...German Accounting Introduction We are on the precipice of a fundamental globalisation step. The important and continued globalisation of investment has led to the development of internationally applicable standards and codes of practice. The international demand for standardised regulatory systems and processes has many benefits; however countries have been largely unwilling to adopt the international standards and codes for various reasons. (Mansfield, 2004) This report will focus on Germany and its current rate of adoption of the international accounting practices, whilst observing their history and cultural influences that have impacted on their current practices today. We have chosen Volkswagen to demonstrate Germany’s current standards and practice. A history of German accounting The Franciscan monk Luca Pacioli (1445 - 1514) published the first book on double entry bookkeeping (DEB) in 1494. (Derks, 2008, p. 205). German economic historian Werner Sombart (1863 - 1941) said that DEB was ‘one of the most beautiful discoveries of the human spirit’ (Funnell, 2001, p. 55). German accounting has been dominated by a series of competing theories of accounting. (Kupper, 2005, p. 346) The French Ordonnance de Commerce of 1673 and the 1807 Code de Commerce can be regarded as the roots of accounting principles and regulations in Germany. The first General German Commercial Code, enacted in 1861, has much in common in terms of accounting with its French counterpart. The...
Words: 706 - Pages: 3
...Microeconomics "Stock exchange in Germany and Poland" Content 1 Introduction 2 Stock exchange and corporate capital needs 3 Regulation of the stock market in Germany and Poland 4 Stocks and Bonds 4.1 Stocks 4.2 Bonds 4.3 Corporate choice between stocks and bonds 5 Share Market Value 6 The History of the Stock exchange in Germany from Frankfurt 7 The History of Stock Exchange in Poland 8 The Frankfurt Stock Exchange 9 The Warsaw Stock Exchange 10 The DAX at the Frankfurt Stock Exchange 11 The WIG on the Warsaw Stock Exchange 12 Stock market indexes compared 13 Conclusion 14 References 1 Introduction “Stock exchanges deal with a number of financial instruments such as stocks, bonds and equities. Both corporate and government bonds are traded in stock exchanges. Every day, stocks are exchanged and traded in numerous international stock exchanges around the world. Stock Exchanges are open markets that trade financial assets. So, the main function is to ease the transactions for buying and selling of securities. Stock exchanges also serve as a source of capital formation for listed companies. Whether associated with a company or acting as an individual, a stock exchange is the place where stocks are bought and sold. The actual trading of stocks takes place through mediators such as financial advisors, brokerage houses, and stockbrokers. There are a number of major stock exchanges around the world and...
Words: 3730 - Pages: 15
...The DAX is a is a blue chip stock market index made up of 30 major German companies trading on the Frankfurt Stock Exchange, founded in July 1988. DAX stands for Deutscher Aktienindex, translated literally to German Stock Index. The DAX is equivalent to the Dow Jones Industrial Average here in the US. The 30 stocks that make up the DAX are simply the 30 largest companies on the Frankfort Stock Exchange, based on order book volume and market capitalization. DAX is a Capitalization-weighted index. The DAX is a large cap type of stock index that has to indexing versions. The two versions report different values. The first version is the performance index. This version is more commonly quoted and includes dividends in the quote. The second version is the price index. This version is most similar to other indices in other countries and markets. The price index is calcultated like any weighted average, Current index = Current total market cap of constituents × Previous Value / Previous Period. The DAX started out at 1,000 from its base date in December of 1987, before it was first calculated and published in July of 1988. The highest closing price for the DAX occurred this year in April on the 10th, when it closed at 12,374.73. Today the closing price was 10,131.74. Some of the more familiar companies on the DAX are Adidas, BMW, Bayer, BASF, SAP, Siemens, and Volkswagon. The trend of the DAX is fairly similar to that of the Dow Jones Industrial Average...
Words: 263 - Pages: 2
...* Stock Market In Germany operate 8 different types of markets. The most important one is the Frankfort one which represents half of the total volume of market operations in Germany. It is defined as secondary official market , with the aim of the negotiation in exclusivity of convertible stock shares. Its index reference is DAX. The German Stock Market System is called XETRA. It is characterized for its transparency, flexibility and liquidity. More than 16000 securities are dealt through this sock market. The German Stock Market is made up of 8 different markets which are as follow the most important ones; Frankfurt, Berlin, Hamburg, Hannover, Dusseldorf, Munich, Bremen and Stuttgart. There are two additional markets, the telephone market and the extra stock, compound of mainly bonds. Besides the official market, another specialized in trading shares of foreign companies. In Frankfurt operates approximately half of the total volume, although its percentages are lower in the case of securities traded in outside markets. There is no difference between the commercial banking and investment banking, and because of it, entities such as Deutsche Bank perform both functions (taking deposits, made loans and operating in the stock market). * Financial Intermediaries Deutsche Bank. It is a global investment bank the perfect home financial services not only in Germany but worldwide. It is the largest financial institution in Germany, and one of the largest investment...
