...HCA240 September 3, 2012 Determining Financial Viability What’s the difference – Finance and accounting, accounting and finance? Accounting is a necessary input and subfunction to finance (World Academy, n.d.). The treatment of funds and decision making, relate to the primary distinction between accounting and finance. Finance and accounting are not the same, but accounting is concerned with financial records, while finance relies on accounting reports and data base. The future depends on past events as pointers. The principles of accounting organize and prepare financial statements for an organization (Cleverly, 2011). The success to any business is critical from both accounting and finance. Accounting is knowledge and finance is the know what to do with that knowledge. Viability is about being able to generate sufficient income to meet the commitments, debts, payments, and where applicable, to all or growth while maintaining service levels in a health Care organization. Both accounting and finance are different; however, they have a close relationship to each other. Accounting involves the preparation of a balance sheet, which at a certain date will reflect on the financial position of an organization (Let’s learn finance, n.d.). Accounting shows the profit or loss of an organization during the year with concerns of recording of business transactions of a company, then presenting it in a profit and loss account. On the broader end of this concept, finance makes use...
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...Determining Financial Viability Accounting and finance are closely related to a certain extent in which both deal with the financial aspects of a company. Accounting and finance work together in creating “a company’s budget or working capital analysis” (Wise-Geek, 2012, p. 1). Accounting involves recording of an organizations operations of a business as well as showing the information in the outline profit and loss accounts, which demonstrates the gain or loss of the organizations throughout the year. In addition, accounting includes provisions of a balance sheet replicating the monetary positions of a business at a specific time period. It should provide clear and precise figures about the proprietary and financial condition in a specific entity. Finance is a wider view and uses information, which is obtainable in the accounting area such as “profit and loss, balance sheet, and cash flow statement” (Parikh, 2011, p. 1) to decide upon financially linked judgments, for instance how to increase funds for upcoming plans of a business. These statements provide a valuable amount of information for a company. The statistics retained in these statements assists financial directors with analyzing past performance as well as future inclinations of a business. Both accounting and finance must be used together to make effective decisions for a company therefore, finance uses past statistics from the accounting aspect to formulate future decisions. In order to determine financial viability...
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...are defiantly not one in the same. Accounting is the bookkeeping part of the business. It is the collection and organization of the financial data of an organization. Accountants are those who are certified and educated in the collection and organization of this data. They must present this data to the company’s management in the form of statements such as balance sheets and income statements. These statements are them used by management to help keep the organization financially healthy. Accounting also involves the reporting of the organizations taxes. Finance which is different but just as important is the use of the accounting data to make decisions for the organization. The data collected and given to management is now used to help with the financial planning, performance review of the organization, and to ensure the company is meeting all obligations including tax reporting. Finance helps with the management of the organizations funds. It helps management decide how and when the funds will be used so that the company can run smoothly and at its highest potential. The accounting department is the backbone within a healthcare organization without it, it would be impossible for the organization to operate cost effectively. There is however strict principles and guidelines that all accounting departments must follow when compiling their financial statements. The most common is the GAAP or General Accepted Accounting Principles. If these standards are not followed the U.S. Security...
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...Diana C. Gutierrez Health Care Accounting and Bills 240 July 7, 2013 Paula Arceneaux Determining Financial Viability When it comes to finance and accounting they are both part of the financial form of a business. These two departments deal with finances in different ways. Accounting mainly deals with examining and preparing financial records and making sure their accurate, that their taxes are paid properly and in a timely manner, and to ensure that all financial operations are ran efficiently. Then again, finance handles primarily with making important financial decisions for the business and helps to make plans and strategies to reach their financial goals. (Financial Managers 2012). It is also essential that the finance mangers uses the financial information gathered by the accounting department to make the best decisions for the business. Nonetheless, accountants and financial managers must work together to make sure they operates effectively and efficiently to ensure the continued short and long term financial viability of any health care organization. The way they work together to determine financial viability within a health care organization is by working together in creating “a company’s budget”. Accounting concerns itself with recording the information regarding profit and loss accounts, which shows the gain and loss of the business overall. Also, the accounting department will provide a balance sheet showing the finances of the business at certain times, which...
