Finance & Accounting Essays

The mortgage is money borrowed as a loan from mortgage institutions to finance real property acquisition. It is usually paid back in specified periods, installments and interest rates. There are several factors that affect these mortgage interest rates in any given transaction and they vary from one financial institution to another.

The recent global competition compels the organizations to become more integrated, highly automated and flexible in order to reduce their cost and enhance productivity. It cannot be possible to sustain the competitiveness devoid of an accurate cost mechanism and thus here lies the necessity of cost accounting.

When businesses promote their efforts at improving the social condition or changing the environment, they often publicise these activities in some form of corporate reporting. Corporate social responsibility involves a business having integrity, “thought to be one who will likely be honest and truthful; be fair, comply with laws, promote community interests and show consistency”.

The draft Conceptual Framework for Financial Reporting issued by the International Accounting Standards Board or IASB in 2010 not only stated the same objective but also added that general purpose financial reports aid the users in making an assessment whether or not the entity’s management and its board “have made efficient and effective use of the resources provided”.

  The art of progress is to preserve order amid change and to preserve change amid order. — Alfred North Whitehead. Since accounting is an art, J. R. Wambsganss and B Sanford discuss the diverse opinions on the accounting treatment of Pollution Allowances as assets in the balance sheet. Secondary resources are gathered to affirm or disprove the pollution allowance issue. 

The following paper is of financial ratios are extracted from the financial statements of Reckitt and McBride and industry data to facilitate analysis in terms of profitability of the company. Based on the net profit margin for years 2006 and 2005 Reckitt had 0.05 and 0.16 as compared with McBride’s 0.03 and 0.04 for the same years respectively.

 Barclays Bank Plc is one of the prominent global banks in the industry dealing in retail, commercial and Investment Banking. The group has a significant number of activities in several countries and enjoys a substantial asset base. The financial statement for the year ended December 2009 of Barclays Bank Plc has been prepared in accordance with the accounting framework of  IFRS. 

Though this study will be qualitative as well as quantitative in nature, however, the focus will be on determining the use of data warehousing for financial reporting purposes. In a sense, this study will attempt to provide new practical tools to the managers to monitor the performance of the firms in real-time situations.

Judging impairment is a subjective financial activity. Financial managers are at will to determine the level of impairment of fixed assets. In the same context, accounting standard-setting does require compromise to strike an agreement and it cannot protect itself from the direct threat of politicization. Financial managers use their personal financial understanding for the purpose of providing.

Labour Union litigation settlement costs, fuel consumption and unproductive staff and labour administrative costs, and ageing aircrafts maintenance costs, through tough budgetary controls, and effective variance analysis, could go a long way in serving the financial interests of the stakeholders of British Airways and reverse its financial fortunes in the years to come.

Risks must be tied to earning to price, cash flow to price and dividend to price in all of the three dimensions stated above: small vs. big stocks, value vs. growth stocks and market returns sensitivity. Those risks analysis are necessary for investors to make informed decisions that are hidden by the CAPM.

Weak form of efficiency outlines that the future behavior or future prices of the shares cannot be predicted with the help of observing past trends in the prices. As such past is not considered as the effective means of predicting the prices of the shares and any kind of technical analysis may not result in abnormal profits to be obtained by the investors.

The traditional ways of trading no longer reaped the expected returns for the business houses. The financial services companies all across the globe are largely affected by such paradigm shifts. The influential factors of globalization have turned the world to be a smaller place to live in. The revolution of the internet has significantly affected the ways of doing business for the banks. 

After pondering upon the current situation that your charity faces, I concur to your apprehensions regarding 50% down payment to Vital Office Furniture Limited with which you are not much familiar with. It is, in fact, a good practice to be very vigilant when beginning a relationship with a new supplier. 

When using this procedure, expenses may be allotted according to the specific class of commodities where that class can be linked to those expenses (Daems, 2005.p.63). For example, if 100 chairs were manufactured at a value of US$-5000, each chair will have a production value of $5000/100 to get $500 per chair.

The budget of the Essex Fire Authority for the year 2004-05 shows a gross expenditure of £66,023,000. Essex net expenditure touches £62,069,000 after deducting a specific transitional grant of £821,000 and an income of £3,133,000. Due to an increase of £2,100,000 as a contribution to general balance, Essex's budgetary needs have reached a total.

