...Scott, Financial Accounting Theory, 6th Edition Instructor’s Manual Chapter 2 Suggested Solutions to Questions and Problems 1. P.V. Ltd. Income Statement for Year 2 Accretion of discount (10% × 286.36) $28.64 P.V. Ltd. Balance Sheet As at Time 2 Financial Asset Cash $315.00 Shareholders’ Equity Opening balance Net income Capital Asset Present value 0.00 $315.00 $315.00 $286.36 28.64 Note that cash includes interest at 10% on opening cash balance of $150. 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Then, its year 2 opening net assets are $276.36, and net income would be: P.V. Ltd. Income Statement For Year 2 Accretion of discount (10% × 276.36) $27.64 Copyright © 2012 Pearson Canada Inc 11 Scott, Financial Accounting Theory, 6th Edition Instructor’s Manual P.V.’s balance sheet at time 2 would be: P.V. Ltd. Balance Sheet As at Time 2 Financial Asset Cash: (140 + 14 + 150) $304.00 Chapter 2 Shareholders’ Equity Opening balance: $276.36 (286.36 - 10.00 dividend) Capital Asset, at Present value 0.00 $304.00 $304.00 Net income 27.64 Thus, at time 2 the shareholders have: Cash from dividend Interest at 10% on cash dividend, for year 2 Value of firm per balance sheet $10.00 1.00 304.00 $315.00 This is the same value as that of the firm at time 2, assuming P.V. Ltd. paid no dividends (see Question 1). Consequently, the firm’s dividend policy does not matter to the shareholders...
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...1.0 INTRODUCTION Oilene Refineries’ management was unhappy with the quality of crude palm oil (CPO) delivered by Palm Haul Sdn Bhd (PHSB), their transporter. The contract will expire within the month. Oilene Refineries will have to analyse the scenario and make a decision whether to renew the contract with PHSB or find other solutions. 1.1 GENERAL INFORMATION –Crude Palm Oil (CPO) transportation * Approximately 1,500 tankers transporting CPO from the mills (where palm kernels are harvested) to the refineries (where palm kernels are processed for CPO extraction) in the peninsular and East Malaysia. * Palm oil estates operated by MNC have their own mills while smallholders send their palm kernels to co-operative mills for processing. * Once the CPO is extracted, it is then sold to refineries where it is refined for local consumption or export. These refineries are concentrated in areas where palm oil cultivation is a major activity. * The refineries commonly OUTSOURCE the transportation of CPO to transport companies. The transport companies are responsible to deliver consignments of CPO from the mills to the refineries. * The tankers have to be modified to carry CPO. * Approximately 17.73 million metric tonnes are moved yearly from the mills to the refineries by the tankers operated by transport companies. * Gross profit margins: 35%-45% * Administrative overheads are low. Net profit can be made if operated efficiently. * Achilles’Heel...
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...INTRODUCTION: Leading is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Leading is said to be the heart of management process. Planning, organizing, staffing has got no importance if leadership function does not take place. Leading initiates action and here actual work starts. Leadership is said to be consisting human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, leading is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. Leading is a key managerial function to be performed by the manager along with planning, organizing, staffing and controlling. From top executive to supervisor performs the function of directing and it takes place accordingly wherever superior-subordinates relation exist. Leading is a continuous process initiated at top level and flows to bottom through organizational hierarchy DEFINITION "Activating deals with the steps a manager takes to get sub-ordinates and others to carry out plans" - Newman and Warren. Leading concerns the total manner in which a manager influences the actions of subordinates. It is the final action of a manager in getting others to act after all preparations have been completed. Characteristics • Elements of Management • Continuing Function • Pervasive Function • Creative Function ...
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...FINANIAL CRISIS 2008 AND CORPORATE GOVERNANCE The business world is questioning whether Corporate Governance has become a mere catchphrase, divorced from the contentious problems it is supposed to solve… MEMBERS: AYUSH KUMAR-030 NIPEKSH I MAHAJAN-082 PRABHAV MISHRA-0 PRATEEK KUMAR-096 VAIBHAV JAIN-164 “Why should a financial engineer be paid four, four times... to a hundred times more than the real engineer? A real engineer build bridges, a financial engineer build, build dreams. And when those dream turn out to be nightmares, other people pay for it.” - Andrew Sheng “Contrary to the vulgar belief that men are motivated primarily by materialistic considerations, we now see the capitalist system being discredited and destroyed all over the world, even though the system has given men the greatest material comforts” - Ayn Rand “In fact, there is ultimately a limit to how much regulation can do. In the final analysis, you could write all the rules you want, but there has to be a philosophy of ethical behaviour that comes from human beings operating in a professional way” – William H. Donaldson, CFA “The global crisis was caused by “the over-50s not knowing what the under-30’s were doing” – Johann Rupert, Remgro Chairman “The first casualty of a downturn is truth” - Financial Times Columnist 30 Sept 2008 Introduction- The banking crisis was triggered by largely unregulated trading of complex financial instruments, including mortgaged-backed...
