...Information presented in financial statements is of critical importance to external decision mak- ers. Financial statements affect the prices paid for equity securities and interest rates attached to debt securities. To the extent that financial performance and condition are accurately com- municated to business decision makers, debt and equity securities are more accurately priced. By extension, financial reporting plays a crucial role in efficient resource allocation within and across economies. Accounting information contributes to the efficient operation of securities markets, labor markets, commodity markets, and other markets. To illustrate, imagine the consequences of a breakdown in the integrity of financial report- ing. The Enron scandal provides a case in point. At the beginning of 2001, Enron was one of the most innovative and respected companies in the United States. With revenues of over $100 billion and total company value of over $60 billion, it was the fifth largest U.S. corporation based on market value. In October 200 I, the company released its third quarter earnings report to the public. Although operating earnings were higher than in previous years, the income state- ment contained a $1 billion "special charge." Financial analysts began investigating the cause of this charge and discovered that it was linked to related-party transactions and questionable accounting practices. Once it became clear to the capital markets that Enron had not faithfully and accurately...
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...current financial reporting environment in Sri Lanka and its impact on the companies listed on the Colombo stock exchange. Hotel SIGIRIYA PLC has been chosen to study the financial reporting requirements, cultural impacts and the political influences on the Sri Lankan listed companies. 1. Financial Reporting Environment in Sri Lanka 2.1. Current financial reporting requirements for publically listed companies in Sri Lanka. In August 2007, two stages were adopted by Sri Lankan accounting standards regulators to form the international Financial Reporting Standards (IFRS). They traversed from Stage I of IFRS Adoption to Stage III, due to the result of a “gap” between the international and national sets of standards in Sri Lanka. However, on 1 January 2012, the Institute of Chartered Accountants of Sri Lanka (ICASL) successfully adopted IFRS. (eStandards Forum, 2008, p. 5). According to the Colombo Stock Exchange (2014) a requirement for a listed entity is that it must “ensure that the annual report is issued to the Entity’s shareholders and shall not exceed five (05) months from the close of the financial year of the Listed Entity when given to the Exchange”. Furthermore, publishing of the Audited Financial Statements must be in accordance with the Sri Lanka Accounting Standards. (Colombo Stock Exchange 2014 -Listing Rules s.7.5 pg4) The Colombo Stock Exchange (2014) also requires an Interim Financial Statement prepared by the listed entity. The Financial Statement...
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...C1-9 GAAP Hierarchy: Financial reporting rules: What are they, where can you find them, and which ones are more important? The financial accounting rules are called generally accepted accounting principles (GAAP). “They are the guidelines, procedures and practices that companies are required to use in recording and reporting accounting information in its audited financial statements. GAAP defines accepted accounting practices and provides a standard by which to report financial results” (Nikolai, et.al. 2010, p. 9). It took several policy-making bodies to write all the accounting standards. These bodies include Financial Accounting Standards Board (FASB), Accounting Principles Board (APB) American Institute of Certified Public Accountants (AICPA), and Securities and Exchange Commission (SEC). There is no single document that includes all the accounting standards. But the FASB has released its Accounting Standards Codification for verification by its constituents. Currently there are data bases, such as the FASB Financial Accounting Research System (FARS) that includes most accounting standards (Nikolai 2010). The FASB standards are published each year as a part of the FASB Accounting Series (Nikolai, et. al. 2010, p.13). GAAP Hierarchy: Categories | Authoritative Sources (Pronouncements) | A | “FASB Statements of Accounting Standards & Interpretations, FASB Statement 133 Implementation Issues, FASB Staff Positions, and APB Opinions and CAP (AICPA) Accounting...
