Finance & Accounting Essays

The author observes that investment risk is positively related to the returns of that investment, implying that the investment with high risks generates higher returns. Rational investors will undertake investments which correspond to their risk tolerance categories. This may be selecting a portfolio containing bonds.

This is determined in the Economic Value Added (EVA) statements by deducting the cost of financing the company’s capital or cost of money from the profit or revenue made by the company.  By deducting the cost of capital and capital itself from the profit made by a business enterprise, the shareholders are able to know the value created by the capital (and includes debts) they put in the company.

This paper has generally covered part of the assessment of the module scene-setting. The paper has achieved this by developing a model that will be used in the analysis of the financial model. The paper has identified that 100 million dollars previously allocated for investment have been invested in the financial industry sector.

Corporate social responsibility has attained significance over the past few decades as investors are increasingly aware of the ethical, social, and environmental responsibilities fulfilled by the companies. The companies benefit from the societies in which they operate by the use of natural resources, manpower, etc.

The view of competition fragility makes the argument for a negative relationship between financial stability and bank competition while the view of competition stability makes a positive relationship argument (Boyd et al., 2009: 4). Many studies have tested the relationship in different regions and nations and have come up with contrasting results.

In the focused approach, REITs focus on specific lines of specialization in the Real estate property business. In whichever option that the REITs prefer, there comes a package of advantages and disadvantages. For the purpose of this study, we dwell on the advantages and disadvantages of the diversification of REIT's holdings’ activities as opposed to the focused approach.

Accordingly, both practitioners are obliged to maintain competence in order to maintain professional level ongoing skills and knowledge; to be able to prepare complete reports and recommendations; and to be able to perform their professional duties in accordance with the laws. They are also obliged to maintain integrity, confidentiality, and objectivity in the practice of their profession.

The plan indicated that the Big Four companies should tender the audit report every five years which was actually tendered till then every 10 years (“Big Four Dismiss Claims They are Failing Shareholders”). The main idea behind the plan of CC was to expose the other audit companies to the market apart from the Big Four companies.

A business plan is often considered to be a crucial step for an entrepreneur intending to inaugurate a new business venture or expand the business unit to a newly located marketplace. The plan generally assists an entrepreneur in performing various operations resulting in attaining a superior competitive position in the respective industry.

Financial analysis can be used internally to appraise issues such as effectiveness of employees, operations and credit procedures. Moreover, it can be used externally to evaluate potential investments and the worthiness of credit borrowers.

A LITERATURE REVIEW A literature review on the argument regarding the justification of the excessive salaries and perks offered to the higher management of companies against the services that they offer for the management the day to day affair and decision making.

NGOs source their funds through donations, sponsors, or charitable sources. This is different from For-Profit organizations that source their funds from shareholders who are the real owners of organizations. The organizational structure of NGOs and For-Profit is a bit similar in that both sets of organizations are managed by boards of directors.

It is used as a basis for price fixation and cost control through variance analysis.Basically standard cost reflects;oQuantities of material and labor expected to be used;oPrices expected to be paid for materials and labor during the coming year

The present unrelenting global recession that originated from the US and extended globally revealed the nascent close links that existing amongst international financial and economic sectors.

The essay discusses the challenges faced by International Accounting Standards Board in accomplishing its mission of introducing international financial reporting standards for general purpose financial statements. It further discusses about the key characteristics of International Accounting Standards Board’s framework.

Leadership has been studied for ages and has received immense attention from numerous fields including management, politics, sociology, and psychology.  These numerous studies have identified a variety of skills, personalities, and competencies that leaders possess.  These studies include the renowned political and sociological legendary leaders as well as in the organizational setup. 

An audit is a process of planning, gathering evidence, investigating the evidence, and writing a report about the findings including recommendations for the betterment of the process. An audit is a vital aspect of any organization and its undertaking is equally more important. An audit should be frequently undertaken and in a very concise manner.

Though economists have argued that taxes have no bearing on business development States continue to offer tax incentives for businesses’ located in their State. A meta-study was done by Waysylenko on taxation and economic development. Dependent variables include income, employment, investment, plant expansions, relocations, and births.