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...Determining Financial Viability Finance and accounting go hand- in- hand so to speak. It is hard to have one without the other. Individuals who are in finance control money. Finance is the business or act of managing the monetary resources of an organization or person. Accounting is the activity, practice, or profession of maintaining the business records of a person or organization and preparing forms and reports for tax or other financial purposes. There is a need for both to determine financial viability within a health care organization. “A business’ finances are just as important, but very different from the accounting. When considering a business’ finances, you will review all of the accounting data to make monetary decisions affecting the business. The accounting data may help you with financial planning, reviewing the performance of the business, and ensuring that the business is meeting the legal obligations, such as tax reporting.”(Elgar, Peter, 2011 pg 1) So with this being said, both departments are very important not just to the organization but to each other as well. Financial viability is the ability to continue to achieve its operating objectives and fulfill its mission over the long term of the business. Having the funds available to excel in the health care organization is critical not just for consumers but for healthcare professionals, hospitals and clinics. Finances makes for more opportunities to invest in newer technology and studies. So it goes...
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...Variance Analysis Blake Richardson Grand Canyon University HCA-240 March 16, 2013 Variance Analysis To really understand this paper, one should understand what variance analysis does for the entity. Variance analysis is the process of examining every variance between what is actual and budgeted or expected and standard cost to develop reasons as to why the budgeted results were not met. In hospitals, there are many different factors that a financial manager should consider before submitting a variance report to the vice president of the entity. These factors can include staff receiving too much overtime, hired too many staff members for the increase in patients, and maybe even one of the staff members forgot to scan in all of the equipment. Once the problem is recognized and determined it is sent up the chain of command, where the variance reports are interpreted and the expected results are given. In this setting, there could be quite a few factors that had potentially created higher salaries and lower supplies. To determine this we need to look at the changes in input prices, productivity and the changes in departmental volume. (Cleverley, Song, & Cleverley, 2011, p. 386) For a manager to be able to determine this they should first recognize the problem, determine the cause, and then correct the problem. Looking at the efficiency cost, we can determine how long it has been going on for, the loss per time unit, and if the problem is correctable. Once the...
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...THE IMPACT OF PENSION SECTOR REFORMS ON THE FINANCIAL VIABILITY OF PENSION PLANS IN KENYA By Akwimbi Ambaka William March 12, 2011 Department of Business Administration, School of Business, University of Nairobi, Kenya Electronic copy available at: http://ssrn.com/abstract=1784297 TABLE OF CONTENTS Declaration List of Tables List of Figures Appendices Abbreviation CHAPTER ONE: INTRODUCTION 1.0. 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. Background of the Study The Conceptual Basis of Social Security Schemes The Kenyan Contextual Basis of Social Security Problem Statement Research Questions and Objectives Research Hypotheses Importance of the study 1 3 10 19 22 22 23 CHAPTER TWO: LITERATURE REVIEW 2.0. Introduction 2.1. Review of Theoretical Literature on Financial Viability of Pension Schemes 2.2. Review of Empirical Literature of Studies on the Solvency of Pension Schemes 2.3. Models for Evaluating the Financial Viability of Pension Schemes 2.4. A Summary of the Knowledge and Research Gaps 25 25 46 60 68 REFERENCES APPENDICES i Electronic copy available at: http://ssrn.com/abstract=1784297 GLOSSARY CAC CALPERS CAPSA CBS C-D CEO CGE CSR DB DC E.T.I EME ERISA FMA GASB GDP GSP INPFRS INSS IPD IRA IRBS KNAO KNBS LUPFUND NSE NSSF NYSCRF OECD OSFI PBGC PLC PPF PPR PROST PRPOPS PSPS PSSS RBA SAM SIPO SOX SSNIT SSS Commonwealth Authorities and Companies Act CEO California Public Employees Retirement System The Canadian Association of Pension Supervisory Authorities Central Bureau...
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...Financial analysis at Emirate Airlines Fly emirates has developed to one of the world greatest airline. The airline is based in Gulf region but is a multinational company with operations covering the whole globe. The company has gone through difficult times in terms of finances but has financed most of capital through debt equity. In this financial analysis we use financial statements from the company’s official documents. Ratio analyses has been found to be one of the most effective instruments of financial analyses. Ratios are numerical measures through which numerical figures can be measured. This measures are important for In our analysis we will use the following determinants to access the company financial status. Leverage ratios Leverage ratios are computed to explain the firm’s financial leverage. This is the firm’s financial sustainability. The most important leverage ratios Debt ratio, Debt equity ratio and time interest earned. Debt ratio Debt ratio is ratio that defines what percentage of debt a company has relative to its assets. The results gives knowledge to company and other interested stakeholders possible risk of the company in case of its debt load. This computed by Debt ratio=(long term debt+ value of leases)/(long term debt + value of leases +equity) Debt equity ratio Debt –equity ratio: This ratio measures the degree of the company financial leverage. This is computed by dividing total liabilities by stockholders equity. Used to show what fraction...
