The document discusses various aspects of depreciation. It defines depreciation as the permanent and continuing diminution in the quality, quantity or value of a fixed asset over time due to factors like usage, obsolescence and changes in technology. It then explains the need to charge depreciation to accurately calculate profits, show asset values reasonably and maintain the original investment in the asset. The document also discusses the factors affecting the computation of depreciation and various methods of calculating depreciation like the straight line method, written down value method, and sum of years' digit method.
Ratio analysis is a method used to interpret financial statements and assess the strengths and weaknesses of a firm. Ratios measure the relationship between different financial metrics and can be used to compare performance over time, between firms, or against standards. Key types of ratios include liquidity, capital structure, profitability, and activity ratios which analyze different aspects of a firm's financial health and operations. Calculating ratios on its own does not provide value; analysis and comparison are required to draw meaningful conclusions.
This document discusses project rate of return and capital budgeting techniques. It covers several topics in 3 paragraphs or less:
1) It discusses the pros and cons of using multiple discount rates versus a single discount rate for capital budgeting. While multiple rates are conceptually better, most firms use a single rate for simplicity and to reduce influence costs.
2) It provides steps for calculating a project's required rate of return, including determining comparable firm betas, adjusting for financial leverage, and calculating WACC.
3) It notes that firms often use a hurdle rate higher than WACC to provide incentives for better projects and account for overly optimistic forecasts. A survey found 51% use risk-adjusted rates and 59
Sources of capital on the basis of ownership & Cost Of Borrowed Capital & Lev...RahulBisen13
Operating leverage measures how fixed costs affect operating income with changes in sales. It is calculated as contribution/EBIT and relates to assets. Financial leverage measures how fixed financial charges affect earnings, calculated as OP/PBT and relates to liabilities. Combined leverage considers both operating and financial leverage and their compounding effects on earnings. Leverage allows profits to rise with sales but also increases risk if sales decline.
The document discusses the cost of capital and defines it as the minimum return required by investors to invest in a company. It discusses the different components of cost of capital including cost of equity, cost of debt, and cost of preference shares. It also discusses weighted average cost of capital and capital structure. The importance of understanding cost of capital for financial management and capital budgeting is highlighted. Key terms discussed include debt financing, capital budgeting techniques like payback period and return on new invested capital. Risk is also introduced as a key consideration.
Traditional and MM approach in capital structureMERIN C
The document discusses traditional and Modigliani-Miller (MM) approaches to capital structure.
The traditional approach argues that a company's value and cost of capital can be optimized through a judicious mix of debt and equity, up to a certain level of debt. Beyond this, increased financial risk from more debt outweighs the benefits of cheaper debt.
The MM approach argues that a company's value depends only on its operating income and risk, not its capital structure. It proposes that markets will equalize any differences in value or cost of capital through arbitrage. The cost of equity rises in line with debt, keeping the weighted average cost of capital constant.
While influential, the MM approach makes
The document discusses the cost of capital, including its meaning, significance, and methods for determining it. The cost of capital is the minimum expected rate of return required by a firm's investors. It is used to evaluate investment projects and determine the optimal capital structure. There are different types of costs - historical vs future, specific vs composite, explicit vs implicit, and average vs marginal. Determining the accurate cost of capital can be challenging due to conceptual issues around capital structure and difficulties calculating costs like equity and retained earnings.
The document discusses the cost of capital. It defines cost of capital as the minimum return expected by investors for providing capital to a company. It includes the costs of debt, equity, preference shares, and retained earnings. The weighted average cost of capital takes the costs of different sources of capital weighted by their proportions. Calculating cost of capital is important for capital budgeting and evaluating new projects and investments.
Ratio analysis is a method used to interpret financial statements and assess the strengths and weaknesses of a firm. Ratios measure the relationship between different financial metrics and can be used to compare performance over time, between firms, or against standards. Key types of ratios include liquidity, capital structure, profitability, and activity ratios which analyze different aspects of a firm's financial health and operations. Calculating ratios on its own does not provide value; analysis and comparison are required to draw meaningful conclusions.
This document discusses project rate of return and capital budgeting techniques. It covers several topics in 3 paragraphs or less:
1) It discusses the pros and cons of using multiple discount rates versus a single discount rate for capital budgeting. While multiple rates are conceptually better, most firms use a single rate for simplicity and to reduce influence costs.
