...Dangerous derivatives at the heart of the financial crisis Financiers have engineered a “shadow banking system” that has subverted regulation and dumped risk. Complex derivative trades have fuelled a decade or more of cheap credit and destabilised the financial system. The financial and human costs are now being revealed as the massive borrowing spree unwinds, leaving the public purse to pay for failed corporate structures and the threat of a major economic recession. Fund managers, insurers and bankers have transformed investment practices by creating financial instruments known as derivatives, whose value is derived from the price of another underlying asset. The original idea of derivatives was to help actors in the real economy, such as farmers and manufacturers, insure against risk. A company may want, for example, to guard against increases in the prices of steel, wheat or other commodities. Price stabilisation and risk mitigation are worthwhile objectives, but many derivatives trades have crossed the line into speculation rather than risk management. Companies have been encouraged in this by derivative traders, who make money each time they create or sell a new product. Most derivatives are sold “over the counter” through private trades rather than on public stock or commodity exchanges. This gives investment banks flexibility to propose to their customers whatever deal they want, rather than being bound by the trades sanctioned by exchange supervisors. As the deals are...
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...Tamira is feeling pressured by her boss to provide up-to-date financial statements for FY ending December 31, 2010. She has only 24 hours to post adjusting entries to appropriately show her company’s correct financials for her boss’s dinner meeting with a bank. Tamira knows that the financial statements will not be ready in time for the dinner meeting with the bank because she does not have enough time to prepare and post the adjusted entries. Under the pressure from her boss and a tight 24-hour deadline, Tamira decides to estimate many expense accrual accounts. She uses a low estimate, which in turn will make the company’s financials look better than what they actually are. This is an unethical decision. Tamira is not following GAAP. The aim of GAAP is to make the information in financial statements is reliable, relevant, and comparable. By using low estimates, she is overstating her company’s financials, which could ultimately result in her company securing a bank loan. The pressure put on Tamira by her boss to provide update financials in 24 hours caused her to make an unethical decision. Tamira could have taken several different courses of actions that ultimately support GAAP principles. She should have communicated with her boss that she did not have enough time to complete the up to date financials for FY 2010. If it was so important for her company to secure a bank loan, it should be Tamira’s top priority to provide her boss with accurate information. She should have...
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...Com - Financial Analysis Case Study Name Institution Course Date Amazon.Com - Financial Analysis Case Study Introduction The bookselling business is one of the stable developing industries which have an estimated a total sale of $27 billion in 2006. The vending of the books mainly relies upon distinctive seasons. The business has different clients who purchase various types of books which also incorporates the professional books, trade books, college books, and mass business paper-back books. With solid competition from the corporate sector, the organizations are strongly concentrating on adopting distinctive ways and means to win more customers and getting a high market share in the company. Company Overview Amazon.com is thought to be the market player in the e-trade industry; that is, bookselling. The company was established by Jeff Bezos, who concentrated on upgrading the book shopping experience of buyers, with the development and better approaches to selling books via the web. One of the key players of the company is Noble and Barnes. Initially, the company began as an online bookshop that has transformed into one of the biggest online retailers offering items ranging from movies and music to furniture and artwork. As its website states, "it is by configuration that technological development drives the growth of Amazon.com to offer clients more different products, at lower prices, and even more conveniently." In this paper, we will review the financial status...
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...CHAPTER ONE INTRODUCTION 1.1. Background of the Study In Ethiopia, all Non-Government Organizations (NGO’s) have to make strategic choices regarding their resources by identifying priority activities, donor’s interest & Government and Charities and Societies (ChSA) reporting requirement. Even within the Civil Society Organization (CSO) itself, the different departments compete for resources with maximum approved ceilings and having in place a good financial management system is expected to provide needed tools in order to make timely decisions on fund allocation as well as monitoring performance that adhere to the reporting requirements set by Donors and Government. The financial processes of recording, planning, monitoring and controlling have to be done on an ongoing basis in conjunction with other functions of the organization for maximum impact to achieve the objectives of the organization. With the increase in the number of CSO’s operating in Ethiopia and to address the need for a regulatory body, in 2009 the Ethiopia Government issued Proclamation No. 621/2009. This proclamation provides procedures for the Registration and Regulation of Charities and Societies there by establishing Charities and Societies Agency (ChSA) under the Ministry of Justice. Then Regulation No.168/2009 was issued by the...
