Finance & Accounting Essays

Globalization is an unstoppable force, which is slowly spreading throughout the world and influencing many things, which were once thought to be only specific to certain regions. Globalization had not only had a huge impact on the political and economic arena of the world but it has also had far-reaching effects on the labor movements in rich countries.

Such scandals include Enron, WorldCom, and Tyco International etc. These scandals have raised concerns and responsibilities of the accounting and auditing bodies all over the world which are now subject to thorough scrutiny. The auditors now owe greater responsibility towards general public and are considered as the savior of their investments.

This problem is ceded on three basic pillars: identification of the concepts of fraud and legitimacy, outlining a conceptualization map, and initial decoding of a given problem. Thus, on the basis of interpretive framework, which is based on the works by Trochim & Donnelly (2008), Schram (2006), Shank (2006), Patton (2002) and some others, it is further claimed the way these concepts should be identified and interpreted.

6 210000 95676 7 0.3996 210000 83916 8 0.3506 210000 73626 9 0.3075 210000 64575 10 00.2697 210000 56637 11 0.2366 210000 49686 12 0.2076 240000 49824 Total cash inflows 270038 NPV=270038-630000 =359962 Smart electronics should not accept the device. The acceptance of the device would imply that the company would not get any financial benefit from it because it will not be of monetary help.

Investment trusts are those types of companies, which are provided the domicile of the United Kingdom such that they are listed on the London Stock Exchange. They mainly invest in the equities and securities of companies across the world, which are listed on different stock exchanges. They are run by a panel of independent directors.

The author of the paper will begin with the statement that over the years, global trade has depended a lot on the control and operation of financial services. With the current shifts and twists in the global economy, it is increasingly important that factors that will continue to influence markets, especially in the financial sector are closely watched. 

The purpose of GAAP is to ensure transparency and uniformity of financial reporting among business organizations. There is no one fixed rule among all GAAP standards across industries and countries and they vary from one industry/country to another. In the USA, it is the FASB that sets the GAAP standards for private firms while it is the IASB that sets principles for international accountants.

The paper comprises 3 questions, each related to aspects pertaining to environmental reporting. It begins with an initial introduction about the aspects of environmental compliance and reporting.The first question is in connection with two provided annual reports of Halma plc and United Utilities plc, which required critical evaluation adequacy of disclosures given in the reports regarding environmental reporting.

Discussion of Portfolio Theory Student Name Institution Discussion of Portfolio Theory Part 1 The portfolio theory originated with the use of asset-pricing concept as an investment instrument. Investment instrument is an asset that can be bought and sold. The portfolio theory defines that an investor will buy a single risky fund plus a risk-free asset.

A collective investment is a pool of fund managed by professionals where the money is invested in various securities forming a well-diversified portfolio. As opposed to the individual investment, being a part of the collective investment provides the investor with the economies of scale, cost sharing and risk diversification.

Accounting and financial calculations using traditional historic cost accounting are based on changes in the market, considering the market news and conditions to be unbiased and objective. However, criticisms exist as the method seems to be doubtful particularly when demands in the market vary (Bailey, Harte, and Sugden 2002).   

Depending on the individual needs and the performances of both the business and the audit team, change in auditors is also performed by several businesses, which in turn has either a positive or negative effect on the stock prices. This particular research has been focused on understanding the relationships that change in auditors has with the stock prices of a company.

In addition, the contributions from the rating from the participants also increase. In the cases mentioned for the transactions in the IBI Ryan Plc Company, certain amount should be included in revenue for the year ended 31 March 2013. The cost of the electrical good worth ?

During this period out of most of the countries in the Europe, Greece was the worst hit and required the monetary support of the other countries or the international financial institutions. Though most of the nations belonging to the European Union needed financial support, the government of Greece needed financial assistance to the maximum limit.

Question One: The economies of Europe and that of America experienced a financial crisis because of too much liberalization of their economies. The European Union and the United States government advocated for a free market economy. The definition of a free market economy is rather an ambiguous concept.

French Connection Group PLC specializes in fashion clothing and accessories for men, women and children as well. Apart from the French Connection brand, the group is also responsible for these international brands: YMC, Great Plains and Toast. French Connection remains the biggest contributor to its profits, bringing in more than 90% of the group’s revenues.

