...INVESTOR POLICY STATEMENT Prepared By: Aniruddh Mukerji 13PGP063 INTRODUCTION: “The purpose of this Investment Policy Statement is to establish a clear understanding between the investor Salil Chakole and the investment advisor Aniruddh Mukerji, as to the investment objectives and policies applicable to the Investor's investment portfolio. This Statement will: • Establish reasonable expectations, objectives, and guidelines in the investment of the Portfolio's assets. • Set forth an investment structure detailing permitted asset classes, normal allocations and permissible ranges of exposure for the Portfolio. • Encourage effective communication between the Investor and the Advisor. • Create the framework for a well diversified asset mix that can be expected to generate acceptable long term returns at a level of risk suitable to the Investor. The Statement has been developed from an evaluation of many key factors which impact the Investor's specific situation and investment objectives. This Statement is not a contract. It is intended to be a summary of an investment philosophy that provides guidance for the Investor and the Advisor. THE PORTFOLIO The Portfolio will maintain an active asset allocation strategy. The Portfolio will be invested exclusively in mutual funds. As a result, assets held in the Portfolio will be highly liquid. The Board of Trustees of each mutual fund is ultimately responsible for selecting and monitoring investment managers...
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...financial statements and other financial reporting to help participants in the Malaysian capital market and other users make economic decisions; (b) to promote the use and rigorous application of those standards; (c) in fulfilling the objectives associated with (a) and (b), to take account of, as appropriate, the special needs of private entities (defined and explained in Section 1 Private Entities); and (d) to pursue a policy of convergence of Malaysian Financial Reporting Standards (MFRSs) with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB). MFRSs Comparison of MPERS and MFRSs 1) Component of financial statement MPERS | MFRs | 1. Components of financial statements: (i) Two statements each for financial position, comprehensive income, changes in equity, cash flows and notes. (ii) No requirement for the 3rd statement of financial position. 2. Choice of one continuous statement or two separate statements for presentation of comprehensive income. No requirement to segregate items of OCI into those that may or may not be reclassified to profit or loss. Attribution to owners and non-controlling interests to be shown separately. Presentation of extraordinary items is banned. 3. If the only changes during the period arise from profit or loss, payment of dividends, correction of errors and changes in accounting policy, may present a single statement of income and retained earnings in place of statement of...
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...introduced as Exposure Draft E28, Accounting for Investments in Associates and Joint Ventures, in July, 1986. The history of IAS 28 is as follows in the table below which shows the last amendment being in 2011 with an effective date of January 1, 2013. History of IAS 28 (as amended in 2011) July 1986 | Exposure Draft E28 Accounting for Investments in Associates and Joint Ventures | April 1989 | IAS 28 Accounting for Investments in Associates | 1 January 1990 | Effective date of IAS 28 (1989) | 1994 | IAS 28 was reformatted | December 1998 | IAS 28 was amended by IAS 39 Financial Instruments: Recognition and Measurement effective 1 January 2001 | 18 December 2003 | Revised version of IAS 28 issued by the IASB | 1 January 2005 | Effective date of IAS 28 (2003) | 10 January 2008 | Some significant revisions of IAS 28 as a result of the Business Combinations Phase II Project relating to loss of significant influence | 22 May 2008 | IAS 28 amended for Annual Improvements to IFRSs 2007 about impairment testing | 1 January 2009 | Effective date of May 2008 amendments to IAS 28 | 1 July 2009 | Effective date of January 2008 amendments to IAS 28 | 12 May 2011 | IAS 28 (as amended in 2011) Investments in Associates and Joint Ventures issued. This version supersedes IAS 28 (2003) Investments in Associates. | 1 January 2013 | Effective date of IAS 28 (as amended in 2011) | | IAS applies to all investments in which an investor has significant influence but...