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...1 THE CANADIAN FINANCIAL REPORTING ENVIRONMENT Multiple Choice—Conceptual Answer No. Description d 1. Accounting characteristics. a 2. Nature of financial accounting. c 3. Definition of financial accounting. a 4. Financial reporting entity. d 5. Efficient use of resources. d 6. Capital allocation process. c 7. Assessing management stewardship. c 8. Objectives of financial reporting. a 9. Role of AcSB. c 10. Body responsible for setting GAAP. b 11. Preparation of biased information. d 12. Parties instrumental in development of reporting standards. d 13. Stakeholders in the financial reporting environment.. a 14. “Due process”. d 15. Causes of subprime lending crisis. d 16. Management bias. b 17. Adoption of IFRS. c 18. Role of OSC. d 19. Definition of GAAP. b 20. Changing nature of the economy. d 21. Exercise of professional judgement. c 22. Major factors in the reporting environment. a 23. Impact of technology on financial reporting. b 24. Nature of the “Balanced Scorecard”. a 25. Responsibility for financial statements. d 26. GAAP for private enterprises. d 27. Reporting principles b 28. SOX. a 29 AcSB’s standard setting process Exercises Item Description E1-30 Objectives of financial reporting. E1-31 Role of securities commissions and stock exchanges. E1-32 User needs. E1-33 Sources of GAAP. E1-34 Standard Setting. E1-35 Challenges facing financial reporting. E1-36 Stakeholders...
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...Financial Environment HCS 577 July-Monday 14th, 2014 Instructor Crystal Chilman Financial Environment Financial environments in the health care industry provide a vital part in the service, quality, and care. Each health care organization fits differently within the environment. Financial management of each organization is needed for external and internal operations and financial status. The provision of health care services is dominated by not-for-profit (NFP) organizations, for-profit (FP), and governmental, (Gapenski, 2008). The job of finance in health services organizations is to plan, acquire, and utilize resources to maximize the efficiency and value of his or her industry. These health care organizations will have similarities and differences between them. Each organization will receive him or her funding from different sources. These same organizations have differences in who makes the financial decisions. The stakeholders of each organization will be varied or none at all. This paper will examine and discuss these similarities and differences. This paper will provide three examples of each FP, NFP, and government. Examples of For Profit Organizations (FP) 1. St. John’s Health System: Tulsa, Oklahoma 2. Oklahoma University Medical Center: Oklahoma City, Oklahoma 3. Hillcrest Medical Center: Tulsa, Oklahoma Examples of Not-For-Profit Organizations (NFP) 1. Integris Health: Oklahoma City, Oklahoma 2. Jane Phillips Medical Center:...
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...Financial Environments Worksheet Identify three examples of entities with for-profit, not-for-profit, and government financial environments in the health care industry. Compare the similarities and differences between the for-profit, not-for-profit, and government financial environments. For-Profit Not-for-Profit Government Examples 1. Edward White Skilled Nursing unit- St. Petersburg, Florida 2. Cleveland Clinic Hospital- Weston, Florida 3. Mt. Sinai Medical Center- Miami Beach, Florida 1. Regents Park Sunrise- Sunrise, Florida (Nursing Home) 2. Mercy Hospital, Inc.- Miami 3. St. Anthony’s Hospital- St. Petersburg, Florida 1. Jackson Memorial- Miami, Florida 2. Broward General Hospital- Ft. Lauderdale, Florida 3. Alexander Sandy Nininger State Veterans' Nursing Home- Pembroke Pines, Florida Similarities Must follow the same health regulations as nonprofit or government health facilities Must follow ethical regulations as a for-profit and government organization. Governments and not-for-profits are governed mostly by their budgets, not by the market. Must hire employees with the same training as a for-profit or nonprofit organization. Differences May give profits to shareholders. They must pay taxes to the IRS. Different in how they make their money. Not-for-profit’s incomes are not recognized by legal obligation but may be gained from contributions, fees, charges incurred, tuition, etc. They do not pay tax because of charitable contributions...
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...Environmental Finances 2. An investor bought 100 shares of Venus Corporation common stock one year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly dividend checks for $40 each. She expects the price of the Venus shares to fall to about $38 over the next year. Calculate the investor’s realized percentage holding period return. Realized percentage holding period return: = [(4400 - 4000 + 4(40))/4000] x 100% = 14% Since the stock has been sold, next year’s expected price performance is irrelevant. 3. An investor bought 10 Ellis Industries, Inc., long-term bonds one year ago, when they were first issued by the company. In addition, he bought 200 shares of the company’s common stock at the same time for $30 per share. He paid $1,000 each for the bonds, and today, the bonds are selling at $950 each (long-term interest rates have increased slightly over the past year). The bonds have a stated interest rate of 12 percent per year. The investor received an interest payment equaling $60 per bond six months ago and has just received another $60 per bond interest payment. Calculate the investor’s percentage holding period return for the one year he has held the bonds. Percentage holding period return = [(9,500 - 10,000 + 2(600))/10,000] x100% = 7% 4. Suppose a U.S. Treasury bill, maturing in 30 days, can be purchased today for $99,500. Assuming that the security is held until maturity, the investor will...
