Section A (I.) Trade account receivable [Describe] – Trade accounts receivable refers to the amount of business due to the sale of goods, products, services, and other services in the normal course of business, shall be charged to purchase units. It is represent funds which be occupied by the buyer when in the sales process with the companies, and the enterprises should collect receivables in time to compensate the cost in the production and operation process, and ensure the organizations can work properly. [Reason] – Trade accounts receivable is a financial instrument, since it is a creditor’s right which forms associated with the company's sales. Also, the recognition of account receivable is closely related to the recognition of revenue, and usually confirms the income and the account receivable at the same time. IAS 32 classifies the trade account receivable is a kind of financial assets, and it is should be an equity instrument. (II.) Investment in a portfolio of listed shares held for capital growth [Describe] – Portfolio is a set which composed of stocks, bonds, derivatives and other investments, and held by the investor or financial institution. The purpose of the portfolio is to spread the risk. The monetary value of each asset may influence the risk/reward ratio of the portfolio and is referred to as the asset allocation of the portfolio. When determining a proper asset allocation one aims at maximizing the expected return and minimizing the risk. [Reason] – Investment in a portfolio of listed shares is definitely a financial instrument, since investors can get dividend from shares to increase their capital, and according to IAS 32, it is an equity instrument which should be written in the balance sheet... ... middle of paper ... ...ng a certain pattern as anticipated by financial markets. Depreciation - Option for a particular method of depreciation or otherwise in connection with the accounting policy of the undertaking, the assignment in a systematic way the depreciation of an asset during its useful economic life has an impact on the profit and loss. Thus, a different method of depreciation has a different impact on the outcome (Moeller and Landry 2009). Window dressing - In a certain period of time (such as the date of balance sheet or the date of debt claim) to adjust the Company's financial statements, and to make it reflects the good financial situation. In this way, often through few months of the end of the fiscal year, to do everything to make an increase in cash flow, so that can dispersed the attention of the users of financial statements in the company's inefficient operations.
Accounts receivable ending balance= Beginning balance +sales on Account - cash receipts -sales returns and allowances- charge of uncollectible account
Accounts Receivable has good separation of duties and strong internal controls such as control numbers and reconciliations to sales and bank statements. One weakness in the Accounts receivable system is the accounting supervisor approves summary entries and reconciles the general ledger account, which could indicate a weakness with segregation of duties. We recommend that the controller approves of summary entries to segregate these duties.
Credit Risk: Financial instruments that possibly subject the Company to concentrations of credit risk consist of cash equivalents and receivables. Due to its large and varied customer base and its geographic diversity, Saputo has low exposure to credit risk concentration with respect to customer’s receivables. There are no receivables from any individual customer that exceeded 10% of the total balance of receivables as at March 31, 2015 and March 31, 2014. However one customer represented more than 10% of total consolidated sales for the year ended March 31, 2015, with 10.2% (one customer with 11.4% in 2014). Allowance for doubtful accounts and past due receivables are reviewed by management at each balance sheet date. The company updates its estimate of the allowance for doubtful accounts based on the assessment of the recoverability of receivable balances from each customer taking into account historic collection trends of past due accounts. Receivables are written off once determined not to be collectible. On average, Saputo will generally have 10% of receivables that are due beyond normal terms, but are not decreased. However, Saputo management does not believe that these allowances
The billing process is important because is crucial in maintaining the financial stability, the hospital must have an efficient process for obtaining reimbursement from patients and third-party payers. Alongside the billing process Accounts Receivable (A/R) Management is responsible for monitor outstanding accounts from patients the government, and other payers to ensure that payments are received in a timely manner.
...r investments that can support the other weight and balance their portfolio and therefore alleviate some of the risk they face.
BDEV has disclosed the financial instruments under respective categories of financial assets and liabilities. The financial assets comprise of Derivative financial instruments, Cash and cash equivalent, Trade receivables and Available for sale investments. Financial liabilities includes Derivative financial instruments, Bank overdrafts, loans, and borrowings. The below graph indicates a huge increase in financial liabilities representing 91% an increase in land payable bearing an interest on contract secured by a legal charge (Barratt Development Plc, 2016).
Transactional Processing The accounting software packages developed and distributed by Sage and Microsoft, respectively, each use their own methods for recording accounting information. Sage 50. There are three different areas that must be discussed. These are the revenue, expenditure, and financing cycles. These areas are written about from the author's own knowledge from using the software, as learned from the book by Carol Yacht (2013).
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
It outlines the interconnection of a company’s financial and non-financial elements and aims to combine them and show value creation and maintenance. It identifies resources and their effective and responsible usage. It intends to create a dialogue between the shareholders and other stakeholders and provides them with detailed information.
• Revenue and expense recognition for freight services in processes. • Revenue and expenses are contractually established as it relates, for example reimbursements of obsolete parts in which the customer will reimburse the company at 50% of cost per this case study. • The accounting of shipping and handling fees of cost. As stated in the contract, when spare parts are purchased by the company the vendor ships the spare parts directly to the customers warehouse. However, the customer does not take ownership until a purchase order is
To maximize optimum performance of our investment portfolio, we placed a certain percentage of equity in different sectors of the stock market.
According to Investopedia (Asset Allocation Definition, 2013), asset allocation is an investment strategy that aims to balance risk and reward by distributing a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. There are three main asset classes: equities, fixed-income, cash and cash equivalents; but they all have different levels of risk and return. A prudent investor should be careful in allocating each asset class to his portfolio. Proper asset allocation is a highly debatable subject and is not designed equally for everybody, but is rather based on the desires and needs of the individual investor. This paper discusses the importance of asset allocation, the differences and the proper diversification within the portfolio.
The goods are of a description which the sellers ordinarily supplies in the course of the business.
Balance sheet-: Balance sheet is a statement at the book value of all of the assets and liabilities of a business or other organization present a particular date such as the end of the financial year. It is known as a balance sheet because it reflection accounting identity the components of the balance sheets. The balance sheet must follow the following formula:
The Modern portfolio theory {MPT}, "proposes how rational investors will use diversification to optimize their portfolios, and how an asset should be priced given its risk relative to the market as a whole. The basic concepts of the theory are the efficient frontier, Capital Asset Pricing Model and beta coefficient, the Capital Market Line and the Securities Market Line. MPT models the return of an asset as a random variable and a portfolio as a weighted combination of assets; the return of a portfolio is thus also a random variable and consequently has an expected value and a variance.