3. Time Period PrincipleEven though a business is expected to continue operations for a long time (Going-ConcernAssumption), it must report frequently and at regular time periods on its status and changes forvarious reasons such as annual statements to shareholders, incom[r]
In March 2010, Dragon Capital sold its VP Bank stake at a 30% premium to its carrying value. Dragon Capital acquired 10% of VP Bank as a strategic investment in 1996. A partial exit occurred in 2007 when bank valuations soared, and VP Bank shares hit 10x book. The balance of<[r]
OBJ: TYPE: advanced critical thinking2. The DuPont System allows us to relate the return on total assets and the return on common equity tovarious measures of firm characteristics. Consider a firm with a ROA of 0.04.a. If you were analyzing a firm that had sales
The internet search engines are used nowadays to find almost everything, however “local” the requirement or need may be – and there’s little doubt that if your business is not there, represented at the top of the first page on the search engines, that you are missing out on what[r]
to the economy. A key function of financial systems in market economies is to offer fast and secure means of transferring funds and making payments for goods and services. The state of development of the payment system is of interest here, espe[r]
future conduct of its business) that are recognised as provisions. Examples of such obligations are penalties or clean-up costs for unlawful environmental damage, both of which would lead to an outflow of resources embodying economic benefits in settlement r[r]
Covered call A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder <[r]
bonds are generally safer than shares, because if a company cannot repay its debts it can bedeclared bankrupt. If this happens, the creditors can force the company to stop doingbusiness, and sell its assets to repay them. In this way, bondholders will probably get some oftheir money ba[r]
Technical Summary This extract has been prepared by IASC Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. IAS 39 Financial Instruments: Recognition and Measurement The objective of[r]
C. $53,000D. $72,0001-10To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.comChapter 01 - Intercorporate Acquisitions and Investments in Other Entities34. Which of the following observations is (are) consistent with the acquisition meth[r]
patents, trademarks, goodwill and know-how.interest cover Operating profi t divided by interest payable. A measure of safety, the ability of the business to service its loans.internal rate of return (IRR) The discount rate at which the net present value of a[r]
Also, regulatory systems need to be updated for the collection of compatible data on human poisonings. The Intergovernmental Forum for Chemical Safety (IFCS Forum III) has already discussed these important aspects under Program Area D7 in October 2000 in Salvador da Bahia, Brazil. Collection[r]
Since the ultimate goal of any enterprise is to maximize its value and operateeffectively, managers always ponder over many methods to find the optimal leverageratio, which is considered to be one of the most important features influencingcompany performance. Although there are[r]
Current asset - An asset that can be converted into cash with 12 months. For example - debtors,stock etc.www.BankExamsToday.comCredit rating - A ranking applied to an individual, business or a nation based upon its credithistory and current financial position. There are various credit[r]
method, the actuarial present value of the projected benefits of each individual included in the valuation is allocated as a level percentage of the individual's projected compensation between entry age and assumed exit. The portion of this actuarial present[r]
indicate the full extent of the company’s short-term cash requirements, because items like salaries not yet incurred, and materials ordered but not yet received, may add signifi cantly to the short-term cash requirements shown in the books.long-term liabilities Long-term debt. Lo[r]
Issued when the financial statements present fairly the financial position, results of operations, and cash flows in conformity with GAAPQualifiedIssued when there is an exception that is not of sufficient seriousness to invalidate the financial statements as a wholeAdver[r]