Finance & Accounting Essays

Now, IST is supposed to raise capital worth $500 million in order to build a fresh production facility. In the occurrence of a financial distress, the company would experience a great loss of both consumers as well as engineering talents. If IST takes a debt of $500 million, the managers of the company are afraid that the present value of the cost of financial distress would be more than the tax benefits by an amount of $20 million.

Each party agrees to pay fixed or floating interest rate denominated in a particular currency to the other party. The interest rate is multiplied by the principal amount to obtain the amount of cash flow to be exchanged. Interest rate swaps are concerned with interests payment streams only on designated notional amounts on regular basis. 

There is of course a reason why the non-financial sector in the U.S. is still holding that much cash. It is their reaction from the recent economic crisis which induced the non-financial companies’ propensity to save rather to to reinvest and spend. Also, one of the major reason why these non-financial companies are not investing that money to create jobs is because they are still doubtful about the strength of the recent economic recovery of whether it can be sustained.

As the paper outlines, the income statement, statement of financial position and the cash flow statements are the three statements that are most needed by the users of the financial information. The seven users of financial statements are present and potential investors, employees, lenders, creditors and suppliers, government authorities, public, management, and customers.

The need can be of any kind, it can be a car purchase or a car lease & it may also be a big purchase like house or some other fixed asset. The option can be any financial instrument used to buy or sell something according to a set of rules & obligation defined earlier.

It is a framework for merging various measures derived from strategy. This method takes into account the past performance while setting the drivers for future financial performance. The drivers are identified as customer, internal business process, and learning & growth perspectives, and are developed from the company’s strategy translated into objectives and measures.

Contingent liability is the present obligation in respect of past event the settlement requiring outflows of resources. Similarly, contingent asset also arises due to past events which are expected as an inflow of economic resources to the entity.

The main aim of this memo is to show the result of the expenses and revenue recognition for Metropolitan environment service. The metropolitan provides cleaning services to his customers through collection, consolidation, treating and disposing off of the waste and hazardous waste materials.

The calculation sheds light on the fact that it is very important to invest in portfolios rather than taking exposure in one type of investment. Investing in portfolios has two advantages. First of all, it reduces the investor’s risk and secondly, it improves the returns that the investor can earn. Many large investors and investment banks invest in portfolios or in a basket of investments rather than investing in one type of security.

Contents The Garden Place 2 T A/Cs 2 INCOME STATEMENT 4 Balance Sheet 5 VERTICAL ANALYSIS 6 COMPANY A 6 BALANCE SHEET 6 COMPANY A 7 INCOME STATEMENT 7 VERTICAL ANALYSIS 7 COMPANY A - CASH FLOW STATEMENT 8 VERTICAL ANALYSIS 8 COMPANY B 9 BALANCE SHEET 9 VERTICAL ANALYSIS 9 COMPANY B 11 INCOME STATEMENT 11 VERTICAL ANALYSIS 11 COMPANY B 12 CASH FLOW STATEMENT 12 VERTICAL ANALYSIS 12 COMPANY A 15 INCOME STATEMENT 15 COMPANY A- HORIZONTAL ANALYSIS- CASH FLOW STATEMENT 16 Evaluation of Company A and B: 17 Bibliography 18 The Garden Place T A/Cs Cash A/c Apr1 2011 Common stock 60,000 Truck 2000 Apr1 2011 Loan 32000 Display Equipment 6000 Apr1 2011 Sales 340000 Rototiller 400 Cash Register 3600 Inve

Many years have passed and mixed opinions, reviews, and research have come up over decades regarding the implementation and effectiveness of the Act. The Act has been mainly criticized on the grounds of its compliance costs exceeding its benefits, while many believe the Act has improved the level of corporate governance in America.  

Financial Accounting. Relevance and reliability are the two qualities that distinguish better or more useful information from inferior or less useful information. The main objective accounting policies and standards is to produce fair valued accounting information that is reliable and relevant to the purpose of the financial statements.

India is the state occupying the largest part of the Indian subcontinent in the Southern part of Asia. Population-wise, India has a huge population level as it comes second after China. This nation has long continuous history and analysts consider it the largest democratic state in the world and particularly the most successful within the Asian continent.

Efforts to harmonize accounting standards began decades ago, with the primary objective being the need to provide a professional shape and essence to accounting standards and the harmonization process in general. Accountants in various countries around the world have deemed it necessary to bridge the gap between different aspects of accounting.