The report includes a brief history of the development of the exchange and the way in which the communist government has impacted the economic health of China. With a market that is opened on a very limited basis to foreign investors, control of economic trading is still maintained under Chinese control.

Like Pay Back period, Benefit-Cost ration is known by other names such as Profitability Index or Desirability Factor or Value Investment Ratio or Profit Investment Ratio. The selection criteria of this method are that the project is accepted if the Profitability Index is greater than one and rejected if the Profitability Index is less than one.

In the report, the author justifies the portfolio, investment strategy and other topics like taxation, dividend if any elaborate it. According to Portfolio theory, to generate high profit you have to take risks, more the risk more chances of profit. The strategic investment is a term which is related to the strategy of a company.

To analyze short term liquidity of Vmoto, quick ratios have been calculated however, the quick ratios are equal to current asset ratios for the years 2009, 2007 and 2006. It is because the company is not carrying any inventory and the prepayments have been only made in 2005 and 2008. Quick ratios support the findings of the current assets ratio. 

Business combinations are the source of acquired goodwill as internally generated goodwill is not treated as an asset. Some of the issues like the adoption of only the ‘purchase method’ of accounting for combinations, no- amortization of goodwill and other intangible, recognition of intangibles in larger way, fair valuations of contingent liabilities.

The return on shareholder’s equity ratio is another important investment valuation ratio used by the investors to evaluate the profitability of the company and its ability to generate earnings by utilizing the capital invested by the equity shareholders. This ratio is considered as more meaningful to the investors. 

In any case, investors are free to set the criteria on which their choice on a particular fund will be based; the relevant choice would be also based on criteria of different type like ‘the investor’s goals, philosophies and risk tolerances’ (Darst, 2007, 455) while the quality of ‘information on the practice of asset allocation’. 

Bombardier is a company that offers a variety of services including design, manufacturing activities, aerospace, rain equipment, recreational products, and financial services. The diversified services the company offers allow them to enter into industries which are a growth period, thus the stock could be categorized into a growth stock. 

An analysis of the Manchester Club reports highlights the losses incurred over the years mainly due to the lower revenues and rising expenses. The club also failed to earn any positive return for its investors as is evident from the negative return on the shareholder's fund. In one of the four years, the club achieved a positive profit margin.

All the growth indicators are showing negative growth and as such, it may be difficult to compute the key indicators such as dividend yield, growth rates as well as the cost of equity. In order to compute these indicators, it may be more plausible if methods like CAPM are used to compute the required rate of returns as well as future dividend patterns of the firm.

The bank is a limited liability company and was incorporated in the United Arab Emirates (UAE). The operations of the bank have substantial local exposure and the bank conducts it through a network of 50 branches and four pay offices. Analyzing the group structure of the bank, Australia’s Macquarie Bank. 

The author states that government agencies and economists around the world are putting all the efforts to mitigate the adverse impacts that have put the future of the entire world at stake. In order to minimize the influence and impacts of the world's economy, researchers are working to find out the basic grounds, causes, and the dangers.

It is evidently clear from the discussion that financial regulations are rules and laws that control the manner in which financial institutions like brokerage firms, banks, insurance, and investment firms transact their financial businesses, on top of which, they also control what these financial companies can do and cannot do. 

The new types of locations may not have the right customers for them although customers may have greater spending power but they might not be the exact cake-customer the bakery is looking for. Probably, they would need to invest in doing more sampling and research to exactly find out what these customers need before trying out the new locations. 

It is important that the data contained in the report are valid, realistic and reliable. Thus, in GM’s case, the data should be reliable because the readers (i.e., analysts, government regulatory bodies, and other concerned groups) depend on these data to show the level of performance of the company in terms of social responsibility. 

The purpose of the study was for FRC to perform a review of International Financial Reporting Standards (IFRS) 3 (revised) on Business Combinations after its application and to submit feedback to the International Accounting Standards Board (IASB). In summary, the said study found that the over-all “results were disappointing”.

A doctor uses a  thermometer to measure a body’s  temperature of a patient if the latter is above the normal temperature so does  a businessman needs also some tool to determine whether financially he has reason to go into business or when he is already in business, to adopt or reject a proposal that may come his way.  

