IFRS, or International Financial Reporting Standards have received a lot of hype over the past few years. It is important that accountants, finance professionals, and investors all need to understand and learn the IFRS method, as its implementation has serious ramifications for financial reporting.
Accounting & Business Finance
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Quicken is popular personal financial management software from Intuit; QuickBooks is a financial software solution from the same organization aimed at small businesses. As long as the versions of both are compatible with each other, converting data from Quicken to QuickBooks is a breeze.
One of the reasons there is a discrepancy between the market and book value of an asset is the time since its acquisition. Wise investors can spot and value this difference well. Learn how time since acquisition affects the difference between market and book value.
Inflation can have a large impact on the discrepancy between an asset’s book and market value. Learn how inflation and the time value of money affect market and book values of assets.
Liquidity affects the discrepancy between the book and market value of an asset. Lower liquidity means lower value. Learn how investors view liquidity when making investment decisions.
The value of intangible assets can be much more variable than tangible assets. This variability increases the likelihood of a discrepancy between book and market values. Learn about how investors deal with the differences between the book and market values of tangible and intangible assets.
Just like assets, the book value of a liability can differ from its market value. Learn about how investors assess both book and market values based on the time until maturity.
Book values and market values of liabilities can differ when a company is experiencing financial distress. Investors must be able to properly value liabilities under this condition. Learn how to view the market and book values of company liabilities from an investor’s viewpoint.
When one person acts in the interests of another, the possibility of a moral hazard results in expenditures to avoid a negative outcome for the principal. Learn how investors view the problems that arise from agency costs in a principal agent relationship.
Principal-Agent relationships occur in many forms in business. Understanding these relationships is crucial for investors in order to make better investment decisions.
Whenever one person acts in the interests of another, there are bound to be conflicts between the agent acting on behalf of the principal and working in his/her own self-interest. Learn about these conflicts from the point of view of an investor.
Conflict in principal-agent relationships, called an agency problem, results in monitoring by principals to protect their financial interests. Learn about the agency problems that can arise in corporations and the moral hazards that often accompany them.
Managing the amount of a corporation’s debt is crucial to the risk of owning shares of stock in a company.
Generally Accepted Accounting Principles have been established so financial records and reporting by companies are fair and accurate.
The S corporation is a subset of the normal corporation that enjoys some of the benefits of a partnership and some of the benefits of a corporation.
Debt interest paid to creditors and dividends paid to stockholders are treated differently from a tax perspective. This difference has a significant impact on the choices managers must make to finance a corporation.
To avoid Triple Taxation, most of the dividends received by corporations are not taxed. Read on to learn important taxation information for investors.