2) It provides steps for calculating a project's required rate of return, including determining comparable firm betas, adjusting for financial leverage, and calculating WACC.
3) It notes that firms often use a hurdle rate higher than WACC to provide incentives for better projects and account for overly optimistic forecasts. A survey found 51% use risk-adjusted rates and 59
Sources of capital on the basis of ownership & Cost Of Borrowed Capital & Lev...RahulBisen13
Operating leverage measures how fixed costs affect operating income with changes in sales. It is calculated as contribution/EBIT and relates to assets. Financial leverage measures how fixed financial charges affect earnings, calculated as OP/PBT and relates to liabilities. Combined leverage considers both operating and financial leverage and their compounding effects on earnings. Leverage allows profits to rise with sales but also increases risk if sales decline.
The document discusses the cost of capital and defines it as the minimum return required by investors to invest in a company. It discusses the different components of cost of capital including cost of equity, cost of debt, and cost of preference shares. It also discusses weighted average cost of capital and capital structure. The importance of understanding cost of capital for financial management and capital budgeting is highlighted. Key terms discussed include debt financing, capital budgeting techniques like payback period and return on new invested capital. Risk is also introduced as a key consideration.
Traditional and MM approach in capital structureMERIN C
The document discusses traditional and Modigliani-Miller (MM) approaches to capital structure.
The traditional approach argues that a company's value and cost of capital can be optimized through a judicious mix of debt and equity, up to a certain level of debt. Beyond this, increased financial risk from more debt outweighs the benefits of cheaper debt.
The MM approach argues that a company's value depends only on its operating income and risk, not its capital structure. It proposes that markets will equalize any differences in value or cost of capital through arbitrage. The cost of equity rises in line with debt, keeping the weighted average cost of capital constant.
While influential, the MM approach makes
The document discusses the cost of capital, including its meaning, significance, and methods for determining it. The cost of capital is the minimum expected rate of return required by a firm's investors. It is used to evaluate investment projects and determine the optimal capital structure. There are different types of costs - historical vs future, specific vs composite, explicit vs implicit, and average vs marginal. Determining the accurate cost of capital can be challenging due to conceptual issues around capital structure and difficulties calculating costs like equity and retained earnings.
The document discusses the cost of capital. It defines cost of capital as the minimum return expected by investors for providing capital to a company. It includes the costs of debt, equity, preference shares, and retained earnings. The weighted average cost of capital takes the costs of different sources of capital weighted by their proportions. Calculating cost of capital is important for capital budgeting and evaluating new projects and investments.
The document discusses the cost of capital, which is the rate of return a firm requires to increase its market value. It has three components: return at zero risk, business risk premium, and financial risk premium. Cost of capital is classified as historical vs future, specific vs composite, average vs marginal, and explicit vs implicit. Specific costs include cost of debt, preference shares, equity shares, and retained earnings. Composite cost is the weighted average cost of different sources. Cost of capital is computed using book value weights or market value weights to determine the weighted average cost of capital (WACC).
This document provides an overview of cost of capital, including:
1. Definitions of capital, cost of capital, and the significance of calculating cost of capital for capital budgeting and other decisions.
2. Methods for calculating the cost of different sources of capital such as equity, preferred stock, debt.
3. Factors that affect the cost of capital for a firm.
4. The weighted average cost of capital (WACC) and how it is calculated based on a firm's target capital structure.
This document discusses various methods for valuing common stock, including the zero-growth, constant-growth, and variable-growth models. It provides examples of calculating stock value using each method. The zero-growth model assumes dividends will remain constant in perpetuity. The constant-growth model assumes dividends will grow at a constant rate less than the required return. The variable-growth model allows dividend growth rates to change over time. The document also covers features of common and preferred stock, the process of companies going public, and the role of investment bankers in initial public offerings.
Equity financing involves raising capital by selling shares of ownership in a company rather than through debt. This document discusses various types of equity financing and shares. It covers topics such as common stock and preferred stock, as well as ways for companies to raise equity capital through initial public offerings, rights issues, and corporate or angel investors. The document also examines how stock prices are determined and the impact of dividend policy and stock dividends or stock splits. Finally, it discusses shareholder voting rights and procedures.