There is increased confidence regarding banks by customers, the satisfaction is described as more than it was before the credit crisis. While some banks have intensified their efforts to regain the foothold on the banking area, some have done little. This is reflected by many people who have said that they love some banks in comparison to others.

The laundry supervisor may be affected by the way the budget was prepared and presented to her. This budget may cause some serious changes in the apparent behavior of the laundry supervisor as she is not happy and satisfied with the way she has been held responsible for every cost of the laundry department.

Lease accounting is generally considered as one which depends upon the agreements between the parties regarding the use of a particular asset. International Accounting Standard Board (IASB) has outlined the accounting treatment in the case of leased assets for both the lessor and the lessee under International Accounting Standard 17 (IAS 17) “Leases”.

The adoption of the International Financial Reporting Standards by various companies in different countries has occurred in the recent past. The paper will talk about what is going on in the convergence from Generally Accepted Accounting Principles to International Financial Reporting Standards, with special reference to United States.

The company’s tangible resources are financial, human, and physical resources. It had in its possession several physical resources that she managed; they include equipment and buildings. The strong financial position of the company ensured that it had very stable financial resources for conducting its duties or operations without substantial problems in terms of shortages of money.

The location is the greatest strength of the rentals since the students are readily available and they will be able to ask for the rooms. The company should deal on a marketing plan that will ensure that the rooms are known to the students and that the rentals gain a better advantage than the other rentals that bare found in the area.

The author explains that there has been an ongoing negotiations of TPP and has drawn several protests and criticisms from the elected officials, advocacy groups, and public, mainly due to the secrecy involved in these negotiations, the wide scope of the agreement and a large number of controversial clauses that had been found in the drafts.

The given formula represent the difference between two members: the first one, which is related to the normalized asset price, and the second one, which is related to the cash investment at the risk free rate. Both members are evaluated on an "cash/asset-or-nothing" basis, so that for instance when the pricing conditions are met, the first member returns the asset value, or nothing viceversa.

Fortunes Inc. is a successful print shop in London. It is a co-operative that was set up about a decade earlier after an industrial dispute. The company currently employs 25 workers and has a flat management structure. It is given that the employees of Fortune lack management skills. The current difficulty that the members of Fortunes are facing now is regarding the portfolio of pension provisions.

Accounting Theory Table of Contents Table of Contents 2 Introduction 3 Areas of Corporate Governance in BHP Billiton Limited to Alleviate the Risk of the Corporate Failure 3 Reasons to the Areas Justified With Relevant Accounting Theories 5 Conclusion and Recommendations 6 References 7 Introduction Corporate governance comprises of the regulatory and the market mechanism along with the roles and the relationship between the management of a company with its shareholders and stakeholders at large.

Research is often referred to as the search for knowledge. In common parlance, research is also deemed as a systematic and scientific exploration of pertinent information about the subject of concern. As a result of this research is regarded as “an art of scientific investigation”. Eminent scholars defined research as a process of expanding knowledge without having any targeted application.

Accounting is a discipline that deals with the reporting of financial activities of the organization to its shareholders. Accounting policy makers design accounting standards to provide faithful reporting, therefore transparency of financial statement is the main emphasis of accounting standards.

This research paper includes an in-depth study of various inter-related topics which gives a good understanding of the globally connected financial industry. It explains various aspects of the financial industry and their resulting consequences. To start with, the role of credit rating agencies in the 2007-08 global financial crises has been discussed in detail.

Ratio analysis can be used to detect such weaknesses and make suggestions on how to rectify them. Ratio analysis is also used in planning, using a company’s limited resources it may be possible for the company to lay down a road map of its future performance by way of setting targets based on ratios.

VAT is applicable on different rate depending on the type of Goods and services offered by the company. In addition, there are some goods and services that are exempted from VAT. The VAT rates are divided into three segments Standard Rate 20 per cent Reduced Rate 5 per cent Zero Rate 0 per cent [1] Since the Company, Lampeter Builders’ Merchants is involved in the construction and material business, the following rates are applicable on the company

The process through which debt is borrowed by the government is by issuing bonds. The government issues bonds to raise the debt and the holders of such bonds hold the position of the creditor. The bonds have a date of maturity and a rate of return, and these are held by individuals or organizations as available for sale as well.

