Finance & Accounting Essays

A taxpayer could establish a partnership kind of business or a corporation. For these types of organizations, income taxes on the earnings realized will be “passed through” to the shareholders, who pay them on their yearly tax returns. If he establishes a corporation, it will mean that the corporation pays income taxes earlier on income, while the shareholders pay taxes separately on those earnings upon distribution as dividends.

This incorporates analyzing key risk-takers and asset holders of the group. Furthermore, the share price strategy of the group should be closely monitored, especially relating to whether there is an incentive to move the profits to a shareholder. The local profit margin should be analyzed based on the company’s activities within the group.

A baby boom is normally considered as a sign of economic stability and growth. It normally occurs after an uplifting event like a war. Baby boom is normally referenced as a period after the Second World War. Consequently, nations that participated in the Second World War experience a baby boom at different times.

The Zimbabwean economy has faced tremendous challenges in the banking sector after the liquidity crisis of 2003. The consequences of the liquidity crisis declined the purchasing power of the Zimbabwean currency at the level of 1953. As a consequence, the people who were extremely poor had to pay with their lives due to their inability to cope with persistent economic shock.

The accrual concept includes recognition of revenue when earned while expenses are only acknowledged when they are suffered or incurred. This accounting concept needs the creation of an extra account that records the variance obtained from the difference between revenue and expenses recognized as well as reception or payments of cash.

The analysis regarding the present value of Mercury Athletic Footwear is shown. I have attached the workings in an excel document. Considering Mercury from 2007–to 2011, there is growth in earnings, and using the free cash flow method it is evident that the Net profit value is positive. Acquiring Mercury may lead to a large market share which may eventually result in huge revenue.

Financial instruments are an integral part of almost all business systems around the globe as they help businesses to track and monitor their overall financial activity and health. These financial instruments, therefore, play a very useful role to help businesses tune up their financial engines and take important decisions accordingly.

In the Kingdom of Saudi Arabia, the use of commercial paper is governed by Royal Decree No 37 of 10.11.1383 AH. Under the regulatory instrument, emphasis is on the use f commercial paper by larger corporations or companies who have had the backing of an issuing bank, promising to make a settlement for the quotation on the face of the commercial before or on the date specified.

Several practices can be used, either way, to provide benefits to the organization, to the community, or both. Firms never compromise on any benefit. Since the primary objective of the business is to seek profit maximization, therefore, they see every potential opportunity from the spectacles of profit maximization and its benefits. 

It is my dream to become a competent professional of the new era. To accomplish my goals, I want to apply for the Masters’ degree in Accounting and Finance offered by Edinburgh state university, on the basis of the exclusive personal qualities that I possess. Here, I want to illustrate my academic, professional, and personal qualities that will qualify me for the above-mentioned degree.

Budgeting is an important tool adopted by the company for planning and controlling purchases and materials usage. The sales forecast is the basis for planning and budgeting after carefully considering various factors. Since inventory involves a significant investment, keeping it at an optimum level is very important for controlling costs.

The growth of any business internally can encounter high risk in this dynamic world of business. Thus there is always a need for acquiring existing business entrepreneurs. The strategy is less risky and it eradicates the problems that are encountered if the business is going to get started from scratch. 

The research aims to present and analyze the both the merits and demerits of Ijarah sukuk and its difference with conventional lease bond. The evaluation will also cover the consistency between Ijarah sukuk and Maqasid al-sharia and its implications over financial transactions affecting the Muslims.

The study recommends that the management of PepsiCo formulate policies towards improving its efficiency and liquidity ratios. This is because the company is well beaten by McDonalds that is its competitor in the industry. The paper therefore recommends change in presentation of financial reports to include all items that are applicable to analysis of financial statements.

Direct labor hours are used as a basis for volume-based costing throughout all three ranges of bikes. Overheads are allocated to each product on the basis of direct labor hours such that the overhead rate is computed to be £48 per hour. That rate is then multiplied by the number of hours taken by each product to obtain the total overhead cost pertaining to each product.

The first reason is that despite the crisis, I believe in RBS’ future. The bank has maintained its professional and constructive approach to business. The management seems to have been able to steer the bank out of trouble and there are reports that very soon RBS will opt out of the Government’s Asset Protection Scheme.