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...Financial Statements Analysis - An Introduction MODULE - 6A Analysis of Financial Statements 27 FINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION You have already learnt about the preparation of financial statements i.e. Balance Sheet and Trading and Profit and Loss Account in the module titled ‘Financial Statements of Profit and Not for Profit Organisations’. After preparation of the financial statements, one may be interested in analysing the financial statements with the help of different tools such as comparative statement, common size statement, ratio analysis, trend analysis, fund flow analysis, cash flow analysis, etc. In this process a meaningful relationship is established between two or more accounting figures for comparision. In this lesson you will learn about analysing the financial statements by using comparative statement, common size statement and trend analysis. Notes OBJECTIVES After studying this lesson, you will be able to : explain the meaning, need and purpose of financial statement analysis; identify the parties interested in analysis of financial statements; explain the various techniques and tools of analysis of financial statements. 27.1 FINANCIAL STATEMENTS ANALYSIS (MEANING, PURPOSE AND PARTIES INTERESTED) We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared...
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...S w BEST FINANCIAL SERVICES INC. Ian Dunn wrote this case under the supervision of Elizabeth M.A. Grasby solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Richard Ivey School of Business Foundation Version: (A) 2010-05-18 It was January 20, 2008, and Linda Best, founder and sole shareholder of Best Financial Services Inc. (Best Financial), had just finished her final client meeting of the day. The meeting was with one of her top clients, Gerald Young, who had informed her that he would no longer be using Best Financial since he was moving his assets to one of Best’s competitors. The loss forced Best to think about the future direction of her company. Without Young’s business, Best Financial would struggle to exceed the previous...
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...Financial Analysis of the McDonald’s Corporation MCD, NYSE (New York Stock Exchange) One McDonald's Plaza, Oak Brook, IL 60523 Map +1-630-6233000 (Phone) +1-630-6235700 (Fax) Abstract McDonald’s is the most famous and well-known fast-food company in the world. This case study examines McDonald’s from a financial standpoint. This case study will be broken down in three parts. Discussed first will be a full description of McDonald’s corporation, including its background, followed by a financial overview with comments for each financial category reviewed, the a comparison of financial ratio’s between McDonald’s and it rival Burger King derived from their 2009 and 2009 annual reports. Finally a support will be provided based off of all findings. Part One: Company Description The McDonald’s Corporation is a well-known restaurant chain that franchises and operates fast food restaurants worldwide. Reuters (2011) states that each restaurant is operated either by the Company or by franchisees. This includes conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The company’s mission is to be our customers' favorite place and way to eat (McDonald’s, 2011). Company history McDonald’s history originates in 1940, when it started out as McDonald’s Bar-B-Que by Dic and Mac McDonald. In 1948 McDonald’s was officially founded serving only nine items, which included a 15-cent hamburger...
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...Health Care Case Study: Financial Statements University of Phoenix Health Care Financial Accounting HCS/405 December 06, 2010 Health Care Case Study: Financial Statements This paper is a health care case study of financial statements for Patton-Fuller Community Hospital. This summary is a review of the annual report and financial statements and the differences between the audited and the unaudited statements. The financial ratios are examined to determine if there has been improvement from 2008 to 2009 and to explain the cause. This paper will also summarize the relationship between revenue sources and expenses and explain the effect of revenue sources on financial reporting. The summary will also determine how the hospital’s revenues and expenses are grouped for planning and control. Audited and Unaudited Financial Statements The balance sheets for the Patton-Fuller Community Hospital for the years of 2008 and 2009 appear to have a discrepancy of $1,000,000 in the patient accounts received. On the 2009 unaudited statement, there was $59,787,000 and on the audited there was $58,787,000 which accounts for the $1,000,000 difference. Additionally on the Statement of Revenue and Expense for years 2008 and 2009 there was a discrepancy of $1,000,000 in 2009. This discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited shows $14,797,000 which accounts for the $1,000,000 difference. This makes the “net...