Words: 434 - Pages: 2
...(Tribhuvandas Patel) Q4.Who is known as the 'Father of Mustang', a famous brand of car?(Lee Iococca)FMCG & Textile :Q1. Coke ventured into Dairy Products in India this year. Name the product? (Maaza Milky)Q2. Which company dropped its new logo within one week?(GAP)Q3. “Hartmax” a custom suit supplier to president Obama was recently acquired by an Indian suitings company following its Bankrupt. Name the Company(S.Kumars)Stock MarketQ1.Demat is the acronym for................???(Dematerialisation)Q2.What is the name of two share depositories in India?(NSDL and CSDL)Q3.Stock split increases a company's equity capital. True or false?(false)Q4.Which is the first foreign company listed on NYSE.(Sony).Q5. DAX is Acronym of which Stock Exchange?(Frankfurt Stock Exchange) Q6.Name the first public sector share quoted on BSE.(HPCL). | BankingQ1. What is known as the cost of living index which represents the goods and services purchased by consumers?(Consumer Price Index)Q2. Which financial services giant is referred as the "Thundering Herd"?(Merill Lynch)Q3. What is the exchange rate of one currency for another over a fixed period of time called?(Swap or Currency Swap)Q4. Recently WPI was changed base year from 93-94 level to which year ? (2004-05)Q4. Name the person who introduced the 'Double Entry' book keeping concept?(Lucas Pacioli).Q5.What is the current repo rate and reverse repo rate?(5 and 6)Q6. What is Bullet Loan ? | IT Q1. Which company created Computer Mouse ?(Xerox) Q2. Only...
Words: 319 - Pages: 2
...Derivatives Michael Bloss Associate Professor and Director MSc IF for Derivatives - Nürtingen-Geislingen University Introduction Michael Bloss Investment Advisor and Assistant Vice President Commerzbank AG Associate Professor and Director of the Master Programme "International Finance" Derivatives HfWU – Nürtingen-Geislingen University Director of the European Institute of Financial Engineering and Derivatives Michael Bloss contact information Michael.Bloss@HFWU.de Michael.Bloss@EIFD.de Michael Bloss Agenda for this course Derivatives exchanges Options Pricing Strategies Future Pricing Strategies Strategies and the pricing of options on futures Commodity and foreign exchanges futures Synthetic combinations and trading strategies Margining Risk controlling OTC derivatives SWAP OTC options Exotic options … Michael Bloss Derivatives to be in use in FE and portfolio management Case study … Literature list SET BOOKS: Derivatives by Bloss/Ernst/Häcker ISBN: 978-3-486-58632-9 Oldenbourg Verlag – München Michael Bloss Literature list Title Options, Futures & other Derivatives Derivate ISBN 978-0-131499-08-9 Author John C. Hull 978-3-486-58354-0 Michael Bloss, Dietmar Ernst Michael Bloss, Dietmar Ernst, Joachim Häcker Derivatives 978-3-486-58632-9 Michael Bloss cursive = English Version bold type = set book I have a request! Please tell me, if you don't understand me !!! Michael Bloss Lecture 1 Derivatives market ...
Words: 9291 - Pages: 38
...puts a strong political emphasis on SME finance. Commissioner Barnier confirmed during that meeting that he would like FESE to propose some concrete recommendations on how to improve SMEs’ access to capital markets. This information would be considered for their joint ‘action plan’ related to SMEs which DG Internal Market and DG Enterprise are currently working on and which will be finalised by end‐November. The Commissioner invited FESE to present these ideas during the meeting that was arranged for October, during this meeting the Commissioner advised that our recommendations (outlined below) included a request for financial support from the European Commission but he did not know what Exchanges have and are doing to support SMEs, it was therefore agreed that this would be the subject of our lunch with him on 21st November 2. Brief outline of FESE recommendations INCENTIVES • Positive tax incentives are needed. If Europe wants more investors to look at SMEs, incentives are needed, and tax incentives are among the most effective. • FESE urged the Commission to study this issue carefully as we believe that incentives on taxation for the smaller and most dynamic companies will be a key instrument. PUBLIC FUNDING: • The European Commission is already committed to providing funds for private funds such as private equity and venture capital funds that invest in SMEs. • Focusing on private equity only will be too narrow...
