Finance & Accounting Essays and Research Papers

According to Airbus the merger between BAE Systems and EADS was the last chance of creating a European aerospace and defence giant
Vertical integration is the ability of the firm to own subsidiaries downstream and upstream it line of production. Vertical mergers involve backward and forward linkages in an industry. Backward vertical integration occurs when firms merge or acquire subsidiaries that supply it inputs. Firms that undertake vertical integration realize reduced transaction costs hence increased profitability. Conglomerate integration occurs when an enterprise combines with other companies, which operate in…
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Accounting Theory Research Assignment
Accounting Theory Research Assignment Table of Contents Table of Contents 2 Article One 3 Summary (Part A) 3 Accounting Theory (Part B) 3 Analysis (Part C) 4 Conclusion 5 Article Two 5 Summary (Part A) 5 Accounting Theory (Part B) 6 Analysis (Part C) 6 Conclusion 7 Article Three 8 Summary (Part A) 8 Accounting Theory (Part B) 8 Analysis (Part C) 10 Conclusion 11 References 12 Article One Summary (Part A) The name of the article is ‘Latest effort at transparency just muddies water’ which was…
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Aduting case
An error is caused by unintentional financial statement misstatement while fraud is derived from intentional and deliberate cover up of the material facts (Kan, 2013). The senior management of Diamond was aware of the misstatements and deliberately concealed the financial misstatements to the lower managerial cadre and the independent auditing firm. Consequently, the financial misstatements experienced in the financial statements of Diamond Corporation were intentionally contributed by the…
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Advanced Financial Reporting and Theory
Critically assess how the use of IFRSs contributes to increased transparency for stakeholders, and the extent to which IFRSs can influence economic stability. You should develop your arguments in the context of appropriate accounting theory. The international business scenarios has evolved in the last decades more than it had for many previous years. This accelerated growth is a result of advancements in information technology. There are two different aspects of information technologies which…
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Assignment #3
John Jones Dr Sullivan Finance 201 22 June Decision Analysis Financial Services Corporation Implementing an HR Balanced Scorecard Background Information Financial Services Corporation is a large money services corporation with offices throughout the United States, although it is mostly centered the East Coast of the country. With over 70,000 employees its Human Resources division has an almost overwhelming task in carrying out its daily duties, especially considering the volatility of the…
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Auditing firm rotation and enhancing independence
Suggestions against Mandatory Audit Firm Rotation As suggested by Barbara et al (2006), mandatory audit firm rotation should not be enforced since auditors in a continued rotation are more likely to modify their report. According to their findings of their research, auditors who know that there are no hopes of retaining the client for future assignments and that rotation is mandatory, have a higher propensity to provide a modified audit report which is not in line with the generally accepted…
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Balanced Scorecard
Logo> Balanced scorecard [Semester] Balanced scorecard Introduction A balanced scorecard is a performance measurement tool used in strategic management to discover and develop a variety of internal processes as well as assessing of the impacts of the external factors. In particular, the purpose of this technique is to measure and assist organizations in the implementation of their goals and strategies. The balanced scorecard method is used by organizations for different purposes including…
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Balanced scorecard evaluation
According to Kaplan and Norton (2004), an analysis of the objectives of an organization’s internal processes helps the management of an organization to understand and choose type of process that are very important for satisfying its shareholders and most importantly, its customers. Basically, this performance measure outlines the main processes which an organization must focus its efforts for it to excel. An analysis of the learning and growth perspective of a BSC enables an organization to…
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Capital Budgeting and Investment Appraisal: The Gamma plc. Case
That can be a reason of late payback period. It is possible that if the project will generate inflow for year 1 than there would be clear decrease in payback period of Gamma plc. The main problem with the payback proposed investment is that payback ignores the overall profitability of a project by ignoring cash flows after payback reached. In this case the benefits after the payback life are ignored. The discounted payback period of Gamma plc is 3.7 and is a significant proportion of the…
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Case in Finance
In 2010, McDonald’s and Dunkin’ Brand group had a total system wide sales of 33 and 6 trillion dollars respectively while Starbucks and Tim Hortons total sales were 7.5 and 8.3 trillion dollars. This competition in the QSR industry has brought about the need to improve services and quality of products to stay ahead of the other companies. Analysis and Comparison Using Annual Report and 10-K It is a companies’ requirement to fill both the annual and 10-k reports to the SEC (Securities…
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Collateral mortgage obligations
Chapter 1 provides a broad overview of the various facets with respect to the valuation of the prepayment speeds within CMO tranches. Collateralized Mortgage Obligations are derivative debt instruments that can be aptly defined as the claim that arises out of cash flows from large pools of home mortgages. The structure of CMO is such that once the principal and interest is received from the mortgage holders, it is distributed to tranches. The principal amount, the coupon rate, the prepayment…
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Comprehensive Case
In 2012 the company saved 0.58million cubic metres of water by the help of this program (Bodden 75-9). This value adder’s cubic metres were computed from the financials that were from the four quarters in 2012. The total amount of money that was saved by the company is shown by the calculations in the table below. The table shows the amount of cubic metres saved each quarter, the average amount of dollar that is saved per quarter together with the total amount saved for the whole year from…
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Contemporary issue in accounting
Part- A Introduction Information Asymmetry deals with the access and knowledge of information for parties to any given transaction. Information asymmetry therefore arises when one party to the transaction has better information than the other. Based on this asymmetry, person having specific information therefore may be at advantage as compared to party which is relatively ignorant of this new information. In such a scenario, the overall transaction can go wrong and it is often considered as the…
