Abstract This paper examines the aging of Canada's population and its potential consequences. Many consider the aging of the 'baby boom' generation to be a crisis. Other demographers suggest it will have positive consequences.
Abstract This paper presents three articles on financial analysis as it is related to information technology and on some of the problems faced with the use of this technology for this purpose.
Abstract This paper investigates Economic Value Added, or EVA, invented and promoted by Stern Stewart & Co. The author points out that this theory is aimed at eliminating the problems that accounting faces today by incorporating the concept of a "true economic profit" into accounting and bookkeeping. The paper states that the EVA concept intends to align reported earnings, something which shareholders always take into consideration when investing in a company, with the actual capital that was loaned by the company.
Table of Contents
The Cost of Equity Capital
Operating vs. Financing Decisions
Pension Plan Accounting
Full Cost Accounting
Stock Options
From the Paper "One of the errors that accountants usually makes and that leads to distorted reporting on a company's earnings is the fact that equity capital is not taken into consideration as a cost. If debt is considered a cost and debt interest is noted as an expense, than why not see equity as a cost as well, seeing that it is not a free resource, but something invested by shareholders into the company and funds put into the company. As Bennett Stewart points out, "the cost of equity is not a cash cost, it is an opportunity cost". Indeed, it is the equivalent return that a shareholder would expect to earn by investing in other stocks from companies of comparable risk."
Abstract This paper explains what long-term capital management, or hedge funds, are and how they operate. It gives the background information of long-term capital management (LTCM) and its distinguishing features. The paper continues with a discussion on the collapse of LTCM, including the causes and consequences. There is also a discussion on the future of LTCMs and hedge funds and a brief overview of the reforms needed to regulate hedge funds.
From the Paper "Hedge funds are large unregulated private investment pools for wealthy institutions and investors. Hedge funds are not limited by the restrictions put on other types of investment vehicles with regard to their leverage and the composition of their portfolio. Hedge funds are allowed to take short positions in securities and are also allowed to concentrate their investments in a particular firm, industry or sector. The launch of Long-Term Capital Management (LTCM) represented one of the first hedge funds in operation and, unfortunately, the first fall out. Ultimately, the arrogance of LTCM's management in believing that they could actually hedge away all the risk precipitated the fund's demise."
Abstract This paper attempts to explain that the key components responsible for the success or failure of an organization are the organizational goals and objectives. The paper looks at businesses since the Industrial Revolution and explores what characteristics have made one business succeed over another, with particular reference to the management of the entity. As an example, the paper uses the automobile industry in the U.S. and studies the major car makers.
From the Paper "In addition, Toyota also practiced the Just in time (JIT) system. They preferred when their suppliers were closer to their manufacturing their sites and both raw materials and semi finished did not have to add value in transportation and storage cost. Toyota tried to achieve excellence in the manufacturing process there by decreasing and completely eliminating waste (muda). Any process or operation that did not add value to the product and the material waste generated during production was considered wasteful. Acceptable quality limit (AQL) was practiced in the mass production sector in the United States and therefore Toyota's policy of complete waste elimination and 100% quality was novel."
Abstract Discusses several issues, such as the size of the futures market and the trading volume. Discusses various participants in the futures market including speculators, product producers, commodities, band, investors, and day traders.
From the Paper "This research reviews the functioning of futures markets in the United States. Issues covered in the review are (1) the size of the futures markets, (2) participants in the market, and (3) concepts and..."
Abstract This paper examines how the FASB (Financial Accounting Standards Board) in the recent years has revised many accounting standards and policies to effectively govern corporations for the benefit of the public. In particular, it looks at how, in its attempt to curtail unaccounted for incomes and earnings, the FASB issued the FASB No.115 section in which it states that companies reporting their financials can determine their investment securities as held-to-maturity, available-for-sale, or trading. It discusses the author's opinion that Section 115 is not only impractical, but it is also not feasible for companies who practice it.
From the Paper "First of all companies that have held to maturity securities are often indebted but because of their credit worthiness, the face value of their securities remains high. At the time of sale of assets and settling of liabilities, these companies can bargain with the buyers of the fair price value of the securities. This is usually the case when there is a high demand for the securities in the market or that the industry is undergoing some changes. The mandate that the securities be sold at amortized cost and the securities? unrealized gains or loss be part of the equity often result in debt for the buyers as they are still considered to be liabilities for the company unless the securities mature."