Fritz’s progress should be monitored aggressively.  If he is not making treatment progress, the course of treatment should possibly be revised. Contingency plans may include referring him to a psychiatrist for a psychiatric evaluation if counseling is not an effective measure, or just not simply effective enough.

The research includes a list of internal control weaknesses such as the department,not the purchasing department,should make the purchase requisition,the receiving department should not give the original receiving report to the warehouse,the receiving repot,checks,disbursement vouchers,purchase orders

The arguments against fair value accounting appear to outnumber those in favor. Most of the arguments against essentially relate to the classification of financial instruments the fair value hierarchy. The classification of financial instruments is recorded at fair value in a hierarchy consisting of three (3) levels.

Three techniques that can be used to forecast sales are regression analysis, Delphi method, and time series (Mann, 1995). The most comprehensive and important budget that is prepared by the accounting department is the master budget. The master budget is a summary of a company’s plans that sets specific targets for sales, distribution, production, and the financing activities (Garrison & Noreen, 2002).

The situation was very odd due to the fact that Enron Corporation was regarded as one of the most respected companies in the energy industry in the late 1990s and at the beginning of the 21st century. Between 1995 and 2001 Enron received for six consecutive years the award of the most innovative company given by Fortune Magazine (Bbc).

The short-term finance refers to that finance which is obtained for a shorter period of time, generally for a period of less than one year. After obtaining the short-term finance, the companies make use of it in either raising working capital for the business or financing other areas of the business.

The recession that hit the UK and other parts of the world led to a revaluation of macro-prudential principles with an aim of curbing financial volatility. Critics argue that creating macro-prudential principles would eliminate operation, which allow banks to act without evaluating the impact of the action they are yet to take.

The crisis associated with sub-prime mortgage ultimately made considerable rise in the quantity of foreclosures as well as defaults (Jaffee, 2008). In this paper, the aspect of the crisis relating with sub-prime mortgage that was faced by United States and several root causes of the crisis will be discussed.

This paper would formulate the financial planning of a client, Mr. James Patterson. The financial plan is based on the information that was obtained from Mr. James Patterson about him. The recognition of the present situation of Mr. Patterson is decisive because that would decide whether the recommended strategies are suitable, in the light of his personal situation, needs or objectives.

In the contemporary corporate world, compensation is perceived as a measure of justice; an outcome of productivity. Management compensation is a means of enhancing the balance of work-employee relations by the provision of financial and nonfinancial gains to employees. Compensation is an essential component of human resource management.

Introduction Financial statements reflect the financial performance of the company usually in a period of one year. The financial statements are very important for different stakeholders including shareholders, investors, customers, suppliers, economists, management, and governmental agencies and other stakeholders that are directly or indirectly affected the operations and performance of the company.

Financial statement analysis relies on the use of the net income and balance sheet as inputs for the formulas. Financial statement analysis focuses on many financial aspects of a firm’s operation. “Operating indicator analysis provides managers with the insights needed to take corrective action when the financial ratio analysis indicates deficiencies” (Ache).

can produce 2500 hard drives annually, its total profits could be; 2500 * $86.45 = $216,125 Total demand for Zeon hard drives – 3000 Malibu Inc. produces – 2500. Therefore, Malibu Systems Inc. will purchase 500 ZEON hard drives at $120.00 and incur selling and administrative expenses of $6.50 from Techno Products Inc.

Resources are the people and materials as well as finance needed to execute a project (Hope & Fraser, 2003). If the resources are in abundance it means that that project will be executed more easily. No matter how good the project may look it will never be accomplished if there are no resources in form of manpower or other materials.

It is evident that the general expectation of quantitative easing is the conventional effects on inflation after affecting output. Finally, in alleviating the economic crisis in the United Kingdom the MPC may in the future decide to begin the process of selling back the assets or increasing assets purchases.

It contains the financial statements and economic activities that the company undertook in the preceding year. Annual report is intended for its various stakeholders who have a stake and interest in the performance of the company particularly the shareholder’s who have invested in the company.

MF Global was a commodities and securities brokerage firm that started operations in the late 1700s as a sugar trading and export company. MF Global suffered a man-caused financial disaster during the last week of October 2011. MF Global “had leveraged a $6.3 billion exposure to the debt of peripheral European sovereign bonds in the form of maturity transactions”

This activity involves the buying and selling of a company’s shares by individuals whose objective is to make earnings from the transactions they participate in and involves a number of skills such as the ability to foretell the movement of stock prices as well as the courage to take the risk of involving one’s self in such a volatile market (Sandage, 2006).