Words: 5794 - Pages: 24
...Management Theories and Philosophies 1. INTRODUCTION According to (Gomez et al, 2008) Management was first start arise in 18th century during the industrial revolution in America and Europe. Earlier the economies of both America and Europe depend more in primary sectors which started agriculture, mining activities and forestry. The growth of these primary sectors leads raises the awareness of entrepreneurs to invest in new factories since the market or trade expand together with development in technology. These enhance the beginning industrial revolution as the need to improve methods of work, productivity, quality of product and efficiently. The researchers in management field was the then born that time and various theories developed. The nature of the word theory have different in opinions but many business professionals, social scientists and other academic have very similar beliefs on definition of theory. According to (Online Dictionary, 2009), define theory as a “supposition or system of ideas explaining something”. On other hand by considering its applications the definition of Management has wide range and many authors including well known such as Ernest Dale, Gerald A Cole and Lurrie J. Mullins who explained that there is no main perfect or accepted definition of management by considering the different in theoretical approaches which management developed in. The approach to management in organization should consider the nature of the organizations so as to meet as suit...
Words: 3607 - Pages: 15
...STOCK EXCHANGES IN INDIA Module Objectives The main objective of this module is to explain the structure of organized exchanges for trading in stocks, commodities and derivatives. The features of derivative instruments like forwards, futures, options and swaps are also described. Module Contents 5.1. Stock Exchanges 5.2. Commodity Exchanges 5.3. Derivatives 5.4. Currency Futures in India 5.1 Stock Exchanges in India 5.1.1 History and Development Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meagre and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for...
Words: 20281 - Pages: 82
...TO S H A R E W I T H YO U . > > > E AC H B R A N D I S A WO R L D O F I T S OW N . 4 06 10 12 14 Board of Management/Supervisory Board Report of the Supervisory Board The Board of Management Letter to our Shareholders Group values Financial Communication 18 Volkswagen share 24 Value-based management 26 Corporate Governance 30 40 46 50 53 58 60 66 Management Report Business development Net assets, financial position and earnings performance Volkswagen AG (condensed, according to German Commercial Code) Research and development Business processes Legal matters Risk report Outlook contents 40 ▼ net assets, financial position and earnings performance Sales revenue at prior year level Despite the negative effect of exchange rate movements, the Volkswagen Group generated sales revenue at the level of the previous year. However, earnings reflected unfavourable underlying conditions and special items. 12 ▼ letter to our shareholders Change and progress Our efforts are targeted at the goal of continuously enhancing the value of the Company as you, our shareholders, perceive it. 12 ▼ 14 ▼ 18 ▼ volkswagen share An attractive investment Despite difficult market conditions, the Volkswagen share has been attractive for analysts and investors. 18 ▼ 30 ▼ 40 ▼ 50 ▼ 14 ▼ 30 ▼ 50 ▼ group values Values create value >> Volkswagen is on the move – from a collection of strong...
Words: 59921 - Pages: 240
...Abstract SiemensAG - a major international corporation , an independent company working in the field of electrical engineering, electronics , power equipment, transport engineering, medical equipment and lighting , as well as specialized services in various fields of industry, transport and communications. Headquartered in Berlin and Munich (Germany) . Basically, the company most widely represented in three sectors : industry, energy and healthcare sectors . The company's shares are included in the calculation base of the following stock indices : DAX, S & P Global 100 , Dow Jones EuroStoxx 50 , Dow Jones Stoxx 50 , Dow Jones Global Titans 50 . The company has a decentralized structure : the responsibility for work in the world market rests with the 14 departments . In various countries, commercial purpose departments implement regional representation. Siemens is known worldwide , not only as a reliable manufacturer and innovator in many areas of industry. For nearly 160 years, Siemens has sought to use the most innovative materials and technologies , bringing a great contribution to the development of world progress , coming up with new technologies and devices . Us she is more known for its quality line appliances - from irons to refrigerators , and in industry it is famous for lighting systems , electronic systems, air-conditioning and ventilation installation , etc. Today by Siemens is one of the largest electrical and electronic companies in the world . The company employs...