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...Table of Contents Index to Financial Statements UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2011 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07434 Aflac Incorporated (Exact name of registrant as specified in its charter) Georgia (State or other jurisdiction of incorporation or organization) 58-1167100 (I.R.S. Employer Identification No.) 1932 Wynnton Road, Columbus, Georgia (Address of principal executive offices) 31999 (ZIP Code) Registrant’s telephone number, including area code: 706.323.3431 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, $.10 Par Value Name of each exchange on which registered New York Stock Exchange Tokyo Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. None Yes ¨ Yes ¨ No No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities...
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...Summary of significant accounting policies The company is engaged in the manufacture, sale and servicing of branded electronic appliances in India and other parts of the world. The financial statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles (a) Change in accounting policy The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below. Up to the year ended the Company was recognizing dividend declared by subsidiary companies after the reporting date in the current year’s statement of profit and loss if such dividend pertained to the period ending on or before the reporting date. If the company had used the earlier policy of recognizing dividend, the credit to the statement of profit and loss after tax for the current period and the current assets would have been higher. (b) Use of estimates The preparation of financial statements requires the management to make judgments, estimates and assumptions. Differences between the actual results and estimates are recognized in the year in which the results are known or materialized. (c) Tangible fixed assets Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price less trade discounts and rebates, eligible borrowing costs and directly...
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...AUDITING CASH AND INVESTMENTS 1. CASH Audit objects : - existence recorded cash balances exist at the balance sheet date. - completeness recorded cash balances include the effects of all cash trans-actions that have occurred; year – end transfer of cash between banks are recorded in the proper period. - rights and obligations the entity has legal title to all cash balances shown at the balance sheet date. - valuation recorded cash balances are realizable at the amounts stated on the balance sheet and agree with supporting schedules. - presentation and disclosure cash balances are properly identified and clas-sified in the balance sheet; lines of credit, loan guarantees and other re-strictions on cash balances are appropriately disclosed. !!! REMARKS: o A high volume of cash transactions result in a high inherent risk. o Controls over cash transactions are usually strong and are tested in connec-tion with the audits of sales and purchases. o Regular bank reconciliations are an important control over the prevention and detection of fraud and error. o The use of “imprest” accounts for petty cash and for payroll and dividend cheques is a further control over safeguarding cash balances. o Cash balances are usually relatively small but significant because of their importance for liquidity. o The small balance means that auditors tend to adopt a predominantly sub-stantive approach to the audit of cash balances. o Analytical procedures are little used in...
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...OPINION SURVEY OF THE FACTORS IMPACTING ON DIVIDEND POLICY OF FIRMS OPERATING IN THE FINANCIAL SECTOR OF MAURITIUS 1. In which sub-sector does your company operate in? Please tick the appropriate Banking Offshore Banking Insurance Re-Insurance Investment Leasing 2. Approximately how many employees work in your company? Please encircle the appropriate • Less than 10 • 10 – 19 • 20-49 • 50-99 • 100 and above 3. What type of dividend payout does your company distribute every year? Please encircle the appropriate • We do not pay dividend at all • We distribute a constant dividend pay out every year • We offer an increasing amount of dividend payments from year to year • We offer a decreasing amount of dividend from year to year • Our dividend payments fluctuates from year to year 4. Do you consider dividend policy to be important? Please tick the appropriate. Yes No 5. Why do you think a firm pays dividends? Please rate the following possible answers. (1=strongly disagree; 2=disagree; 3=no opinion; 4=agree; 5=strongly agree) • The payment of dividends encourages a firm’s managers to act in the interest of the firm’s outside shareholders. (…..) • The payment of dividends forces a firm to seek more external (debt or equity) financing, which subjects the firm to additional investor scrutiny. (…..) • Dividend policy plays an important role in determining firm capital...