Part 1 Accounting Cycle A manufacturing company and a retail company would have different accounting cycles because they are involved in different businesses. A manufacturing company is involved in purchasing raw materials and then producing finished goods from those raw materials.

Accounting Theory Research Assignment Table of Contents Table of Contents 2 Article One 3 Summary (Part A) 3 Accounting Theory (Part B) 3 Analysis (Part C) 4 Conclusion 5 Article Two 5 Summary (Part A) 5 Accounting Theory (Part B) 6 Analysis (Part C) 6 Conclusion 7 Article Three 8 Summary (Part A) 8 Accounting Theory (Part B) 8 Analysis (Part C) 10 Conclusion 11 References 12 Article One Summary (Part A) The name of the article is ‘Latest effort at transparency just muddies water’ which was published in the year 2012 in The Australian.

This essay discusses that earnings management activities constitute legitimate open and optional choices made of when and why to engage in financial transactions that need recognition of accounting. Legitimate earnings management may also include scenarios where justifiable choices are made on the way to account for financial transactions.

High-ranked Federal government officials as well as researchers in the academic sectors are influenced by the financial industry in the US. Some of the high-ranked officials appointed by the presidents of the US over the years have been big businessmen and have commendable contributions to the financial industry in the past.

Depending on the objective of the individual, an appropriate personal retirement plan can help the individual to balance current and future consumption by determining amount of current investible funds that is available and vesting them in retirement accounts (Purdue University, 2009, p.18).

From 1985 to 2001, the company continued to gain favor and confidence in the stock market, leading to share prices rising to a staggering $90 per share. The company owned a diverse line of services and commodities such as gas pipelines, electricity plants, water plants, and internet services around the world.

Cash flows allow estimating the depreciated value of assets owned by a company and further requirements to contribute in effective budgeting. Capital Asset Budgeting is also practiced commonly by corporations, which is however often criticized owing to its complexities and needs for continuous record-keeping (Oracle, 2008).

However, in order to improve the business environment as well as maintain the ethics of the accountants, it becomes very necessary to understand the importance of avoiding plagiarism. Plagiarism refers to the case in which students pursuing academic courses violate ethical codes of research.

Microsoft Corporation (Microsoft) is in the business of developing, licensing, marketing and supporting software and hardware devices worldwide. The company began its operations a way back in 1975 as a small vendor to IBM. Since then the company has grown enormously. The company’s Windows operating system has revolutionized the ways people use computers today.

I am willing to take on these risks since I plan to develop a robust risk management plan that will not only allow the business take charge of its risks, but also find efficient ways through which it can mitigate these risks. The foundation of the hotel’s risk management strategy will be the understanding that business risks typically emerge from diverse areas, including external sources and sources within the business (Edwards and Bowen 29).

The magnitude of differences is the also vary from small to large (Grant Thornton). Some of the major differences are discussed in this section. First, the difference between the IFRS and GAAP principles lie in methodology used in the determination of the impairment of long lived assets.

International Accounting Standards: Revenue Recognition in construction Industry Introduction The IASB and FASB have been working on producing a new standard on revenue recognition for several years now. One of the industries which have been particularly affected by the uncertainty surrounding the development of the new standard is construction industry and the International Accounting Standard 11 (IAS 11) relating to construction industry is expected to be replaced by the new standard in due course.

Payback period method- according to this method, the feasibility of a company is measured by dividing the initial capital outlay by the periodic cash inflows. For this reason, the payback period is defined as the period a company takes to generate cash that is equivalent, in the amount, to the initial cost of investment.

Financial markets are vital for any economy. They channel the funds from firms, households, and governments for which they have surplus funds to those who have a shortage of funds as they spend more than their level of income. Primarily governments, corporations, households, and foreigners have excess funds with them and hence they lend them.

This paper is an attempt to review the status, objective and effects of the project. Intent of the Project The accounting standard followed by the companies is varied from one another. This creates problems for the stakeholders of the companies for making the decisions, sometimes the companies used to give the extra effort that they make the financial statements according to both the standards US GAAP and IFRS.

According to the dictionary, a business invitee is “the person entering in to a business premises with a purpose or intention to do any business or transaction with that business house whether or not such transaction is effected.”1 This is an important legal notion as the concept of invitee defines the legal duties owed by the property owner to his business invitees.