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There is growing concern about the excessive managerial remuneration which was highlighted because of recent financial recession. There is much anxiety about making the remuneration packages highly controlled and avoid unnecessary risk or encourage corporate insatiability.
As a consequence to the failure of the US GAAP, various nations all over the world grew more attracted towards a financial reporting system which is more principle-based. FRC was in support to the system because principle-based rules are the regulator within the capital markets.
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The development of critical business decisions is a complex and demanding activity. The use of appropriately customized management tools and practices can reduce the relevant risks. In any case, the current status of the organization needs to be taken into consideration – referring especially to the potential of the firm.
The simultaneous use of empirical evidence can increase the credibility of the choices made. Current paper tries to identify the motivational theories available to a management accountant who has to set a budget.
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.
One tax has more detractors than supporters even though some who speak out against it would benefit from it the most. This specific tax is not assessed on money or assets that a person earns but on money that s/he inherits—the inheritance tax. The inheritance tax also goes by the name “estate tax” or the more dastardly sounding “death tax.”
It is always expected that the capital structures vary considerably across industries. And the optimal capital structure is also different for different industries. Many researchers and practitioners have come up a number theorise and some of them are explained in the following sections.
The measuring framework must take into consideration the factors of effectiveness and efficiency (measured through cost effectiveness and achieving the desired procurement results), confidence of the civil society (which is reflected in the system accountability and transparency factors), and the policy acquiescence and stability factors.
This crisis is different from the earlier crises as it spreads very swiftly from one country to another through various means. Even though it is generally agreed that the root of the problem was the housing market in US, it was flared up by the excessive leverage at macro levels by the governments, firms and households in several countries.
The present paper attempts to assess the extent to which monetary policies are influenced by fluctuations in stock market index values. Many papers have found that the extent to which monetary policymakers react to stock market changes are often driven by other factors such as the rate of inflation and output gap.
One of the obligatory things for the auditor to execute the analytical procedures for risk assessment through out the audit practices to evaluate all the financial records whether they are reliable and satisfy the auditor. There are number of non-audit practices where analytical procedures are being used commonly.
Boeing Company is the largest aerospace company of US. Its operations are in more than 90 countries. The commercial airplane division is the most prominent of all divisions. The company is headquartered in Illinois and known as premier US aircraft manufacturer.
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Mortgaged Backed Securities: Literature Review Introduction Securitisation is an accepted technique developed to “finance collection of assets which by their very nature are non-tradable and therefore non-liquid” (Vink & Thibeault, 2008, p. 3). In this way, repayment depends only on the amount of the collateral of the issue and not on the entire financial assets of the parent company or sponsor (Vink & Thibeault, 2008).
Engro Corporation is one of the leading organizations in Pakistan- a developing country, involved in diversified range of businesses. Its primary business is that of fertilizer manufacturing however, over the period of time, it has diversified itself into other sectors such as Food, Energy, and Power Generation etc. (Reuters 2011).
Either banking system deals with assets and borrowers from a location other than the institutional head quarter of the bank. More phenomenally, the difference is identified between the fund raising and distribution stream of both of them while they deal with foreign deposits and borrowings.
No. of units of production required to break even in a year is given as,
Contribution per unit of sale= (Sales price per unit - variable cost labour per unit - variable cost of material per unit) = 95-35-10= £50
Breakeven production in units = Fixed cost/ contribution per unit
Depending on the attributes of the technological concept in use they are divided into either sustainable or disruptive forms. Those technological concepts which help in the development of existing business processes and thereby augments the quality of products or services are mainly sustainable in nature
Jeff needs to be very careful to use the money in such a way that he may fulfill his plans after retirement. Obviously he would like to use his money to earn some profit on it. The financial institutions are there to help such people.
The rise and fall of organizations is dependent on the business practices adopted by them in a particular business environment. It is often assumed that the prime responsibility of any organization is to promote fair and honest business practices along with being transparent and honest to stakeholders in the short as well as in the long run.
In 2008 the world faced a financial meltdown. Globally the world faced major financial crisis and recession. The economic recession was a result of the US mortgage crisis. The subprime crisis of US caused ripple effect across the globe as a result most of the countries felt a financial crunch.
The most important aspect of investment hovers around finding a suitable economy, the most appropriate industry type, and a specific company to invest in. After completing this, in order to make the right decision, valuation models must be used to come up with a correct recommendation of buying, selling, or holding the shares of the chosen companies.
10 pages (2500 words)
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Boatright (1999) divides organized finance under three broad categories in life – financial markets, financial services companies and non-financial organizations. Ethical dilemmas in finance surely impact us the most and hence the choice of this topic. An interesting aspect of this dilemma is to understand what is considered ethical and what is not.
Beta is used to measure risk. A stocks beta indicates the sensitivity of the stock’s returns to the market returns (Madura 2006, p. 304). Madura (2006, p. 304) states that investors who have a diversified portfolio use beta to determine how well their portfolio reflects movements in the market.
Moreover they are fragmented and meet only when legally required to do so. These principals of the company have created an agency in the shape of management to carry out day- to- day affairs in order to meet strategic objectives of the company. This relationship of principal and agent has its own repercussions that create agency problems.
