liquidity and risk. 3. The internal rate of return is that discount rate which equates the present value of the cash outflows (or costs) with the present value of the cash inflows. 4. Under certain conditions, a particular project may have more than one IRR. One condition under which this situation can occur is if, in addition to the initial investment at time = 0, a negative cash flow occurs at the end of the project's life. 5. Conflicts between two mutually exclusive projects, where the NPV method
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Assignment No. 5 Business Accounting Task 1.1 Task 1.2. International accounting standards are a set of rules and/or practices in recording and registering business transactions in company’s ledgers and accounts, keeping books and preparing reports on the financial and other business results and standing to owners, public and authorities. Certainly all standards are based on a golden rule of accounting – double entry. Accounting standards are necessary so that financial statements are meaningful
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suppliers, bankers employees Government and regulatory bodies e.g., ATO, ASIC 11 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) In order to measure, process and communicate financial information, accountants follow rules, principles and standards. These rules, principles and standards are set by International Accounting Standards Board (IASB) Australian Accounting Standards Board (AASB) Financial Reporting Council (FRC) Australian Securities & Investment Commission (ASIC)
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heart of business management. Businesses report information in the form of financial statements on a periodic basis. The most common financial statements are the Consolidated Statement of Earnings (income statement), balance sheet and statement of cash flows. Each of these financial statements are important to a business for a different reason. Today, we will look at these financial statements, examine the importance and show what business decisions can be made from each statement. In addition, we
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AUDITORS’ REPORT We have audited the accompanying Balance Sheet of IFIC Bank Ltd. as on 31 December 2009 and the related Profit and Loss Account, Cash Flow Statement, Statement of Changes in Shareholders Equity and Notes to the Financial Statements for the year then ended. The preparation of these financial statements are the responsibility of the bank management. Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance
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STATEMENT OF CASH FLOWS Cash flows are critical to a company’s success because among other things they measure the ability of a business to generate cash internally. Positive cash flows allow a company to meet its obligations with creditors and suppliers, take advantage of investment opportunities, replace assets, negotiate better pricing in purchases, and pay dividends; all these without the need of incurring in external financing. Net cash flow needs to be distinguished from Net Income, which
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investment decisions are weighed in terms of the cash flows over the duration of the new venture or investment. This way, a company can have more visibility in terms of monitoring its cash flows for every period. Consequently, businesses can make an initial evaluation of pushing through a certain project or not. This is what makes capital budgeting very useful since companies
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Financial Analysis Chad Burrell Dr. William Cheng Financial Management June 14, 2013 Company Overview The company I choose to research is American Express CO., AXP, A.E. American Express strives to make it easier for consumers and businesses to purchase the things that they need for goods and services. Their vision is to make their brand the most respected card in the world. They have been able to accomplish this by allowing $888 billion in annual purchase volume, having 102.4
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Concepts and principles are important, as they form logical structure that practising accountants use every day to consider problems to make recommendations GAAP (Generally Accepted Accounting Principles) applied differently for different entities Rules, standards and usual practices that companies are expected to follow when preparing financial statements Stock market crash of 1929 brought GAAP AASB (Aust Accounting Standards Board) IASB (International Accounting Standards Board) AASB uses IASB as
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Financial Management in NHS Name: Course: Professor’s Name: University: City (State): Date: Sources of funding There are different sources of financing that the hospital uses to finance its operations. The hospital uses both internal and external sources to fund its operations. One of the internal sources of financing that the hospital utilizes is the revenue
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