Abstract
The paper presents a comprehensive literature review on the subject of fair value accounting and considers both the advantages and disadvantages of the method as well as possible alternatives to fair value accounting and hybrid systems of accounting.

Outline:
Introduction
Rational
Fair Value Accounting Defined
Alternatives to Fair Value Accounting
Advantages of Fair Value Accounting
Problems with Fair Value Accounting
Further Debates
Hybrid System

From the Paper
"Having defined the fair value concept of accounting one must now consider the alternatives. In some cases there may be a legal or regulatory stipulation that a company uses the fair value method of stating its assets and liabilities however this is not universal and there are other methods which a company may use to state the value of its assets and liabilities. The most widely used method excluding the consideration of fair value may be seen as using that of historic costs, here the compiler of a financial statement would simply use the historical cost of an asset or liability in stating its value. In some cases this method in its self may represent a convergence with the fair value concept for instance were a company buys stock which is not subject to depreciation nor a fluctuation price within the market place then the fair and historic values may essentially be the same. In other instances there may be a considerable gap for instance were a company states the value of its property two years after purchase at historical costs there is likely to be a large gap between what that property is worth in the market place or its fair value and the historic value which the company paid."

Tags:asset, liability, market

Abstract
This paper focuses on the effects of an aging population on financial asset (stocks and bonds) returns in the U.S. for the post-World War II period. The first part of the paper provides a brief review of demographic changes that will confront a selected country during the next half century. The next part presents a review of the empirical literature on demographics and financial asset demands. Next, the paper develops a conceptual framework for analyzing how an aging population triggered by falling birth rates and rising life expectancies affects the demand for financial assets. A discussion of the ideal data set and an outline of the challenges that arise in estimating how population aging will alter aggregate demand follows. Next, the paper builds up the actual models used in this paper and discusses actual data and proxies. Finally, the paper presents new findings and tests empirically the relation between aging and asset returns in the U.S. The conclusion summarizes the main findings and notes areas for future study.

Outline
The Demographic Transition in the U.S. and Other Nations
Theoretical Background and Literature Review
Conceptual Model
Ideal Data
Actual Model
Results and Analysis

From the Paper
"Sell, Sell to whom? This dilemma might haunt the Baby Boomers in the next century as they attempt to unload their assets to pay for retirement. The rising number of middle-aged workers today is the direct result of the Baby Boom generation, those born in roughly the two decades following World War II. It is this high working population ratio, which has often been identified as an important factor for rises in productivity (see Shimer (1998)). As these boomers age, they will have profound social and economic implications for much of the developed world. The large increase in the ratio of retired workers to those in the labor force during the next three decades will place substantial strains on public pension programs. Just in the U.S. anticipated social security expenditures will outstrip income by 2020. In many other developed nations the fiscal prospect is even more daunting than it is in the United States."

Tags:financial, market, rise, values, boomers, retirement, age, unload, smaller, cohort, falling

Abstract
This paper presents an analysis of the value of a corporation's intellectual capital. The paper discusses the impact the intellectual capital has on the success of the company and how it should be managed.

From the Paper
" The industrial age is over. Welcome to the world of knowledge and knowledge transformation. More and more companies are packaging and selling knowledge and information and not products. What determines the solvency and the ability of a company to compete in the global economy is the value of its intellectual or knowledge capital. Knowledge has become the body of what we make, do, buy, and sell. Therefore, it is knowledge, not land, physical labor, or machines that are the capital assets required to create corporate wealth. No longer can investors and creditors review the financial statements of an organization and the "hard assets" therein to determine corporate wealth and corporate solvency. Traditional financial analysis tools taught in accounting and finance textbooks do not measure the most valuable assets of an organization. Intellectual capital is the new wealth of organizations. The most challenging and important economic task of businesses in the twentieth-first century is their ability to manage intellectual capital "identifying it, developing it, storing it, packaging and selling it, and sharing it" (Stewart, 1998). "

Tags:capital, human, knowledge, assets, technology

Abstract
In this article, the writer first outlines some of the major macroeconomic factors in the financial environment and lends perspective on how those impact a firm's value in both the long and short term. The writer then discusses the factors in the financial environment that have a more specific and direct impact on firm value. This is followed by an interpretation of the literature, illustrating how the ways in which a firm reacts to these factors impacts its value in both the short and long term. The writer then reaches some conclusions about the subject and looks at what attention to the financial environment means to a firm in terms of its value.