The document discusses the cost of capital and how it is calculated. It can be summarized as:
1) The cost of capital is the weighted average rate that a firm is expected to pay to fund its assets and operations with different sources of capital such as debt, preferred stock, and common equity.
2) It is calculated by determining the market value proportion of each capital component, the market return expected by investors in each component, and adjusting for factors like taxes and flotation costs.
3) The weighted average cost of capital (WACC) represents the firm's hurdle rate and is used to evaluate whether potential projects can earn more than this required return.
This document assesses the capital structure of Hutchison Whampoa based on its future financing needs. It analyzes Hutchison Whampoa's current capital structure ratios and compares them to industry averages. It also models how different ratios would be impacted by raising $500 million through various combinations of debt and equity. Overall, the analysis finds that Hutchison Whampoa's current capital structure ratios are healthy but could be optimized further to improve profitability and cash flow while maintaining financial stability.
Equity represents the value of assets owned after accounting for liabilities. Equity shareholders own fractional shares of a company and take on the highest risk. Equity shares are a permanent source of capital for companies and do not require repayment, but dividends are not guaranteed and shareholders' liability is limited to their investment amount. Risks to shareholders include economic, market, exchange rate and industry risks. Advantages are liquidity, potential dividend payments and share appreciation.
This document discusses the valuation and characteristics of stocks. It covers preferred stock, which is a hybrid security with characteristics of both common stock and bonds. Preferred stock pays fixed dividends, has priority over common stock in claims to assets and income, and may be cumulative or convertible. Common stock represents ownership in a company and entitles the owner to voting rights and residual claims to income and assets. The document discusses how to value preferred stock as a perpetuity and common stock using the dividend valuation model that incorporates growth. It also defines the expected rate of return for stocks.
Bba 2204 fin mgt week 7 stock valuationStephen Ong
This document provides an overview of stock valuation and the process of issuing common stock. It discusses the differences between debt and equity financing, features of common and preferred stock, and the roles of venture capital and investment bankers in taking a company public. The learning goals cover stock valuation models, approaches to valuation such as free cash flow and multiples, and how financial decisions impact risk and firm value.
,
cost of capital
,
bond
,
preferred stock
,
factors influencing cost of capital determination
,
cost of new common stock
,
cost of debt components
,
cost of preferred stock
,
components of cost of capital
Common stock valuation methods include:
1. Discounting future dividends using the required return rate for the stock. This works best when dividends are constant or grow at a known rate.
2. Using the earnings per share and an industry benchmark PE ratio when dividends are not paid, as the PE ratio captures expected future earnings and dividend growth.
3. Special cases exist when dividends are constant forever or grow at a constant rate, allowing the stock value to be directly calculated using perpetuity or dividend growth models. However, these ideal cases are rare in practice.
This document discusses capital budgeting, which is the process of long-term planning for investment of funds in projects that provide benefits over several years. Capital budgeting decisions include setting up factories, installing machinery, and expanding capacity. These decisions are important because they affect long-term growth, involve large amounts of funds, carry risk and uncertainty, and are generally irreversible. The document categorizes capital budgeting decisions into cost reduction, replacement, modernization, expansion, diversification, and mutually exclusive or accept/reject decisions.
The document discusses the cost of capital, which is defined as the minimum rate of return that a company must earn on its investments to satisfy its investors. It outlines different sources of capital such as equity, debt, and retained earnings. It then provides formulas to calculate the specific costs of different sources of capital, including cost of debt, cost of preference shares, cost of equity, and cost of retained earnings. The document emphasizes that the cost of capital is important for companies to consider when evaluating investment projects.
This document provides an overview of common stock and differences between debt and equity financing. It discusses key differences such as creditors having legal right to repayment while investors only have expectation, equityholders having last claim on assets in bankruptcy. Common stockholders are residual owners who receive dividends and capital gains. Preemptive rights protect common stockholders from dilution from new share issuances. Voting rights, dividends and international stock issues are also summarized.
This document discusses the cost of capital and how to calculate it. It defines cost of capital as the rate of return a firm must earn on its investments to maintain its market value and attract funds. It then discusses how to calculate the costs of different sources of capital including long-term debt, preferred stock, common stock, and retained earnings. It explains how to calculate the weighted average cost of capital (WACC) and discusses weighting schemes. Finally, it discusses how to determine break points and calculate the weighted marginal cost of capital (WMCC), which can be used with the investment opportunities schedule to make financing decisions.
