...Balance of payment of Nepal The balance of payments account is a systematic record of all the transactions of a country’s inhabitants with the rest of the world over a given period of time. All transactions must be recorded somewhere. The IMF publishes a Balance Of Payments manual to standardize all balances of payments, and it contains the rules about which transactions are allowed. A favorable balance of payments usually implies a surplus which means that more funds are flowing in than leaving. Every transaction is recorded twice, once as a credit and once as a debit. A key point to remember about the balance of payments account is that the value of all the transactions must sum to zero. The balance of payments account consists of the following components: • Current Account • Capital Account Current Account The Current Account includes all transactions which give rise to or use up national income. The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of betel nut, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that Nepalese earn on assets held overseas, and also payments to foreign residents on assets held in Nepal. •...
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...SNHU New Balance Case Study Ed Williams Introduction New Balance Athletic Shoe, Inc. (New Balance) is an organization that offers and makes athletic shoes, attire and extras for men, ladies and youngsters. It is the fourth biggest shoe maker on the planet. The organization was established by William Riley and was formerly known as New Balance Arch Company. In 1972, James S. Davis acquired the organization and renamed it The New Balance Athletic Shoe Company. The New Balance Company is a secretly held organization central command is situated in Brighton, Massachusetts and the organization utilizes 4,100 individuals all through the world. New Balance items are sold universally through their working divisions in the United Kingdom, Europe, Asia and Canada. James S. Davis is current executive and Robot DeMartini is the present President and Chief Executive Officer (CEO) of New Balance. (Business Line. 2014) In this New Balance Case study, I will examine the organization's CSR system by utilizing the Corporate Citizenship administration structure (CCMF), examination of the qualities and shortcomings of some procedures and how the New Balance Company is executing their Corporate Social Responsibility (CSR) method. Qualities and Weaknesses So, as to comprehend the organization's corporate citizenship, New Balance Company uses corporate citizenship administration structure (CCMF) to comprehend the organization's qualities and shortcomings. It incorporates four interrelated...
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...The Balance Sheet and Notes To The Financial Statements The Balance Sheet and Notes To The Financial Statements Kegunaan Neraca (Usefulness of the Balance Sheet) Balance Sheet yang dikenal sebagai statement of financial position, merupakan laporan pada saat tertentu mengenai sumber daya perusahaan (asset), hutang-hutangnya (liabilities), dan klaim pemilikan residual terhadap sumber daya (owner’s equity). Dengan menganalisis hubungan di antara pos-pos ini, maka investor atau creditor dapat mengetahui: 1. Liquidity, yaitu kemampuannya untuk memenuhi short-term obligations 2. Solvency, yaitu kemampuan untuk membayar semua current and long-term debt pada saat jatuh tempo. Comparative Balance Sheet dapat memberikan banyak informasi yang berguna bagi pihak yang berkepentingan dalam menganalisis kekuatan suatu perusahaan. UNSUR-UNSUR NERACA (Elements of The Balance Sheet) 1. Assets mencakup costs yang belum ditandingkan dengan revenue di masa lalu dan diharapkan memberi manfaat ekonomi dalam menghasilkan revenue di masa depan. Assets meliputi aktiva moneter (monetary assets), seperti cash, certain marketable securities, receivables, dan nonmonetary assets yang mencakup costs seperti inventory, prepaid insurance, equipment, patents dll 2. Liabilities, mengukur klaim para creditor terhadap sumber daya entitas. 3. Owner Equity, mengukur hak pemilik dalam total sumber daya perusahaan bersangkutan. Classified Balance Sheets Assets Current Assets Cash Investment Securities Account and...
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...AssetsStatistical Discrepancy | 57,348125,614-14,003101-28,01226,893-3,202-1,273-697-4,317221-1,994-1,309-415-36,024-18,239159252-93-23,037-21,74858,388954-60,632-3,873-30,579 | 39,907108,230-16,693------------34,126-17,504-20.9---15,807-5,450-3,041-253-7,062-14,649-9,430.1 | 49,508125,064-20,546------------37,390-17,619280.6---76,495-17,101-37,867-975-20,55336,338-9,631.6 | Balance of Payment for Malaysia from 2012-2014 (in RM Million) (Taken from website of Department of Statistics Malaysia Official Portal) The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP...
