...Summary and Research Question: Historically, each nation has developed and applied its own domestic accounting standards; however, globalisation and integration of capital markets result in capital which travels across global boundaries. This process reveals a need for single set of financial standards. At this point, International Financial Reporting Standards (IFRS) are developed by the International Accounting Standards Board (IASB). Even though many researches have been done within the context of the effects of IFRS adoption, those studies have not expounded the background of IFRS adoption systematically. That is why this thesis aims to understand why some economies, on the one hand, have instantly adopted IFRS standards; others, on the other hand, have not completely used, or have rejected it. Background (Literature Review) : According to accounting theory, disclosing relevant and timely information on financial reporting reduce information asymmetry(Sun and Soderstorm, 2007). In general, "A single set of international standards will enhance comparability of financial information and should make the allocation of capital across borders more efficient" (Tweedie, 2004) In considering the rise of IFRS, a positive trend towards IFRS could be stated among countries, whereas some countries have already has negative reaction to the IFRS (Armstrong et al, 2010). The expected benefits of IFRS through enhanced comparability, transparency and quality have been previously...
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...[pic] Report On Global Financial Crisis: Recovery and Challenges “In the perspective of United States of America” Course Details: Fin603: Financial Institutions & Market Section: 01 Submitted to: Dr. Salehuddin Ahmed Professor BRAC Business School BRAC University Submitted by: Group- 5 |SL. |Name |ID No. |Signature | |1 |Mohammad Ishtiaque Hossain |14164090 | | |2 |Kazi Golam Faisal |14364071 | | |3 |Nurshia Jahan |13264009 | | Submission Date: November 17, 2015 LETTER OF TRANSMITTAL November 17, 2015 Dr. Salehuddin Ahmed Professor BRAC Business School BRAC University Subject: Submission of the report paper on ‘Global Financial Crisis: Recovery and Challenges’ Dear Sir, I hereby submitting the final version of the term paper on behalf of my group on ‘Global Financial Crisis: Recovery and Challenges’ that you asked us to submit on November 17, 2015 as our report paper. The paper is a part of the course Fin 603: Financial Institutions & Market under MBA program. The main purpose of this paper was to determine the theoretical aspects of global financial crisis and recovery and...
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...Term Paper On Management Control System Topic: Recent Balance Scorecard Theory & Practices Of Bangladeshi Company SUBMITTED TO: Md. ABUL KASHEM Associate professor SUBMITTED BY: RIFFAT ARA RAFIQ; ID: 61018-11-061 SESSION: Fall’ 2011 DATE OF SUBMISSION: 26th DECEMBER ’2011 DEPARTMENT OF MANAGEMENT INFORMATION SYSTEM Acknowledgement I express my gratefulness to Almighty Allah for his kindness, which enabled us to complete this work properly and in time I am grateful to our course teacher, Md. Abul Kashem, Associate Professor , Department of Management information system, University of Dhaka for providing us all the information about information technology, for his guidance, constructive criticism, valuable suggestions and untiring help throughout the course of this work. I am highly delighted to express our cordial gratitude and veneration to our parents for their constant help, affection support and sacrifices. The Author December 26th , 2011 Letter of transmittal Date: 26/12/2011 To, Md. Abul Kashem, Associate Professor Department of Management Information System, University of Dhaka. Sub: Application for the submission of Term Paper. Sir, I respectfully state that, I am a student of EMBA program in this department at the session of spring’2011.you have asked for the term paper on 28th November’2011. The topic of...
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...consisting of four perspectives – financial, customer, internal process, and learning and growth – represents the primary strategic dimensions of any organization. The strategy map provides a visual framework that integrates the organization's strategic objectives across these four perspectives. The strategy map is the most powerful way of communicating the strategy; it shows how intangible assets are transformed into tangible ones, often financial outcomes (Norton & Russell, 2005). The top half (the financial and customer perspectives) are essentially outcomes — or rather what the organization aims to achieve financially and for the customer. The bottom half of the map represents the inputs — or rather those processes/activities that must be delivered exceptionally well if the outcomes are to be realized and, consequently, the strategy implemented. Westpac’s vision is to be one of the world’s great companies, helping their customers, communities and people to prosper and grow. The mission is to earn all of the customers’ business. The focus is on: delighting the customers; having the right people in the right roles; and the reputation. Westpac do their business amongst the customer base. They want to achieve the highest levels of customer satisfaction and loyalty. They want to deepen their relationships with their existing customers, and continue to acquire new customers. Finally, they would get more profits and enhance shareholder value. From a financial perspective, the top objective...