Initially, they were meant to help reduce muscular requirements of work but due to their low cost and high quality of goods, new technology and computers are eliminating jobs in America. Automation has reduced the need for human muscular and mental abilities.            Automated machines have displayed a high consistency, quality output, and good workflow. They simplify production and reduce lead times.

According to the paper the author has created a wonderful story that is quite fascinating for children of primary grade stage. The picture book consists of comics “which vary greatly in shape and size” making it somewhat different from a typical comic book. The story revolves around a young kid named Mickey. 

Towards the end of the past millennium the president of the country Paul Biya organized a summit for the head of the states to discuss the issue of proper management of the forest and its resources. It resulted in the Yaoundé Declaration where five central African states agreed to focus more on the better management of their national and local forests.

Since I am into it, let me explain you what I have thought about the revival plans of the England football team and the up and coming players and professionals associated with the sport. First of all, what is really required is a vision to set things right, and this can only happen when there are concerted efforts to professionally train the students within their colleges and universities.

Analyzing the balance sheet of the company, it can be analyzed that the asset base of the company has significantly increased. An increase in the non-current asset might be related to the acquisition of new buildings for the setting up of new restaurants, as the depreciation expense in the current year has increased by£ 26 thousand.

The author states that the auditors are required to perform many functions such as to collect information that supports to identify the attempted fraud/risk of fraud; to examine the risk of fraud after an evaluation of enterprise’s existing controls, the absence of controls, ineffective controls and overriding of controls by the management.

This report would discuss a particular case as to how an individual may be able to utilize a saved amount of funds after he has reached his retirement, which approach may prove to be a better approach for the individual, and which stock should he select to invest depending on different factors that need to be taken into consideration.

Any organizational failure is attributed to financial mismanagement through improper accounting records. It is due to this sole reason that Accounting Information Systems in crucial to the entire management. As Hall asserts further in his publication, Accounting Information Systems (AIS), a subset of Management Information System, focuses mainly on financial transactions.

They are used to cushion for cash flow or secure liquid funds in the short run of the business. A comparison of Mark & Spencer and Morrison Company is analyzed below for liquidity and management of working capital. Modes of short term financings used by these companies are also assessed.

In the first part, sources of short term finance for businesses’ have been listed and then explained. Whereas, the second part contains evaluation of the financial performance of two organizations, that is, McDonalds and Burger King on the basis of the latest annual reports released by the two companies along with the financial ratios.

The investment provides an investor with capital returns and one can also invest in international companies but the main operations of investments are operated in the UK. From 2007-to 2011 Aberdeen, UK Equity income A ACC has experienced tremendous changes in investment focus. The performance of equity investment was at its peak in 2007.

Companies are required to follow different accounting policies and principles in respect of their financial reporting requirements. Often it happens certain accounting principles are changed or repealed or replaced with other new standards. It also happens that the company itself brings some changes in its accounting estimates.

Comprehensive research on the topic shows that it is certainly vital in society and should be encouraged. One identifies various weaknesses in the research and measures to curb them. Weaknesses refer to the quality of lacking strength or firmness. It refers to a state of having defective or inadequate character.

Captivatingly, most of the organizations in the model with an exchange rate are net shippers. This is mainly the euro rise increasing their worth of the share. The publicity of net exporters is as follows: 3% of firms have introductions to the GBP, 6.5% to the USD and 3% to the JPY. The publicity from this arrangement rises over the time horizon under deliberation.

Financial Services Corporation is a large money services Corporation with offices throughout the United States, although it is mostly centered on the East Coast of the country. With over 70,000 employees its Human Resources division has an almost overwhelming task in carrying out its daily duties.

Part I Accounting Standard AASB138 Intangible Assets Required 1 Briefly describe how AASB138 requires research and development expenditures to be accounted for. The first stipulation given by the AASB138 in reference to accounting for research and development is for amount involved in the said research and development program to be disclosed in an aggregate.

This essay mainly focuses on evaluation of the efficiency of the traditional budgeting system and identifies the advantages of beyond budgeting model. Through the system of budget, the managers of a company can co-ordinate the allocation of resources on one hand while tap and evaluate the expenditures on the other.

The combined code was prepared by the Hampel committee in 1998. Corporate governance refers to a set of standard policies and principles through which a company is governed. This is developed to follow how the company will be directed and controlled so that it can fulfill objectives and goals along with can add value to the company and all of its stakeholders’ interests in the long term.