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...rP os t 9-101-108 REV: MARCH 5, 2007 DAVID F. HAWKINS The Balance Sheet op yo A balance sheet, otherwise referred to as the Statement of Financial Position, presents information related to a company’s financial condition as of a specific point in time based on generally accepted accounting principles. These data are classified in three categories—assets, liabilities, and owners’ equity. The basic balance sheet is: Assets = Liabilities + Owners’ Equity or Resources = Creditors’ and Owners’ Claims on Resources tC Assets are probable, measurable, future economic benefits (things of value that the company owns or controls) to which the business holds the rights, which have been acquired through a current, or past, transaction. These are the resources of the firm. Liabilities are probable, measurable, future economic sacrifices arising from a company’s obligations to convey assets or perform services to a person or other organization outside of the company at some time in the future. These are the creditors’ claims on the resources of the firm. No Owners’ equity is the residual balance remaining after total liabilities are deducted from total assets. It represents the stockholders’ claims on the resources of the business. Do Assets and liabilities are presented in two categories: current and noncurrent. Current assets are cash and cash equivalents and those assets that are expected to be liquidated (turned into cash) or consumed...
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...Balance of Payments The balance of payments is the sum of all transaction that Australia has with the rest of the world. These figures are presented in two accounts- the current account and the capital and financial account. The capital and financial account are comprised of reversible transactions while the current account covers external transactions that are non- reversible. The balance of payments always balances but since the 1980s, Australia has persistently experienced a large Current Account Deficit (CAD). The balance of payments is based on a double entry system (ie credits and debits) of ledger accounts known as the current account and the capital and financial account. Current Account The current account records all transactions of a current nature involving money received (income) and money spent (expenditure) for M and X of g/s, income and transfers. These transactions are non-reversible (money has either been received or spent) ------------------------------------------------- BOGs- Balance on god and services ------------------------------------------------- -Shows aussie X/M patterns Goods * Exports (goods credits) and imports (goods debits) * X divided into rural and non rural * M classified as consumption, capital or intermediate * Tangibles Services * Exports (credits) and imports (debits) * Tourism, education, shipping, finance * Intangibles Net income * Income received from aussie owned assets...
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...6.1 Introduction Objectives 6.2 Meaning Self Assessment Questions 1 6.3 Objectives Self Assessment Questions 2 6.4 Methods of preparing trial balance: Total Method and Balance Method Self Assessment Questions 3 6.5 Preparation op Trial balance Self Assessment Questions 4 6.6 Errors and their rectification Self Assessment Questions 5 6.7 Errors disclosed by a Trial Balance Self Assessment Questions 6 6.8 Errors not disclosed by Trial Balance Self Assessment Questions 7 6.9 Steps to locate the errors 6.10 Trial Balance and adjustments Self Assessment Questions 8 Terminal Questions Answer to SAQs and TQs Trial Balance 6.1 Introduction Journal and ledger are the books containing the details of business transactions which have taken place during a particular period. The purpose of these records is preparation of final accounts – trading account, profit and loss account and balance sheet. Before attempting to prepare final accounts, a summary of the transactions, as depicted by ledger should be available in a form that is easy to classify the assets, liabilities, expenses and incomes. While expenses and incomes are used to prepare trading and profit and loss accounts, assets and liabilities are presented in the balance sheet. Trial Balance stands as a bridge between primary and secondary books on one hand and final statements of accounts on the other hand. Sikkim Manipal University ...
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...Examine India’s balance of payments in the last two decades. What have been the trends in terms of merchandise trade, invisibles and capital flows? The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and, if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance. But in practice this is rarely the case and, thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming. DIVISION OF BALANCE OF PAYMENTS The BOP is divided into three main categories: the current account, the capital account and the financial account. Within these three categories are sub-divisions, each of which accounts for a different type of international monetary transaction. The Current Account The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account. Within the current account are credits and...