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...practicing at the facility. The facility receives 80% of its revenue through in-patient services which include surgery, medical-surgical nursing, and intensive care charges. The Emergency Department and out-patient care services generate the remaining 20% of revenue. This paper will find out the significant financial changes between the year 2008 and year 2009 and determine the reasons for these changes based on the information in the Annual report. Analysis of Changes between 2008 and 2009 Using a combination of the balance sheet, statement of revenue and expenses, and also the 2009 hospital’s annual report, significant changes in the financial position of PFCH between 2008 and 2009 were identified. Based on the examination performed by the auditors for Patton Fuller Community Hospital, there was an increase of 9.68 % in net patient revenue over the previous year, with an average of 5.91 % increase in expenses which could primarily be attributed to new agreement with third-party payers resulting to contractual adjustments that provide for payments at amounts different from its established rates. In 2009, PFCH experienced some major events which are reflected in the financial statements. It could be noted in the Statement of Revenue and Expense that the hospital experienced a 4.54% increase in the expenditure for supplies which totaled $3,238. The quick drop in the return on investment income could also be attributed to the economic decline. It is vital to strictly examine hospital...
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...Financial Environment Paper By T Hardman HCS/577 Financial management within health care organizations can be viewed in a lot of different ways. According to Siddhartha S. Syam & Murray J Cote (2010), “at the beginning of the 21st century, health remains one of the areas of crucial concern for millions of Americans” (p.158). With many changes done in health care legislation, it's giving health care organizations the opportunity to move in a different direction when it comes to reimbursement methods. The government will reimburse most health care organizations depending on the quality of care provided to the patient. The Affordable Care Act (ACA) is what stands out most when talking about reimbursement and the requirements needed when making a claim. For example they highlight operating rules for each HIPAA transaction, the new standards for electronic fund transfer and health care claims, and health plans to certify compliance with the standards and operating rules (Centers for Medicare & Medicaid Services, 2014). So as we all know there are many different types of healthcare organizations that provide medical services to patients in need. Throughout this paper, those kinds of organizations will be touched on along with their differences and similarities of the financial entities for-profit, non-for-profit, and government agencies. The examples I would like to highlight from each economic environment are (for-profit organizations: Private practices, group practices...
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...Financial Environments Worksheet In the first section, identify three specific HEALTHCARE organizations within each of the for-profit, not-for-profit, and government financial environments. For the second and third sections of the worksheet you should focus ONLY on the three environments NOT the specific organizations. In the second section, compare the similarities of financial structures, practices and policies in healthcare organizations regardless of the financial environments. In the third section, contrast the differences of financial structures, practices and policies between the three financial environments. | |Organizations in the |Organizations in the |Organizations in the | | |For-Profit Environment |Not-for-Profit Environment |Government Environment | |Specific |1. HCA. INC (Hospital) |1. U.S. Veterans Affairs Dept |1. Administration for Children and Families | |Organizations | | | | | |2. Tenet Healthcare Corp |2. Ascension Health (Catholic Hospital) |2. Centers for Medicare and...
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...Financial Environments Worksheet HCS577 Anita Cohen July 23, 2012 Dr. Dominique Sweeting Financial Environments Worksheet Identify three examples of entities with for-profit, not-for-profit, and government financial environments in the health care industry. Compare the similarities and differences between the for-profit, not-for-profit, and government financial environments. | |For-Profit |Not-for-Profit |Government | |Example|Edward White Skilled Nursing unit- St. |1. Regents Park Sunrise- Sunrise, Florida |1. Jackson Memorial- Miami, Florida | |s |Petersburg, Florida |(Nursing Home) | | | |Cleveland Clinic Hospital- Weston, Florida| |2. Broward General Hospital- Ft. Lauderdale, | | |Mt. Sinai Medical Center- Miami Beach, |2. Mercy Hospital, Inc.- Miami |Florida | | |Florida | | | | | |3. St. Anthony’s Hospital- |3. Alexander Sandy Nininger State Veterans' | | ...