This document discusses the cost of capital and how firms calculate it. It defines the cost of capital as the rate of return a firm must earn on investments to maintain its stock price. A firm needs to calculate its weighted average cost of capital (WACC) to properly evaluate investment opportunities. The WACC takes into account the different costs of a firm's sources of capital, such as debt and equity, weighted by their proportions in the firm's target capital structure. The document outlines how to calculate the costs of different sources of capital and how to determine the WACC.
This document discusses various methods of depreciation including straight line, diminishing balance, annuity, sinking fund, and insurance policy methods. It provides formulas and explanations of how each method works, including calculating equal depreciation over the useful life for straight line and calculating depreciation as a percentage of the reducing balance for diminishing balance. Advantages and disadvantages of each method are also summarized.
This document provides an overview of depreciation accounting. It defines depreciation as the permanent decrease in the value of an asset due to factors like wear and tear, obsolescence, or the passage of time. The document outlines various causes of depreciation including wear and tear, exhaustion, effluxion of time, weather effects, and permanent declines in asset value. It also discusses objectives of recording depreciation such as correctly calculating profits, complying with legal requirements, and maintaining the integrity of capital. Finally, the document introduces different depreciation methods used in accounting like the straight-line method, declining balance method, and annuity method.
This document discusses various methods for calculating depreciation of assets. It begins by defining depreciation as the reduction in value of an asset over its useful life due to factors like normal wear and tear. The document then outlines several common methods for calculating depreciation, including the straight-line method, written down value (diminishing balance) method, annuity method, sinking fund method, and production unit method. For each method, it provides the depreciation calculation formula. The document concludes by listing some key features of depreciation calculations.
The document discusses the cost of capital, which is the rate of return a firm requires to increase its market value. It has three components: return at zero risk, business risk premium, and financial risk premium. Cost of capital is classified as historical vs future, specific vs composite, average vs marginal, and explicit vs implicit. Specific costs include cost of debt, preference shares, equity shares, and retained earnings. Composite cost is the weighted average cost of different sources. Cost of capital is computed using book value weights or market value weights to determine the weighted average cost of capital (WACC).
This document provides an overview of cost of capital, including:
1. Definitions of capital, cost of capital, and the significance of calculating cost of capital for capital budgeting and other decisions.
2. Methods for calculating the cost of different sources of capital such as equity, preferred stock, debt.
3. Factors that affect the cost of capital for a firm.
4. The weighted average cost of capital (WACC) and how it is calculated based on a firm's target capital structure.
This document discusses various methods for valuing common stock, including the zero-growth, constant-growth, and variable-growth models. It provides examples of calculating stock value using each method. The zero-growth model assumes dividends will remain constant in perpetuity. The constant-growth model assumes dividends will grow at a constant rate less than the required return. The variable-growth model allows dividend growth rates to change over time. The document also covers features of common and preferred stock, the process of companies going public, and the role of investment bankers in initial public offerings.
Equity financing involves raising capital by selling shares of ownership in a company rather than through debt. This document discusses various types of equity financing and shares. It covers topics such as common stock and preferred stock, as well as ways for companies to raise equity capital through initial public offerings, rights issues, and corporate or angel investors. The document also examines how stock prices are determined and the impact of dividend policy and stock dividends or stock splits. Finally, it discusses shareholder voting rights and procedures.
The document discusses the cost of capital and how it is calculated. It can be summarized as:
1) The cost of capital is the weighted average rate that a firm is expected to pay to fund its assets and operations with different sources of capital such as debt, preferred stock, and common equity.
2) It is calculated by determining the market value proportion of each capital component, the market return expected by investors in each component, and adjusting for factors like taxes and flotation costs.
3) The weighted average cost of capital (WACC) represents the firm's hurdle rate and is used to evaluate whether potential projects can earn more than this required return.
This document assesses the capital structure of Hutchison Whampoa based on its future financing needs. It analyzes Hutchison Whampoa's current capital structure ratios and compares them to industry averages. It also models how different ratios would be impacted by raising $500 million through various combinations of debt and equity. Overall, the analysis finds that Hutchison Whampoa's current capital structure ratios are healthy but could be optimized further to improve profitability and cash flow while maintaining financial stability.
