...Government of India Ministry of Power **** ULTRA MEGA POWER PROJECTS 1.0 Background 1.1 Development of Ultra Mega Power Projects (UMPPs) has been identified as a thrust area. These are very large sized projects, approximately 4000 MW each involving an estimated investment of about Rs. 16,000 crore. These projects will meet the power needs of a number of States/ distribution companies located in these States, and are being developed on a Build, Own, and Operate (BOO) basis. In view of the fact that promotion of competition is one of the key objectives of the Electricity Act, 2003, and of the legal provisions regarding procurement of electricity by distribution companies, identification of the project developer for these projects is being done on the basis of tariff based competitive bidding. Guidelines for determination of tariff for procurement of power by distribution licencees have been notified in January 2005 under the provisions of the Electricity Act, 2003. The Power Finance Corporation (PFC), a PSU under the Ministry of Power, has been identified as the nodal agency for this initiative. 1.2 Salient features of the Plant and Choice of Technology · The Ultra Mega Power Projects would use Super Critical Technology with a view to achieve higher levels of fuel efficiency, which results in saving of fuel and lower green-house gas emissions. · Flexibility in unit size subject to adoption of specified minimum Supercritical parameters. · Integrated power project with dedicated...
Words: 2896 - Pages: 12
...Case studies 4 Zubair Chapter 9 SUKUK BONDS VERSUS SECURITIZATION Sukuk are of two general types: Islamic bonds and securitizations. Islamic bonds are based upon the credit of an entity that is participating in the transaction, such as the issuer, a guarantor or another provider of credit support. Securitizations involve a transfer of assets from an originator into a trust or similar special purpose vehicle (SPV) with the issuance of securities by that trust or SPV. Payments on the issued securities (the sukuk) are derived solely from the payments received in respect of those transferred assets, rather than any general credit of an issuer or participating party. Thus, securitizations are based upon the credit of the securitized assets. To date, most sukuk issuances have been Islamic bond issuances. True securitization sukuk issues are rare, and issues of this type that have been rated by a major international rating agency are nonexistent. While both types of issuances access the capital markets and are necessary for balanced growth of the capital markets, true securitizations have benefits that transcend those available from bond issuances alone. Securitizations allow, often require, broad diversification of the assets in the securitized pool. The originator of the transferred assets uses the securitization to manage its balance sheet and capital structure. The originator transfers assets that generate deferred payments and receives an immediate cash payment from the capital...
Words: 436 - Pages: 2
...September 2011 (updated January 2012) Effect analysis IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities In The IASB’s approach to effect analysis Before we issue new requirements, or make amendments to existing IFRSs, we consider the costs and benefits of what we are proposing. This includes an assessment of both the costs incurred by preparers of financial statements and the costs incurred by users of financial statements when information is not available. We also consider the comparative advantage that preparers have in developing information that users would otherwise have to develop themselves. What is the measurement bar for our assessment? We expect our standards to have economic effects, and we understand that those effects may be beneficial for some entities and detrimental to others. For example, a change in financial reporting requirements might affect the cost of capital for individual entities by changing the absolute or relative level of information asymmetry associated with those entities. We assess these associated costs and benefits by reference to the overall objective of financial reporting. We try to understand how the changes will contribute towards the development of a single set of high quality global accounting standards by improving the allocation of capital. We therefore also consider the benefit of better economic decision-making as a result of improved financial reporting. The boundaries of our assessment ...
Words: 14620 - Pages: 59
... Paper Enron and the Special Purpose Entity. Use or Abuse? The Real Problem - The Real Focus Neal F. Newman Texas Wesleyan Law School This working paper is hosted by The Berkeley Electronic Press (bepress) and may not be commercially reproduced without the permission of the copyright holder. http://law.bepress.com/expresso/eps/1165 Copyright c 2006 by the author. Enron and the Special Purpose Entity. Use or Abuse? The Real Problem - The Real Focus Abstract In December of 2001, Enron Corporation filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code; one of the largest corporate bankruptcy filings at that time. When the investigations commenced and the tangled Enron web was unraveled, it was discovered that Enron had perpetrated a very sophisticated form of accounting fraud through its repeated use of what are referred to as Special Purpose Entities (“SPEs”). In their most basic forms, SPEs are business entities formed for the purpose of conducting a well specified activity such as construction of a gas pipeline, or collection of a specific group of accounts receivable. However, because of their complex nature, SPEs can be used to manipulate a corporation’s financial results, which was the primary use for which Enron employed the SPE structure. As a result, the investment and financial community has cast a dark cloud over the special purpose entity, depicting the SPE as an inherently evil structure whose only purpose is to defraud, obfuscate and manipulate...