Abstract This paper explains that United's primary issue in human resource management is the conflict created by the fact that its employees are also the majority owners and, to date, have been unable to reconcile their interests as workers and owners. The paper points out that purchasing is currently being handled appropriately, given efforts to outsource certain areas as well as to achieve economies of scale where applicable. This paper concludes that United has many factors in its favor; but, until and unless it is able to resolve its corporate structure and labor issues, which are leading to an non-viable cost structure, it will be unable to compete effectively in a changing, more competitive market.
Table of Contents
Operations & Logistics
Human Resources Management
Information Systems
Conclusion
From the Paper "In addition, United has harnessed information technology capability in order to provide enhanced flight notification, and superior sales support through its North America Sales Support Operations Center in Chicago (Business Travel News). Advanced technology and increased automation has helped United reduce disruptions caused by weather but extreme weather conditions and labor strikes are still vulnerability factors for United, as all other airlines. United is also vulnerable to sudden substantial cost increases in fuel and insurance premiums, which is compensated to a certain extent through hedging and insurance coverage by the FAA (United 2002 Annual Report, 8). As seen earlier, United is just about competitive now in terms of cost structures but is still at a disadvantage when compared with the cost efficient operations of low cost carriers. The significant trends that can be discerned here are the cost efficiencies generated by automation and technology, efficient planning via R&D and information systems, as well as cost cutting opportunities through outsourcing, negotiation and procurement efficiencies."
Abstract This paper summarizes Milton Friedman's explanation about how "money", or currency, works and how it is widely accepted as a means for exchange for goods and services. The paper also looks at Friedman's discussion of different types of currencies, how government can increase the currency in order to allow greater government spending, and the switch from the gold standard to a currency directly connected to a commodity.
From the Paper "Many different items have been used as "money" or currency throughout history. From trading items for goods and services to exchanging beads, metals, or paper money these are all forms of currency. Currency can be anything that carries a certain value to make it worth exchanging. In Germany Milton Friedman expresses an instance in which he traded cigarettes for the sale of gasoline (Friedman 13). Friedman brings this to life from an interesting perspective through the Island of Stone Monkey. The Caroline Islands in Micronesia were laid claim to by the Germans? as one of their colonies 1899. The island of Uap had a population of five to six thousand natives and was the wealthiest island of the group. The used a stone as their currency called ?fei.? The stone was limestone brought from an island some four hundred miles away."
Abstract This paper describes and details the introduction and history of taxes in America. The paper talks about the inception of taxes, their changes over the years, and the current situation of taxation.
From the Paper "Taxes come in all shapes and forms. From federal to state, sales to excise- almost every purchase or monetary movement has some form of taxation assessed to it. This taxation hasn"t always been so. In the beginning mankind wasn"t taxed- we went about our business and everyone left us alone. However, with the advent of government and then the struggle for power resulting in war, taxes became a prevalent means of raising the funding that the government required to pursue war. Taxes were first introduced in the form of "low tariffs and customs duties on a wide range of goods that produced revenue easily" (PBS par 9). This did not fair well with the lower part of the income earning population "as the "have nots" - or ordinary citizens - realized that these tariffs - that is, taxes on imported goods - were forcing them to pay higher prices, and they pushed for a tax on the wealthy" (PBS par 10). And poof- their wish was granted and income taxes were instituted."
Tags: financing, civil, war, lincoln, proceeds, income, tariffs, federal, government
Abstract Bankruptcy is not an easy process, and the average individual does not possess the knowledge to enter into proceedings on his or her own. The paper argues that professionals should always be consulted as they can determine which bankruptcy is appropriate or whether bankruptcy is necessary at all. The paper also looks at the bankruptcy court, which has been established to protect and assist individuals, companies, and corporations in their proceedings.