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...Corporate Overview Table of Contents Corporate History 2 Top Management Team 3 Conclusion 5 Appendix A – Vertical Analysis 6 Appendix B – Horizontal Analysis 7 Appendix C – Ratio Analysis 8 Appendix D – Strengths and Weaknesses 9 Appendix E – Miscellaneous 10 Footnotes 11 Corporate History The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. In the late 1970s, they were both officers in a Southern California home-center chain called Handy Dan when turnaround artist Sanford S. Sigoloff took over Handy Dan's ailing parent company, Daylin Inc. The corporate raider was notorious for gutting senior management, but as Marcus writes in the duo's autobiography, Built From Scratch, "Handy Dan made so much money that we thought Sigoloff would be stupid to get rid of us." They thought wrong. In 1978, citing trumped up charges that they had allowed an underling to create a fund improperly used to fight a union at Handy Dan stores in San Jose, California, Sigoloff did fire Marcus and Blank. The Home Depot is a do-it-yourself, home improvement store based on excellent customer service, low prices, and a wide selection of products. The company is headquartered in Atlanta, GA, where the business began with two stores. From the start, associates offered the best customer service in the industry by guiding customers through projects such as laying tile, changing a fill valve, or handling a power tool. Store associates undergo rigorous product knowledge...
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...ENTR 510 Week 6 Case Study Pkolino Financials Purchase here http://devrycourse.com/ENTR%20510/entr-510-week-6-case-study-pkolino-financials Product Description ENTR 510 Week 6 Case Study Pkolino Financials Table of Contents Introduction3 Key revenue drivers3 Influencing revenue drivers3 Key cost drivers4 Areas an investor might challenge4 References5 ENTR 510 Week 6 Case Study Pkolino Financials Purchase here http://devrycourse.com/ENTR%20510/entr-510-week-6-case-study-pkolino-financials Product Description ENTR 510 Week 6 Case Study Pkolino Financials Table of Contents Introduction3 Key revenue drivers3 Influencing revenue drivers3 Key cost drivers4 Areas an investor might challenge4 References5 ENTR 510 Week 6 Case Study Pkolino Financials Purchase here http://devrycourse.com/ENTR%20510/entr-510-week-6-case-study-pkolino-financials Product Description ENTR 510 Week 6 Case Study Pkolino Financials Table of Contents Introduction3 Key revenue drivers3 Influencing revenue drivers3 Key cost drivers4 Areas an investor might challenge4 References5 ENTR 510 Week 6 Case Study Pkolino Financials Purchase here http://devrycourse.com/ENTR%20510/entr-510-week-6-case-study-pkolino-financials Product Description ENTR 510 Week 6 Case Study Pkolino Financials Table of Contents Introduction3 Key revenue drivers3 Influencing revenue drivers3 Key cost drivers4 Areas an investor might challenge4 ...
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...Health Care Case Study: Financial Statements The paper is a health care case study on Patton-Fuller Community Hospital’s financial statements. The summary of the paper is a review on the annual report financial statements at Patton-Fuller Community Hospital. A discussion on how the audited and unedited financial statements differ. An explanation will be discussed on the financial ratios for the hospital improving. The relationship between revenue sources and expenses on Patton-Fuller’s financial performance will be discussed. The effect of revenue sources on financial reporting at the hospital will be discussed. The hospital’s revenues and expenses grouped for planning and controlling will be explained. Audited & Unaudited Financial Statement Differences The balance sheet for the Patton-Fuller Community Hospital for the years of 2009 and 2008 appear to have a differences or discrepancy of $1,000,000 in the patient accounts receivable. On the 2009 unaudited statement there was $59,787,000 and on the audited statement there was $58,787,000 which accounts for the $1,000,000 difference (Patton-Fuller Community Hospital, 2011). Additionally, on the Statement of Revenue and Expense for years 2009 and 2008 there was a discrepancy of $1,000,000 in 2009. The differences or discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited report showed $14,797,000 which accounts for the $1,000,000 difference (Patton-Fuller Community...
