Thus financial reporting framework helps to reduce the information asymmetry that exists between the management and the shareholders. It narrows down the financial knowledge to a level that the shareholders can interpret. Financial reporting is an interpretation which generally applies to transactions, management team uses its knowledge to develop and implement an accounting policy which results in information that is relevant and reliable to be used in making financial decisions by management themselves, shareholders and potential investors.
However such banking regulations proved to be less influential during the occurrence of the current financial crisis. Such banking regulations could not prevent the crisis which resulted from the recent economic downturns and overall global meltdown. Banking regulations failed to bring back the confidence of mutual trust investors and could not prevent the breakdown of short financial transactions (Schmidt-Hebbel).
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If one takes into consideration the economic developments wrenched in the last three decades, one notices a significant breakthrough as to studying the relationship between knowledge and economic growth on one hand and between innovation and economic growth on the other hand.
The timing and measurement of revenue, and the associated expenses, are subject to detailed guidance in the GAAP and general guidance in the IFRS, which specifies the conditions for recognizing revenue before, at, and after the time of sale. The seller necessity is to have earned revenues in the sense that it has performed, or substantially performed, its obligation to the buyer, and it can constantly estimate the cash or cash equivalent value of assets received from the customer.
The benefit of the strategy adopted from 2007 onwards. The return on the three asset portfolio: rp = wara + wbrb + wc rc Whereby rp is the return. ra is the return and wa is the weight on asset a. rb is the return and wb is the weight on asset b. rc is the return and wc is the weight on asset c.
Since the emergence of economic crisis, the concept of Corporate Social Responsibility (CSR) and social accountability has emerged as an important consideration amongst the corporate member and regulators around the world.
The benefits of diversification into foreign markets are explained by the standard portfolio theory of the finance and investment economics. This theory provides evidence of the apparent economic gains associated with investing in foreign equities. The systematic risk of foreign investment is lower.
External debt (or foreign debt) is the part of a country’s total debt which it owes to creditors outside its economy. The International Monetary provides a more formal definition of the External Debt. “Gross external debt, at any given time, is the outstanding amount of those actual current, and not contingent, liabilities that require payment(s) of principal and/or interest by the debtor at some point(s) in the future and that are owed to nonresidents by residents of an economy.” (IMF, 2012) The Importance of External Borrowing A nation always tries to borrow its required amount of resources from the domestic financial institutions first.
The rationale behind a firm valuation is that the value of a firm can easily be destroyed with financing or investments methods, and ill-judged acquisitions. The valuation of a business is highly dependent on the purpose. These purposes may include: valuing a target of acquisition, valuing a company in distress, and valuing a private company.
It is a well recognised fact that for a company to be successful it needs to protect the interest of the stakeholders, employees, internal as well as external customers and the environment in and around the company (Broadley, 2006). Foreign investors feel better in an environment where the basics of the corporate governance is defended and practiced.
Although both projects are yielding a negative NPV, but the second option is giving a smaller negative number, hence we can safely conclude that the company should wait for 5 more years before buying the latest technology crane ALII. NPV shows us that the project would yield more cash inflow than outflow, but the negative number shows us that the outflows would be greater than the inflow.
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, Research Paper
The world of accounting is subject to change. The accounting professionals used to conduct research to make the process of accounting more robust. The accounting process needs to be a perfect one as all the stakeholders of the company are depending on the financial statements produced by the company accountants.
Would IT costs be operational or fixed, or would these costs be allocated in a lump sum or on a granular level. This essay aims to evaluate the processes in allocation of IT costs and the purpose why it is required. The paper will also evaluate the benefits and how organizational decisions can affect cost allocation.
According to the article, the function of an independent internal audit is impartial, and the position that it holds within an organization does not appear to favor either side. It addition, it is in a position of defining the internal audit’s scope, authority to the acquiring of resources and information, as well as a proper structure of reporting to the executive.
It is not easy to escape the requirement for personal investment and financial. In this time, world economies have advanced to an extent that the affordability of the State support at times of infirmity, unemployment or old age is being questioned since it is driven in large part by the desire to adjust and adapt to the demographic challenges.
What Were The Main Causes of The Eurozone Debt Crisis of 2010/2011, and What Have Been The Significant Policy Responses To That Crisis?