Many aspiring accountants are not always aware of this, according to the interviewee. These principles are often taught in colleges and universities and are put into practice in the work environment. There are some organizations, however, that provide training to their staff members in these accounting principles and other work ethics.

This move allocates the aspects in mergers that takeovers can be based on a tool used to replace incumbent managers in firms that do not act in the best interests of the shareholders. This will increase the efficiency of the mergers by enabling the firms to reallocate the targeted resources in a more profitable way.

The funds required by organizations and the most appropriate methods for raising these funds. This involves evaluation of the funding requirements of the business and then approaching different venues for raising capital that is either through borrowing or issuing equity in the capital markets and collecting funds from shareholders’ investment in the company’s shares.

This framework is mainly used by organizations whose business is mainly based on services rendered rather than tangible goods and products (Chen, 2009). It is mainly based on strategic management and views the provision of services as an industrial process subject to the same optimization procedures that are utilized in the manufacturing and selling of tangible goods.

Being one of the biggest insurance companies in the world, Prudential Insurance Company has various resources that play a critical role in its operations to ensure that the provision of financial services is done to high standards. In addition, we find that the company had both intangible and tangible resources that facilitate its delivery of the services to its esteemed customers who were the targets.

Due to globalization, most of the multinational companies are converging towards the IFRS, leaving the traditional GAAP framework of accounting used in the United States. Differences in the measurements of Goodwill Impairment with GAAP & IFRS The assistance for accounting of impairment of goodwill is analogous to GAAP and IFRS.

ACC 410 A, B, and C, often referred to as intermediate accounting, cover a notable portion of the Generally Accepted Accounting Standards (GAAP). ACC 410 A particularly gives a good understanding of “the accounting process, the principal financial statements, accounting concepts, theory and application of the time value of money, and accounting for cash, receivables, and inventories” (Chegg).

Google can be regarded as the leader in the technology industry in the current era. The company has been expanding by leaps and bounds during the past decade and its operational and financial outlook looks amazing. In August 2004, the company made its Initial Public Offering (IPO) and officially got listed on the NASDAQ index.

An acquisition is the best strategy for implementation. The acquiring firms stand advantage of running a business that is well established compared to building up a new business. With an established business, the acquiring firm can use the existing financial records to forecast future performance to determine if the new firm to be acquired is profitable. 

However, it is not always that this aim is achieved. This is because there have been occasions where the attempt to deliver high quality service to patients have been characterized by a number of errors and mistakes made by the medical experts. Due to the complexity of the use of drug and other health outputs, the consequences of such medical errors have always been very fatal and economically disadvantageous.

Subsequent to our latest meeting, I have immense pleasure here in to enclose a report that will form the basis of your financial planning. The current report aims to analyze your current state of affairs and then based on that the report will construct relevant immediate and long-term financial objectives.

This paper looks into the formation of the central bank of GCC. Central Bank of GCC is yet to be formed officially, even though member countries have already met to discuss its structure, functions, and the qualifications of its membership.

The users of the financial statement of the SMEs are also benefitted from this since the information provided can be compared with the international standards as the SMEs are also seen to deal with the venture capital firms, credit rating agencies, customers, suppliers, financial institutions, and investors who are operating outside the home countries of the SMEs.

Budgeting is a means through which management communicates its goals and sets strategies to achieve those goals. Since the budget is just an estimate of what management wishes to achieve within a specific period, the organization does not always attain the targets specified in the budget. The organization usually fails to achieve this target.

The researcher of this essay aims to pay special attention to the factors affecting the BHP Billiton Company. The company has international operations indicating that foreign currency exchange rate movements affect its returns; however it can effectively shield itself against foreign currency risk by trading all the currencies of the countries it operates in.

It has been suggested, that financial market development results into lower transaction costs for sending remittances besides can also improve the competition between the institutions involved in international money transfer and other related services. It also improves the process of financial market development within any country or region.

The subject of leadership has gained tremendous interest in the sine the past few decades. Leadership is considered to be of critical interest for adding value to the organization. It is important to measure the effectiveness of leadership and its influence in driving the performance of employees and the organizations. A leader has a much bigger and important role to play than just being a person who is the biggest or the most powerful.

Economic analysis is clearly identifying programming sector shares the major growth. Although there is a slight decline in 2009 and onwards due to the recession, a candidate is most likely to get jobs in foreign-owned companies. Statistics also show the number of hired employees in foreign companies is much higher as compared to local Irish companies.

