Finance Policy Assignment example
Masters
Assignment
Finance & Accounting
Pages 7 (1757 words)
Download 0
Question 1 a) Financial accounting is very important in the management of business as financial management has a large number of functions. My role of being a CFO is very important as to classify the data appropriately in ledgers. It is not just mere recording of entries but it is also a way to interpret financial information and this should be adequately communicated to the CEO…

Introduction

A business’s financial position is evident from its profit and loss account and the balance sheet. 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 in the firm. It is very important that the financial information provided must be reliable and authentic. The primary objective of my role as CFO is to interpret the firm’s accounts accurately and identify which of the investment methods could benefit the firm in the long as well as the short run. This could be achieved by making appropriate review of the financial statements as well as developing accurate interpretations. This is supposed to benefit the firm and its stakeholders. b) The company can use concise financial report, which consists of Consolidated Income Statement, Statement of Comprehensive Income, Balance Sheet, and Statement of Changes in Equity, Statement of Cash Flows so that all the third party investors and stakeholders could evaluate the firm’s business. ...
Download paper
Not exactly what you need?

Related papers

Central Bank and Monetary Policy
This paper deals with central bank objectives, instruments and theory behind them. Five objectives of central banks will be described and discussed. Central banks’ objectives are price stability, stable real growth, financial stability, and interest rate and exchange stability. Then, direct and indirect tools of monetary policy will be described and discussed. Direct tools affect directly the…
Financy Policy Assignment
The market value of a firm is dependent upon the capital structure of the company. The firm Gibson ltd is equity financed, therefore, the beta of assets as well as of equity is the same. The total operating cash flows for the period of four years in the division are as follows: North - $60,000,000 South - $32,000,000 The taxable operating profits for the period of 4 years in the divisions are as…
Dividend Policy Corporate Finance Essay
Dividend policy are a very important and crucial decision for any firm and needs to be taken in a planned manner so as to have a positive impact on all stake holders. The dividend policy needs to be clearly defined and may change every year depending upon the dynamic nature of the business. The firm can choose to retain all the earnings or pay them out as dividends or even strike a balance in the…
Finance Policy and Practise
The LTV ratio is used to determine whether the borrower is likely to default. A borrower who is considered rational is likely to default when the value of the collateral falls below the value of the loan by an amount which equates to the net cost of the transactions such as relocation expenses, future payments for being deficient and the stigma attached to the situation (Crawford and Rosenblatt…
Finance
investment in diversified portfolio like equity, bond, preference share, different securities etc in domestic as well as international stock market. A number of companies are attached with this investment process where the finance managers and the fund managers of the investment companies are responsible for the whole process of investment by taking into consideration the associated risk factor…
Finance
The capital structures of the companies were affected strongly since the availability of debt capital financing as well as equity capital financing declined considerably. Under influence of the financial crunch firms reduced security issuance and financial institutions reduced issuance of loans by a large extent (Fosberg, 2012). Among many consequences, the major consequence faced by the firms was…
finance
SOCAR also acts as the major rights holder in the oil and gas industry. It also acts as a government mean to control the oil and gas sector in the state of Azerbaijani. Oil exploration in the Caspian sea began in the year 1992 when the Kazakhstan government announced an oil exploration project in the Caspian sea. The Caspian Oilfields Development Project has an oil exploration scope of operation…