Finance & Accounting Essays

Irrespective of a company being nonprofit or profit, budgetary control methods are applied in the everyday activities of a business establishment (Young, 2003). Budgetary control is used by companies to determine which business establishments are to be given priorities and which activities in the business should be paused for a while.

This CFR Analysis Report on Burberry Group plc is based on the Company’s annual report 2012. Burberry is a global luxury brand with a unique British lineage. It designs and sources clothes and fashion accessories and sells them through its varied network of retail (including online), wholesale, and licensing procedures globally.

The graduation degree will provide new learning and experiencing opportunities to students like us where the teachers and professors will share their knowledge with us which would help us in fulfilling our future goals, both long term, and short term. This report does not only discuss the analysis of my personal skills only, but it also covers the personal learning, which will be guiding me throughout my career.

The paper tells that financial analysis is a systematic process for assessment of stability, viability and profitability of any business. The analysis is derived from the published financial statements of business organization. The most popular tool for financial analysis is derivation of financial ratios from balance sheet and income statements.

How the Scandal Happened As earlier stated, the Lehman Brothers scandal is comparable to Enron scandal in 2001. The investigations conducted found that the top executives of the company used the Repo 105 transactions to reduce the leverage on the right side of the company’s statement of financial position.

Developing interest and applying theory learnt in class into real life situations is a perfect mechanism for helping someone become a good performer in class and in real life situations, and more specifically in our future careers.

The financial statements are prepared at the conclusion of the accounting cycle. The normal accounting cycle is for a period of one year. Publicly traded corporations are mandated by the Securities and Exchange Commission (SEC) to release an annual report each year which among other things it must contain the financial statements of the firm.

A negative ending balance of cash in any month could cause a difficult situation in regard to the liquidity position of a company. The negative gap needs to be filled by either liquid marketable security or dependence on trade payables. Other than that payments are mostly linked to sales which would act proportionately to increase or decrease in sales.

The major difference between a forward and an option is that while a forward contract must occur, an option holds a fifty percent of occurring or not depending on various determinant factors. A forwards contract exists as it can be utilized in a situation without uncertainty.

The core skills in the workplace that I will focus on include: communication was written and verbal, vital and innovative thinking, team building and cooperation, listening, problem-solving, decision making, and interpersonal skills. Other skills that will be significant in my career include project management, planning and organizing, technology, and dedication to continuous learning.

The author states that creative accounting practices are such malpractices in accounting which may be legal. In other words, when financial statements are prepared by the relevant managers of a company that is inconsistent with the purpose or intention of the existing accounting standards, then it is said to be a practice of creative accounting.

Australian Stock Exchange is one of such places used for trading stocks. The activities concern both primary and secondary services required by companies and investors in the trading of shares. This includes capital information and hedging, trading and price discovery, risk transfer, and securities settlement.

Financial Accounting. Account standardization, IFRS and US GAAP. Accounting refers to the systematic way of summarizing, analyzing and reporting the financial transactions. Accounting helps in clearly understanding the financial position of the organization and comparing it with other organizations within a particular financial period.

Budget can be called the predefined and forecasted expenditure for the future course of time. It serves as a tool to coordinate different activities of the organization. It is a document or a collection of documents that refers to the future course of action of the organization. It serves as a policy guide, management tool, legal document, and financial control instrument for the organization.

Generally, financial risk management is a very sensitive issue for many firms in a modern market environment. While insurance is the de facto method of hedging financial risk in business, it can be very costly and this requires the business to have alternatives to hedge its financial risk (Frank, 89).

Further to the concepts, other rules guide the reporting that is known as the International Accounting standards which are slowly being replaced by the International Financial Reporting Standards. In the financial statements of Next PLC, sales increased by 3.1% as well as profit growth which grew by 9%.

Contents Executive Summary 2 Introduction to the Pharmaceutical Industry in United States 3 Introduction to retail business in America 4 Ratio analysis 6 Profitability Ratios 7 Efficiency and Liquidity ratios 9 Gearing Ratios 11 Comparison with competitor 11 Executive Summary Johnson & Johnson and its subsidiaries (the Company) have approximately 127,600 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the health care field.

