Finance & Accounting Essays

Compensation takes the form of indemnity, which is a principle derived from common law, and it is well illustrated in this paper using case law. Requirements for the existence of a valid insurance contract are clear. There must be insured, who pays a premium to the insurer, to underwrite a risk, that has some amount of uncertainty, and which is beyond the control of either party.

For Target Corporation, the level of working capital and current ratio has been decreasing since 2004.The working capital has decreased from $5702 million to $3589 million while the current ratio has gone down from 1.69 to 1.32. Current ratio is a liquidity ratio that

If the price of shares of any stock is lower than its intrinsic value, then there is every possibility that the forces of demand and supply will drive share prices towards equilibrium. This means that the share price is expected to rise in the future. In such a situation, the investor will buy the stock. Consider the reverse situation when the intrinsic value of a stock is lower than the market price of shares.

FASB technical bulletin states that under ARB 43, Chapter 3A, current liability should be classified and should include due on demand and will be due on demand within a year or within the operating cycle, whichever is longer from the last date when the balance sheet was prepared despite the fact that liquidation might not occur within that period.

g the period from 1983-1995, it has been found by hostile acquirers experienced more wealth creation in the long run post acquisition than friendly acquiring firm. The rationale behind this conclusion confirmed through robust statistical testing is that a hostile acquired firm

This summary reports the weaknesses and strengths of the paper. It further asks three questions concerning the paper to the class members who will present this work. The various strengths of the

However, JPM made profits amounting to $17.9 billion at the end of the financial year 2013. Although JPM spent more on its legal settlements up to $23 billion, the gains for the year 2013 were deemed productive and worthwhile. Even

The organizing fee comprises decoration of the room with the help of balloons or room enhancements or theme parties. She is about to start her business with her own capital which amounts to £800,000. The report elaborates on the cash budget, budgeted income statement, and budgeted statement of financial position based on the available data that is estimated by Edith.

The BSC presents a mixture of financial and non-financial elements which are applied in measuring components of the organization aimed at achieving specified targets. The balanced scorecard presents a comparison of the vision and mission with the company's performance (Merchant & Van der Stede. 2007).

The causes of the recent global financial crisis attracted significant attention among financial analysts and investors. The evaluation of the causes of the Global Financial Crisis is more important than the assessment of its impact on the financial markets, and the entire economy. Moreover, it can help policymakers in the financial markets.

The author explains that the Sarbanes Oxley Act is developed specifically for public listed corporations within US security markets. Whereas there are no standard guidelines that mandate nonprofits to undertake the full audit, the partial implementation of the SOX would immensely improve the accounting operations of these organizations.

The reasons why I was not able to meet the required GPA for the last two previous semesters were my father had cancer for quite some time who finally passed away last June 26th of this year. Further, I was also diagnosed with ADHD by my doctor and I have started taking medications for this kind of ailment, and finally, I am also a working student.

f accountability and responsible corporate management, companies have continuously engaged in designing best management structures to improve corporate governance. Broadly, corporate governance refers to the processes and strategies by which corporate bodies are controlled and

In the law of supply, if all factors are steady, the price increase means that the number of goods or services supplied also increases and vice versa (O’Sullivan, Sheffrin, and Wiggins 83). In the law of demand if all factors are steady, the price increase of services or goods results in a decreased demand for that good or service from consumers and vice versa.

The 50% additional income tax rate was introduced in April 2010 by the then Chancellor, Alistair Darling (Ault and Arnold, 2010). The 50% rate applied to those individuals who had incomes of above 150,000 pounds. Initially, in Chancellor Darling’s budget in 2009, he had announced that various tax increases would add up to more than 6 billion pounds by 2012.

The balance sheet speaks to the investors about the issues concerning our company such as insolvency. Though there was an increase in the liabilities even as there was an increase in the total assets, the debt to asset ratio was 15.33% in 2013, 14.18% in 2014, 13.61% in 2015, 13.159% in 2016, and 12.80% by 2017.