The conception of debt crisis can fundamentally be defined as a massive public debt that is not repayable by any particular nation or a national government and ultimately seeks for financial aid from other countries or any financial institutions (Pescatori and Sy 2004).
1. Introduction The European debt crisis brings as a result of how Europe had made an attempt to solve the financial crisis faced by most countries and as a result an immediate end in their prosperity and put them in great debts. In an attempt by the European to defend itself against collapse has created a new crisis untenable and into debts that are not easily serviceable.
This extra fund to be allocated to the security operation will cost the state more they can by raising through taxation and the federal government local government pass fund. This fund has remained noncommittal to add to the state with more funds, rather, it has adopted a policy to reduce states funding.
The interconnectivity that comes with technology enables easy access to people and markets across borders. Globalisation in financial terms refers to “intensification and stretching of economic interrelations across the globe” (Steger, 2010, p. 49). Globalisation simply refers to opening up of trade avenues, development of advanced means of communication, internationalization of financial markets, and increased movement of persons, goods, capital, and data across the world (Scholte, 2005).
The three companies chosen for financial analysis are Accenture, Wal-Mart, and McDonald’s. “Accenture is a global management consulting, technology services and outsourcing company, with 257,000 people serving clients in more than 120 countries” (Accenture, 2012).
The operations of public accountants are stipulated by state law and must meet the set codes. On the other hand, private accounting refers to the act of a salaried individual accountant being employed by a specific firm to handle its accounting functions (Warren 6).
Sentiments by economist such as Milton Friedman have attempted to assert that profitability is the core agenda for businesses (Friedman, 1970). However, contemporary businesses have the potential to engage in social responsibility and spur profit growth. Introduction The mix of ethics and business in the same breadth is at times seen as an oxymoron.
In addition to administrative and statutory regulatory provisions, the banking industry has been subject to pervasive “informal” regulation. The major argument against government’s involvement in this industry has been that the government interrupts private industries.
The trends for the foreign exchange indicate that XJP lost 60 million Renminbi in 2003 and other 70 million in 2004 (Moffett, Stonehill & Eiteman, 2008, p. 253). Foreign exchange gains and losses have a significant impact for XJP’s corporate performance, since it fully depends on how the foreign currencies behave towards each other to make its profits or suffer losses.
However, the most shattering impacts of fraud include the freezing of company assets, loss of clients and sponsors and eventual longer jail terms for its top management (Bragg, 2008). In the same view, there are also lawful accounting firms such as the Generally Accepted Accounting Principles (GAAP) that is tasked with setting the precedent for corporations against fraudulent activities.
According to Coyle (2000), currently there are three currencies that dominate in the foreign exchange market. They are, the United States of America dollar ($), the British pound (?), and the European euro. These three currencies influence the foreign exchange market a lot, and as a result, they are considered as the most stable currencies in the world.
This means that, in 2009, the company’s current assets surpassed its current liabilities by 1.06 times and 1.27 times. This trend is encouraging as it shows that the company liquidity is getting even better. This also implies that the company’s financial position is formidable and it is very unlikely to be declared bankrupt.
In the year 1991, the different principles of IAPC principles were recodified as ‘International Standards on Auditing’ (ISA). In the year 2001, a widespread evaluation regarding the IAPC was commenced and in the year 2002, it was re-established as the IAASB.
One important country that can be studied is South Korea. It is a country that used to be badly hit by the crisis but the country seems to be doing well recently. One manifestation of South Korea’s success is that its Samsung is able to present a strong competition to the United States’ Apple.
CORPORATE REPORTING ESSAY Name Module Instructor Date 1. Development of regulation for corporate reporting The idea of the existence of corporate reporting has been said not to be evidence proof or evidence that there will be an accumulation of the benefits that comes with corporate reporting.
Among these statements include balance sheet, income statements and cash flow. Practically, financial ratios are calculated to help in analyzing trends, as well, as to conduct a comparison of the company’s financial performance with other companies in the same industry (Lewellen, 2004).