Equity represents the value of assets owned after accounting for liabilities. Equity shareholders own fractional shares of a company and take on the highest risk. Equity shares are a permanent source of capital for companies and do not require repayment, but dividends are not guaranteed and shareholders' liability is limited to their investment amount. Risks to shareholders include economic, market, exchange rate and industry risks. Advantages are liquidity, potential dividend payments and share appreciation.
This document discusses the valuation and characteristics of stocks. It covers preferred stock, which is a hybrid security with characteristics of both common stock and bonds. Preferred stock pays fixed dividends, has priority over common stock in claims to assets and income, and may be cumulative or convertible. Common stock represents ownership in a company and entitles the owner to voting rights and residual claims to income and assets. The document discusses how to value preferred stock as a perpetuity and common stock using the dividend valuation model that incorporates growth. It also defines the expected rate of return for stocks.
Bba 2204 fin mgt week 7 stock valuationStephen Ong
This document provides an overview of stock valuation and the process of issuing common stock. It discusses the differences between debt and equity financing, features of common and preferred stock, and the roles of venture capital and investment bankers in taking a company public. The learning goals cover stock valuation models, approaches to valuation such as free cash flow and multiples, and how financial decisions impact risk and firm value.
,
cost of capital
,
bond
,
preferred stock
,
factors influencing cost of capital determination
,
cost of new common stock
,
cost of debt components
,
cost of preferred stock
,
components of cost of capital
Common stock valuation methods include:
1. Discounting future dividends using the required return rate for the stock. This works best when dividends are constant or grow at a known rate.
2. Using the earnings per share and an industry benchmark PE ratio when dividends are not paid, as the PE ratio captures expected future earnings and dividend growth.
3. Special cases exist when dividends are constant forever or grow at a constant rate, allowing the stock value to be directly calculated using perpetuity or dividend growth models. However, these ideal cases are rare in practice.
This document discusses capital budgeting, which is the process of long-term planning for investment of funds in projects that provide benefits over several years. Capital budgeting decisions include setting up factories, installing machinery, and expanding capacity. These decisions are important because they affect long-term growth, involve large amounts of funds, carry risk and uncertainty, and are generally irreversible. The document categorizes capital budgeting decisions into cost reduction, replacement, modernization, expansion, diversification, and mutually exclusive or accept/reject decisions.
The document discusses the cost of capital, which is defined as the minimum rate of return that a company must earn on its investments to satisfy its investors. It outlines different sources of capital such as equity, debt, and retained earnings. It then provides formulas to calculate the specific costs of different sources of capital, including cost of debt, cost of preference shares, cost of equity, and cost of retained earnings. The document emphasizes that the cost of capital is important for companies to consider when evaluating investment projects.
This document provides an overview of common stock and differences between debt and equity financing. It discusses key differences such as creditors having legal right to repayment while investors only have expectation, equityholders having last claim on assets in bankruptcy. Common stockholders are residual owners who receive dividends and capital gains. Preemptive rights protect common stockholders from dilution from new share issuances. Voting rights, dividends and international stock issues are also summarized.
This document discusses the cost of capital and how to calculate it. It defines cost of capital as the rate of return a firm must earn on its investments to maintain its market value and attract funds. It then discusses how to calculate the costs of different sources of capital including long-term debt, preferred stock, common stock, and retained earnings. It explains how to calculate the weighted average cost of capital (WACC) and discusses weighting schemes. Finally, it discusses how to determine break points and calculate the weighted marginal cost of capital (WMCC), which can be used with the investment opportunities schedule to make financing decisions.
This document discusses the cost of capital and how firms calculate it. It defines the cost of capital as the rate of return a firm must earn on investments to maintain its stock price. A firm needs to calculate its weighted average cost of capital (WACC) to properly evaluate investment opportunities. The WACC takes into account the different costs of a firm's sources of capital, such as debt and equity, weighted by their proportions in the firm's target capital structure. The document outlines how to calculate the costs of different sources of capital and how to determine the WACC.
This document discusses various methods of depreciation including straight line, diminishing balance, annuity, sinking fund, and insurance policy methods. It provides formulas and explanations of how each method works, including calculating equal depreciation over the useful life for straight line and calculating depreciation as a percentage of the reducing balance for diminishing balance. Advantages and disadvantages of each method are also summarized.