The European Union (EU) which came into existence on 25th of March, 1957 holds its aim towards promotion of economic activities with a balanced and continuous expansion of activities and accelerated enhancement of standard of living and to build stronger relationship between the states that belong to the union.

Scientists have continuously attributed such changes to a phenomenon called “global warming”, and have conducted significant research to prove the validity of their arguments. Recently, these arguments put forward in favor of global warming, have been challenged by skeptics, who dismiss the whole phenomenon as a “myth” or a man-made controversy.

The balance sheet and the profit and loss statement should communicate the appropriate results of the firm to the CEO so that he can make decisions regarding investment. The financial statements of the firm should be made available to all so that they can make their own conclusions from the financial statements with respect to the operations of the firm.

Corporate governance is critical to managing the affairs of an organisation. The intricate nature of relationships between the various stakeholders of a business ensures that managing such relationships is critical to business. These relationships are better managed by utilising sets of customs, laws, policies and processes.

It is economically more viable and offers more freedom as long as prudence is not sacrificed. But what this Article by Hayes misses is a direct correlation to persuade the reader that indeed, the legal list is complicit in the economic woes of West Virginia and the application of the Prudent Person Rule might have saved the day.

These have not just appeared over night. They are the result of various problems that have plagued the accounting profession in various countries – especially the United States and the UK. The International Accounting Standards Board (IASC) which was later renamed the International Accounting Standards Board (IASB) published a document – ‘Framework of the Preparation and Presentation of Financial Statements in 1989.

The vitality and logical structure of the field of accounting makes it an appealing discipline to pursue one’s academic direction and professional life in. I have always valued the acquisition of academic education but believe that professional experience provides a new level of exposure about the processes and modes of performing operations.

The shareholders on the other hand are the business owners since they have vested interests in the running of the business. The external auditors are not associates of the organisation like the internal auditors but their function is more of the same, to look into the organisation’s books of accounts and assess whether a true and fair view and give an audit opinion.

GE has completed $20 billion of long-term debt issuance in the year 2011 so far in 9 currencies, which signifies a downward trend for the last two years. Out of the total debt composition, long-term debt with a maturity period of less than a year constituted $73 billion. As of the second quarter of 2011, total debt stood at 463 billion.

Generally, there are two methods including deferral methods and liability methods used to determine deferred taxes. The deferral method is applied to match tax expense with book income before tax. Under this method, deferred taxes are considered on the basis of past tax differences and they are not updated in accordance with tax rate changes.

Doubtful debts represent the balance of the amount which will not be recoverable out of the total trade receivables of the company. This is considered to be a trading expense and thus is accounted for in the income statement of the company. Rent revenue is defined as an income generated by the company through renting out any of its assets.

Business processes are only viable so as long as they are able to fulfill the basic contention behind business activity – making a profit. One of the chief reasons why organizations and businesses have been slow to adopt environmental practices is because the means are often not justified by the ends.

This is observed in comparison to the companies competence related to investments and in dealing with the physical form of assets. The notion of balanced scorecard was initiated with regard to the mentioned alterations made by the companies. The balanced scorecard was found to complement the customary financial measures along with offering decisive factors in relation to gauging the performance with respect to few additional viewpoints.

The costs should be allocated keeping in mind the benefits. This will help in identifying, in an organization such resources which needs cost for buying capital, managing cost for buying raw materials and inventory, costs for salaries, operational and various variable costs are needed to get the organization going.

Management accounting is an integral part of any business organization. The information generated through management accounting procedures followed in an organization helps the managers of the company to take various strategic decisions for the organization. Canadian Imperial Bank of Commerce (CIBC), Canadian Tire, and Wal-Mart Canada are the three large organizations operating in Canada.

2008–2012 Spanish Financial Crises Introduction Most economists agree that the 2007-2012 global financial crisis was the worst since the 1930’s Great Depression. The crisis was characterized by the threat of complete collapse of large financial institutions across the world, downturns in stock markets across the world, bailing out of banks by national governments and general slow-down in economic growth and development around the world (Shiller 35).