Words: 25798 - Pages: 104
...Enron was going to become the world’s leading company, but due to a lot of fraud and corruption that was happening inside the company. Fraud at Enron reached a place when they collapse that they couldn’t prevent it anymore even if they want to. They were covering a fraud with another fraud like when Andrew Fastaw who is the CFO of the company introduced a new way of trading concern called a special purpose vehicle or entity, which is Enron can sell an asset to another entity, but the asset will remain at its place, The SPV would pay cash for the asset and Enron can then show the transaction as a sale which would boost its reported profits. Well, whether Enron could have detected the fraud or not, the fraud could easily be detected by any accountant that was working at Enron, but because fraud was coming and committed from the top level management, management up there was doing fraud and letting or forcing everyone else in the company to believe that this is the best way to manage the company and to create profit. Employees were afraid to talk about what is happening in the company and they were applying something called tone at the top. Also, if the independent members on the audit committee were really independent, this could also help in detecting the fraud. Fraud could be detected if there is a will to detect it, when employees are not working under pressure and there is a transparency of information inside the...
Words: 258 - Pages: 2
...The main issue of this case is basically Enron Corporation poor business decisions and lack of internal control that led to the bankruptcy of this company. Was Arthur Anderson & Co deprived internal audit system, audit reports and financial advisement what that led to the collapse of this company? Other issues further explains that Enron had also abused the market-to- market accounting method for its long term contracts involving in various energy commodities, primarily natural gas and electricity. The intense use of special purpose entities (SPEs) by Enron allowed them to avoid debts wish further explained their financial inaccuracy. In fact SPEs provided large companies with a mechanism to raise needed financing for various purposes without being required to report debt in their balance sheets. Enron had created hundreds of these SPEs. A main factor that motivated Enron executive to window dress their company’s financial statement was the need for this company to sustain stock prices at a high level. The bonds were created but as a loan. This was used for capital investments and just to borrow money. This was hidden as it treated cash as revenues. Since they didn’t have to consolidate as it was off the book and balance sheets. This became an abuse to the SPEs rules. Arthur E. Anderson relied on a simple four word motto to serve as a guideline principle in making important personal and professional decisions “Think straight, talk straight”, so how can a company with such...
Words: 288 - Pages: 2
...was known as a provider of products and services related to natural gas, electricity and communications to wholesale and even retail customers. As an accounting major student I recognized that there were several doubtful accounting schemes that Enron used just to manipulate the employees, investors, customers and everyone. While I found that there are a lot of issues to expound on, the main issue is how fraudulent their company was especially having misrepresented their public financial reports. The financials presented by Enron were restated. In 2000, the profitability was less than 1%, becoming clear that Enron’s profits were realizable only if the quality of their revenue is good but if not it is not realizable. Enron used SPEs or Special Purpose Entity this is used to keep Enron’s debts and losses away from its balance sheets, therefore allowing it have a good credit rating and look good in front of the investors. In this case it is purely seen as an investment scam. In the company were I worked on last year, we rely on charts, financial sheets to pinpoint which areas are worth developing. Numbers do not lie it is exact as it is. When we need money, we make money; we do not add or acquire “assets” because this will incur more expenses. Enron’s capital investments were not thought about at all, bringing them to shortage in their cash flow, not realizing that this was just a...
Words: 590 - Pages: 3
...Hello, Thank you very much for considering my application. It is with great enthusiasm I wish to intern at GPPi. As a reporter for Reuters News covering Wall Street, I analyze financial data, talk to Wall Street analysts and investors to write stories every day. My time here has also ensured that I work well under pressure and manage time efficiently, thanks to working against deadlines to get stories published. During this time, I have seen companies constantly working out inventive ways to arrive at solutions and drive results. The government, on the other hand, has not tried an innovative approach in tackling issues of development. It is in fact the many NGOs and philanthropists we count on to fix the problems of healthcare and education. As someone who is interested in pursuing a career in policy making related to poverty alleviation, I am particularly drawn to the ‘innovation in development’ focus area to understand what combination of financial aid, government intervention, business innovation is required to solve the biggest issues in human development. For these reasons, I would like to be considered for an interview opportunity. I look forward to hearing from you. Thank you for your time, expect less and less from the government. Today there’s cynicism in what the government can do for its people. This was evident in a research project I undertook with others where I studied the political awareness and voting behavior of University students. In my current...