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...objective of my portfolio was to earn returns on my investment, as is typical in many portfolios. Some other objectives that I focused on were accumulation and preservation of capital. Accumulation means that I am basically trying to accumulate funds now to use at a later date. During the accumulation stage “the objective is generally to forgo investments that may produce income by dividends, in favor or investments most likely to appreciate in value, thus maximizing wealth accumulation” (Willis, 2013). I focused more on the potential of the stock itself rather than on the dividends when creating my portfolio. Preservation of capital is exactly what it sounds like; it is simply not losing money. To do this, I chose to diversify my portfolio by using both domestic and foreign securities; I also chose to use the initial price/earnings (P/E) predictor as another investment strategy. According to Malkeil “there is some evidence that individual stocks with low P/E’s relative to the market may produce higher rates of return” (Malkeil, 2012). I would do that by purchasing stocks at fairly low price-earnings multiples and selling them at higher price in the future. My formula was to purchase stocks that had low P/E ratios compared to their industry competitors; on top of that I have invested larger amounts in the stocks that had the lowest P/E ratios in my portfolio. Did you create an investment policy statement prior to committing the $60,000 in funds to common stocks...
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...maximizing opportunities within an organization through the adoption of proper management procedures. These procedures will not only help an organization reduce its overall costs but will also ensure that it achieves its strategic goals. Many a time, the ideas in an organization outweighs the scarcity of resources. However, an organization can review its strategic plans against the ideas available to prioritize its objectives against the scarce resources. This paper tries to show the decisions reached by management to source for additional finance and the effects it has on the company’s financial performance. Benefits of Forming a Liability Company A limited company refers to a company whose members’ liability is limited to their investment or guarantee. The benefits of forming this type of company for instance, Marrocco Company Limited includes: There is a Separate Legal Entity This means that third parties are required to contract with the company itself and not with individual shareholders or directors. It also means that the company has perpetual existence and the death of its owners does not make the company to collapse. Unless the company goes into liquidation or wounds up officially, it will always continue in operation. Unlike other businesses, the company offers job security to all employees working for it (Henry, C. 2013). The Owners Liability is Limited The...
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...payback period is between 2 to 3 years. Assume the company has a P/B (payback) policy of not accepting projects with life of over 3 years. This will be a perfect project to accept due to life span stay between 2 to 3 years. This will be within company’s policy. If the project required additional investment in land and building, how would this affect your decision? Explain Depending on how much additional investment needed and what will be the payback period. Another cash flow statement will be needed for further reviewing to decide whether additional funding will be a good investment. . A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be a depreciated straight line over the next 5 years. The new line will also require an additional net investment in inventory and receivables in the amount of $200,000. Assume there is no need for additional investment in building the land for the project. The firm's marginal tax rate is 35%, and its cost of capital is 10%. Total Investment = $1,500,000+ $200,000= $1,700,000 | | | | | | | | | | 1. Prepare a statement showing the incremental cash flows for this project over a 5-year period. | ...
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...Richman Investment Richman Investment Remote Access Control Policy Document Remote Access Control Policy Document 01/14/14 01/14/14 Contents 1 Policy Statement 4 2 Purpose 4 3 Scope 4 4 Definition 4 5 Risks 4 6 Applying the Policy - Passwords 5 6.1 Choosing Passwords 5 6.1.1 Weak and strong passwords 5 6.2 Protecting Passwords 5 6.3 Changing Passwords 5 6.4 System Administration Standards 6 7 Applying the Policy – Employee Access 6 7.1 User Access Management 6 7.2 User Registration 6 7.3 User Responsibilities 6 7.4 Network Access Control 7 7.5 User Authentication for External Connections 7 7.6 Supplier’s Remote Access to the Council Network 7 7.7 Operating System Access Control 7 7.8 Application and Information Access 8 8 Policy Compliance 8 9 Policy Governance 8 10 Review and Revision 9 11 References 9 12 Key Messages 9 13 Appendix 1 10 Policy Statement Richman Investments will establish specific requirements for protecting information and information systems against unauthorised access. Richman Investments will effectively communicate the need for information and information system access control. Purpose Information security is the protection of information against accidental or malicious disclosure, modification or destruction. Information is an important, valuable asset of Richman Investments which must be managed with care. All information has a value to the Council. However, not all of this information has an equal...
