Finance & Accounting Essays

Goals and alternative directions are determined through normative criteria. Thereafter, the goals are transformed into operational propositions and objective actions after which the choice is made on a critical decision. These are decisions that must be undertaken to reach the desired objectives according to the management plan (Beer 2006).

Firstly free cash flow based technique mainly utilizes the growth rates on expectations and assumptions. Those assumptions may not found to be correct. M&A based technique is based upon the industry average. Industry average is not the only factor, which can lead to the most accurate enterprise value.

The 2008 economic and financial recession sent the world’s economy into financial shock that has since then taken a lot of financial resolutions as put forth by the world economists to ensure financial recovery by a number of countries and enterprises. It marked the first global financial crisis to be experienced in the 21st century.

ABC and ABM – Together or separate? Contents Contents 2 Introduction 3 Activity Based Costing 4 Activity Based Management 6 ABC and ABM – Together or separate? 8 Conclusion 10 References 11 Introduction Globalisation has brought along radical changes in the ways in which businesses are carries out.

Dream Deferred: The Story of a High-Tech Entrepreneur in a Low-Tech World PART 1 Monique Maddy, an entrepreneur, founded Adesemi as an attempt to guarantee that third world countries had access to inexpensive wireless telecommunications. Having graduated from one of the best business schools in the world, Harvard Business School, she believed that she had what it took to realize her dream and make it a reality.

In contemporary times, it is considered to be an asset that can take an organization from scratch to boom, since it provides a direction towards which all must marshal in unity to attain the organizational aims and goals, hence it is important to first understand the different styles of leadership which a person can adapt to fulfill the role of a leader.

This paper briefly analyses what is management accounting and the relevance of management accounting in today’s society.

Foreign exchange market comprises of an important integral component; interest rates. Interest rates help in determining the value of one currency in terms of another. Different currencies carry different values relative to the base currency, thereby allowing for cross border transactions internationally.

Generally speaking, this essay aims to present an analysis of the qualitative characteristics of financial information and the major constraints presented by these characteristics. The financial reporting conceptual framework is a coherent system of concepts that underlie financial information reporting.

The main purpose of diversification of a portfolio is to reduce the overall risk associated with the portfolio without compromising much on the return. It is the motive of every investor to maximize return and minimize risk. The volatility or risk associated with a portfolio is minimized due to diversification because not all the assets in the portfolio move along.

A research considers various aspects of the person who will collect data, place of data collection and data the researcher seeks to collect. Other factors considered in the selection criteria are; a methodology to be used and data analysis type. The method of research selected should answer the questions and be in line with the methodology.

Aqua Resources Fund Limited was incorporated on 12 June 2008 as a closed-ended investment fund in the water resources sector with limited liability under The Companies Law, 1994 as amended. The Company was established pursuant to the framework introduced by the Guidance Document issued by the Guernsey Financial Services Commission.

Though financial markets can also bring together lenders and borrowers directly, still the existence of financial intermediaries is of utmost importance. This is because the direct lending approach between savers and borrowers has proved inefficient as this process can be directly traced to the barter system where there is always a need for double coincidence of wants.

There are several advantages and privileges for a nonprofit organization that is otherwise not present in profit-making organizations. For example, donations to nonprofit organizations are tax-deductible. Apart from that, the organizations are exempted from paying any taxes. This kind of tax exemption are at the heart of the strength of a nonprofit organization.

The analysis of the financial performance of any organization is done by the evaluation of essential accounting information by means of various financial tools. The financial performance analysis helps in the evaluation of the relationship between different components present in the financial statement for obtaining a transparent and accurate understanding related to the position and performance of an organization.

In making the decision to invest it is important that a budget as well as a cash flow projection be prepared to determine whether the business will be profitable as well as to determine when additional cash inflows may be required. Without this, the business cannot survive as it will need to know what to expect in advance and do what is necessary to ensure that operations are conducted smoothly. 

It is hard for a company to cut out a market niche for itself, and when it does it guards that reputation by all means. Reputation has now become a ticket to success because it is what earns revenue. A good reputation is built when the company conducts itself in a way it is expected to. Reputation is built and maintained through communication.