J D Wetherspoon is a famous pub chain company. It operates mainly in Britain with its headquarters located at Watford. J D Wetherspoon has about 920 outlets in the U.K. The company is particularly famous for converting large unconventional spaces into pubs. J D Wetherspoon is also known for being the largest buyer of microbreweries within the U.K.

It is essential to state that economic growth is now opening wide roads for investors to invest in booming businesses. After the recent economic shock, investors and shareholders started to make cautious investment decisions that led businesses to focus on the credibility and accuracy of financial documents.

In the CESIM, the USA, Asia, and Europe are the three areas and what we need to do is to operate the corporation well and win the competition. However, I had never used the CESIM before and I think it was too difficult for me to operate it. Therefore I asked the teacher for help. Fortunately, the teacher explained it to me carefully.

The translation exposure entails the potential of the consolidated financial statements of a company been affected negatively when assets and revenue from foreign countries are translated to domestic currency (Madura, 2012). The transaction exposure on the other hand

However, information on the income statement, balance sheet and cash flow statement hardly provide sufficient evidence of the company’s financial health. In addition to financial statements, educated investors fall back upon the values of

Financial statements record financial data over a financial year/period. Financial analysis is therefore a method of evaluating the performance of the business at hand (Studenmund, 2011). A variety of methods are employed in the financial statement analysis among them

Every state in the USA has its tax regime, a fact that can be used by foreign corporations to their advantage. The foreign corporation would need to create a subsidiary company or a separate company in the jurisdiction with low taxation regimes and commit financial assistance in form of grant loans from a foreign financial institution like a bank to evade taxation.

IAS 38 treats an intangible asset as an identifiable non-monetary asset without physical substance held for use. Briefly, there are three compulsory ingredients of an intangible asset.

The discount rates on three-month and six-month Treasury bills reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,995.96, while a six-month bill sold for $9,985.34. That would equal an annualized rate of 0.162 percent for the three-month bills, and 0.294 percent for the six-month bills. 

Market risk mostly tends to arise out of external events on which a firm has very little or no control, therefore market risk is often classified as systematic or undiversifiable risk. It is however critical since it can create greater volatility in asset prices and hence there is a greater probability that the underlying asset values may change.

Thereafter, IAS 3-18 was published between 1976 and 1982. IAS 19 was published in 1983 and has undergone a series of revisions and amendments to date. The first publication of IAS 19 in 1983 described how employee retirement benefits are accounted for in the employers’ financial statements. IAS 19 was revised in 1993, and the revision was on the review of retirement pension overheads.

The Discounted Payback System of evaluating capital investments are a shade better than the playback system. It is “An Investment decision rule in which Cash flows are discounted at an Interest rate and one determines how long it takes for the sum of the discounted cash flows to equal the initial investment.”

DIY store division – 20% increase in sales, since this division has exhibited strong sales performance with significant growth in the last four years. Moreover, the division has attracted a type of consumers that seem to be a niche market. Cost of sales has been assumed to follow a pattern from its previous performance.

The concept of mergers and acquisitions emerged successfully to create better cash flow technological prowess, strategic alliance, cost advantages as well as value creation for the shareholders of the companies involved. It is pertinent to note that the benefits of value creation also reach various other stakeholders of both the companies only to some extent.

The author states that in economics, the concept of allocation of resources is sometimes linked to efficiency and equity. Efficiency and equity often come in contrast to each other and in most instances both cannot be maintained. There is a difference in the treatment of employees of high tech firms compared to those of the franchising firms.

The global financial crisis created a negative effect on the UAE banking system. The effects of the global financial crisis created a slowdown in the global economy. The United Emirates banks overcame the major effects of the global financial crisis. The UAE banking system recovered from the negative effects of the 2008 global financial crisis.

The entrepreneur intends to offer all types of brands and products available in the beverage industry. Although the beverage industry has remained considerably competitive due to a range of retailers offering beverage brands and products, still there is a market capacity to entertain new retailers in the industry.