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...BALANCE SHEET FORMULAS The balance sheet shows the assets, liabilities and equity of a business at a point in time. You can connect an ending balance sheet (e.g., end of year) to a beginning balance sheet (e.g., start of year) through the simple idea that: what you start with, plus what you add to it, minus what you take away from it, is what you end with. Cash = (BS) Previous Cash + (CF) Total Cash In – (CF) Total Cash Out Accounts Receivable = (BS) Previous A/R + (IS) Sales – (CF) Cash Sales – (CF) A/R Receipts Inventory = (BS) Previous Inventory + (Inv) Purchases – (IS) COGS Capital Assets (current value) = (BS) Previous Value – (IS) Depreciation Accts Payable = (BS) Previous A/P + (Inv) Purchases – (CF) Cash Purch – (CF) A/P Payments Accrued Expenses = (BS) Previous A/E + (IS) Total Operating Exp – (CF) Total Operating Exp Accrued Interest = (BS) Previous A/I + (IS) Interest – (CF) Interest Payment Accrued Income Tax = (BS) Previous A/T + (IS) Income Tax – (CF) Income Tax Payment Short-Term Debt = (BS) Previous STD + (CF) ST Loan Receipts – (CF) Repayment of Principal on STD Current Portion of Long-Term Debt = (BS) Previous CP/LTD + (Loan) Portion of LTD Becoming Current this Period – (CF) Repayment of Principal on LTD Long-Term Debt = (BS) Previous LTD + (CF) LT Loan Receipts – (CF) Repayment of Principal on LTD Owners Investment = (BS) Previous Owners Investment + (CF) Owners Investment Retained Earnings...
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...Luke Cresswell Balance sheets A document describing the financial position of a company at a particular point in time, by comparing items owned by the organisation with the amounts that it owes. An account showing the income and expenditure of a firm over a period of time. These documents are required by law in order to show people the financial strengths and weaknesses of an organisation's recent performance and current situation. They can also be used to assess the potential of a business, particularly when trend analysis is used to estimate future performances based on recent history. Both documents are based on historical data and show what has happened in the recent past. Analysing balance sheets: A balance sheet looks at the accumulated wealth of a business and an be used to assess its overall worth. It lists the resources that a business owns and the amounts it owes to others. In addition, it shows the equity provided by the owners. Equity is provided through either the purchase of shares or the agreement to allow the company to retain or plough back profit into the business, Known as reserves , rather than using it to pay further dividends to the shareholders. Elements of the balance sheet: In order to understand the layout of the balance sheet, it is important to understand the different elements listed in it. Assets: Assets can be divided into two main categories according to time: Non current assets tend to be owned by an organisation...
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...INTERNATIONAL FINANCIAL MANAGEMENT ASSIGNMENT ON BALANCE OF PAYMENTS ) INDEX S No | Particular | Page | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | WHAT IS BALANCE OF PAYMENT? The balance-of-payments accounts of a country record the payments and receipts of the residents of the country in their transactions with residents of other countries. If all transactions are included, the payments and receipts of each country are, and must be, equal. Any apparent inequality simply leaves one country acquiring assets in the others. For example, if INDIANS buy automobiles from Japan, and have no other transactions with Japan, the Japanese must end up holding RUPEES, which they may hold in the form of bank deposits in INDIA or in some other INDIAN investment. The payments Indians make to Japan for automobiles are balanced by the payments Japanese make to Indians. individuals and institutions, including banks, for the acquisition of Rupee assets. Put another way, Japan sold India automobiles, and INDIA sold Japan rupees or Rupee-denominated assets such as treasury bills . Although the totals of payments and receipts are necessarily equal, there will be inequalities—excesses of...
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...Balance of Trade shows the difference between the total amount of incoming and outgoing currencies through import and export. Balance of Payment (BOP) is a summary of economic activities between the residents of country and the rest of the world during a given period, usually one year. The main purpose of keeping these records is to inform government authorities about the overall international economic position of the country in order to assist them in arriving at decisions on monetary and fiscal policy, on the one hand, and trade and payments policy on the other. Balance of payments statistics are therefore helpful to government authorities charged with maintaining macroeconomic stability.BOT is a part of BOP, but it is significant for the economy because import and export is one of the most important economic activities of a nation. Moreover the balance of trade shows whether the external sector of a particular country is doing well or not. Along with BOT,BOP depicts the overall economic balance of a nation and the health of foreign reserve of that nation. So I agree that in the context of Bangladesh balance of trade is an external sector indicator than balance of payments. A common misconception is that balance of trade deficits are always bad for the economy. This is not necessarily true. In the short term if a country is importing a high volume of goods and services this acts as a short-term boost to living standards since it allows consumers to buy a higher level of household...