Participants in foreign exchange markets include institutional investors, central banks, and global financiers such as the World Bank, financial institutions, corporations, speculators, and governments. Simply put, the forex market finances international trade. Due to the increased level of global trade, the foreign exchange, market has grown since as early as 1980 to the present.

Conflict of interest that is apparent among different departments in investment banking results to some dreadfully and severe consequences such as increased cases of market manipulation that risk business activities and operations. For instance, in United Kingdom investment banking sector, different underwriters have a conflicting interest over whether to facilitate effective communication between the Chinese banks and United Kingdom banks.

The basic activities of the company include manufacturing and marketing of mobile communication, media devices, PCs and digital music players together with a variety of software and services (Apple Inc, 2012). Ratios Interpretation Profitability Profitability has improved in 2012 as compared to previous two years.

The ownership which Big Co. has on Little Co. of about 1%, the accounting will be guided entirely by fair value method. This is reflected right away from the journal entries which are the original books of accounts where transactions are recorded as they occur. The journal entries describing the transactions between Big Co. and Small Co. will be directed by the stipulations of equity method. All these transactions are as outlined below in the following tables.

During this process, objectives are set for employees, their performance is rated against the set objectives, and their future development activities are outlined in order to contribute to achieving of the set objectives.

It was a well-established firm that was on top of its game before its shocking collapse through issues relating to liquidity problems and large fines. This collapse came in 2008 and 2009 when the firm was hit with fines of over 10 million US dollars. In late October 2011, the organization faced a financial meltdown.

Accounting for Leases According to IAS 17, leases are classified into finance and operating leases ((Epstein and Jermakowicz 659). In finance lease, all risks and rewards are substantially transferred to the lessee. The lessee also has ownership of the assets.Under operating lease, it remains as an expense and ownership remain with the lesser.

The Relevance of Strategic Management Accounting. Management is an integral part of business and its practices and without it, an enterprise is not able to function efficiently in its various operations. There are different types of management, but one of the recent and most popular ones can be considered to be strategic management (Mulcaster, 2009).

According to the paper financial planning and investment management is a compulsory activity that is recommended to all individuals. This paper will clearly explain a 10 year plan of the case presented in line with managing the investment portfolio that includes transitioning from peak earning years to near retirement. The plan will be inclusive of the stages involved in planning and the minimum level needed for funding after the retirement.

The origin of the financial crisis was the set of government policies that encouraged ownership of new homes, easy access to sub-prime lending, faulty trading practices on behalf of buyers as well as sellers, prioritization of short-term lending over long-term lending, and most importantly the lack of adequate capital base in banks that made their solvency vulnerable.

The real estate crisis that started in the US turned in a global economic recession around all corners of the globe leading to a plunge towards global financial meltdown. The strong and emerging economies of the world were in turmoil of liquidity crisis. There were some economies which were, however, resilient to the shock of the global economic crisis.

Organisational planning and control form an important part, especially in the advancement and growth of any organisation. In order to accomplish desired objectives and to meet the requirements of customers, organisations belonging to this modern-day context needs to adopt as well as execute effective organisational planning along with control at a greater level.

The potential returns and risks form the basis for the final decision on whether an investment should be pursued or not. Capital investment appraisal is one of the best, if not the best, methods for evaluating potential investments. Executive Summary This report is aimed at examining the capital investment techniques employed in the evaluation of two potential investments; one involving an old bakery and the other involving a village hall tearoom (Dayanada, 2002).

BTA Machine and Tools is a medium-scale private company located in Brisbane, specializing in machine and tool manufacturing and services.  It was founded by husband and wife William and Teresita Anderson, also known as Bill and Terry Anderson (BTA).  The small start-up has expanded into two other cities – Gladstone and Newcastle, where partners have expanded their business to meet growing local demand.

This study would include the financial analysis of TEC, so as to ascertain whether one should buy 15 percent stake of the company or not. As far as the income state is concerned, it can be seen that TEC has been able to achieve a net profit of $119,700 in 2012, which in comparison to 2010 and 2011 is higher.

The customers have become more educated, quality oriented as well as more demanding. As more and more products and services are being launched, customer loyalty is decreasing. Today, customers look for more options such as discounts, freebies, customer services, etc. Apart from this, the government scenario has also changed.