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...The rapid liberalization of the Islamic financial industry in Malaysia has been encouraging the participation of foreign institutions in Malaysia, thus creating a diverse community and developing domestic and international takaful operator. At present there are eight takaful operators and two retakaful operator, with five foreign investment from the UK, Bahrain, Germany and Japan. Takaful operators conduct business both local and foreign currency. Malaysia continues to progress and build a rapid development in the industry by encouraging financial institutions around the world to establish takaful and retakaful operation in Malaysia to conduct foreign currency business. Domestic Islamic financial institutions may also apply for ICBUs, a dedicated division to conduct foreign currency business. ICBUs also be given various tax incentives and privileges lead to a reduction in the cost of doing business and to enter the market...
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...Case Study about Sun Life Financial Services Manalaysay, Levi Jhanine P. MG11A Prof. Rosalinda Lacerona Title of the case: Sun Life Financial Services Time Context: Summary/ Abstract Sun Life Insurance is an international insurance company, providing individual and corporate life insurance, group retirement services and benefit management services. The Canadian operations have offices located throughout Canada, with the head office in Toronto. The Group Claims division provides drug and dental claim management and claim adjudication to companies in Canada through its 4 main centres in Toronto, Ottawa, Edmonton and Montreal. Clients include the Federal Government, City of Toronto, Royal Bank of Canada and Magna International. Sun Life Canada alone had a customer base of 7 million. It had its stock listed on the stock exchanges of Toronto, New York, London and Manila. Sun Life’s presence in Hong Kong has been growing stronger and stronger over the past 100 years. Clear and sound policy formulation requires any company to have well defined business objectives, vision and mission. Sun Life Hong Kong aims to be one of the top five players in the Hong Kong market for both wealth management and insurance. In the present time, Sun Life manages assets in excess of $425 billion and has an employee base of more than 14,700 and few thousands of independent agents worldwide. By 2001, with revenues of C$ 16.7 billion, Sun Life Financial Services (Sun Life) had emerged...
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...Sodexo and Principle Financial Group Case Study MGT/312 June 22, 2015 Gregory Lucht Sodexo and Principle Financial Group Case Study 1. What are some of the ways that Sodexo effectively manages diversity? Diversity Inc. constructed a list of 440 companies, and of the top fifty Sodexo was ranked number one (George & Jones, 2012, Chapter 4). Sodexo is considered the best company to work for minorities, women, veterans, and people with disabilities and the LGBT community. Diversity and inclusion are critical to the success of an organization through efficiency and effectiveness. Being that a business in any market is competitive, it is important for companies to embrace diverse employees who can provide the company with different perspectives, cultures, and solutions. Sodexo manages diversity through conducting mentoring programs, diversity training, various encouragement, and interaction. Different groups are constructed by managers that consisted of those unlike themselves to provide a place for people who share similar feelings and beliefs to come together. Employees can interact through these affinity groups that will increase cohesiveness, trust, and performance. Though Sodexo encourages managers to construct mentor groups they are also trained to assess the groups in regards to effectiveness (George & Jones, 2012, Chapter 4). “ twenty-five percent of top managers’ bonuses are based on how well they do on diversity initiatives such as the hiring and training...
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...A PROJECT REPORT ON “COMPARITIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES” FOR HEROHONDA, BAJAJAUTO, TVSMOTOR. SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: IRFANHUSEN BHORANIA (Batch 2008-10) Guided By: Prof.R.GANESHAN 1 MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY’S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP PUNE-411001 CERTIFICATE This is certify that BHORANIA IRFANHUSEN student of PAI international centre for management excellence, Maharashtra Cosmopolitan Education society, Pune has completed his field work report on the topic of COMPARATIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES and has submitted the field work report in partial fulfillment of MBA of the college for the academic year 2008-2010. He has worked under our guidance and direction. The said report is based on bonafide information. Project guide name Prof. R Ganesan Designation Director 2 PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE Maharashtra Cosmopolitan Education Society DECLARATION I hereby declare that the project titled “COMPARATIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES” is an original piece of research work carried out by me under the guidance and supervision of Prof.R.GANESHAN. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfilment of the requirement...
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