Words: 331 - Pages: 2
...Executive Memo to the Board To: Board of Directors From: UoPx CPA Auditors Subject: GAAP Requirements and Accounting Treatment for Share-Based Payment Reporting and Consolidation of Special Purpose Entity Week 6 Points to consider Memo on SPE and Share-based payments Evaluate Share-based payment reporting JJH->Share-based employee compensation awards are classified as either equity instruments or liability instruments. The measurement date for estimating the fair value of equity instruments is the grant date; the measurement date for liability instruments is the settlement date. Different rules also apply to public vs. private companies depending on the type of award instrument. (Executive summary, Paragraph 2) http://www.journalofaccountancy.com/Issues/2007/Apr/ARoadMapForShareBasedCompensation.htm Three features to help identify a share based transaction with employee program: 1. Employees that are shareholders are granted additional benefits Additional benefits indicate the entity is dealing with the individuals as employees or providers of services rather than as investors or equity holders. Examples of additional benefits include: • Employees have the right to additional shares if the business performs well (often referred to as a ratchet mechanism). • Employees’ rights depend on whether the entity floats or is sold through a trade sale (ie, in the event of a trade sale an employee may automatically get a cash payment...
Words: 1838 - Pages: 8
...investigation. It was later revealed that BP initially arrived at similar numbers as the government, but downplayed them to make it appear that less damage was being caused (Bureau, 2011). It was later revealed that one of the reasons for the explosion in the first place, was due to the contractor who built the oil rig wanting to cut costs. As a result of this, substandard concrete and other materials were used in construction of the rig. Additionally, due to cost cutting, many safety precautions were ignored, or severely reduced. Included in these, was the defect that allowed gas to rise up in the well and ignite, causing the explosion in the first place (Bureau, 2011). One of the main reasons for Enron’s bankruptcy was the use of special purpose entities to keep the debt underreported. They kept profits made by these entities and reported it as revenue. However, they failed to report the debt incurred by the acquisition of these entities (Collins, 2006). The main motivation behind this scandal was to keep stock prices up, and to keep investors putting their money into the company. However, stock prices only rise if net profit is positive, meaning it only rises if actual profits are higher...
Words: 559 - Pages: 3
...How to address principal / Agent problem in government Introduction In the Nigerian public sector is eminent that agents being the civil servants do not buy in to the principals (government) goals and objective despite the ever increasing demand for performance and accountability in the public sector. This assignment seeks to address the principal agent problem in the Nigerian government. To address the principal agent problem in government, the core is a total organizational culture change for the civil servant, from a lackadaisical attitude to work to performance driven public service that align with the goals and objectives of the government . This can be achieved by Quality Leadership: - this entail the application of democratic principles in decision making process based on the socio-economic and political needs especially as it concerns the allocation of resources in the society. Indeed good governance implies constitutionalism, rule of law and due process. There is therefore, the need for visionary, committed, focused, disciplined, purposeful, responsible, selfless and mentally resourceful leadership that has the capacity to positively manipulate and propel the civil service towards attaining a high degree of ethics and accountability Orientation: - this is aimed at helping those who are newly employed in the service to become familiar with the culture of the organization. That is new employees should be acquainted with the history of the ministry or parastatal...
Words: 454 - Pages: 2
...PA 584 Final Exam Intergovernmental Management Keller 100% Correct PLEASE DOWNLOAD HERE! http://www.studentswithsolutions.com/VIEW-TUTORIAL.ASPX?TUTORIALID=7273 1. (TCO A) Explain briefly why a governmental agency may have many different stakeholders. (Points : 15) 2. (TCO B) Explain the basics of the theory of dual federalism and the importance of the Supreme Court case of McCulloch v. Maryland to that theory. (Points : 15) 3. (TCO C) The 50 states within the United States of America have come about in a variety of ways. Please briefly explain at least two of the ways that states have been formed and/or admitted to the union. (Points : 15) 4. (TCO D) The ability to generate specific types of taxes varies from one level of government to the next. Rank the abilities of the three: local, state, and federal government. Explain at least one way that the respective abilities of the three levels of government to raise tax impact them from an intergovernmental perspective. (Points : 15) 5. (TCO E) Why was the Department of Homeland Security formed? Do you feel that this has helped from a strategic planning perspective? (Points : 15) 6. (TCO F) Explain briefly why requiring financial disclosure of certain governmental officials may help prevent ethical issues from arising. (Points : 15) 7. (TCO G) The Governmental Accounting Standards Board (the "GASB") has conceptually addressed the idea of performance reporting. The concept sets forth the idea of measuring "service...