It is essential to state that auditing is an impartial examination and assessment of an organization’s financial statements, which may be done internally by specialized staff within the organization or by external auditors, who may be consulting firms or other competent individuals outside the organization.

The company operates over 20 locations in UAE. Emirates Insurance Company offers a wide range of insurance-related products and services to serve its various customers like corporate, business organizations, other financial institutions, and individuals. Here we will analyze respective ratios like Profitability ratio, asset management ratio, etc.

Rsk-averse investors tend to direct their portfolio more toward risk-free assets than to risky ones. In short, unless the non-diversified portfolio is offering a higher expected return, diversification doesn’t hurt the expected returns of the portfolio. So, even a rational risk-averse investor will also hold a large number of risky assets in the portfolio.

The global workforce of the firm is composed of 8,000 workers. The firm was founded in Ted Waitt in 1985. The chairman and chief executive officer of the organization is Stan Stih. The purpose of this paper is to analyze the financial performance of Acer Group during fiscal year 2012.

Investors and businessmen seek to avoid the risks of unexpected market fluctuations which tended to raise costs and increase the chances of losses, by discovering methods of forecasting future exchange rates.  This knowledge will enable the formulation of trading strategies to enhance the effectiveness of market entry and exit, to properly time the purchase of currencies at the lows, etc.

According to Julius, "it might be difficult to make the transition from employment to retirement". Exposure to inflation is their main threat being a retiree. Don Forbes, head of Associates/Armstrong & Quaile gave them an advice on how they are going to utilize their financial plans to protect themselves against any threats.

Behavioral psychology became part of our lives in the 1990s after the rise of terrorism and hate groups in the UK, Europe, and the US. Many theories have been developed which stem from these two branches of psychology. Today's current events: the problems of terrorism and fanatical behavior are still being studied.

The author of the paper explains that glasses generally possess low tensile strength as they are amorphous solid. To illustrate, the molecules of the glass do not constitute any specific internal structure. These molecules are arranged disorderly and do not hold to one another very strongly.

There has always been array of ideas about the nature and habits of mankind. It has been found in history of mankind that the definitions of people in this aspect have been fluctuating usually over time, again and again. For a theorist or a writer to portray the people he needs to know some ground rules about the people he/she is talking about.

According to the paper the concept of global economy came into existence with the emergence of globalization. The concept of globalization greatly contributes to effective and rapid circulation of ideas, languages, and cultural ideologies. This process notably assisted different segments of the international market. Globalization has significantly contributed to the creation of a global market and a global system of production.

A contact therefore gives partiers a legal remedy in case one party fails or breaches the terms of agreement (McKendrick, 2007). Different types of contract include express contracts, implied contracts, executed contracts, enforceable contracts, and void contracts among many more (McKendrick, 2007).

Irrespective of such disruptions, in the year 2011, Ford completed its consecutive three years of earning profit in relation to its operating costs and, therefore, announced the payment of dividends to its valued shareholders in five years, which, in turn, has significantly motivated the company to preserve its financial efficiencies in the long run (Ford Motor Company).

These adjustments have necessitated changes in several business aspects, including adjustments in financial reporting techniques by organizations. There are various corporations, which are involved in international transactions. The current international market is demanding conformity in financial reporting principles.

The conclusion from this paper states that the key ratios of both General Motors and Honda Motors can be seen in Appendix, where Honda Motors shows high liquidity of 1.34 in its latest quarter. Honda Motors has a consistent debt-equity ratio. This proves that the company maintains a balance between debt and equity.

expense 4500 Paid-in capital 90000 Property taxes 6500 Rent 22000 Retained earnings 156400 Revenues 619400 Salaries 61940 Utilities 7400 Totals 995300 995300 Adjusting entries to fix errors Retained earnings 10000 Inventory 10000 Cash 5000 Sales revenues 5000 Picket Company Adjusted Trial Balance Account payable 14500 Account receivable 18000 Cash 42000 Common stock 10000 Depreciation expense 18250 Cost of goods sold 402610 Equipment 325000 Insurance 1500 Inventory 70500 Long term debt 105000 Marketing expense 5600 Misc.

The last two centuries have seen multiple efforts by countries to fix exchange rates or create monetary unions because of a desire for more predictability in international trade patterns and the need for greater ease in transacting and settling accounts across borders. The latest of these efforts is the establishment of the Economic and Monetary Union (EMU) in Europe in 1999.