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...Question; Discuss accounting for investment, clearly indicating the IAS for the disclosure of investment. Accounting for Investments Introduction * This Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.1 This Standard does not deal with: (a) The bases for recognition of interest, dividends and rentals earned on investments which are covered by Accounting Standard 9 on revenue recognition; (b) Operating or finance leases; (c) Investments of retirement benefit plans and life insurance enterprises; (d) Mutual funds and venture capital funds and/or the related asset management companies, banks and public financial institutions formed under a Central or State Government Act or so declared under the Companies Act, 1956. Definitions The following terms are used in this Standard with the meanings assigned: * Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise. Assets held as stock-in-trade are not ‘investments’. * A current investment is an investment that is by its nature readily realizable and is intended to be held for not more than one year from the date on which such investment is made. * A long term investment is an investment other than a current investment. * An investment property is an investment in land or buildings that are...
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...sheet, also known as the statement of financial position, is to present the financial position of the company on a particular date. Unlike the income statement, which is a change statement that reports events occurring during a period of time, the balance sheet is a statement that presents an organized array of assets, liabilities, and shareholders’ equity at a point in time. It is a freeze frame or snapshot picture of financial position at the end of a particular day marking the end of an accounting period. Question 3-2 The balance sheet does not portray the market value of the entity (number of common stock shares outstanding multiplied by price per share) for a number of reasons. Most assets are not reported at fair value, but instead are measured according to historical cost. Also, there are certain resources, such as trained employees, an experienced management team, and a good reputation, that are not recorded as assets at all. Therefore, the assets of a company minus its liabilities, as shown in the balance sheet, will not be representative of the company’s market value. Question 3-3 Current assets include cash and other assets that are reasonably expected to be converted to cash or consumed during one year, or within the normal operating cycle of the business if the operating cycle is longer than one year. The typical asset categories classified as current assets include: — Cash and cash equivalents — Short-term investments — Accounts receivable ...
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...Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces. B) Managerial decisions are affected primarily by macroeconomic forces. C) Managerial decisions are affected by both microeconomic and macroeconomic forces. D) Managerial decisions are affected primarily by microeconomic forces. 1) 2) Walmartʹs decision in 1994 to continue operating stores in specific cities in Mexico when other firms were pulling out would be best classified as: A) a microeconomic decision. B) a macroeconomic decision. C) both a microeconomic and a macroeconomic decision. D) neither a microeconomic nor a macroeconomic decision. 2) 3) Which of the following would be considered an example of a macroeconomic problem? A) Should Microsoft reduce the price of its Windows operating system? B) Should JP Morgan Chase increase the interest rate it charges its credit card customers? C) Should Mitsubishi eliminate one of its production shifts? D) Should the federal government extend the eligibility period for unemployment benefits? 3) 4) Walmartʹs entry into the market in Mexico had the effect of: A) reducing competition and raising the prices of many of the goods it sells. B) increasing competition and raising the prices of many of the goods it sells...
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...Solutions for Chapter 12 Audit of Cash and Other Liquid Assets Review Questions: 12-1. It is important that cash and liquid asset testing be coordinated because the assets can be quickly moved and thus substituted for each other. For example, an organization could quickly move assets between cash and certificates of deposit. 12-2. General Cash Account. This is the account used to transact most of the organization's cash transactions. It is usually a high volume, but low balance account. Because of its high volume and its liquidity it is susceptible to greater risk than most asset accounts of the same size. Imprest Payroll Account. This is an account that is maintained strictly for the payment of payroll. The organization makes a deposit equal to the monthly or weekly payroll at the time the payroll checks or electronic transfers are issued. The account is used to minimize accounting costs and to isolate payroll risks to one account. 12-3. We disagree with the auditor's assessment of inherent risk of cash transactions as low. Granted, the accounting for cash and marketable securities is not overly complex. However, the liquidity of the accounts, coupled with their susceptibility to fraud or misappropriation, makes the inherent risk of the accounts at least moderate - if not high. Most organizations recognize the high inherent risk associated with the accounts and have implemented detailed control procedures to reduce control risk to a minimal level. 12-4...
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