The accounting industry GAAP treats not-for-profit organizations and VHWO differently from other profit organizations. They are organizations that use surplus revenues to achieve their goals rather than distributing them as profit or dividends. The special reporting applies to these organizations because they are involved in different missions from those of other for-profit organizations.

To begin with, we test whether there is a relationship between how much an individual earns and how much they spend on alcohol per month. Correlation analysis is used to establish whether there is a linear relationship between the variables income (independent) and level of consumption, measured in pints of alcohol for the preceding month.

Management Accounting along with various Human Resources (HR) Related Functions assists in creating performance evaluation reports of the managers on the basis of fairness and most vitally mitigating uncertain situations. Fairness frames a vital part of developing the management accounting strategies of organizations.

The author of the article casts light upon the finance and accounting processes. For example, Altman’s Z-score method offers one of the means that can be used to predict the failure for corporates. To be precise, it can be used to determine if a firm is likely to go bankrupt within a period of two years.

Contrary to financial accounting, budget accounting is a forward-looking type of accounting. It measures the planned acquisitions and forecasts the use of economic resources. Budget reporting on the other hand assists to provide the basis for controlling the activities of an organization by comparing actual performance against budgeted performance (World Bank, 2012).

To sustain competitive advantage and shareholder value, disclosure of Intellectual Capital in Annual Reports is increasing gaining popularity and importance. IC includes mainly tangible assets like technological aptitude, knowledge, and skills of employees, the relationship between management and employees – all of which contribute to long-term success.

In this regard, it is apparent that the comparison did not yield the required conclusion. This is because the emphasis was on the local UAE market, yet all risks affect

An off-balance sheet risk is the risk that a company incurs due to losses that are fully traceable to the investors. To facilitate the transfer of assets or to finance activities of an unaccounted entity, a firm has to provide financial aid intended to moderate risks to the entity. One of the major OBS activities is the issuance of guarantees.

The management of BP Oil is keen to finance scientific research programs as a measure to enhance the safety of its products and during incidences of oil spills. BP Oil constantly reports on its performance through the sustainability reports (Swann, 2014). In its 2014 sustainability report, the company reported a massive reduction in the number of oil spills experienced since 2010 (fig. 1).  

The board provides a basis for organizations to make financial reporting in a manner that is understandable in the global arena. The board is responsible for deciding the content of the international financial reporting standards. It acts as an oversight body for the global accounting systems by ensuring that organizations report in the same language.

The PLS system aims at helping the banks to compare their bad and mediocre transactions that indicated efficient resource management. The main benefit of the PLS system is that the profit is shared with the investors of the banks instead of interests. Despite the advantages offered by the system, it failed to change the operational structure efficiently.

The trust the cashier received from the owners and the fact that the cashier was allowed to keep all records and receipts. The owners did not suspect her since she had been a long time employee. Allowing her to keep all the records and receipts was a mistake because

Innovation can be said to be a necessary requirement for modern organisational development and growth. This is because, through innovation, organisations of any kind are offered the opportunity to commercialize their inventions (Chan-Olmsted & Jamison, 2001). Any modern organisation that fails to prioritize and promote innovation there ends up lacking the innovation energy and potential that ensures profitability.

The cash flow statement is one of the major financial statements that companies are required to prepare. It indicates the effects of an entity’s investing, financing, and operating activities on its cash balance. It provides relevant information about an entity’s cash receipts as well as cash payments during a given accounting period.

In these times of turmoil in the financial market, identifying safe investments has become a complex task. The decision making for investments in businesses has, therefore, become a very challenging aspect for investors in more recent times. Over the past decade, there have been numerous examples of creative accounting.

The financial regulatory framework in the UK went through significant reforms in 1990-91. Changes proposed to the regulatory framework arising out of three major reasons the move by the European Commission towards developing a single capital market the Enron scandal which has stimulated political interest in the regulation of accounting and changes in UK’s domestic laws and regulation.

The model is one developed by economists to compare it with the Capital Assets Pricing Model and prove its effectiveness (Lornax, 2007, 167). In order to achieve the ultimate results, it was important to make sure that the study and the results