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Corperate Strategic management
Qantas has ordered 32 A320s and 78 A320 NEOs at a price of $9.5 billion. This model was capable of reducing the fuel cost by 15 percent and engine maintenance cost by 20 percent. This approach of Qantas was a part of their expansion strategy in the Asian markets. They wanted to introduce new premium class airlines for cities like Kuala Lumpur, Vietnam, Singapore etc. Keeping in mind the rising cost of fuel and effect of trailing recession on the aviation industry, the decision taken by the…
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Could Islamic Banking help avert the financial crisis
On the other hand, the third world countries were also not left behind. This included the likes of Indonesia, Bangladesh, Malaysia, South America, Pakistan, Africa and more so the Middle East countries (Kim & McKenzie, 2010). All these countries had the same initiative of free markets which later led to capitalistic financial markets in which large amount of wealth were a major subject to theories without firm evidences on the economy’s state and projected revenue flows (Kettell, 2011).…
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Critical evaluation of the international Accounting Standard and Financial Reporting Standard that applied on BRITIVC plc
Under Segment Reporting, the entity is required to provide the disclosures especially relating to segments from where it generates the revenues and resources in the form of assets that used by the entity for the generation of revenues (Annual Report Britvic Plc., 2013). Following the requirements of Segment-based Reporting, Britvic Plc. has identified five geographical regions from where it generates the revenues. These regions are highlighted below along with the amount of revenues generated…
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Describe in the detail a major hedge fund trading strategy
(Capocci, 2013) In case there is a divergence in prices of the securities the trader has to act in a certain way. When one security’s price rises whilst its pair drops, the arbitrage trader will have to short one of the securities and buy the other one. The trader will thereafter close the trade whenever the respective prices converge and in doing so he will lock in a profit. This strategy is most effective when utilized in a range-bound market that is neither falling nor rising due to the…
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Description of Assessment Requirements 1 Description Students are required to fully describe 10 Key concepts of accounting. The students are also required to cite a practical example with concept. Students should be able to distinguish
Completeness Accounting Concept. Further, the financial reports must comply with the completeness concept of accounting. The completeness concept requires the companies to record all transactions in their respective accounting periods. The income statement must present all sales done within the accounting period. The same statement requires that all expenses should be recorded in the year they are used, not during the year when the expense amounts are paid. The company must…
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''Do democratic countries engage in economic diplomacy differently from non-democratic countries''
An example can be the assumption that an increase in money supply can directly lead to an increase in the general level of prices. Such a hypothesis can be easily tested by comparing the relevant data that relates to money supply and price levels (Jenkin, 2001). This falls under positive economics. On the other hand, in normative economics, there is the use of value judgments which are used to assess the specific performance of a certain economy and its economic policies. Unlike positive…
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European sovereign debt crisis DURING 2010-2011
(Mitropoulos & Pelagidis, 2010) These programs have been progressing at a very slow tempo and have, therefore, derailed the reform programs in the health, labor culture and pension schemes and for such reasons, the country has been facing major structural unemployment in the last decade especially among the young people. This has been compensated by the GDP in regard to the feeble laws that have been imposed. (Schneider et al., 2010) On April 23rd 2010, the Greek government made an official…
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Evaluate the role played by securitization and structured finance products in the recent banking and financial crisis affecting developed economies
2. What caused the crisis? The US financial system was under observation, as reported for planning its restructuring and strengthening control but still there is no clarity on what regulatory policy change has been enforced even till June 2009. Limits on mixing of the investment with commercial banking within the financial market were put off by getting away with the Glass-Steagall Act. Investment banks were not regulated for levering up their conditions. Financial innovations promoted easy…
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Explain the theoretical rationale for the NPV (Net Present Value) approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches
For instance; if the cost capital is put at 12% on an investment of $ 342,000 and eventually the cost of capital is hiked to 20% eventually the NPV at 20% cost of capital is equal to $ 96,400. This is an indication that the NPV has gone down. In case the Cost of Capital of the company goes down then it implies that projects’ risk also goes down which leads into a rise in the quantity of the NPV. Comparing the Internal rate of return (IRR) of every project and the NPV and whether the project…
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Financial Crises Presentation
Consider a scenario where a country fails to repay it sovereign debt then such situation is also known as the sovereign default. Some analysts and economists argue that both decision of defaulting and devaluation are voluntarily taken the by the government, other perceive it to be involuntary changes in economic conditions due to changes in investor sentiments leading to sudden halt in capital infusion thereby causing panic in the market and creating financial crises. In the year 1992-93,…
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Financial Statement Analysis
3. ECONOMIC FRAMEWORK After the recession, the economy has suffered and there has been a decline in the construction industry as well. Because of a decline in the construction, the revenue of Boral had decreased after 2008. The revenue of Boral though has increased by 6% in the year 2012 and it has crossed the figure of $5 billion again after 2008. This shows that the company has started recovering after the decline in sales because of recession. The following graph shows the trend of revenues…
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Financial Strategy Analysis :A case study on ADIDAS
It is using financial information to improve effective decision-making so as to sustain a more positive market position against competition and also achieve a greater net income by examining costs of production, administration, labour, and even procurement. 1.2 Research objectives Having defined the importance and relevancy of financial strategy analysis and corporate life cycle issues, this research project aims to understand what specific strategies are in place with a firm that has reached…
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