Outline:
Introduction
The Financial Environment
Discussion
Conclusion
Works Cited

From the Paper
"One of the most basic ways to derive firm value is with the dividend discount model. From this model, the net present value of future cash flows is derived, with the future cash flows defined as the dividends, typically incorporating a dividend growth factor. The discount rate is directly affected by the prevailing interest rates, and represents the opportunity cost of capital. For the investor, the firm's value is therefore subject to changes in the interest rates. Interest rates are a lagging indicator of the financial environment, confirming environmental trends rather than preceding them.
"Shifts in rates affect different firms in different ways. Aside from the dividend discount, the values of a firm's assets and liabilities are also subject to shifts in interest rates. A rise in interest rates reduces the value of interest-paying assets; the decrease in rates increases the value of those assets."

Tags:interest, rates, liabilities, assets, cash, flows

Abstract
The paper examines the article "Economic Value Added (EVA): A New Flexible Tool for Measuring Corporate Performance" where Girotra and Yadav address the benefits of EVA for determining the cumulative value of a business. The paper highlights the premise of the article that EVA contributes an additional measure of value in terms of corporate performance, which other measures do not. The writer of this paper explains why he believes this article is well written and specifically notes that the shortcomings of EVA are also taken into account. The writer concludes by relating why he believes EVA is a beneficial system for companies.

From the Paper
"The article is structured in a comparative framework. The authors for example provide brief but detailed descriptions of the conventional accounting measures, with the reasons for their inadequacy in terms of determining value. In today's volatile business world, value is of utmost importance, particularly in terms of investments. Investors are concerned with knowing the value of a company before making the decision to invest. Companies in turn are obliged to keep a close eye on value and its creation in order to maintain a good relationship with their investors.
"EVA is based upon the advantage that shareholders gain from investing in the company. Items such as interest bearing debt, equity capital, and net operating profit are taken into account when calculating EVA. Shareholders require returns that compensate their risks when investing in the company in the first place. If the company cannot demonstrate a value of return, then it is in effect operating at a loss. Hence, EVA has been implemented by several companies in order to provide shareholders with value that will ensure their loyalty to these companies.
"After explaining the basic concepts, the article continues to demonstrate these by means of a company case study. Factors such as production, earnings, and capital investments are taken into account. A description of the company is followed by detailed calculations to arrive at the company's EVA."

Tags:investors, shareholders, assets, earnings, capital

Abstract
This paper presents an asset valuation for a newly opened business, Classic Furniture Company, that specializes in wholesale residential furniture selling a wide array of living room, bedroom and dining room sets. The paper provides an analysis of the inventory held by Classic Furniture and examines the company's inventory and capitalization policy as well as the methodology used to value assets and calculate depreciation. The paper justifies the policies chosen and explains how the company meets the goal of using the most effective polices.

From the Paper
"Inventories in most industries generally represent the most significant current asset. How it is valued in the Financial Statement will affect the Balance Sheet, Income Statement, Statement of Changes in Owners' Equity and the Statement of Cash Flow. There are four basic methods of inventory valuation or "cost flow assumptions." The FIFO (first in-first out) method of accounting means that the first cost into the inventory system is the first cost out and charged to cost of goods sold. Under this cost flow assumption, the oldest cost is transferred to cost of goods sold, and the ending inventory is comprised of the most resent cost. Additionally, net income is higher under the FIFO method of accounting. Disadvantages associated with the FIFO method is that it is not consistent with GAAP accounting, because the matching principal is violated resulting in higher income taxes and lower cash flows. The LIFO (last in - first out) cost flow method of accounting means that the last cost into inventory is the first cost transferred to cost of goods sold. Under this method the ending inventory is made up of the oldest cost. The LIFO method is an acceptable GAAP method as it matches expense and revenues. "

Tags:inventory, accounting, income, cost, flow

Abstract
This paper compares and contrasts the capital asset pricing model (CAPM) and the discounted cash flow (DCF) model in valuing common stock. The paper holds that, because of the complexity and importance of valuing common stock, the above techniques have been devised over time to accomplish this task. It points out that CAPM focuses on inputs to calculate stock prices that are external to the firm while the DCF model focuses on internal factors. Also, CAPM is concerned with growth rate, while DCF is concerned with estimated returns. The paper concludes that both models are important to investors and expanding companies.

