The standards are meant to create greater transparency, accuracy, and efficacy in financial reporting, which itself has the goal of providing useful information about the reporting entity's capacity as a capital provider -- to investors, creditors, etc. (Walton, 2011; Ernst & Young, 2008)
An investor always concerned with the amount of profitability of the company that is why selecting these ratios will certainly fulfill the appetite of this assignment. Profitability Ratio Net Profit Margin (NPM) NPM is one of the largest used profitability ratios in the literature of finance (Cinnamon & Larsen, 2007)
An investor always concerned with the amount of profitability of the company that is why selecting these ratios will certainly fulfill the appetite of this assignment. Profitability Ratio Net Profit Margin (NPM) NPM is one of the largest used profitability ratios in the literature of finance (Cinnamon & Larsen, 2007)
An investor always concerned with the amount of profitability of the company that is why selecting these ratios will certainly fulfill the appetite of this assignment. Profitability Ratio Net Profit Margin (NPM) NPM is one of the largest used profitability ratios in the literature of finance (Cinnamon & Larsen, 2007)
65% which shows that the company is able to generate 22$ by investing 100$ which is good as compared to the industry average. Liquidity & Management Ratio Current Ratio (CR) Liquidity in finance means a thing which has the propensity to sell and buy instantaneously (Christopher, 2008)
65% which shows that the company is able to generate 22$ by investing 100$ which is good as compared to the industry average. Liquidity & Management Ratio Current Ratio (CR) Liquidity in finance means a thing which has the propensity to sell and buy instantaneously (Christopher, 2008)
65% which shows that the company is able to generate 22$ by investing 100$ which is good as compared to the industry average. Liquidity & Management Ratio Current Ratio (CR) Liquidity in finance means a thing which has the propensity to sell and buy instantaneously (Christopher, 2008)
The overall trend of the company's revenue is quite attractive from the standpoint of an investor and an investor should think to park his money in the stocks of the company. Vertical Analysis Vertical analysis is a name of matching the performance against an element of the financial statement like in the income statement, the benchmark would be the sales and in the balance sheet it will be total assets (Masom & Zaigham, 2007)
The overall trend of the company's revenue is quite attractive from the standpoint of an investor and an investor should think to park his money in the stocks of the company. Vertical Analysis Vertical analysis is a name of matching the performance against an element of the financial statement like in the income statement, the benchmark would be the sales and in the balance sheet it will be total assets (Masom & Zaigham, 2007)
Part-5 Conclusion/Recommendations Organization is basically referred to a place wherein hundreds of people work together just to achieve a specific goal. The goal may be of two fold, like the goal can be economical or can be non-economical (Rachev, & Fabozi, 2008)
6 billion which is enough to know that the company is now the leading mining company of the world. The company not only worked for itself but it also indulged itself in the social works like the company supported the first HIV testing campaign with the Chamber of Mines in South Africa in the year 1986 (Value Line Investment Survey, 2010)
S.$ 3,085 2001 1,563 2002 1,592 2003 3,501 2004 3,521 2005 5,189 2006 5,294 2007 5,215 2008 2,425 2009 6,544 2010 From the analysis, it has been found that the company is in a good financial health which can be measured from the level of net income earned by the company (Wall Street Journal, 2009)
The act applies to all six players in the corporate reporting supply chain, which includes the organizational executives, the board of directors, the information distributors, the third-party analysts and the investors and other categories of stakeholders (such as employees, customers, governmental and non-governmental institutions). Each of the six players has distinct responsibilities, but the commonality of all modifications is the focus on three key-elements to building trust - "spirit of transparency, culture of accountability [and] people of integrity" (Bautista, 2004)
They as such worked at night, behind closed doors, and often feared for their safety. Despite this, they managed to unveil the illicit operations (Cooper, 2007)
The provisions of the Sarbanes-Oxley Act are divided into nine sections, each dealing with specific issues: (1) public company accounting oversight board, (2) auditor independence, (3) corporate responsibility, (4) financial disclosures, (5) conflicts of interest, (6) resources and authority, (7) studies and reports, (8) corporate and criminal fraud accountability, (9) white-collar crime penalty enhancements (Website of the Sarbanes-Oxley Act, 2002). A notable provision sees that the companies are obliged to change their auditor every five years and that the auditing organizations are banned from performing certain types of non-audit services to their clients (Lee)
The system is highly helpful as it will allow regulatory institutions to more efficiently browse through corporate records and identify any illicit operations. In 2001 for instance, the Securities and Exchange Commission was only able to review the corporate fillings of 16% of the organizations; Enron's financial statements had not been reviewed by SEC since 1997 (Malpass, 2002)
As a result, some changes were imposed. The need for these modifications emerged from the analysis of several accounting red flags, amongst which the following: Some multinational organizations were using scams to hide debt and other related data Some organizations would fail to disclose the costs of the sold goods They were beginning to amount both inventories as well as accounts receivable They would often change auditors in order to hide their illicit operations (or the auditors would help the companies with their misreported accounts) The occurrence of doubtful accounts and entries in financial records Differences in the growth rates of the net income and the overall sales The cash flow from operations would often be negative or highly fluctuant Companies would often become engaged in multiple commitments and revealed various contingencies The individual expense items would register suspiciously high increases / decreases The profit margins would grow unexpectedly Unusual sources would generate large profits; entries of "other" to account for elements in financial statements Rapidly decreasing assets, concomitant with rapidly increasing liabilities Strong link between financial statement measures and the bonuses to the executives and the stock option plan (Creative Financial Analysis Limited)
For financial regulation within that country has indeed changed the rising unethical business practices to a certain extent. (Jennings, 2003) The only hope is that several more acts of this kind will be passed, and the code of ethics within a business would be strictly adhered to in the future
GAAP Convergence and IFRS: What you Need to Know about the IASB and FASB's Joint Projects." (2013, June)
Since they have different approaches, the two accounting methods for customer loyalty programs can result in significantly varying accounting. Conceptual Approach: As previously mentioned, IFRS and GAAP differ in their conceptual approaches where the former is principles-based while the latter is rules-based (Forgeas, 2008)