The research argues that just as the financial fallout was spread throughout a chain of entities, the failure in risk management is additionally the fault of a number of internal organizational elements. The high levels of leverage and the environment of irrational exuberance are considered as the primary contributors to poor risk management.

Financial assessment plays an important role in the decision-making process in an organization. It helps gain access to fast, independent and reliable financial assessment reports in order to take better decisions. It enables one to achieve financial success. A financial assessment is based on past records and future projections.

It means a form of government in which, in contradistinction to monarchies and aristocracies, the people rule. There is no clear-cut, universal definition of democracy, and most definitions of democracy focus on qualities, procedures, and institutions. It is perhaps better conceived as two aspects of the same thing that can not be separated with clear lines.

Drug selection must be made after a careful examination of parasites’ characteristics in a particular area. Similarly, vector control is the most important step which would cut the roots of the disease from the region. However, effective vector control requires collaborated efforts of public authorities, social organizations, and the general public.

Investment in subsidiary and associated companies are accounted for in the non-current assets portion of the statement of financial position. In the consolidated statement of the financial position of M&S, the company has many subsidiaries or associate companies. However, when the consolidated cash flows are analyzed, they reflect ‘acquisition of subsidiaries’ amounting to 5.4 million pounds in 2010.

Introduction The global business is changing rapidly due to the certain factors like competitions, technological advancement, international expansion of markets etc. All these factors are mainly led by process of globalisation which has brought a number of development as well as complexities in the human life including trade and business.

It is founded in line with the vision of his Highness Sheikh Saud Bin Saqr Al Qasimi, Ruler of Ras Al Khaimah. RAK Properties aims at supporting and promoting the economic growth of Ras Al Khaimah as well as assisting the emirate’s community development initiatives.

In recent years, new arrivals techniques pertaining to performance measurement have gained plenty of financial managers’ attention and appreciation. Those techniques include “Residual Income”, “ROE”, “ROCE” “EVA” etc. However, every technique has its own strengths and weaknesses.EVA is a relatively new technique of measuring the financial performance of companies.

The author states that a reason for such inclination is that he has always had a passion for working with numbers and challenging myself with similar activities. This passion and interest led to the decision of acquiring a Bachelors degree with majors in finance. He believes that life is a continuous learning process.

Trading operations of financial institutions together with the role of financial regulatory body within French banking system also form part of the paper. A concluding remark, which briefly discusses the impact of the global financial crisis on France financial system winds up the paper.

Miller and Modigliani Introduction Dividends refer to the share of an organization’s net profit that is given to its shareholders. An organization’s normal shareholders usually benefit from a given rate of dividend that is generated from the profits. What the company earns is used for fuelling its investment programmes.

Financial statements represent the financial status of the firm. It is an important tool to assess the financial health of the organization for making projections based on such data. There are several individuals and organizations in the market that are directly or indirectly depended on the financial stability of the firm.

Therefore, an expectation on the total revenues and gross margin is developed based on economic indicators, market position, and competitive environment. This also entails the auditor understanding the integrity of the management, financial pressures or condition of the organization, and management’s incentives in achieving financial results. 

The ROAs and ROEs of the two companies declare that Next has generated much higher returns for every dollar worth of its assets and equity than Burberry. The disparity of the ROAs and ROEs of the two companies logically dictate that the same level of disparity would exist between their financial leverage or gearing ratios.

For so many years in the United States, there has been a great difference in average real returns on stocks and average real returns on treasury bills. Market and economic factors related to investment choices and expected returns are engulfed in fair play dilemma of equity premium and risk free rate, with economists developing various models to resolve them.

Explicit costs result in the creation of opportunities and tangible assets for the business. Some examples of explicit costs are: rent payments, wages and salaries of employees and labor, raw materials, maintenance, company bills, services from other businesses and other expenses.

The manager wants to hedge the interest rate risk on bonds to ascertain or dispute this it is necessary to consider why a firm should hedge or not. In an ideal asset market, corporations may not require to hedge exchange risk. But corporations can boost their worth by hedging if markets are unsatisfactory. The asset manager is correct to propose hedging the equity risk using future bonds and equity.