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...Organization climate, organization politics etc. Resource Behaviour Distinctive competence - Any advantage a company has over its competitor - it can do something which they cannot or can do better - opportunity for an organization to capitalize - low cost, Superior Quality, R&D skills etc. METHODS & TECHNIQUES USED FOR ORGANIZATIONAL APPRAISAL Comprehensive, long term Financial Analysis - Ratio Analysis, EVA, ABC Key factor rating - Rating of different factors through different questions Value chain analysis VRIO framework METHODS & TECHNIQUES USED FOR ORGANIZATIONAL APPRAISAL « BCG, GE Matrix , PIMS, McKinsey 7S Balanced Scorecard Competitive Advantage Profile Strategic Advantage profile Internal Factor Analysis Summary SWOT ANALYSIS Identify & classify firm¶s resources-S&W Combine firm¶s strength into specific capabilities ± Corporate capability- may be distinctive competence Strategy that best exploits the firms resources Identify resource gaps & Invest in upgrading ORGANIZATIONAL APPRAISAL Organizational Capability Profile (OCP) - Weakness(-5), Normal(0), Strength(5) Financial Capability Profile (a) Sources of funds (b) Usage...
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...Balanced Scorecard (BSC) as a strategic performance measurement and evaluation method. Lecture 6 introduces the BSC by providing the performance measurement context, defining financial and non-financial and lead and lag indicators, and providing an overview of the four perspectives of Kaplan and Norton’s Balanced Scorecard. Lecture 7 explores and demonstrates the process of BSC development via strategy maps and KPI selection, before discussing the key findings of BSC-related research. Lectures 6 & 7 are structured as follows: Lecture 6: 1. Introduction 2. What is the BSC? 3. The four perspectives Lecture 7: 4. Strategy maps 5. Creating a BSC 6. What does the research say? 1. Introduction a) Performance Measurement Performance measurement serves the following purposes: Evaluate performance, and provide rewards Communicate the strategy, plans Allow managers to track their own performance against targets and take corrective action Guide senior managers in developing future strategies and operations. Traditional Performance measurement focuses on financial performance measures. The problems with this include: Financial measures emphasise only one perspective of performance. Conventional financial performance measures focus on...
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...Performance measurement (balance score card, financial measures, non-financial measures, divisional versus corporate) ABSTRACT This study aims at understanding the process of elaborating and selecting performance measures in the framework of the balanced scorecard (BSC). Previous studies in the now well-investigated effect that decision makers tend to give a much higher weight to common measures compared to unique measures (Banker et al, 2004; Lipe and Salterio, 2000) did not explore differences between perspectives in terms of commonality of measures used for performance evaluation purposes. We will explain why there are common measures in all perspectives and which their shared characteristics are. Based on a simulation with graduate students, we argue that common measures are found in every BSC’s perspective but with a significant degree of difference. Financial measures are by far the most common ones, internal process measures are the least common ones with customer and learning ranging somewhere in between. Our study implies that the idea of standardization beyond financial measures is based on three performance measures characteristics: 1) reliance on data already available, 2) easy benchmarking, and 3) possibility of being audited by third parties. We advanced implications for managers and for future research on the information generated in the BSC. 1. INTRODUCTION. This paper has been motivated by the evidence of some limitations of the balanced scorecard...
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...in 2008 (now also translated in Romanian, soon to be published). Over the years many consulting or educational organizations have tried to add to the Balanced Scorecard initial concepts, in some cases attempting to build “a better mouse trap”, but few succeeded to bring any significant theoretical or practical value to the BSC framework and implementation methodology, developed continuously by Drs. Kaplan and Norton and by their team at Palladium and based on thousands of implementation projects in most industries, geographies worldwide and organization sizes, in both public and private sectors. Four Perspectives of Balance Score Card The balanced scorecard suggests that we view the organisation from 4 perspectives, and to develop metrics, collect data and analyse it relative to each of these perspectives: • The Learning and Growth Perspective • The Business Process Perspective • The Customer...
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...achieve its objectives. Balance Scorecard (BSC), an important measure of an organization’s performance is defined as “a document that translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for implementation of its strategy”. A Balance Scorecard strikes a balance between financial and operating measures, links performance to rewards, and gives explicit recognition to diversity of organizational goals. In its simplest form The Balanced Scorecard breaks performance monitoring into four interconnected perspectives: • Financial perspective: Highlights achievement of financially strategic goals, including continued maximization of shareholder value and reasonable return on invested capital for business enterprises. • Customer Perspective: identifies the targeted market segments and measures the company’s success in those segments. It includes customer’s perception of the business, satisfaction, and other value added measures. A non-profit will look to its target population that it serves to see if it is meeting their expectations. • Internal Business Process perspective: analyses how to improve internal operations, maximize efficiencies, Increase quality and productivity and cut down on inefficiencies How well does the business achieves such operational measures defines its internal market advantage. • Innovation and learning...
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...itself”(Measures that matters. Ernst&Young, 1998.9). Therefore, the implementation of strategy is more significant factor that leads to a successful achievement of organization’s mission. In order to measure the strategy performances, financial measurement was used to keep a record on tangible asset in order to determine revenues and profits from those tangibles in previous decades. Since the increasing number of knowledge-based organization aroused, it is necessary to have knowledge-based intangible asset’s performance measurement to indicate the organization’s capability and success. Balanced Scorecard is an efficient measurement system consists both financial and non-financial factors. Because “ the balanced scorecard is a performances measurement system that identifies and reports on performances measures for each key strategies area of business” (textbook). In respect of the majority organizations, The balanced scorecard has four basic perspectives-financial perspective, customer perspective, internal business and learning and growth, in terms of translate organization’s mission to their strategy, and structure their implementation. However, once the organization’s mission varies, the order and contains of these perspectives may vary. . Financial perspective includes all elements, which may show the finance ability of organization, i.e. profit and loss statement, cash flow statement, balance sheet. From an overview of these factors, shareholders may identify the successfulness of...