Every organization irrespective of whatever business they undertake has to take some sort of risk. Risk can be classified into two categories systematic and unsystematic. Systematic risks are those which cannot be controlled by the organization alone like a change in interest rate, inflation, recession etc.
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
13 pages (3250 words)
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Every company whether public or private runs on the funds provided by their stakeholders. Therefore they are not only responsible but also accountable for their stakeholders’ interest.
By definition, a budget hotel targets to the lower end of the spectrum and differentiates itself through cost leadership. While on the other hand, a luxury hotel as the name denotes targets to the upper segment of the market offering endearing features.
This research study examines how two of the largest commodity traders in the world, Vitol and Glencore International, conduct their commodity trading activities through the commodity exchanges in the United Kingdom and in its OTC market.
In just one generation the private equity industry has grew to become a dynamo for growth, innovation and enterprise (Kolade. W, 2008). Britain is a world leader in this sector with one of the largest private equity markets globally, second only to the US.
The authors Thorbecke (Resident Scholar at The Jerome Levy Economics Institute of Bard College in 1995) and Coppock (Professor, Department of Economics, Hillsdale College in 1995) conducted the study with the aim of verifying what percentage of the stock market variation can be explained by macroeconomic factors and monetary policy.
As the capital expenditure is marked in negative, the NPV is computed by adding the Capital Expenditure to the summation of the PVs of the ten cash flows.
The deduction of the capital expenditure value from the summation of the above mentioned PVs gives us the project’s NPV which is equal to 57.
1. From the given data, it can be seen that Project ‘p’ has a higher NPV as compared to Project ‘q’. Hence, if NPV is chosen as the criterion, Project ‘p’ must be preferred. However, it is also seen that Project ‘q’ has a higher IRR. Thus, form IRR point of view ‘q’ is the preferred project.
15 pages (3750 words)
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The officers may be reluctant to invest in the high-risk projects because this might put their job security in question. For this reason, there is a conflict of interest which leads to the principal-agent problem. A review of the principal-agent problem is useful in terms of creating an organizational structure which synergizes principal’s interest with the agent’s interest.
This would begin from April 1 2011 to March 31, 2011. It is very crucial for a starting business to be liquid to cover most of the expenses ;hence, all sales must be done on a cash basis only. The procedure for taking orders would be first come, first serve basis.
25 pages (6250 words)
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It is not uncommon to see immediate swings in the stock markets following the release of economic data for the country. Quite naturally, correctly anticipating the economic indicators and being on the “right” side of the market can prove to be extremely profitable for an investor.
The paper gives an idea about the two different confectionary companies operating in different parts of the world. Lindt and Sprungli are being stationed in Switzerland, Zetar plc in the UK. The paper analyses the company’s background to give an understanding of the operation of both the companies involved, the overview gives an idea of the strategies that the company follows along with the major markets in which it operates.
Barings Bank has faced several market risks including concentration of power in a single hand, monitoring of the daily activities, funding allocation, hedging of the position of the bank in the market and checking of the closing position and trading limits.
The measure being used to estimate volatility is ‘beta’ whose reliability in examining historical volatility rates have been assessed and zeroed down upon in the literature review. The methodology aims at examining the degree of volatility in the market returns of the petrochemical industry.
The author provides examples of company’s financial reports with the constructive information that should offer a fair, faithful presentation and should give a ‘true and fair view” of the financial position of business so that the stakeholders can take informed decision on such financial information.
However, it was argued that not all of the firms that have adopted the said strategies have experienced the intended performance. It is because of this that recent accounting literature has suggested the importance of accounting systems.
The internal audit function seeks determine to express an opinion on whether an entity’s financial statements show a true and fair view of the companies operations. Inclusive in showing a fair view is the need to ensure that it has been prepared in accordance with accepted accounting standards.
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.
In order to determine the set price, the European Union determined their currency against that of major world currencies like the US dollar. A fixed exchange rate is a rate whose currency amount is determined in advance.
In the process of developing a new business, financial planning is the most crucial area that indicates future viability and attractiveness. The Track Table must focus on developing a financial statement to attract several investors and sources of loans (Pinson, p.4). In this process, the sales estimation for the first two years has been forecasted.
2,185..9 million and non-current liabilities of ?3,076.6 million. On April 3, 2010 Marks and Spencer was financed by Total liabilities of ? 4,967.3 million consisting of current liabilities (due within the next 12 months) of ?1,890.5 million and non-current liabilities of 3,076.6 million.
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The use of the Internet definitely facilitates electronic communication between and among customers, suppliers and financial service providers. And at the same time, the Internet brings new avenues of channels of distribution, creating novel business models that do not allow the traditional means to be of any relevance in future (Walters, 2008).
The realized return of a stock consists of two major components which are i) dividend and ii) capital gain or loss (Navarro, 2005). The dividend is referred to a portion of the earnings of a company. It is usually distributed to the shareholders as per the direction that is given by the board of directors of the company.
Tesco plc is a constituent of FTSE 100, a global grocery and merchandise retailer. Tesco being the second largest retailer by profit after Wal-Mart and third largest by revenues following Wal-Mart and Carrefour have stores worldwide in 14 countries like Asia, North America and Europe.