Finance & Accounting Essays

Today with domestic and foreign banks operating side by side risk management in the banking system is getting efficient. By employing better risk management practices, foreign banks are likely to improve risk and return trade-offs. Studies further claim that foreign banks may reduce the volatility of credit.

The Commercial Banks can be referred to as institutions that are involved in credit activities. Credit activities can be classified into deposit acceptance and borrowing funds from other banking institutions.

Net profit margin is the ratio of net income to sales showing the company’s ability to effectively manage cost and turn its revenue into profits. Logically, higher performance ratios indicate a healthier financial condition. Profitability ratios measure the ability of the company to generate income from its investments less the costs incurred.

Generally Accepted Accounting Principles (GAAP)." Those standards were and are controlled in the Uniform System of Accounts for the Lodging Industry (USALI), which is published by the American Hotel and Motel Association.

The interaction of the framework with other standards is also an important issue. Whichever rules are the more specific should be applied, given that IAS's should be consistent with the framework.

The study tries to bring to light the whole regulation and the functioning of the Bank and the way it deals with various economic pressures. Any government has the power to regulate the economy of the country and not only does it regulate the economy, it has a vital role to ensure that the economic condition remains stable.

The author states that in the case of Kuwait, the CBK (Central Bank of Kuwait) is tasked to draw and implement appropriate monetary policy while also overseeing the health and well-being of the nation’s local banking and financial unit system. CBK’s published Annual Report during the fiscal years 2005 and 2006.

The author states that investments are known as risky placement of money in financial institutions of some kind for the purpose of attaining a regular profit and a higher value of the investment when it is retrieved. Investment can be informed of buying stocks, assets, or some form of equity.

The overall condition of liquidity position of the company is looking quite suitable and stable. Firm is looking completely in situation to solve all of its problems in the form of any kind of crisis. All of these three ratios indicate generally if firm have to pay off its liabilities in any kind of contingency, then what would be its response to the demands of its shareholders.

The financial statements and other information presented in the annual report fairly represent the state of affairs and results of the operations of Crimson Plc group. The annual financial statements have been prepared in accordance with the legal and regulatory framework, Generally Accepted Accounting Principles and the Accounting Standards.

Money in the form of deposits offers the least risk, of all financial instruments. But its value is most eroded by inflation. That is why one always prefers to store the funds in stocks, bonds, debentures, etc. The compromise in such investments is that the risk involved is more, and the degree of liquidity is less.

In this appendix, this article provides a comprehensive review of those ratios and discusses some important relationships among them.  Since earlier chapters demonstrated the calculation of each of these ratios, in this chapter we instead focus on their interpretation. Page references to prior discussions are provided if you feel you need to review any individual ratios.

The market for foreign exchange is always unpredictable. With their uncertain fluctuations in the rate of foreign exchange over a given duration of time, thus it is good to manage the risk exposure tentatively. The uncertainty of a given amount of revenue that may be gotten, after the perspective order in various currencies is converted to $ is computed.

The author states that the bank registered a profit of RMB2.286 billion for the year 2008 which is comparatively low to the previous because of the global credit crisis. BOCHK being the clearing bank for RMB denominated business in Hong Kong proactively developed its policies and report growth in deposits by 58.5%.

Citizens Advice Chief Executive David Harker cited the CAB statistics as "worrying evidence" that a large and growing number of people will continue to pay the price, and will become overwhelmed by serious debt impacting adversely on their lives. Even more worrying are the "signs that people are struggling not only to repay the credit, but also to afford day-to-day essentials" (CAB, 2007).

The lack of confidence in the future economy and real losses due to reduced economic activity must certainly affect businesses adversely. Business investment is 15% of GDP (U.S. Department of Commerce, 2009) and will decline in an environment in which businesses have fewer profits and so have less money to invest.

During this period Jack would have return of deposits amounting to $ 8000 and the return from superannuation as $ 1350. This could be deposited on long term basis and as the seven years are completed the amount could be added with the Marions return to meet their living expenses.