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...The Current Financial Environment FIS/260-Financial Markets & Institutions: You Can Bank On It Michael Ricks When I first took a look at this assignment I thought it would be easier than it this. I looked for days on the internet trying to find banks or depositories with credit cards with variable interest rates. What I found was many banks with many credits all with annual percentage rates (APR). So to keep my insanity I just looked at three commercial banks. I looked at Bank of America, US Bank, and Regions bank. I looked at all their credit cards student, business, rewards, and secured. Bank of America credit cards Apr varied anywhere from 12.99% to 20.99%. Here is how they get people, 0% introductory APR for the first 12 billing cycles only for purchases. When that cycle ends your rate will depend on your creditworthiness. US Bank does similar and their rates are from 11.99% to 23.99%. Regions is in the same neighborhood starting at 13.99%, 16.99%, or 19.99% based on credit, but can quickly climb to 24.99% or even 29.99%. Every bank I researched, including credit unions, all based the rate that you would receive on your creditworthiness when you open your account. After that, your APR will vary with the market based on the Prime Rate as set out in the Variable-Rate information section of your agreement. The current annual percentage rate (APR) for a new car can vary from bank to bank, amount to amount, and year to year. It is not something that is...
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...Cendant Corporation Evaluating Risk of Financial Statement Fraud and Assessing the Control Environment • Describe the auditor's responsibility for considering a client's internal controls • Describe the auditor's responsibility to detect material misstatements due to fraud • Identify red flags present during the audits of CUC International, Inc.'s financial statements, which suggest weaknesses in the company's control environment (CUC was the predecessor company to Cendant Corporation) • Identify red flags present during the audits of CUC's financial statements suggesting a higher likelihood of financial statement fraud • Identify management assertions violated as a result of the misstatements included in CUC's 1995 through 1997 financial statements (prior to its merger with HFS, Inc.) • Identify audit procedures that could have been performed to detect misstatements that occurred One can only imagine the high expectations of investors when the boards of directors of CUC International, Inc. and HFS, Inc. agreed to merge in May 1997 to form Cendant Corporation. The $14 billion stock merger of HFS and CUC, considered a marriage of equals, united two large service organizations. CUC was a direct marketing giant with shopping, travel, automobile, and entertainment clubs serving more than 68 million members worldwide, whereas HFS was a franchisor of brand-name chains such as Ramada, Days Inn, Avis, and Century 21, with more than 100 million...
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...In today’s healthcare environment, where money related substances are the well-being administrations choice making, it is basically the director at all levels comprehending the fundamental ideas of social insurance account and how these ideas are utilized to improve the monetary prosperity of the association (Carroll, 2007). The real businesses in the medicinal services division include: Health services: The health services industry comprises of suppliers of well-being administrations, including restorative practices, clinics, facilities, nursing homes, home health awareness organizations, and hospices. Health Insurance: The health insurance industry which makes the majority of the installments to well-being administrations suppliers incorporates...
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...consumer bank based in Singapore. DBS is one of the largest financial services groups in Asia, with operations in 16 markets. It’s the largest bank in Singapore as measured by assets and a leading bank in Hong Kong. DBS has the largest retail network in Singapore with 79 Branches Island wide. DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising in Singapore. DBS Singapore claims to have in-depth knowledge of global market and financial expertise and offer products and services in corporate banking, Private banking, personal banking and enterprise banking. 1.2 Research title, questions and research objectives. The proposed research title chosen for this project is “Analysis and review of organizational environment at DBS”. This project would outline the following objectives: i) Outline the influence of organizational environment on the company. ii) The role of organizational environment on company’s growth process. iii) Review the impact of change in organizational environment. 1.3 Research Rationale. Firstly, cross cultural management and managing change is becoming increasingly important in today’s world where company’s trying to expand globally are associating people, organization and countries together and this is where management across culture comes into play. The main concern for an organization is its environment as it exerts variety of pressures on organization and managers...
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