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...2003 Annual Report intel.com intc.com GROWTH THROUGH TECHNOLOGY LEADERSHIP 33.7 29.4 25.1 20.8 16.2 26.3 26.5 26.8 30.1 36 1.51 1.6 Americas 50% 45% 28% 100 27 1.05 0.97 0.86 18 0.73 0.85 1.2 40% 75 0.8 20% 20% AsiaPacific Europe 14% 50 11.5 9 0.33 0.50 0.46 0.4 0.19 28% 28% 23% 25 Japan 94 95 96 97 98 99 00 01 02 03 0 94 95 96 97 98 99 00 01 02 03 0 8% 93 7% 98 9% 03 0 NET REVENUE Dollars in billions DILUTED EARNINGS PER SHARE† Dollars, adjusted for stock splits † GEOGRAPHIC BREAKDOWN OF REVENUE Percent Amortization of goodwill reduced earnings per share in 2001 by $0.22 ($0.18 in 2000 and $0.05 in 1999). Goodwill is no longer amortized, beginning in 2002. “Our continuing commitment to investments in leading-edge technology and our dedication to product innovation have set the stage for the positive results we began to see by year’s end.” Craig R. Barrett Chief Executive Officer 38.4 35.6 33.3 30.2 27.3 28.4 26.2 40 Machinery and equipment Land, buildings and improvements 6.7 8.0 7.3 4.0 4.4 3.9 3.8 5.0 4.0 30 6.0 3.1 4.5 20 15.4 2.4 8.7 10 4.0 3.6 3.0 3.4 4.7 3.7 4.0 1.8 1.3 2.3 2.5 3.0 2.0 2.0 1.1 1.0 3.5 0 0 0 94 95 96 97 98 99 00 01 02 03 94 95 96 97 98 99 00 01 02 03 94 95 96 97 98 99 00 01 02 03 RETURN ON AVERAGE STOCKHOLDERS’ EQUITY ...
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...PROJECT REPORT ON “TECHNICAL ANALYSIS OF BANKING SECTOR AND ANALYSING MARKETPERFORMER, OUTPERFORMER AND UNDERPERFORMER” SUBMITTED TO THE UNIVERSITY OF MUMBAI IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF MANAGEMENT STUDIES SUBMITTED BY MANISH BANSIDHAR INGALE UNDER THE GUIDANCE OF Mr. DEWANG MEHTA SHAH AND ANCHOR KUTCHHI ENGINEERING COLLEGE DEPARTMENT OF MANAGEMNT STUDIES CHEMBUR, MUMBAI BATCH 2012-2014 Declaration I declare that the Master’s script that I hereby submit for the degree of Master of Management Studies at the Department Of Management Studies, Shah and Anchor Kutchhi Engineering College, has not previously been submitted by me for a degree at another university. Manish Bansidhar Ingale 10th feb, 2014 Chembur i ACKNOWLEDGEMENT By the grace of God who has provided me with the skills and abilities to be able to complete this report and present a clear picture of what I have been doing during the course of my internship. I would firstly like to thank the Department of Capital Market, for making this learning experience a part of our education and specifically thank PROF.DEWANG MEHTA for his advice and assistance in helping us avail this opportunity. Lastly I would like to express my deepest and utmost thanks to my parents, who have made me whatever I am today. ii ABSTRACT The field of equity research is very vast and one has to look into various aspects of the functioning...
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...Section A (20 Marks) Write short notes on any four of the following: 1. Job Description and Evaluation Answer: A. JOB DESCRIPTION A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative, but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies. Creating a Job Description A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis considers the areas of knowledge and skills needed for the job. A job usually includes several roles. The job description might be broadened to form a person specification or may be known as Terms Of Reference. Roles and responsibilities A job description may include relationships with other people in the organization: Supervisory level, managerial requirements, and relationships with other colleagues. Goals A job description need not be limited to explaining the current situation, or work that is currently expected; it...