 Over the past few years, the significant increase in crude oil has had a tremendous change in the airline industry. The price of crude oil has increased from $38.27 a barrel in 2004 to $70-85 a barrel in August 2005. In December 2005, the price fell slightly, but it still regained its upward trend in the early months of 2006, particularly in the month of April when it exceeded $70 a barrel.

Through the pursuance to the requirements in securities exchange act of 1934 Section 13 or 15(d), the register has effectively made this report has verification by the relevant authorities in charge. Through the pursuance Securities Exchange Act of 1934, the register has effectively made this report be having verification from the relevant authorities in charge.

Although, answering whether throughput will ultimately replace cost accountancy is a huge NO as many principles in Throughput Accountancy relies on Costing basics. Besides, the general public, as well as the government, still trusts cost principles based on their non-responsiveness towards assumptions and display of more accurate results.

It is vital to say that according to one Deloitte article IFRS 9 — Financial Instruments (n.d.), some criteria need to be met necessarily for a hedging relationship to get qualified for hedge accounting. First, only eligible hedging instruments and hedged items should constitute the hedging relationship.

Based on the stiff competition that is being experienced by companies in the contemporary business atmosphere, there is a need to come up with an appropriate business plan that acts as a guideline towards the achievement of a firm’s goals. The business plan entails a formal statement that indicates the objectives of a firm and the techniques that are emulated to achieve these goals.

Subprime signifies the credit status of the borrowers of subprime loans and does not correspond to the interest rates of such loans. Any type of loans offered to the subprime borrowers which do not satisfy the prime guidelines of a loan is termed as subprime loans. It is a process of lending money to a group of borrowers who are classified as subprime borrowers.

 Tablet Development is focused on providing high quality and custom-designed applications for tablets manufacturers and operating system providers. Its core products are X5, X6, and X7 that have been in the market for the last 2 years. However, there are major drawbacks in the existing price and R&D budget allocation strategies that have undermined the new product development cycle in the organization.

Management accounting and financial accounting are both vital tools for the business, but the two serve different purposes. Management accounting is the process of identification, analysis, interpretation, measurement, preparation and the flow of the information that is used by the management in the evaluation, controlling and planning.

According to the paper, Aéropostale’s customer base consists of teenagers along with young adults. The company provides customers with high-quality merchandise at an affordable price, and only sells their products at their stores.  Aéropostale currently has around 950 mall-based stores and sells teen outerwear using his famous trademark.

The bank can serve as the company’s agent for documentation and structuring. It can counsel the company on various transactions. Like the bank can guide the company whether undertaking a transaction will be in the long-term interest of the company by giving guidance about the anticipated cost of funding and the expected returns.

Simplification of the estate tax code would result in aligning the economic activities of the taxpayer with their personal activities. This would not only reduce the cost of compliance, enforcement of code by the federal treasury, and lesser administrative cost but also provide the estate tax prayer in filing simplified tax returns.

The three most frequently used capital components are debt, common stock and preferred stock. Each capital component has a capital cost, which is the rate of return demanded by the lender or investor. The average capital cost of all the capital components employed by a firm is called Weighted Average Cost of Capital (WACC).

Different kinds of financial statements have their own purposes that could help decision-makers as basically whether there is a basis to continue operating the business. Whether decision makers like it or not, there are implied alternative courses of action for a company because of the concept of opportunity cost in economics.

Similar to the medical and legal professions, society is also obligate to give grants to the public accountants some extra and especial rights which help them improve their performance and handle certain activities with more proficiency as they are supposed to get something good in return (Mautz, 1998). Professional practitioners are always on the higher expectations of the public.

The price elasticity of demand is a measure of the degree of sensitivity of demand to changes in the price. Luxury goods fall within the domain of price elasticity. An increase will lead to lower demand, and therefore, lower sales. Similarly, when demand is inelastic, an increase in price will hardly make a noticeable difference. 

The author concludes that business exists to make a profit and maximize investors return by meeting customers’ needs in a sustainable way while taking care of the environment they are operating in. With this being the focus, companies that execute the goal so well always find themselves ever growing and expanding territories

BBY is a leading brand in consumer electronics and it owns 1,069 Best Buy stores and 74 Best-Buy mobile stand-alone stores as of February 2010. The company has printed its footsteps in the major continents including Europe and Asia. Its major revenues stem from consumer electronic items, home office appliances, and entertainment software.