Words: 7610 - Pages: 31
...Contents Business sector What is the main business of the group? Are there other activities, complementary businesses within the group? What are the main group's competitors? Which main risks (that are inherent to this business sector) does the company mention? Which hedging policies are put in place? Profitability Which indicators have been brought forward in the annual report of the company? Which specific targets are aimed at? How does the group state and assess the evolution of profitability in the annual report? Is there more recent public information about this issue? Where? Is this information in line with the one mentioned in the annual report? Is it indicating a similar evolution? What are the main propositions of the company to improve its profitability? Financing What is the global financing strategy of the group? What is the evolution of the financing cost (several indicators)? What is the shareholders’ remuneration program? What are your sources (of information) regarding this issue? Investments What are the main investment / disinvestment policies? How are these investments financed? What is the outlook of the company regarding this issue? Consolidation process What are the most important consolidated subsidiaries? (Eventually mention the approximate number of subsidiaries)? Are there associated companies? What is the evolution...
Words: 9147 - Pages: 37
...redistribution of risk away from risk-averse investors towards those more willing and able to bear risk. Derivatives also help price discovery, i.e. the process of determining the price level for any asset based on supply and demand. All markets face various kinds of risks. This has induced the market par-ticipants to search for ways to manage risk. The derivatives are one ofthe categories of risk management tools. As this consciousness about risk management capacity of derivatives grew, the markets for derivatives de-veloped. Derivatives markets generally are an integral part of capital markets in developed as well as in emerging market economies. These instruments assist business growth by disseminating effective price signals concerning exchange rates, indices and reference rates or other assets and thereby render both cash and derivatives. This book provides basics about Derivatives. i.e. What...
Words: 15288 - Pages: 62
...High-Frequency Trading Peter Gomber, Björn Arndt, Marco Lutat, Tim Uhle Chair of Business Administration, especially e-Finance E-Finance Lab Prof. Dr. Peter Gomber Campus Westend • RuW P.O. Box 69 • D-60629 Frankfurt/Main Commissioned by Executive Summary High-frequency trading (HFT) has recently drawn massive public attention fuelled by the U.S. May 6, 2010 flash crash and the tremendous increases in trading volumes of HFT strategies. Indisputably, HFT is an important factor in markets that are driven by sophisticated technology on all layers of the trading value chain. However, discussions on this topic often lack sufficient and precise information. A remarkable gap between the results of academic research on HFT and its perceived impact on markets in the public, media and regulatory discussions can be observed. The research at hand aims to provide up-to-date background information on HFT. This includes definitions, drivers, strategies, academic research and current regulatory discussions. It analyzes HFT and thus contributes to the ongoing discussions by evaluating certain proposed regulatory measures, trying to offer new perspectives and deliver solution proposals. Our main results are: HFT is a technical means to implement established trading strategies. HFT is not a trading strategy as such but applies the latest technological advances in market access, market data access and order routing to maximize the returns of established trading strategies. Therefore...
Words: 30328 - Pages: 122
...Q U A N T I T A T I V E F I N A N C E V O L U M E 2 (2002) 45–60 INSTITUTE O F PHYSICS PUBLISHING RE S E A R C H PA P E R quant.iop.org Dynamics of implied volatility surfaces Rama Cont1,3 and Jos´ da Fonseca2 e Centre de Math´ matiques Appliqu´ es, Ecole Polytechnique, F-91128 e e Palaiseau, France 2 Ecole Superieure d’Ingenierie Leonard de Vinci, F-92916 Paris La D´ fense, e France E-mail: Rama.Cont@polytechnique.fr and jose.da fonseca@devinci.fr Received 20 September 2001 Published 4 February 2002 Online at stacks.iop.org/Quant/2/45 1 Abstract The prices of index options at a given date are usually represented via the corresponding implied volatility surface, presenting skew/smile features and term structure which several models have attempted to reproduce. However, the implied volatility surface also changes dynamically over time in a way that is not taken into account by current modelling approaches, giving rise to ‘Vega’ risk in option portfolios. Using time series of option prices on the SP500 and FTSE indices, we study the deformation of this surface and show that it may be represented as a randomly fluctuating surface driven by a small number of orthogonal random factors. We identify and interpret the shape of each of these factors, study their dynamics and their correlation with the underlying index. Our approach is based on a Karhunen–Lo` ve e decomposition of the daily variations of implied volatilities obtained from market data. A simple factor model...
Words: 11290 - Pages: 46
