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So, what is accountingAccounting is a system that provides quantitative information about finances. Accounting covers a wide range of tasks from updating and maintaining of accounting records; recording of business transactions; accounts balancing and reconciliation; accounts reporting amongst others.
The purpose of the ‘notes’ section of any annual report is to explain in detail the annual report. The annual report itself contains information that a corporation is required to report to the Securities and Exchange Commission (SEC). The annual report is formatted to include an informational portion that need not to follow any set format.
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Unilever has always been a staunch follower of all social responsibility laws.The social responsibility laws focus on many issues (Sluyterman 2005, 12).Further, one such issue is the payment of minimum salaries to its workers.Another such issue is the implementation of work conditions where environmental laws are taken into consideration.
The author states that in traditional cost accounting it is assumed that cost objects consume resources whereas in ABC it is assumed that cost objects consume activities. Traditional cost accounting mostly utilizes volume-related allocation bases while ABC uses drivers at various levels. Traditional cost accounting is structure-oriented.
However most of the European countries had already embarked on their convergence towards the international standards for financial reporting. The United States' standards setting body, FASB is consistently working towards the convergence of US GAAP to the international accounting standards in response to international pressures.
The author states that an increase in the money supply increases the cost of loans and people spend less. This reduces the money supply in the economy. In this method, the sale and purchase by the central banks in the security market have the desired effect on the money supply in the economy.
According to the report, United States Surgical Corporation Audit, during the 1981, Ernst & Whinney resigned as the audit group of United States Surgical Corporation due to a discrepancy made in the audit to mold and dies tooling. The discrepancy was about the tooling purchases that were classified as capital expenditures.
According to asymmetric information analysis, there are a number of factors that have lead to substantial worsening of adverse selection and moral hazards, resulting in the current financial crisis. These factors are increases in interest rates, stock market declines, increases in uncertainty, and unanticipated declines in the aggregate price level.
It is quite essential to state that lead-tainted toys and poisonous baby's milk may be an indication of cultural deficiencies that could run-off into the Chinese space industry. The whole world can be affected when a nation places expediency and prestige in front of health and public safety in space.
Since the Net Present Value or NPV method is considered as the most accurate and widely used method, therefore, basing our recommendations on NPV alone, we recommend purchasing Queen at the discount rate of 10%. Since at this rate of return, the NPV is highest, therefore, purchasing Queen will add more value to the firm than KIPS.
Whether you're teaming up with several sponsors to help the less fortunate or holding a press conference to announce a new product's release, press conference can go a long way in giving you a much needed cushion in this cut throat competition.
Seer (2000, p187) delineates that "a budget is a management tool that puts you in control of the financial health of your library". Budgeting is basically about planning for future and evaluating the plan with respect to the outcomes achieved. For a library, budgeting helps to identify its various resources, financial strength and evaluate capacity for upcoming expenses.
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But unlike the Indian rebels of the past, who wanted to go back to pre-Columbian times, Rigoberta Menchu is not fighting in the name of an idealized or mythical past.' (Menchu xiii) Rigoberta is working toward drawing attention to the plight of native people around the globe.
The author claims that the adaptability of the new technologies and the implications of the new market environments were unanswered. New cultures and new challenges opened in the diversified environment which were mostly unaddressed due to lack of the leverage of the leadership concepts at the implementation stages.
It is quite important to note that the term value chain describes the flow of goods, services and information from one step to another on the production line, while ‘value chain’ refers to the sequence of business functions in which usefulness is added to the products and services of an organization.
McCabe’s first step of rebuilding the culture was correct because it was challenged by the crisis, resulting in staff discouragement and departures. The vision of reaching 10,000 subscribers in five years was strategic, ambitious, and challenging (the truly dedicated would remain, whilst those weak of heart would leave).
A cost center can be framed at any level of an organization and there is no hard and fast rule that it should have direct reporting to top management. Another enlightening fact is that the responsibility segment can have a cost center in its framework. Thus responsibility segment is often considered as a unit for the performance of the managerial cost accounting.
The author states that the tax rate affects the market value of the debt portion of the weighted average cost of capital. The interest payments made by the firm are tax-deductible. In the beginning, when there’s no debt, the weighted average cost is equal to the cost of equity.
Risk Identification methods should have the following attributes:1.They should examine all areas of the project in a systematic manner,2 They should be proactive rather than reactive,and They should synthesize risk information from all available sources of risk information”
The IMF was formed after a financial and monetary conference that was held by the UN in Breton Woods, the USA in July 1944. The fund was established with the aim of assisting in the institution of a multilateral payment system, boosting exchange stability, assisting in the expansion and objective growth of global trade and promoting global monetary cooperation.
In a study of disposable weekly income by the ONS, the richest 10% of have at least 658 per week (after deductions), compared with the poorest 10%. Twenty-three percent of the nation's total riches is owned the by richest 1% group.
The author states that it is essential to provide capital deficit business funds for a short-term period of a year or less. It’s also made to refer to the time for which a loan is required and the period over which its repayment is expected to take. Short-term funds are usually for business to run their day-to-day operations.
The author states that he would also need to pay interest expense that is tantamount to the cost of borrowing. This is mainly determined by the interest rate. In return, the interest rate may be derived through the key economic indicators such as the inflation, unemployment rate, and gross domestic product (GDP).
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Defining the problem is not as simple as it looks, more so since the case details are mum on crucial information like inflation rates, interest rates, the balance of trade, our buying power and demographic profile, employment and so on. In the absence of such data, we have to resort to assumptions and predict the worst that can happen.
Post-modern business discourse is focused on the economic and social consequences of corporate practices (Elliott and Elliott, 2006). Transparency, though, must also take into account the subjective nature of gathering, analyzing and presenting data as published accounting information.