A time period of 4 years has been taken into consideration to find out the NPV based on both options. It can be seen that the net present value using option 1 gives a higher negative value as compared to option 2. Option 2 should be adopted by the company, as it would help the business in getting back the invested amount in a much lesser time as compared to the option.

This paper has a conclusion, which provides a clear recommendation on the appropriate policy that the company should enact, and the justifications on why that policy is the best. It is important to denote that a favorable dividend policy will always lead to an increase in the share prices of a company.

The commonly followed accounting principles and statements with detailed guidelines are stated in the ‘Generally Accepted Accounting Principles’ (GAAP) developed by the ‘Financial Accounting Standards Board’ (FASB). In this context, all the financial transactions and information of an entity are required to be analyzed and recorded in compliance with GAAP. 

The corporate governance committee within the organization has innumerable responsibilities, which also include honesty in presenting financial statements. The managers generally do not take financial decisions within the organization along, which signifies that the board of directors are also participants in the financial decision-making process. 

In today’s complex and competitive business environment financial strategy applied by the organizations play a major role. In this context, the present report focuses on the evaluation of the financial strategy of Unilever. The stage of the organization is firstly decided using the organizational life cycle. The current position of Unilever suggests that it is operating in a matured position.

Before I introduce or discuss anything, I would like to state the enthymeme/thesis of this paper. This will form the foundation for all my arguments, statements, and insinuations throughout the paper. The enthymeme reads as follows: The American food stamp program should continue and the World Food Program should continue supporting and funding it.

The issuance of an IPO consequently transformed the status of the Facebook Company from a private entity to a public company because it became listed on the public stock exchange market. Face book’s Company IPO was undertaken by NASDAQ. This giant social networking service company came into initiation at the beginning of the year 2004.

Investment by foreign n firms like Motorola, and Mitsubishi and biotech firms like GSK and Novozymes would hold attractive potential for the company considering the immediate need for protecting their research conducted in the nation. The presence of comparatively smaller firms in the industry segment would also help Murgitroyd in this regard.

International Economic and Financial demands: Freedom of capital flows Freedom of investment Freedom of trade in every goods and services containing intellectual property and living organisms. “Transnational corporations -- those corporations which operate in more than one country or nation at a time - have become some of the most powerful economic and political entities in the world today” (Transnational Corporations 2003).

With the ever-increasing resources and opportunities for interactions courtesy of the media and the emergence and evolution of the information technology sector, the world has not even become even a global village but a family home where every other individual family member is informed in all aspects about his/her other family member.

These international markets differ in their outlook on risk, profitability and security. Sensible businesses deploy divergent risk aversion techniques in order to counteract corporate risk. This paper will analyze various forms of risk handling instruments which are used to increase the level of business certainty.

Then the essay goes through examples, such as pragmatic study on the relative values of bank-based as well as market-based financial systems has focused on “Germany and Japan as bank-based systems and the United States and the United Kingdom as market-based systems” (World Bank, 2012, p. 111).

A company should have a system of controls that guarantees proper financial reporting is established. Recently, internal controls have become significant for companies. This is because activities have become more complex and riskier than in earlier times.

Earnings Management: The Continuum from Legitimacy to Fraud This results due to manipulation of company’s f financial earnings either directly or through indirect accounting methods. The manipulations occur when the given management of a firm is unable to meet its investor’s expectations or wants to entice the public and other investors to invest in the company.

Undoubtedly, small business sectors, better known to be the Small and Medium Enterprises (SMEs), have gained immense significance as key contributors to overall economic growth. As stated in the report published by OECD in 2004, “These firms typically account for more than 90% of all firms outside the agricultural sector, constitute a major source of employment and generate significant domestic and export earnings”.

The purpose of the article is to highlight the importance of effectively using nonfinancial performance measures, revealing the mistakes that companies make when measuring nonfinancial performance and introducing and highlighting the effective practices for measurement of nonfinancial performance.