Company Analysis More than often, liquidity ratio indicates the profitability measure effectiveness and efficiency of the firm’s performance. As a result, the liquidity ratios are an area of main interest to creditors and investors as it determines the overall liquidity of a company in terms of business short-term solvency thus, its ability to pay back its debts as it runs its business operations.

The IASB’s Conceptual Framework document covers conceptual framework in respect of financial reporting, Qualitative Characteristics of Decision-useful Financial Reporting, Recognition and Measurement of the elements of the financial statements with the objective that the financial reporting should encompass all decisions.

Portfolio theory is tool investors used before committing themselves to long-term or short-term investments in securities and equities. In the current investment world, people have different investment aims. One of the most renowned motives is earning income or returns on the investment's value. However, economic research shows that using returns alone in selecting the best investment option is not adequate.

The process of financial planning for a business corporation includes a method of assessment of the current value of the company, evaluation of the present value of assets of the company, estimated growth of assets of the company and anticipated expenses of the company in future.

In other words, financial statements need to inform the reader about how things were done in the past and their impact on the present period as presented in the statement of financial position. This shows the asset and liability used in the trading period and provide information about the assets and liabilities brought forward.

Over the years such transparency might lead to mistrust between the owners and the managers leading to an Agency problem. Even though the advantage of general sets of international reporting standards is acknowledged, there are certain implementation challenges at the international and domestic levels if the objective of a harmonized and enhanced reporting structure is to be achieved.

In seeking an answer to this question, this paper borrows heavily from the elements of the portfolio theory and the asset pricing. Matousek (2012) observes that the portfolio theory is a theory of finance that aims at maximizing the expected return of a particular portfolio risk, or effectively minimizing the risks associated with a particular portfolio.

Benchmarking plays a crucial role in evaluating the performance of managers. The aspect of erasing the salary part improves the wholesome performance of the managers with the development of workplace initiatives, teamwork, adaptability, and compliance to business policies thereby resulting in an increase in the production.

The process involved having reliable testing processes and cost considerations that were always paramount in the viability of any new product introduction. High-quality, reliable, and cost-effective ATE solutions became an essential part of the industry for manufacturers to survive and remain competitive.

This report would analyse the problems faced by the company and a comprehensive recommendation would also be provided to address the issues prevailing within the company. Summer Bodysuit Ltd.’s financing dilemma would also be addressed within the report and appropriate action would also be put forward for the company to adopt in order to get the issue resolved.

Keystroke display devices can help to notify and capture all possible signal movement between each and every character typed on all keyboard devices, helping to keep track of all data transmissions and movement in the correct path and directions. Packet sniffers on the other hand can help HSBC to track records of sensitive network packets.

Despite all the theory, conferences, seminars, and on-paper efforts, ethics always take the backseat while making decisions due to cutthroat competition. Companies know that their very survival is at stake if they fail to beat the competition and the threat is so intense that there is no room for mistakes.

In its basic form, cost volume analysis allows the company to understand how the changes in the costs and volumes actually have an impact on the operating as well as net income of the firm. This sort of approach therefore can allow a firm to estimate the level of sales required to generate a specific and targeted level of income.

The main reason for investing in different securities and building a portfolio is that the investors are trying to maximize their return on investment and at the same time minimize their risk. The more diversified portfolio investors are able to create; the lower would be the risk of their portfolio and higher would be the expected return.

Good monetary policy helps stabilize the prices and curb unemployment. Monetary policies of a country are different from the fiscal policies in a way that, fiscal policies make use of government expenditures and taxation and not interest rates. A monetary policy employed by a country can either be an expansionary monetary policy or ‘contractionary’ monetary policy.

It is crucial to note that, private companies face less regulation than public companies. Despite the lack of government regulation or scrutiny from the media and complexities involved in corporate governance, private held firms should not ignore reforms in corporate governance, which affect the functioning of the companies.

Every organization tends to update its AIS in order to effectively meet the changing business needs. This paper will critically analyze all the three AIS options suggested in the given case scenario and recommend the most potential one for the company. An Overview of the Change Context The modern business environment is continuously changing and the same trend is visible in the interests of customers and investors.