Paper Outline
A. Federal Bankruptcy Code
a. Explanation of the Origin
b. Federal Bankruptcy Law
c. Jurisdiction of Courts
B. Chapter 7 Liquidation Bankruptcy
a. Procedure
i. Filing a Petition
ii. Meeting of Creditors
iii. Appointment of Trustee
iv. Proof of Claims
b. Automatic Stay
c. Case Dismissal
d. Alternatives to Chapter 7 Bankruptcy
e. Discharge
C. Chapter 11 Reorganization Bankruptcy
a. Why choose Chapter 11
b. Plan of Reorganization
i. Who develops the Plan
ii. Steps in the Plan
c. Discharge
D. Chapter 13 Consumer Debt Adjustment
a. Chapter 13 Eligibility
b. Important Features
c. Filing
d. Automatic Stay
e. Plan of Payment
f. Confirmation of the Plan
g. Discharge
E. Chapter 13 or Chapter 7
F. Rights of Creditors
G. Conclusion
From the Paper "If you are living with little income and property you may be "judgment proof". Basically creditors cannot collect because you have nothing for them to legally take. Taking advantage of federal and state debt collection laws that protect a debtor from abusive conduct may stop harassment from creditors. Possibly, a debtor may negotiate with creditors and buy enough time to get back on his or her feet. Creditors may also agree to settle debts for less than is owed. Debtors may seek help from outside sources such as Consumer Credit Counseling Service. Finally, a debtor may pay over time with a Chapter 13 proceeding, which will be discussed in a later section."
Abstract This paper outlines the various methodologies of accounting practices and principles that are being followed in the United Kingdom. It provides an on-the-spot analysis of the Generally Accepted Accounting Principles followed in the UK, better known as the UK GAAP, and also looks at the various differences in accounting principles followed within the United Kingdom and the United States of America. It examines issues of key importance, with reference to both the UK GAAP and the US GAAP, and defines the role and scope of various bodies that regulate the practice and principles of accounting.
Outline
Introduction
Background
Literature Review
Aims and Objectives of the Research
Methodology
Data Analysis
Time Scale
Conclusion
From the Paper "Accounting has gained special and a very exceptional significance in the recent past. Until now it was a mere process that involved a series of cumbersome, time consuming and ongoing activities that related to bringing to book financial transactions related to companies across the globe. A good number of prescribed methods and standards needed to be adhered so as to make the "operation by the book" and largely acceptable. The year 2001 saw a string of nasty and well orchestrated financial scandals and trickery across the United States of America, in particular, and various other countries in general. In the light of these carefully premeditated nefarious designs being uncovered, the accountant and the bookkeeper, hitherto mere management functionaries who operated more with the pen and mind than a collection of principles and standards, were shot into the limelight and under the scanner of a few dozen investigating agencies and accounting firms."
This paper discusses stock options, a contract offered by the employer that gives an employee the right to buy or sell a certain number of shares in the company at a specific price within a certain period of time.
Abstract This paper explains that stock options have been hailed as a great way to share ownership, attract and retain employees in a tight labor market, and "fuel the entrepreneurial fire?; but, at the same time, they have been condemned as a major cause of the high-profile business scandals during 2000-01 and the subsequent down-turn in the U.S. stock markets.
The author points out that another attraction of stock options from the employees? point of view is that the only capital gains tax is applicable on gains made from stock options. The paper relates the future of stock options does not appear bright because of accounting changes requiring firms to reflect the cost of stock options in their earnings as expenses by 2005.
Table of Contents
What are Stock Options?
History of Stock Options
Advantages of Stock Options
Disadvantages
Future of Stock Options
From the Paper "Stock options first began to appear in the US businesses in the 1950s, but at the time they were generally modest in size. The trend of offering stock options (particularly to the top managers) began to take off in the late 1980s and by the turn of the century the typical CEO of financial sector firm was receiving stock options worth $55 million a year?more than 30 times his salary. (Shapiro, 2002). The offer of stock options became more widespread and the NCEO estimated that as of 2001, up to 10 million employees were receiving stock options in the US."
Abstract In the summer of 2002, when Congress was attempting to decide how to clean up the shady financial practices of corporate America, mutual fund company lobbyists convinced lawmakers to exempt their area of the financial services industry. Since then, this industry has occupied center-stage in the spotlight targeted at ethical problems in financial management. This paper shows that there are a number of important ethical issues that have been ignored by mutual fund managers and their firms, issues that are of great concern to investors, legislators, and regulators. These areas of concern include conflicts of interest, director independence, and transparency of fee and expense reporting.
From the Paper "There is a notable lack of independence among the members of the boards of directors who are supposed to be making sure mutual funds are run in the best interest of the investors. The watchdog role of a fund's board of directors theoretically includes not only watching the big picture, but also the minutiae of the funds? service contracts, operations and investment policies. These board members should be free of potential conflicts of interest in order to play the biggest role possible in making sure the best interests of their funds? shareholders are served."
