth of Currency risk, Exchange rate fluctuation, Interest rate fluctuation and to study the concept and use of derivative.

Calendar Anomalies: Definition and Background Information Calendar anomalies, or seasonal effects, as applied to stock markets can be defined as “the tendency of financial assets returns to display systematic patterns at certain times of the day, week, month or year” (Brooks 2008, p.

What changes in the variables would be necessary in your valuation to best approximate the market valuation? Considering the current market value of the stock, it seems that the stock is relatively undervalued and the investors can actually be advised for buying or hold.

The economies of rapidly emerging countries widely known as BRIC (Brazil, Russia, India and China) have recently become the objects of fascination and speculation for international investors, policy makers, economists and academics worldwide.

Woolworths limited is a retailer whose primary activities are concentrated in supermarkets, especially regarding food and liquor, which represent the firm’s majority sales. Woolworth also deals with other businesses like consumer electronics and powerhouse business.

The process in which the per capita income of the poor economies tends to grow as fast as that of the rich economies is defined as the convergence. The process eventually leads the per capita incomes to converge. As the developing countries have the advantage of diminishing returns to factors, they can converge faster than the developed economies (Alfaro et al, 2005).

This style of pizza is cooked using brick ovens. Brick ovens are able to cook delicious pizzas in three minutes by cooking the pizza at 900 degrees instead of 450 degrees Fahrenheit. The structure that is going to be used to set up the business is the corporate structure.

Although these costs hemorrhaged the company’s insurance business and decreased its annual profit, Suncorp still then managed to amplify its profit margin fundamental to the insurance claims. It was also declared that the excess capital in regard to the operational requirements of the company would be given back to its shareholders.

Contents Introduction 3 Question 1 4 Question 2 8 Question 3 11 Question 4 12 Conclusion 15 Reference 17 Bibliography 17 Planning strategies at Kangaroo P/L Introduction This paper deals case study of Kangaroo P/L and aims to offers answers of the specific questions.