Financial Analysis - 1614 Words

Consequences of Accounting During the 2008 Financial Crisis Group 3 October 4th, 2011 Actors in the 2008 Financial Crisis ï‚ § U.S. Government ï‚ § European Union o Commission o Political figureheads ï‚ § Banks o U.S. o E.U. ï‚ § International Accounting Standards Board (IASB) ï‚ § Investors and External Regulators 10/3/11 2 Actors in the 2008 Financial Crisis (US Government) o Generally mentioned indirectly in the news articles o Not in the forefront of the case, as banks were driving policy o Presumably, wanted to allow U.S. banks to appear and remain competitive In the case of the financial crisis, being competitive meant not showing large losses on financial reports. Therefore, some leniency in accounting (e.g., use†¦show more content†¦Simultaneously, they give banks the go-ahead for moving toxic assets away from their trading sheet, and therefore off of their Q3 report. This is the first time pressure is applied (albeit at this point only as an inference of future EU requirements) to the IASB. 10/3/11 9 IASB Accounting Changes (October 3rd - 4th) o October 3rd - 4th : European leaders issue a response to the American changes in policy by announcing that they will be reviewing and adjusting their own policies in the interest of keeping European banks competitive. Since they have very little time before Q3 reports, they make it clear that their intention is to change quickly. Although they do not at this point specifically state the need for IASB changes, they do announce their intention to align with the US to stay competitive, and therefore an IASB change is all but guaranteed. 10/3/11 10 IASB Accounting Changes (October 7th) o October 7th : European finance ministers formally announce their change of course away from mark-to-market accounting so that EU banks’ upcoming Q3 reports can compete with their American counterparts. A fairly informal political ultimatum is given to the IASB in the quote â€Å"we expect this issue to be solved by the end of the month†. At this point, it is clear that the IASB must change their stance immediately or lose any semblance of advisory power. 10/3/11 11 IASB Accounting Changes (October 12th - 13th) oShow MoreRelatedFinancial Statement Analysis : Financial Analysis1558 Words   |  7 Pagesyou hear the phase financial statement analysis, one wonders what is stands for. financial statement analysis is one of the most important part of any company to be successful. The reason companies rely on financial statements is for the company to come profitable even if the company is small or large. When companies use financial statement, it helps them to see if they are being profitable, by being used in different areas and reviewed by different departments. Chief Financial Officer and other executivesRead MoreFinancial Statement Analysis : Financial Analysis759 Words   |  4 PagesWoolworth Financial Analysis Financial statement analysis assists a business entity, business shareholders and other people interested, to analyze the figures in financial statements to present them with superior information about such most important factors for decision making and ultimate business survival. As exemplified by Gibson (2001), income statement, balance sheet, and cash flow statements project the financial performance a company at the present and probably the future. According to theRead MoreFinancial Analysis1076 Words   |  5 PagesCango Financial CanGo Financial Analysis Report The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measuredRead MoreFinancial Trend Analysis Of Tata Steel Ltd Essay1257 Words   |  6 Pages TERM PAPER ON â€Å"Financial Trend Analysis Of TATA STEEL Ltd.† BY SAMIKSH SHARMA {A3146915005} B.Com (H) – Evening Class of 2015-18 Under the Supervision of: Dr . ATUL KUMAR In Partial Fulfilment of the Requirements for the Degree of Bachelor of Commerce (Honours) At AMITY COLLEGE OF COMMERCE AND FINANCE AMITY UNIVERSITY UTTAR PRADESH, 2015-18 INDEX S.NO CONTENTS PAGE NO 1. TITLE PAGE 01 2. INDEX 02 3. DECLARATION FORM 03 4. ACKNOWLEDGEMENT 04 5. EXECUTIVE SUMMARY 05 - 06 6. INTRODUCTIONRead MoreFinancial Analysis of Lee College1527 Words   |  7 PagesFinancial Analysis of Lee College Not-for-profit organizations are required to produce financial statements that provide information about their financial position and performance. Lee College is a private, not-for-profit college that prepares its financial statements in accordance to the accounting standards of the National Association of College and University Business Officers (NACUBO). I will prepare a Statement of Activities, a Statement of Unrestricted Revenues, Expenses, and Other ChangesRead MoreFinancial Analysis2455 Words   |  10 PagesContents Executive Summary 3 Issues: 4 Recommendations: 4 Value of synergies and intrinsic value per share of Antarctica 5 Form of payment; Cash or common stock? 5 Share-for-share transaction 7 Term sheet and its components 8 Economic Analysis 8 Recommendation 9 Executive Summary In 1999, the CEO of Companhia Cervejaria Brahama (largest brewer in Brazil) was considering the bit for Antarctica (second largest brewer in Brazil). The purpose for this merger was to exploit the potentialRead MoreFinancial Analysis : Financial Information970 Words   |  4 PagesFinancial ratios make it easier for quantitative analysis, where financial information is analysed by investors, as the numerous numbers contained in a company financial statement can leave them confounded. There are five to six main types of financial ratios including liquidity measurement ratios, profitability indicator ratios, debt ratios, operating performance ratios and cash flow indicator ratios (Richard Loth, n.b and Jim Riley,n.b)1 and 2. However, these can be grouped into two principal categoryRead MoreFinancial Analysis2238 Words   |  9 Pagestimes | Apendix: Ratios of the Grand Hotel Financial analysis | | | Financial ratios are useful tool to analyze the firm performance and financial situation or to compare the firm’s financial situation with other. It will help managers or the board of director to make good decisions in their performance and future prospects. Financial ratios could be classified into five types: profitability, liquidity, financial leverage, asset turnover, and dividend policy ratios (PaulineRead MoreFinancial Analysis4661 Words   |  19 PagesFinal Project – Financial Analysis Beatrice Valdez, MBA Student Capella University MBA 6016 Finance and Value Creation [ May 16, 2012 ] Michael Blagg, Professor Table of Contents Executive Summary | | 3 | Historical Financial Statement Analysis: Financial Ratios | | 3-4 | Balance Sheet | | 4-6 | Income Statement | | 6 | Statement of Cash Flows | | 6 | Pro-Forma Financial Statements | | 7 | Balance Sheet Pro-Forma | | 7-8 | Income Statement Pro-Forma | | 9 | CashRead MoreFinancial Ratio Analysis : Financial Ratios Analysis1634 Words   |  7 Pages UNIVERSITY OF HOUSTON CLEAR-LAKE HADM 5233: FINANCIAL MANAGEMENT II ASSIGNMENT: FINANCIAL RATIO ANALYSIS UHCL Honesty Code â€Å"I will be honest in all my academic activities and will not tolerate dishonesty.† Uday Sekhar Reddy Mareddy