This document provides an overview of depreciation accounting. It defines depreciation as the permanent decrease in the value of an asset due to factors like wear and tear, obsolescence, or the passage of time. The document outlines various causes of depreciation including wear and tear, exhaustion, effluxion of time, weather effects, and permanent declines in asset value. It also discusses objectives of recording depreciation such as correctly calculating profits, complying with legal requirements, and maintaining the integrity of capital. Finally, the document introduces different depreciation methods used in accounting like the straight-line method, declining balance method, and annuity method.
This document discusses various methods for calculating depreciation of assets. It begins by defining depreciation as the reduction in value of an asset over its useful life due to factors like normal wear and tear. The document then outlines several common methods for calculating depreciation, including the straight-line method, written down value (diminishing balance) method, annuity method, sinking fund method, and production unit method. For each method, it provides the depreciation calculation formula. The document concludes by listing some key features of depreciation calculations.
Fixed Asset Process activities, end to end activities of fixed asset in the company, capitalisation, journal entries, fixed asset cycle, procurement cycle, types of depreciation, depreciation methods, Cost and management course study material
The document discusses the sinking fund method of depreciation. The sinking fund method involves charging depreciation annually and investing that amount plus interest earned each year. At the end of the asset's useful life, the accumulated sinking fund can be used to purchase a new replacement asset. While it guarantees funds for replacement, the sinking fund method is complex and uncommon because companies prefer simpler depreciation methods or using capital for other investments. Certain industries like utilities regularly use this method for long-term assets.
depreciation, straight line, units of productions, double declining, income tax, depreciation methods, advance business consulting, www.mba4help.com Miami, Jose cintron
This document discusses different methods for calculating depreciation of assets for accounting and tax purposes. It describes capital cost allowance, which is a tax deduction in Canada that allows businesses to reduce taxes by deducting the depreciation of capital assets. It then explains straight-line depreciation, unit-of-production depreciation, and accelerated depreciation methods. Straight-line depreciation evenly allocates the cost of an asset minus its salvage value over its useful life. Unit-of-production allocates depreciation based on units produced. Accelerated methods like sum-of-years and double-declining balance allow faster depreciation in early years for tax benefits.
Depreciation can be charged based on different methods which are found suitable in different circumstances relevant to nature of assets and business. Further, it is not necessary that an enterprise employ single method for all classes of its depreciable assets.
1) The document discusses depreciation accounting, including definitions, objectives, factors affecting depreciation amounts, and methods of calculating depreciation.
2) The two most common depreciation methods are the straight-line method, which allocates equal amounts of depreciation each period, and the reducing balance method, which allocates higher amounts initially that decrease over time.
3) Other topics covered include accounting entries for depreciation, illustrations of depreciation calculations using different methods, and the sum-of-years digits method.
This document discusses depreciation and its key aspects. It defines depreciation as the decline in value of fixed assets like machinery, buildings, vehicles, and furniture due to constant use, time, or obsolescence. Depreciation is a non-cash expense that is allocated over the useful life of the asset to determine accurate profit/loss and financial position. Common depreciation methods include straight line and written down value, which calculate expense differently but both aim to fully write off the asset's value by the end of its life.
This document discusses depreciation accounting. It defines depreciation accounting as allocating the cost of a tangible capital asset over its estimated useful life. Depreciation represents the gradual conversion of the asset's capitalized cost into an expense that is allocated to different periods. The document discusses different terms used for allocating costs of different asset types, such as depreciation for physical assets, depletion for natural resources, and amortization for intangible assets. It also discusses factors that influence the amount of depreciation charged each year, such as original cost, estimated useful life, additions made to the asset, and estimated residual value.
Depreciation is the allocation of the cost of a tangible asset over its useful life. It is a non-cash expense that reduces the value of the asset over time due to wear and tear, age, and obsolescence. There are two main methods for calculating depreciation - the straight-line method and the written-down value method. The straight-line method allocates depreciation evenly over the asset's useful life, while the written-down value method allocates a higher percentage of depreciation in early years that decreases over time. Depreciation is required for accounting purposes to show the true value of assets and provide funds for asset replacement.