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...The first comprehensive look at what employees are thinking and feeling as they go about their work, why it matters, and how managers can use this information to improve job performance Inner Work Life Understanding the Subtext of Business Performance by Teresa M. Amabile and Steven J. Kramer I 72 Harvard Business Review | May 2007 | hbr.org Leigh Wells knowledge work from its people, then you undoubtedly appreciate the importance of sheer brainpower. You probably recruit high-intellect people and ensure they have access to good information. You probably also respect the power of incentives and use formal compensation systems to channel that intellectual energy down one path or another. But you might be overlooking another crucial driver of a knowledge worker’s performance – that person’s inner work life. People experience a F YOUR ORGANIZATION DEMANDS hbr.org | May 2007 | Harvard Business Review 73 Inner Work Life: Understanding the Subtext of Business Performance constant stream of emotions, perceptions, and motivations as they react to and make sense of the events of the workday. As people arrive at their workplaces they don’t check their hearts and minds at the door. Unfortunately, because inner work life is seldom openly expressed in modern organizations, it’s all too easy for managers to pretend that private thoughts and feelings don’t matter. As psychologists, we became fascinated a decade ago with day-to-day work life....
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...Principal Agent Problems in the Financial Crisis of 2007-2009 BMI Master Thesis November 2009 Jasper Holke Klein Supervisor: Rob van der Mei [pic] Faculty of Sciences Business Mathematics and Informatics De Boelelaan 1081a 1081 HV Amsterdam Preface This paper is one of the last compulsory elements of the program Business Mathematics and Informatics at the VU University Amsterdam. The objective of this subject is to demonstrate the student's ability to describe a problem in a clear manner for the benefit of an expert manager. This is accomplished by doing a literature research and to apply this research to a practical situation. I have always had a strong interest in strategic thinking. One of the ways that this is modeled in the scientific theory is through game theory. From the broad range of subjects that are available in game theory I decided to focus on information asymmetry and, more specifically, on the principal-agent relationship as this theory is very widely applicable and has a strong explanatory power. In this way I was able to combine my interest in strategic thinking and the financial sector and able to give a clear explanation for the events that happened within the financial crisis of 2007 - 2009. Finally, I would like to thank my supervisor Rob van der Mei for his comments and suggestions. Amsterdam, November 2009, Jasper Holke Klein Summary This paper analyses the origin of the...
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...The first comprehensive look at what employees are thinking and feeling as they go about their work, why it matters, and how managers can use this information to improve job performance by Teresa M. Amabile and Steven J. Kramer Inner Work Life Understanding the Subtext of Business Performance I 72 Harvard Business Review | May 2007 | hbr.org Leigh Wells knowledge work from its people, then you undoubtedly appreciate the importance of sheer brainpower. You probably recruit high-intellect people and ensure they have access to good information. You probably also respect the power of incentives and use formal compensation systems to channel that intellectual energy down one path or another. But you might be overlooking another crucial driver of a knowledge worker’s performance – that person’s inner work life. People experience a F YOUR ORGANIZATION DEMANDS hbr.org | May 2007 | Harvard Business Review 73 Inner Work Life: Understanding the Subtext of Business Performance constant stream of emotions, perceptions, and motivations as they react to and make sense of the events of the workday. As people arrive at their workplaces they don’t check their hearts and minds at the door. Unfortunately, because inner work life is seldom openly expressed in modern organizations, it’s all too easy for managers to pretend that private thoughts and feelings don’t matter. As psychologists, we became fascinated a decade ago with day-to-day work life....
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...BUSINESS ETHICS AND STAKEHOLDER ANALYSIS Kenneth E. Goodpaster Abstract: Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethica] management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just men* tioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one of the areas. But it is only one. Peter Dnicker, 1988 Harvard Business Review W HAT is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. One approach to answering such questions that has become popular during...
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...Accounting 1370 Accounting Ethics Session 6 Governance, Accounting, and Auditing, Post-Enron Group 1: Student Name__Seven Autrey_____________________________________ Student Name__Duc Nguyen_____________________________________ Telling the Enron Story Name five ethical problems and the existing conditions that caused the Enron fiasco. Explain each. 1. Fiduciary Failure – the board of directors failed to safeguard the companies from many inappropriate practices. 2. High Risk Accounting – Enron allowed high risk accounting in that the partnerships with Chewco and LJM1 and LJM2 did not conform with accounting rules 3. Enron had extensive undisclosed off-the-books activity. There were billions of dollars in off-the-book assets and liabilities. 4. Excessive Compensation – There was a cash drain caused by the 2000 annual bonus and performance unit plan. 5. Lack of Independence – There were financial ties between Enron and board members. Arthur Anderson provided internal auditing services as well as consulting services. Accounting 1370 Accounting Ethics Session 6 Governance, Accounting, and Auditing, Post-Enron Group 1: Student Name__Carol Cates_____________________________________ Student Name__Brenda Bohm____________________________________ Telling the Enron Story Name five ethical problems and the existing conditions that caused the Enron fiasco. Explain each. 1. At Enron, a lack of integrity was built into the foundation...