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...Description In the midst of the financial crisis, Barclays (the world's 4th largest bank by assets) is forced by UK regulators to raise more capital. Should it take up the UK government's offer to invest, or take funding from investors from the Middle East? Students may price the two deals to determine which is more expensive, and must decide whether avoiding the constraints of government ownership is worth the extra cost. Learning objective: The class begins with a discussion of why, if the bank is required to raise capital, none of the instruments being offered look like equity? Why do regulators force banks to hold a certain amount of equity against their assets? Why do these instruments (which are more like preference shares and convertible debt) count as equity? Should they? We then discuss the pros and cons of accepting government versus private investment. Students generally conclude that other things being equal, it would be better to avoid government ownership, leading nicely to a discussion of... What is the relative cost of the two deals? Students must lay out the cash flows to the government preference shares versus the ""reserve capital instruments"" (debt) instruments, and the ordinary shares versus the ""Mandatory convertible notes"" (convertible debt) that the government and private deal will entail, respectively. The private deal involves granting various warrants for free, and these must also be priced using option pricing. Conclusion: Case teaches: Why is...
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...Assignment 3 Amazon.com in the year 2000 Syed T.A Zaidi 100285122 BUSI 3150 Financial Statement Analysis Prof. Jane Bowen March 14th, 2011 Long Term Viability of Amazon Amazon had a significant vision in terms of its long-term viability. This vision consisted of many strategies that allowed them to operate efficiently and effectively. Amazon primarily raised profits by the means of developing strong brand equity on a global scale, developing direct relationship with wholesalers allowing them to reduce inventory shipping/holding costs supported by an excellent logistic system, which permitted them to deliver any and every product fast. They also started up this venture when the Internet market was just emerging, therefore allowing them to be one of the pioneers of this business. Amazon also pursued a strategy to incur huge loses in the current time period, in order to gain profits for the future “high the risk, higher the return”. The company chose to go down this route primarily to gain majority of the market share in the online book-selling sector. These strategies however raise a question as to why and how Amazon is performing while implementing these strategies. Are they invincible or just ‘cooking books” and becoming another Enron. Significant concerns go towards the brand equity, which is an intangible asset, however the company places dedicates majority of the profitability to this aspect of the venture. Another question, which concerns Amazon is the barrier to new...
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...Financial Analysis – Week Five Final Assignment ACC 205 Principles of Accounting I July 4, 2000 Financial Analysis As an introduction, financial analysis provides an opportunity to make informed decisions about the health and viability of the company under review. The analysis can be done in several ways, but most commonly the business activities of a particular entity are compared internally from one year to the next. Similarly, the company is compared to an external but similar company in the same industry. Alternatively, one could also compare the activity of the company under review with that of an industry average of similar companies. The various financial analysis techniques used by accountants and analysts are all designed to provide the best possible estimate of financial viability of a company on a go forward basis. The company selected for this project is a publicly held healthcare corporation based in Boca Raton, Florida and named Cross Country Healthcare. As an overview, the company is comprised of three segments: contingent nurse and allied healthcare provider staffing, physician staffing, and other human capital management services, the latter of which provides education and training programs to the healthcare industry, as well as retained search services for physicians and healthcare executives in the United States. Competitors of Cross Country Healthcare would be companies similar to Staff Care, Maxim, Delta Staffing, Onyx MD, and others...
