Financial statement analysis

Financial Ratios & Health Insurance Industry How do financial managers know which company is better than the other? How do organizations know their capital management is meeting industry standards? Organizations and financial managers can use financial ratios to make comparisons. Financial ratios are comparison ratios, in which are used to assess the financial stability and operational performance of a company (Block, Hirt & Danielson, 2011). Financial ratios have many benefits to financial…

Elizabeth M. Snyder, CRCM, is a regulatory compliance specialist with more than 25 years of diverse industry and functional expertise. Elizabeth joined First Citizens Bank, a $35 billion Bank headquartered in Raleigh, North Carolina, in August 2017 as the Senior Vice President & Senior Manager, Compliance Governance and Exam Management. Her current responsibilities include executing the compliance department governance processes, coordinating complex regulatory exam issues and regulatory…

Although the International Financial Standard Reporting (IFRS) of the International Accounting Standard Board has gained strong support worldwide, IFRS should not be adopted as a global reporting standard. First, the IFRS adoption does not cause rising of globalization, as it supporters may have claimed. Second, IFRS is not superior to other national general accepted accounting principles (GAAP), in particularly to the U.S. rules-based GAAP. Third, IFRS fails to deliver uniformity as a…

Reporting Intangible Assets Accurate financial reporting of an organization is very important in today’s modern business world. Intangible assets play a critical role in the valuation of an entity as they may bring significant value to the table. An intangible asset is an identifiable nonfinancial asset which lacks physical properties according to both the international community as well as the standards set by the United States. Intangible assets include items such as such as trademarks,…

Beyond the different software companies used for Big Data Analytics, there are other ways that Big Data affect the accountancy profession. A major effect on the field of accounting is the law that takes place while the processes are amended to adapt to the current technology age. Overseers such as: FASB and the SEC have certain laws and regulations that alter the way accountants perform the assigned tasks required by their profession. In addition to adding unprecedented rules, FASB and the SEC…

There has been accounts of criticism towards Porter’s (1980) Five Forces framework, stating that it was designed too long ago when the business environment was different from the current, fast paced business environment and furthermore that it should include pressure from international markets but more importantly pressure from domestic rivalry and governments (Öz, 2002: 509). In a study by Van Den Bosch and Van Prooijen (1992: 174), they believe that Porter’s framework fails by stating that…

There is a common myth that consumers tend to believe. They believe that credit cards could help them build up their credit. Is this really true? According to Steve Repak, it is not true. Having a credit card does not actually boost someone’s credit. In his article, “The A to Z of Credit and Credit Cards”, Mr. Repak brings up some solid facts that support the claim that having a credit card does not necessarily mean that a consumer will have good credit. In the article, he describes the literal…

1. The information presented in this case study of the city’s financial statement in the MD&A appear to meet GASB standards. • The Government-wide Financial Statement presented meets the requirement of listing both the statement of net position and statement of net activities. • The MD&A represents the use of the economic resource measurement focus as well as the accrual basis of accounting. • The two types of activities, governmental and business are reported in separate columns as they should…

simply describes how the specific management must set order and professionalism towards the shareholders of the company. Therefore, Halliburton’s corporate governance was in need to keep honest financial calculations and information to their overall investors and shareholders. To begin with, Halliburton financial information didn’t meet the requirements nor follow GAAP. Having a set of rules and policies that doesn’t follow GAAP would then question the shareholders to rely on such a big company…

perspectives which are financial, customer, internal business processes and learning and growth. As to the evidence on which industries does well by implementing BSC, there will be a comparison between SMEs industry and banking industry. A company of SMEs industry has implemented BSC to measure its business performance based on the 4 perspective which are financial, customer, learning and growth and internal business processes. Firstly is financial where it measures the financial…