Whoever undertakes to audit the legal issues should have a clear target of evaluation and analysis. Should be bound to given cord of principals in his attempt to come up with the analysis and research (Guta, 2004, p.341). Some of the values expected of the professional accountants are integrity, having the objective in the work they undertake, practicing the independence during the execution of the duty, generating the confidence in the analysis they do, and also should show or should be a professional in the field of law.
Global Hardwood Company (GHC) is an international company that operates in more than one country. The company began as a single-family business but it expanded and became a public limited establishment. The GHC is headquartered in an attractive marketplace within the town of the English Midlands.
Globalization seems to be in retreat with de-globalization being in vogue, especially with countries that remained insulated as far as their financial systems are concerned; for example, China and India, suffering the least damage economically (Altman, 2009: p1).
Adoption of both IFRs and VAS calls for technical, operational and strategic changes. It also comes with unavoidable effects on a company’s IT. It might also affect the management and reports of many business activities. Thus, companies have the obligation of employing some methodical approaches if they are to build the IFRs framework.
As time passes on, the roles of the accountant keeps changing. In addition, they become more diversified enabling the roles of the accountant to be viewed in varied forms of activities. Management accountant hence applies several forms of concepts and practices in the process of budgeting.
The evaluation is based on the discussions of technical matters such as comparability, relevance, reliability and understandability. A brief background of the standard will be discussed to determine the reasons that lead to its issue and the changes made thereof after convergence.
Data of five different stocks have been taken into consideration for the same and 5 years of data have been taken into account. Different statistics provision could be taken into account for the same like Average return, Standard Deviation, Correlation and other.
These theories might be found in the existing literature. The proponents of some of the major theories of decision making are G. P. Huber (1981), and T. K. Das and B. S. Teng (1999). The most commonly used models of decision making are the rational model, the model of bounded rationality and the garbage can model.
It takes into consideration the company’s investments in capital expenditures that are critical in maintaining sustained growth. Basically, free cash flow is expressed as cash from operations net of capital expenditures necessary to maintain company’s growth.
Notably, Facebook was initially restricted to Harvard students, but has since increased in popularity and it is now used worldwide. Interestingly, it has become popular due to its capability of availing relevant information to users. The social site was founded by Mark Zuckerberg together with other students at Harvard University in the year 2004.
Basically, if the ADF statistic exceeds the critical value in each of the tests, then the null hypothesis of the unit root cannot be accepted. On the other hand, if the test statistic does not exceed the critical value, then the null hypothesis is accepted and the series is then said to be non-stationary (Dickey and Fuller, 1981).
The main reason for doing this is that, these investments involve commitment of large sums of funds; they take a long time, require much commitment from the management and are irreversible. The four major techniques used for evaluating investment in capital projects include: accounting rate of return (ARR), Payback period technique, net present value (NPV) technique, and internal rate of return (IRR) (Gotze, et al., 2007).
The background will pave way for a discussion of the research problems and the formulation of core research questions and research processes. The chapter will also provide an exegesis to the scope of study and the outline and structure of the research that will be conducted in the entire study.
The per capita income levels of almost all the potential consumers of alcohol have increased with time. The rises in the disposable income thresholds have augmented the volume of sales of the alcohol brewing industry. However, it is empirically observed that the aggregate alcohol consumption in Asia, Africa and Latin America is more than that of Western Europe.
This review is important as such financial scams have raised concerns over the protection of investor’s interest and also jeopardized the company’s goodwill. The various areas in which auditing function has lacked competency as per the prescribed financial reporting standards have been discussed.
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, Literature review
There are several studies in accounting that have emphasized on the introduction of accounting system in the public sector for sustaining and enforcing the mechanism of competition-based resource allocation. Public sector organizations have also introduced development measurement system and methodologies of performance improvement in order to demonstrate higher accountability.
It includes the following: Business and Strategic Analysis: It includes analysis of a clear statement of the company’s activities, an analysis of the economy, the industry, and the company’s place in the industry, the company’s competitive and corporate strategy, and the implications of all of these for its future profitability.
Corporate Social Responsibility (CSR) refers to companies are require by law and regulations to take responsibility for their actions that have degrading effects on society and specifically on environment. CSR imply to the efforts made by corporations to protect environment such as constructing an eco-friendly setting in the production process and initiating some positive social welfare for people, employees and stakeholders (Maignan, et al., 1999).