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...COUNTY OF VENTURA CAFR ANALYSIS PA615 – Public Financial Management Instructor, All Holliman California State University, San Bernardino Carrie Harmon, Scott Perkins, Dana Cano, Veronica Pinkett-Veal, Lydia Khalil, Holly Benton June 10, 2010 Contents Executive Summary 2 Cover, Table of Contents and Formatting 3 Introduction 3 Independent Auditor’s Report 5 Management’s Discussion and Analysis 6 Basic Financial Statements 6 Government-wide Financial Statements 7 Fund Financial Statements 8 Government, Proprietary, and Fiduciary Funds – Financial Statements 10 Summary of Significant Accounting Policies (SSAP) 14 Note Disclosure (other than SSAP and pension-related disclores) 19 Required Supplementary Information (RSI) 19 Combining and Individual Fund Information and Other Supplementary Information 21 Statistical Section 22 Other Considerations 23 Executive Summary The purpose of this report is to conduct a comprehensive analysis of the County of Ventura’s Comprehensive Annual Financial Report otherwise known as the CAFR. This analysis afforded the group members an opportunity to apply concepts and theories acquired through a graduate level governmental accounting course and provided the group members with a more intimate view of local government finances. The County of Ventura was selected for three primary reasons: 1) the county is located in Southern California and can easily be compared to the County of Riverside; 2) Ventura County...
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... There are many ways to talk about what lies ahead: Change. Disruption. Opportunity. Growth. We’ve gotten closer to our customers. Made banking simpler. Unified our businesses. Expanded our footprint. Invested in new platforms. Embraced a better rulebook. And through it all, delivered consistently strong results. Business Review Financial Review 2 4 10 11 16 17 18 20 21 23 24 26 118 132 Financial Snapshot/Who We Are Year in Review Chairman’s Message CEO’s Message Executive Committee Our Strategic Footprint Reasons to Invest in BMO Corporate Governance Board of Directors CFO’s Foreword to the Financial Review Financial Performance and Condition at a Glance Management’s Discussion and Analysis Supplemental Information Statement of Management’s Responsibility for Financial Information 133 Independent Auditors’ Report of Registered Public Accounting Firm 134 Report of Independent Registered Public Accounting Firm 135 Consolidated Financial Statements 140 Notes to Consolidated Financial Statements Resources and Directories 202 Glossary of Financial Terms 204 Where to Find More Information IBC Shareholder Information now it gets interesting Financial Snapshot Reported 1 Adjusted 1,2 As at or for the year ended October 31 2015 2014 2015 2014 19,389 18,223 19,391 18,223 liabilities3 (CCPB) (p 41) 1 1,254 1,505 1,254 1,505 Revenue, net of CCPB (p 38) 18,135 8 16...
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...Guide to Enterprise Risk Management F R E Q U E N T LY A S K E D Q U E S T I O N S Guide to Enterprise Risk Management: Frequently Asked Questions Page No. Introduction The Fundamentals 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. What is Enterprise Risk Management (ERM)? Why implement ERM? How does the scope of ERM compare to existing risk management approaches? What is the value proposition for implementing ERM? Which companies are implementing ERM? If companies are not implementing ERM, then what are they doing? Who is responsible for ERM? What are the steps companies can take immediately to implement ERM? Is ERM applicable to smaller and less complex organizations? Why have companies that have tried to implement ERM failed in their efforts? Does implementation of ERM ensure the success of a business? What is the difference between ERM and management? What does it mean to “implement ERM”? Generally, how long does it take to implement ERM? Is there any way to benchmark the level of investment required to implement ERM? Don’t successfully run companies already apply ERM? How long has ERM been around and why is there a renewed focus on it? What percentage of public companies currently have an ERM process or system? Is there an example of effective ERM as it is applied in practice? How does the application of ERM vary by industry? Are there any organizations that need not implement ERM? What are the regulatory mandates for implementing...
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