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...Balance Sheet | Get Balance Sheet for: | View: Annual Data | Quarterly Data | All numbers in thousands | Period Ending | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 29, 2012 | | Assets | Current Assets | | Cash And Cash Equivalents | 3,932,000 | 3,952,000 | 3,207,000 | 3,387,000 | | Short Term Investments | - | - | - | - | | Net Receivables | 7,327,000 | 7,912,000 | 8,077,000 | 7,305,000 | | Inventory | 1,465,000 | 1,403,000 | 1,440,000 | 1,537,000 | | Other Current Assets | 1,481,000 | 1,736,000 | 1,598,000 | 1,480,000 | | Total Current Assets | 14,205,000 | 15,003,000 | 14,322,000 | 13,709,000 | Long Term Investments | 2,683,000 | 2,566,000 | 2,622,000 | 2,723,000 | Property Plant and Equipment | 21,875,000 | 21,650,000 | 21,671,000 | 21,512,000 | Goodwill | 27,342,000 | 27,428,000 | 27,433,000 | 25,110,000 | Intangible Assets | 7,430,000 | 7,493,000 | 7,532,000 | 5,015,000 | Accumulated Amortization | - | - | - | - | Other Assets | 7,030,000 | 7,218,000 | 7,062,000 | 6,829,000 | Deferred Long Term Asset Charges | - | - | - | - | | Total Assets | 80,565,000 | 81,358,000 | 80,642,000 | 74,898,000 | | Liabilities | Current Liabilities | | Accounts Payable | 5,658,000 | 6,325,000 | 6,767,000 | 6,393,000 | | Short/Current Long Term Debt | 2,219,000 | 3,556,000 | 4,815,000 ...
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...Analysis of Balance Sheet for 2011-2012: 1. Total assets/liabilities has increased by21.45%, which indicates that the company is growing at a faster rate. 2. Fund Utilization: There is no change in share capital, but reserve has increased by 21.71%. There are no loan funds. Net worth has increased by 21.45%. It indicate a strong financial condition because the company has utilized the funds well. 3. Asset Utilization : Net fixed assets has a marginal increase of 0.12% as compared to the net operating income of 23.11%. It indicates that the company has taken up new and better technology. 4. Receivable Management: Sundry debtors has increased by 28.30% while the net operating income has increased only by 23.11%. So, the company is not in a good financial condition. 5. Liquidity Position: Net current assets has increased by 24.94%, it indicates a good liquidity condition. 6. Cash and Bank balances: The companies cash and bank balance has increased by 2698.75% which is a bad condition because the company is not generating any revenue. 7. Net Fixed Assets, Work in Progress and Net Operating Income comparison: Net block has increased by only 0.12% as compared to the work in progress change of 104.61% which is a bad financial health. Analysis of Profit and Loss Account for 2011-2012: 1. % increase or decrease of Net Operating Income: Net operating income has increased by 23.23% that means the company is in growth phase. 2. Operating Expenses Vs...
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...The Purposes and Components of Balance Sheet and Income Statement. An income statement of an organization shows its revenues and expenses during a particular period. It indicates how revenues are converted into net income. It shows revenues documented for a precise period, and the cost, taxes as well as the expenses that were charged (Helfert, 2001). The purpose of the income statement is to tell managers and investors if an organization made profit or not during the period that is being reported. Income statement represents a period of time whiles balance sheet shows the same information but at a single moment in time (Gapenski, 2012). Challenges that Might be Encountered in Interpreting Financial Statements There are certain problems and issues that might be encountered in analyzing financial statements which demand care and Verdict. The basic problem in financial statement is that there is no theory which tells us which numbers we need to look at and how to interpret them. In the absence of a fundamental theory, financial statement analysis appears to be informal and subjective. Again many organizations, particularly the big ones, have set-ups spanning a varied range of industries. This makes it very difficult in trying to find suitable standards for evaluating financial performance. In solving this issues organizations have to put in place an underlying theory and standards (Rao, 2008). This will prevent errors and confusion that arises after reading such documents. Key...
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