The three common obstacles are wrong thinking, delayed action and financial illiteracy. Wrong thinking: People think the Financial Planning is only for rich man, only when get older, and primarily tax planning, not trust Financial Planner. Delayed action: People do not plan until money crisis occurs. Financial illiteracy: People always have immeasurable financial goals, make decision with understanding their effects on other financial issues, expecting unrealistic returns on investments, conf...
Since the law in many European and non- European countries did not provide any principles on risk reporting, professional bodies such as the German Institute of Chartered Accountants (IDW) in Germany, The Securities Exchange Commission (SEC) in the USA and The Canadian Securities Administrators (CSA) in Canada issued specific standards on risk reporting that became effective over time. Professional bodies have considered the issue of risk disclosure very important and provided related discuss...
The corporate inversion refers to the act of a parent company, whose headquarters are located within U.S. borders, switching registration with their offshore subsidiary in order to take advantage of foreign tax benefits. This practice is becoming more popular due to increasing offshore tax advantages and corporate mobility (Sikka, 2010). The U.S. government is attempting to restrict corporate inversion because of losses in tax revenue. Therefore, this paper aims to analyze the advantages and ...
Was AMRE's practice of deferring a portion of its advertising costs in an asset account appropriate? Defend your answer. American Remodeling (AMRE) was a company that felt financial pressure after going public in 1987. Once they were not going to attain their profit projections they resorted to fraudulent ways of deferring expenses and recognizing higher profits for upcoming and current quarters. Their main source of operating expenses was advertising expenses related to potential leads of up...
Wm. Wrigley Jr. Company (Wrigley) is a market leader in confectionary industry that manufactures and markets different confectionery products like: Chewing gum, mints, lollipops, chocolates and hard & chewy candies worldwide. In current scenario Wrigley had operating in more than 40 countries and its products are distributed in about 180 countries. "It includes a variety of global, pan-regional, regional and national labels and is focused entirely on confectionery". Within this industry, comp...
The price of any financial instrument is equal to the present value of the expected cash flows from the financial instrument (Fabozzi & Mann, 2006, p. 121). In order to determine the price, it requires an estimate of the expected cash flows and required yield. Where the expected cash flows are refers to coupon payment and the required yield reflects the yield for financial instruments with comparable risk (Fabozzi, 2012, p. 16). The formula for pricing a bond: Where: P = bond price n = number...
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. (Barclays 2011) 1.1 BACKGROUND Barclays bank Plc, is a major global financial services provider, with a strong long-term credit rating and over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs 156,000 people. Barcl...
As commonly known, BHP Billiton Limited (BHP) is the worlds largest diversified resources group with a global portfolio of quality assets, whose core activities comprise of production and distribution of minerals, mineral, material products and petroleum. BHP was formed by the merger between BHP, a leading global natural resources company, and Billiton, a premier mining company in the world. It is listed in four different securities exchanges around the world, including Australian Securities ...
This paper analyse Ford Motor Company working capital, the ability of the company to meet its short-term obligations. The four main components of working capital are: marketable securities, stock, accounts receivables and cash. Working capital is considered useful by firms; however its usefulness varies from industry to industry. Ford Motor Company is a multination company located in Michigan; the company has about 108 plants globally and is affiliated to several brands such as Volvo, Ford, J...
The case is about the Midland Energy Resources Inc which has an operating revenue of US$ 248.5bn and operating income of US $42.2 bn. Janet Mortensen, the senior VP of project finance has to prepare annual cost estimates for the company and its 3 divisions : exploration and production , refining and marketing, and petrochemicals. She has been doing the job since 2002 but she believes that she needs to exercise greater care in her calculations. Following questions cover the various aspects of ...