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...Excerpt from FS Series #11 – innovations in financial services delivery: branchless banking C3. Case 3: Eko India Financial Services Private, Ltd. C3a. Background & Environment India has 80,000 bank branches, 110,000 cooperatives (one in every five villages), and 150,000 post offices. It is estimated that each branch serves about 15,000 people in urban areas and 32,000 people in rural areas (World Bank, 2009). Consequently, less than 60 percent of the adult population has a bank account and less than 14 percent has a loan with a bank. Microfinance services tend to be concentrated in southern states (e.g., Andhra Pradesh and Karnataka). In 2009, the Self-Help Group-Bank Linkage Program[1] covered 45.2 million households. Non-bank finance companies and NGOs — both MFIs — now reach 22.6 million clients, of whom 17.9 million are active borrowers (Sa Dhan, 2009). In January 2006, the Reserve Bank of India issued new guidelines (Reserve Bank of India/2005-06/288) allowing banks to employ business facilitators and BCs to promote financial inclusion and improve outreach. The facilitators would primarily be involved in processing and opening accounts. In addition to facilitator functions, BCs should mobilize deposits and disburse credit on behalf of the bank. C3b. The Eko Business Model Eko India Financial Services Private Ltd. is a start-up company established in mid-2007 with the goal of bringing financial inclusion to the financially underserved middle- and low-income...
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...(%) Certificate Validity 1 Financial Markets: A Beginners’ Module * 1686 120 60 100 50 5 2 Mutual Funds : A Beginners' Module 1686 120 60 100 50 5 3 Currency Derivatives: A Beginner’s Module 1686 120 60 100 50 5 4 Equity Derivatives: A Beginner’s Module 1686 120 60 100 50 5 5 1686 120 60 100 50 5 1686 120 60 100 50 5 7 Interest Rate Derivatives: A Beginner’s Module Commercial Banking in India: A Beginner’s Module Securities Market (Basic) Module 1686 120 60 100 60 5 8 Capital Market (Dealers) Module * 1686 105 60 100 50 5 9 Derivatives Market (Dealers) Module * 1686 120 60 100 60 3 1686 120 60 100 60 5 1686 120 60 100 60 5 12 FIMMDA-NSE Debt Market (Basic) Module Investment Analysis and Portfolio Management Module Fundamental Analysis Module 1686 120 60 100 60 5 13 Financial Markets (Advanced) Module 1686 120 60 100 60 5 14 Securities Markets (Advanced) Module 1686 120 60 100 60 5 15 Mutual Funds (Advanced) Module 1686 120 60 100 60 5 16 Banking Sector Module 1686 120 60 100 60 5 17 Insurance Module 1686 120 60 100 60 5 18 Macroeconomics for Financial Markets Module 1686 120 60 ...
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...Question 3: The presentation of financial statement information in common-size amounts rather than dollar amounts means that the items in the financial statement are presented as a percentage, instead of a dollar amount (Edmonds, Tsay, & Olds, 2011). This type of presentation is sometimes more meaningful when analyzing two or more organizations of differing size against each other, as well as analyzing these organizations over various time periods (Edmonds, Tsay, & Olds, 2011). Essentially, common-size amounts allow an individual to quickly compare different organizations, or the same organization’s performance over time by reducing the bias of dollar amounts (Edmonds, Tsay, & Olds, 2011). Common-size amounts present a better comparison of the organizations financial health and enable the organization to better analyze internal and external trends (Edmonds, Tsay, & Olds, 2011). Most organizations use debt-to-equity ratio, profitability, gross profit margin or operating profit margin percentages in the financial statement to quickly compare different organizations or to compare the organizations financial health (Cheng, 2014). Debt-to-equity ratio assesses a proportion of...
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...Financial Statements Paper Teya Crawford ACC/280 Nov, 7 2011 Pamela Zanzucchi Financial Statements Paper Accounting is part of an organization that enables companies to analyze, record, and retrieve critical financial information that is used to determine a company's financial status. The purpose of accounting is to assist people with understanding the financial status of an organization and to provide the financial reports and insights needed to make sound decisions. It is important to effectively communicate this information in order for the business to be successful. There are four financial statements that are used to record information. They include: Income Statement, Balance Sheet, Retained Earnings Statement or Shareholders Equity Statement, and Statement of Cash Flows. Financial Statements Financial statements are reports that reveal where the money is stores, where it is taken from, where it goes, and where it is now. The four statements mentioned earlier: Balance Sheets, Income Statements, Cash Flow Statements, and Statements of Shareholder’s Equity, will be found in the Security and Exchange Commission (SEC) as a public record, if the organization is public. Private businesses will send those reports to stockholders such as owners and lenders of that business. The purpose of the Financial Statements is to give the people information about a company’s financial position and performance. They need to be relevant, reliable, understandable, and comparable...
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