 In line with its mission to increase market share and to rank among one of the top three investment firms in the industry, Intersect Investments must continue its effort to diversify its product range and service delivery. Financial service is a customer oriented business and, therefore, would require high investments in the packaging and delivery of products and services.

It is wise to establish what your company can afford to spend at one time with the lowest possible profit margins.  If and when a market has been established, one can then increase and base all budgets on the outgoing sales and profits.  It can sometimes be a matter of what type of initial loss one is willing to take or what is affordable rather. 

 The case study of the impact of financial crisis on Honda car manufacturers is considered in terms of how the firm defines its core areas, evaluates its business methodologies and management philosophies, and conducts its diagnosis of management especially during a financial crisis which the world is facing now. 

The last six months have demonstrated financial volatility that has never been witnessed may be since the great depression. This paper seeks to evaluate the present fiscal condition of the US federal government with emphasis on the causes of the crisis and an exploration of the effects of the crisis on both the public and private domain.

The current system is designed in Microsoft Excel and is created mostly manually. It is an unreliable way of data handling, also it provides few opportunities for automation. Also, this way does not allow tracking sales information during a number of years. I suggest creating a new Information System for Barnsleydale using Microsoft Access.

Enron has developed into becoming a part of America’s top ten companies in the span of nearly two decades. Their sudden rise to power seemed impossible to many industries in the financial world. However, the scam which brought upon Enron success was discovered.

Risk Identification methods should have the following attributes:1.They should examine all areas of the project in a systematic manner,2 They should be proactive rather than reactive,and They should synthesize risk information from all available sources of risk information”

Managerial Accounting compares actual performance to planned performance and facilities and many other important decisions critical to the success of organizations “. (Hermanson 29) Managerial Accounting “Managerial Accounting Information is intended for internal use to provide more detailed information to managers”. (Hermanson 45) 

The author of the paper states that while investing, perhaps the most important step is to determine the reasons and the goals needed to be achieved at a later stage. Hence, the realization of need recognition has a greater value and importance in determining the type and size of the investment.

In the modern era of Globalization, businesses are facing stringent competition with a constant risk of loosing customers & market shares if their strategic management do not take timely proactive measures to align with the market dynamics and get the best out of their competitive advantages. The attributes that are essential to be measured by every organization are customer satisfaction index, SWOT Analysis, known & emerging market potentials, performance of business processes, legal & statutory compliance, enhancement in strengths of competition, risks, internal/external fraud and traces of social engineering.

Management Accounting is an indispensable tool for any business unit to set budgets. It sets standard costs and actual costs of processes, departments or products and through variance analysis measure the profitability and social use of funds. This assists the management to attract more investors and tap potential funding sources.

The restaurant in the Taff View facility is also not contributing much to the profits of the company. Although the stock and debtors position is under control, the current liabilities in the form of creditors need to be brought under control. In order to improve the profitability of the units, the following recommendations may be implemented.   

The two-year financial results posted by Bogus Limited are analysed. The company's financial performance, efficiency and stability are evaluated through the use of relevant ratios. Findings show that the company's financial performance improved as exhibited by steadily increasing sales, profit margins and bottom line earnings.

The author states that under a floating exchange rate regime, as shown in figure 1, the aggregate demand curve for domestic currency shifts from D0 to D1, causing the exchange rate to move from e0 to e1 accordingly. Therefore, the exchange rate would decrease when the foreign price level increases. The domestic price level would remain unchanged.

Any change in the political leadership of the country/region could trigger a change in the economic scenario, specifically, bond markets. A populist government might hike the rate of interest from Fixed income securities. Another leader might want, as well, to bring down the rates of such instruments.  

The Government of UK is accountable to implement appropriate laws in line with the directives (in addition to the evolution of audit laws & regulations in line with domestic industry requirements) and the Audit Practices Board is accountable to modify the audit & ethical standards as per the new laws.

Management wealth, it is argued, is a function of changes in share prices (via stocks and stock options), and changes in cash bonuses (via compensation plans). Ordinarily, managers are predicted to have greater incentives to lobby for accounting standards that lead to increases in reported earnings and thereby management wealth.