The book 'Landscapes of the Soul, a spirituality of place' was written by Robert Hamma. In the book, Hamma describes spirituality as "an awareness of our relationship to God, ourselves, and others".
Hence, a new form of currency has been used. This is called electronic money or 'e-money'. Also called 'e-currency', it is being spent through 'e-wallets'. This has started a new paradigm of business opportunities which would benefit both customers and organizations.
It is proposed that before we present this strategy report to the Customer, we complete the procedures pertaining to continuity of our relationship with the client, evaluate & present compliance with ethical requirements and sign the terms of engagement with the customer. Any misunderstanding in our terms with client or integrity issues among those charged with governance & management.
Enron has developed into becoming a part of America’s top ten companies in the span of nearly two decades. Their sudden rise to power seemed impossible to many industries in the financial world. However, the scam which brought upon Enron success was discovered.
Suppliers now realize business with foreign firms in which they spend a lot of money on customer service. Suppliers need to evaluate the cost of a deal including the cost to serve the demanding large customer. Economic value added is a new tool which provides financial managers with better information concerning the profitability of product lines.
The author states that the legislators in the various states have responded to such public aspirations by calling for mandates for accountability and the setting of stringent performance criteria. The premise behind this activism is that the onus of accountability and the possibility of scrutiny will make the government act as responsible custodians.
The purpose of this paper is to agree or disagree with the concept that standard financial investment information and criteria are all that is needed to effectively evaluate IT outsourcing definitions
Managerial accounting helps the management in taking futuristic decisions, planning, and evaluating the existing strategies of the company. These tasks become much easier when managerial accounting provides information like; Financial reports for forecasting futuristic trends; the Strength of the company as compared to competitors;
In July 1988, Grand Metropolitan PLC hired O'Hagan's Minneapolis law firm, Dorsey & Whitney, to represent it in a contemplated tender offer for Pillsbury. Although O'Hagan never personally worked on the deal, he started buying up Pillsbury stock and call options soon after Dorsey & Whitney began representing Grand Met.
The most extensive and generally used requisite in every loan contract is the working capital. The provision is vital as its principle is to maintain the company's present standing and ensure its capacity to repay the loan (Van Horne, Wachowicz & Bhaduri, 2005).
The author states that it will go a long way in streamlining and prioritizing its budgetary and planning objectives. Financial forecasting is also of vital importance for this company, considering the fact that it is a listed company and is being closely scrutinized by bankers and investors as never before.
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Given the spurt of accounting scandals in the past and the current financial crisis witnessed in the US, the UK, the Europe and the rest of world, the Financial Accounting Standards Board has modified the desired accounting standard under the Generally Accepted Accounting Principles (GAAP) from “costing” of an item to “fair valuation” of the item vide statement number 159.
The main objective of this standard is to set in place criteria which standardize the selection and change in accounting policies. This standard also formalizes the accounting treatment and disclosure of changes in accounting policies together with changes in the correction of errors and estimates.
Thus, knowing when the statements are released inform the user when the company experienced growth in sales, announced dividends, etc.This is also important especially when an investor wants to compare the financial statements for a given fiscal year for different industry players.
In a world without taxes, the social discount rate should equal the opportunity cost. But the tax system drives a wedge between the two (Robert, 1982). For example, if individuals use a two-per cent discount rate for personal consumption, they will choose to save only if given a two-per cent return.
The most popular method for stock valuation is the ‘Discounted Cash Flow’ technique which takes into account the estimated stock price, dividend rates, and growth rates together with the discount rate or expected return. It is based on the efficient market hypothesis that says that the listed stock price is close to the estimated fair value of the stock.
The information is of importance to management, investors, creditors, employees and other government organizations. Financial statements are written reports describing quantitatively the financial health of a company. An income summary shows the income and expenditure of a firm or a balance sheet show the assets and liabilities and equity of a company are all examples of financial statements.
It is evidently clear from the discussion that there are many reasons why a business needs capital to finance its operation. Some of them are capital asset acquirement to buy new equipment or to construct a new building, the development of new products, etc. There could be internal or external sources of financing. The Food and Agriculture Organization of the United Nations.
Once the proposed hospital’s capital has been decided, the desired method of the capital funding needs to be determined. In the US hospital industry, approximately 50% of the assets are financed through equity and 50% through debt.
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Fair value cost analysis seems to be more accurate and simple in form and is more practical. This conforms to the capital maintenance theory that favors the assignment of values to its prevailing market cost. This proves that historical cost is meaningless when it comes to relative current exit values.
The author states that Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. Its market capitalization is 33.09 billion pounds, revenue is 47.3 billion pounds, operating income is 2.97 billion pound and net income 2.13 billion pounds.
According to Roberts et al (2005), there are no two countries with identical accounting practices although a few cases such as those of the UK and Ireland, or the US and Canada where differences are relatively few and relatively minor. Countries such as France and the UK, or the US and Mexico exhibit significant differences in their accounting systems.
The author states that with a report by the Medicare Payment Advisory Commission (MedPAC) that teaching hospitals with overall negative profitability margins rose from 25% in 1996 to 38% in 2000, the authors of the study sought a more detailed assessment by differentiating between types of teaching hospitals.
In conclusion, the ability of a company to maximize its resources firm hinges on its ability to understand its cost structure and capability of applying economical theories in its operation. The above discussion looked at how average total cost, marginal cost, and marginal products behave in the long-run and short-run.
This equally maximizes the Return on Capital of the corporation. Thus the main concept in the study of corporate finance is to address the financial problems of all firms. The discipline here relates to addressing corporations' financial problems and their solutions can be divided into long-term and short-term decisions.