This includes critical discussion on the relevance of accounting profit as a performance measure in an organization.The financial analysis of two companies would be based on the CORE framework. Sainsbury Plc is a company listed in London Stock Exchange and is engaged in primarily the retailing business.

Liverpool continued to hold the party together, making a series of small alterations to the Corn Laws. But in 1827, when he first had a stroke and then died shortly thereafter, the party divisions became more visible. By then, electoral support from all quarters had fallen significantly, evidenced in 1830 by dwindling support in the House of Commons to 28 from 80 MPs (Goodland)

Self-immolation in the UK is one that is often linked to ethnic minorities or is underreported by those looking at the violence.  However, it is noted that honor violence and killings by fire are still prevalent in the UK through self–immolation and other methods. The problems are underestimated or don’t have conclusive results.

There are different reasons for the changes in price. Given that they are rational individuals, the investors will rank a bond with a high rate of return at a higher position in their priorities of investment. This will drive the price of the bond up since the demand for it has gone up. This leads to the bond being issued at a high price.

I am going to give an in-depth analysis of accounting. Primary objectives of accounting In a business setup, recording and summarizing financial transaction after ensuring their validity is usually conducted in determining the overall progress of the of the business setup.

The purposeof the report, ratio analysis is conducted for five years. To conduct a financial analysis, the first step is to review the profits that the firm has earned. For this, we take into consideration 5 years to be analyzed, which are 2011, 2010, 2009, 2008 and 2007 data reports. Ratio analyses are simply used in accounting.

Hence without understanding the different concepts of financing and their results, it would become difficult to realize and come to proper financial decisions. The present study focuses on the understanding of different concepts of finance that a small business owner would require in his/her decisions and include topics like NPV, debt financing, risk-return relationships, concept of beta, and systematic and unsystematic risk.

It was in the year 2008, during the global recession; J. P. Morgan Chase acquired Bear Stearns. Bear Stearns was ranked fifth amongst all American investment banks at the time of its downfall (Source Watch, n.d.). Improper financial risk management was the centre of the reason for its downfall.

Accounting is one of the basic business functions of an organization. Accountants are responsible for keeping track of the economic activity of the business. The two most important branches of accounting are financial and cost accounting. Financial accounting deals with the recording of financial transactions and determining profits and losses, while the purpose of cost accounting is to analyze, ascertainment and control of cost (Assar, 2011).

Topic: You Are an Entrepreneur Course Title: Name: Professor Name: Date: Business Plan Business Type “Beverages Shop” would be initiated with the initial investment outlay of $ 250,000 from a range of investors and lenders. As the name indicates that the business would serve a range of non-alcoholic beverages to the local customers, the entrepreneur intends to offer all types of brands and products available in the beverage industry.

What is the primary objective of financial reporting according to the joint fasb/iasb conceptual framework? The intention of the joint fasb/iasb conceptual framework was developed to improve and build upon the existing framework already being implemented. It is believed through the joint construct they can improve the essential need to fulfill the goal of developing standards that are “principles-based, internally consistent, and internationally converged and that lead to financial reporting that provides the information capital providers need to make decisions in their capacity as capital providers.”("Financial Accounting Standards Board") The joint conceptual framework will be conducted

The framing of the question determines the appropriate research method and research design, and it is also clear that there are many ways to frame the question. The analysis above yields an answer that either affirms the correlation between the presence of hedges and the mitigation of risks or the absence of a correlation.

This paper shall provide an overview of the type of business ownership they will opt for, the kind of accounting information system they will select, the set of individuals for whom their financial statements shall be important, and lastly the constraints to which they will be subjected to in case of financial reporting.

However, the recent economic progress of China and other Asian countries has enhanced the worth of investing in these countries. This has resulted in many European and American companies moving their manufacturing and R&D operations to counties like India and China.

In efficient market scenarios, market agents process information reasonably and integrate current and past information into asset prices (Harder, 2010). In that sense, only the latest information, or news, can cause changes in prices. Since one cannot forecast news; it means that price changes should be predictable. 

The author of the article describes a technique used in his company which is to compare the financial ratios of the firm with the competition. Upon comparison of the ratios the weakest ratio is identified in order to implement a plan to improve the metric.

Bruner has been able to extract the instructive lessons through careful examination of a series of M&A wrecks. Bruner presents his knowledge by artful contrasting failures with other deals where different results are as a result of greater discipline and care.