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...changed the assumptions of industrial age competition. The ability of a company to use its invisible and intangible assets is more important. Intangible and intellectual assets include new processes, employee competencies, employee motivation, customer loyalty etc. Traditional financial accounting could not take the organizations intangible and intellectual assets into account. Difficulties in placing financial values on these assets exclude them from being placed in a balance sheet. Companies use sophisticated analytic tools to review the performance of their strategies, including customer relationship management software and analytic modeling to capture and profile customer behavior. Companies now have a large number of strategic and operational tools to choose from. However they still lack a theory or framework to guide the successful integration of the many tools. Companies struggle with the question of how to make the various strategy planning and operational improvement tools work together in a coherent system. The quest for a new approach to the evaluation of value creation associated with the information age led to the development of the balanced scorecard. It retains traditional measures such as financial accounting but augments the evaluation of an organization’s success by adding measures to evaluate the success of the organization to create future value through investment in customers, suppliers, employees, processes, technology and innovation. The balance scorecard is...
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...customers and also the shareholders However, these days the performance measurement faces challenges because it is difficult to find the right mix of the financial measure sand non-financial measures. As we know, it is not enough if we only rely on the financial measures. The financial measures only reflect the current and prior period decision taken, moreover, the financial measures, which measure the financial results, are driven also by the non-financial measures. For example, the business objective is to earn profit. However, these targeted profits can be achieved through the synergy of the employees and their improvements, the processes, and the customers. Therefore, the financial and non-financial matters are related to each other. In addition to face this challenge, the Balanced Scorecard was developed. The Balanced Scorecard consists of several elements, including the perspectives, objective, and measure. The perspectives consist of: 1. Financial perspective This perspective consists of objectives and measures that represent the success measures for the profit-seeking companies. 2. Customer perspective This perspective may describe how a company intends to attract, retain, and deepen the relationships with targeted customers by differentiating itself from the competitors. 3. Process perspective The process...
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...strategies instigated by an organization. This is an implement that has been measured expansively in study as well as practice (Figge, Schaltegger & Wagner, 2002). By linking organizational activities that are non-financial and functioning with fundamental chains to the organization’s long-lasting method, the Balanced Scorecard supports the appointment and administration of all corporate activities in agreement with their strategic implication. In theory, value-based sustainability management makes an endeavor to take into consideration the matter of business offerings and impacts on sustainability in an integrative way (Figge, Schaltegger & Wagner, 2002). It suggests that for companies to improve sustainable development, it is suitable for commercial performance developments in all three extents of sustainability, which include: social, economic and environmental, in a coordinated way. The Balanced Scorecard is considered to be a proper and efficient component when it comes to alignment. It can facilitate budget synchronization or management purposes by interconnecting strategy to administrators or supervisors, offering them a proper course. Similarly, it can aid executives to be able to supervise strategic advantages and creativities, interconnect and financial activities (Kumari, 2011). The vibrant representation of strategic significances by the Balanced Scorecard facilitates the implementation of strong and effective principles for the planning of a budget. At the time...
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...performance measurement coverage in the late 1950’s and the work of French engineers in the early part of the 20th century in France. Due to the fact that balanced scorecard term is a generic, it is interpreted differently by different people, and in practice, there are wide variations in both understanding and implementation. To some, the balanced scorecard is just a simple control panel indicating performance measures, while to others it is a inclusive planning and management system encompassing the whole organization and planned to focus efforts on business strategy and more significantly on performance and results. The balanced scorecard has steadily developed from its early use as a simple performance measurement framework for non-financial performance measures to a full strategic planning and management system. The “new” balanced scorecard transforms an organization’s strategic plan from an attractive but passive document into the "marching orders" for the organization on a daily basis. It provides a framework that provides performance measurements and also helps planners identify what should be done and measured. It enables executives to implement and execute their strategies....
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...as well as their physical and financial ones Intangible Assets * Difficulties in placing a reliable financial value on intangible assets have prevented them from being recognized on a company’s balance sheet * Managers have searched for a system that would help them measure and manage the performance of their intangible, knowledge-based assets Balanced Scorecard * The Balanced Scorecard (BSC) provides a system for measuring and managing all aspects of a company’s performance * The scorecard balances traditional financial measures of success, such as profits and return on capital, with nonfinancial measures of the drivers of future financial performance * The Balanced Scorecard measures organizational performance across different perspectives Lenses * Four different but linked perspectives are derived from the organization’s strategy: * Financial * Customer * Process * Learning and Growth * The BSC enables companies to: * Track financial results * Monitor how they are building the capabilities for future growth and profitability * With customers * With their internal processes * With their employees and systems * A BSC tells the story of the business unit’s strategy * A BSC identifies and makes explicit the hypotheses about the cause-and-effect relationships between: * Outcome measures in the Financial and Customer perspectives * Performance drivers of...
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