A crisis financial occurs when people are unable to pay back the loans that they knew they couldn’t afford in the first place. Now governments all over the world are cutting interest rates. Meaning, in a pathetic, macroeconomic attempt to strive off economic collapse, banking systems are increasing the supply of money to lower the price at it, to put the market back to equilibrium.

Looking into the aforementioned ratios, Gemma’s catering business is profitable. However, there is still a lot of room for improvement because based on the industry average, it is still possible to increase her profit margins if she finds a way to lower the ratio between the wages paid to her staff and her sales.

The purpose of this paper is to agree or disagree with the concept that standard financial investment information and criteria are all that is needed to effectively evaluate IT outsourcing definitions

Since the Net Present Value or NPV method is considered as the most accurate and widely used method, therefore, basing our recommendations on NPV alone, we recommend purchasing Queen at the discount rate of 10%. Since at this rate of return, the NPV is highest, therefore, purchasing Queen will add more value to the firm than KIPS.  

According to asymmetric information analysis, there are a number of factors that have lead to substantial worsening of adverse selection and moral hazards, resulting in the current financial crisis. These factors are increases in interest rates, stock market declines, increases in uncertainty, and unanticipated declines in the aggregate price level.

Through the Islamic financial system there is a facilitation of services such as lending, borrowing and investing on a risk-sharing basis. The Islamic financial system can be called a value-based mechanism and the main target is to ensure “moral and material wellbeing” of the persons as well as the whole community.

 Nokia is a manufacturer of mobile devices, which makes a range of devices for all major consumer segments and offers Internet services that enable people to experience music, maps, media, messaging and games. 

The issue of debt recovery has been one of the growing concerns in the particular context of the UK. GB Group states that “[d]ebt recovery is becoming a big business as personal debt in the UK now stands at over £1.3 trillion”. It is common practice that people likely to overlook or escape the provisions of debt payment for various reasons.

With the desire of going beyond the expectation of Wall Street by Enron’s former Chief Executive Jeffrey Skilling, the former top accountant of Enron Corporation, became a witness in line with the raided reserves to boost earnings of the company in the mid of 2000. Mr. Wesley H. Cowell gave evidence with regards to the manipulating of reserves.

Kelleher and King formed a company, raised initial capital, and filed for regulatory approval from the Texas Aeronautics Commission. Regrettably, the other Texas-based airlines, namely Braniff, Continental, and Trans Texas, opposed the idea and waged a battle to prevent Southwest from flying.

The different type of financing options available for the company Sainsbury plc is debt financing and equity financing. In debt financing, the company can acquire a loan through bank, commercial paper, creditors and bond issuance. On the other hand, in equity financing, the company can obtain funds by issuing shares publicly both common and preferred.

The payback method is not a reliable method of profitability because it stresses the return of investment and not on the return on investment. Instead of taking into account how much profit an investment can generate for a business entity, the payback method only tells the length of the time the investment is “returned.”

The given paper explains different types of direct and indirect taxes and then focuses on describing the changes that have been taking place over the past 25 years with reference to different factors like equity, efficiency, and incentives to work. The structures of certain taxes are also explained in this essay.

It is evidently clear from the discussion that there are many reasons why a business needs capital to finance its operation. Some of them are capital asset acquirement to buy new equipment or to construct a new building, the development of new products, etc. There could be internal or external sources of financing. The Food and Agriculture Organization of the United Nations.

The author states that in traditional cost accounting it is assumed that cost objects consume resources whereas in ABC it is assumed that cost objects consume activities. Traditional cost accounting mostly utilizes volume-related allocation bases while ABC uses drivers at various levels. Traditional cost accounting is structure-oriented.

The Albania financial system is at its early stage of development and while the core legal and regulatory frameworks are in place, much is still to be done if the country must catch up with the pace of development in industrialized nations. These are highly based and are affected by the prudential regulations, licensing policies and capital standards.