Words: 673 - Pages: 3
...PA 584 Final Exam Intergovernmental Management Keller 100% Correct PLEASE DOWNLOAD HERE! http://www.studentswithsolutions.com/VIEW-TUTORIAL.ASPX?TUTORIALID=7273 1. (TCO A) Explain briefly why a governmental agency may have many different stakeholders. (Points : 15) 2. (TCO B) Explain the basics of the theory of dual federalism and the importance of the Supreme Court case of McCulloch v. Maryland to that theory. (Points : 15) 3. (TCO C) The 50 states within the United States of America have come about in a variety of ways. Please briefly explain at least two of the ways that states have been formed and/or admitted to the union. (Points : 15) 4. (TCO D) The ability to generate specific types of taxes varies from one level of government to the next. Rank the abilities of the three: local, state, and federal government. Explain at least one way that the respective abilities of the three levels of government to raise tax impact them from an intergovernmental perspective. (Points : 15) 5. (TCO E) Why was the Department of Homeland Security formed? Do you feel that this has helped from a strategic planning perspective? (Points : 15) 6. (TCO F) Explain briefly why requiring financial disclosure of certain governmental officials may help prevent ethical issues from arising. (Points : 15) 7. (TCO G) The Governmental Accounting Standards Board (the "GASB") has conceptually addressed the idea of performance reporting. The concept sets forth the idea of measuring "service...
Words: 673 - Pages: 3
...MEMORANDUM TO: Senior Accounting FROM: Staff Accountant DATE: June 29, 2015 SUBJECT: Shared-Based Payment Reporting and Special Purpose Entities (SPE) CC: Team members ______________________________________________________________________________ As an Accounting Firm it is very important that we follow the most recently changed or amended regulations and standards set by the Financial Accounting Standards Board (FASB). As of 2009 the Financial Accounting Standards Board (FASB) has made amendments to Shared-Based Payment Reporting and Special Purpose Entities. The amendments made were to Statements No. 123 and 95 which covers the Share-Based Payments and Statements No. 123 and 95; the FASB. Also revised, Statements No. 166 and 167 which pertains to Special Purpose Entities (SPE). Share-Based Payment Reporting In the process of an audit, it is important to review the accounting process in terms of how share-based payment is reported to Sensure the entity processes are in line with Generally Accepted Accounting Policies (GAAP). Share-based payment is a complex area to both report on and audit as almost every transaction is unique and referencing IFRS No.2 for the purpose of the audit is not always clearly defined. Defined, share-based payment is an arrangement in which an entity purchases goods or services in exchange for issuance of the entity’s equity instruments or cash payments based on the fair value of those equity instruments. IFRS No.2 has two defined...
Words: 936 - Pages: 4
...What are the main reporting options available to government colleges and universities? Do they have to prepare fund statements? Explain. Universities are permitted to prepare financial statements the same way corporations report special purpose entities. In other words they can report business type enterprises as SPI’s and not report the funds in fund statements. Public colleges and university must follow GASB pronouncements like other governmental institutions. They are allowed to follow the same reporting requirements as other special-purpose governments with a loophole that requires a choice in reporting. They can report as a special-purpose entity engaging in business-type activities only, governmental-type activities only, or both. The main sources of revenue for public institutions are state appropriations and grants. The AICPA reporting model is widely used. Public colleges and universities must use the same FASB standards as other NFP entities. Governmental universities use the GASB statement no 34 to report business type activities. They use government-wide statements but do not use fund statements. They use a full accrual basis and report in consolidated financial statements. The government colleges and universities only engaged in governmental activities must present a fund statement using the structure specified in GASB statement #34. The main reporting options for government colleges and universities according to statement no. 34 states that “a government...
Words: 646 - Pages: 3