From the Paper
"For a firm that is expanding, it is difficult to establish a proper growth rate for the DCF. If past growth rates in earnings and dividends have been relatively stable, and if investors appear to be projecting a continuation of past trends, then the growth rate may be based on the firm's historic growth rate. However, if the company's past growth has been abnormally high or low, either because of its own unique situation or because of economic fluctuations, then the growth rate has to be estimated in some other manner."

Tags:stocks, investment, stock, market

Abstract
With many economies worldwide in a financial tailspin this paper seeks to determine whether the fair value model or the cost model is more efficient especially in regards to the valuation of real estate assets in Hong Kong. The paper specifically seeks to determine whether the fair value model is a good representation of the true value of investments so that investors can make decisions that are both timely and effective in their nature. By comparing the fair value model to the cost model the paper attempts to present a clear picture since both, distinctively different, models are used extensively in the Hong Kong market . The paper specifically addresses the reliability of the fair value model as it is used in the valuation of assets for financial statements.

Table of Contents:
Abstract
Introduction
Literature Review
Methodology
Findings and Analysis
Conclusions
Recommendations
References

From the Paper
"Hong Kong is an international market that sports an excellent legal system, offers companies low tax rates, and due to the limited available land for development usually offers a good real estate investment value. Since 2004 the Hong Kong real estate market has doubled in value. Much of that gain is perceived in value especially when the entity perceiving the value uses the fair value model to assign a value to the property.
"In Hong Kong, the government controls the land. The island of Hong Kong is approximately 425 square miles and those miles are home to approximately seven million citizens. Land is valuable and limited. One of the best investments a citizen of Hong Kong has been able to make throughout the years is to purchase land, oftentimes seeing a double, triple or even quadruple in value over a short number of years."

Tags:economics, real estate, investors, financial statements, tax, profit, mortgages

Abstract
The CEO of The CD Rack has contacted The C-Team (a local consulting firm) asking for recommendations on reporting and valuing various assets. This paper examines how the C-Team discusses and gives justifications of each of the policies and shows how the policies will support The CD Rack in meeting their business goals. It explains that The CD Rack is an up and coming, start-up retail company that sells CDs from every music genre imaginable. The CD Rack also sells accessories associated with CDs such as CD storage cases and storage units, and accessories for cleaning and protecting CDs.
Inventory Policy
Capitalization Policy
Depreciation
Depreciation Methods
Conclusion

From the Paper
"A variety of cost-flow assumptions are available for determining the cost of goods sold and the cost of maintaining inventory on hand. Note the word "assumption". Companies make certain assumptions about which goods are sold and which goods remain in inventory. This is for financial reporting and tax purposes only and does not have to agree with the actual movement of goods. The only requirement is: The total cost of goods sold plus the cost of the goods remaining in ending inventory for financial and tax purposes is equal to the actual cost of goods available (Inventory Cost Flow Assumptions, n.d.). Cost of goods sold is a figure reflecting the cost of the product or good that a company sells to generate revenue, appearing on the income statement as an expense unto itself, also referred to as "cost of sales." "

Tags:sales, financial, cost, tax

Abstract
This paper examines several models that are used to determine fair value, specifically, the net asset approach, the discounted cash flow approach, the earnings multiplier approach and the capitalized earnings approach. The paper analyzes each of these in turn, with respect to their technique, advantages and disadvantages. The paper also considers the assumptions of each that are the basis for the commonly applied valuations and discounts.

Outline:
Introduction
Net Asset Approach
Discounted Cash Flow Approach
Earnings Multiplier Approach
Capitalized Earnings Approach
Basis for Commonly Applied Premiums and Discounts
Conclusion

From the Paper
"The net asset approach ascribes the value of the business as the difference between its net assets and net liabilities. In other words, the value of the business is the current value of the equity. As with any valuation approach, the first thing that needs to be done is to convert the statements into ones that adhere to GAAP, to allow for proper understanding and comparison. Once that has been done, the net asset approach prescribes a conversion from book value to market value. Remember that publicly-traded companies receive their valuation from the market."

Tags:net, asset, discounted, cash, flow, approach, earnings, multiplier, capitalized, earnings, assumptions