This document provides an overview of depreciation accounting. It defines depreciation and related terms like depletion, amortization, and obsolescence. It discusses the causes and objectives of charging depreciation. The document also explains factors affecting depreciation amounts and relevant accounting principles. Finally, it describes the straight line and written down value methods for allocating depreciation over the useful life of an asset.
Chapter 12 & 14 depreciation of non current assets clcLyLy Tran
This document discusses principles of accounting related to depreciation of non-current assets. It defines depreciation and cost, and describes methods of calculating depreciation including straight-line and reducing balance methods. It compares the two methods and discusses which to use based on the asset. The document also covers depreciation entries, treatment in financial statements, historical cost versus fair value valuation, and revenue recognition principles.
This document discusses depreciation accounting and various depreciation methods. It begins by defining depreciation as the reduction in value of an asset due to factors like usage, passage of time, wear and tear, etc. Depreciation is allocated over the useful life of an asset using methods like straight line, reducing balance, etc. The document then discusses various depreciation methods in detail like sinking fund method, insurance policy method, annuity method, and machine hour rate method. It also discusses accounting standard 6 related to depreciation accounting.
deprecation and accelerated deprecation methodsZujajah Ch
This document discusses various methods of depreciation. It defines depreciation as the decrease in monetary value of an asset over time due to use, wear and tear, or obsolescence. Straight line depreciation divides the difference between an asset's cost and salvage value by its useful life. Sum of years digits and double declining balance are accelerated methods where more depreciation is taken in early years of an asset's life. Key factors in calculating depreciation are useful life, salvage value, and depreciation method.
This document provides information on estimating the cost of capital for a company. It discusses major sources of capital including common stock, preferred stock, debt through bonds or loans, and retained earnings. It then provides details on estimating the cost of debt and equity. For cost of debt, it shows an example calculation using interest rate and tax rate. For cost of equity, it discusses using the dividend growth model and the capital asset pricing model (CAPM) to estimate required rate of return. It lists some pros and cons of each approach.
Depreciation is a commercial expense. A company must be aware of its costs in order to be profitable. Assets depreciate when their value decreases over time until it reaches zero. Office supplies, computer hardware, industrial equipment, and other items depreciate over time. Real estate is one kind of asset that does not lose value over time.
The statement of financial position is another term for the balance sheet. The statement lists the assets, liabilities, and equity of an organization as of the report date. As such, it provides a snapshot of the financial condition of a business as of a specific date. It is one of the financial statements, and so is commonly presented alongside the income statement and statement of cash flows.
The document discusses customer relationship management (CRM) in retailing. It defines CRM and lists its objectives. CRM aims to acquire, retain and partner with selective customers to create value for both the company and customer. It involves collecting customer data, analyzing the data to identify target customers, developing CRM programs tailored for these customers, and implementing the programs. Relationship-based CRM focuses on maintaining good customer service, satisfaction and loyalty to sustain the business over the long run.
The document discusses Know Your Customer (KYC) procedures for banks in India. It explains that KYC is a framework that allows banks to understand their customers and financial transactions to prevent money laundering and terrorist financing. The Reserve Bank of India mandates that banks follow KYC guidelines when opening and operating accounts. The guidelines require banks to verify customer identities and monitor transactions. Banks must have board-approved KYC policies covering customer acceptance, identification, monitoring, and risk management. Sound KYC procedures help protect banks from criminal activities and allow them to better understand customers and manage risks.
This document provides an overview of basic accounting concepts. It defines accounting as the process of identifying, recording, and communicating financial transactions of an organization. Accounting involves maintaining systematic financial records, calculating profits and losses, and providing information to internal and external users for decision making. The document also outlines the objectives, functions, nature, branches, and users of accounting information.
This document provides an overview of accounting standards in India. It begins with introducing accounting standards as written documents issued by regulatory bodies to standardize accounting policies. It then discusses the objectives of accounting standards such as adding reliability to financial statements. The document outlines the different types of accounting standards introduced in India from 1979 to 2007 and provides brief descriptions of several individual standards including those covering cash flow statements, revenue recognition, and financial instruments. It concludes with noting that 32 accounting standards have been adopted in India based on international standards.
Accounting provides essential financial information to both internal and external users by measuring business activities, processing data into reports, and communicating results. It represents transactions and financial information through the accounting equation of assets equaling liabilities plus owner's equity. Adherence to generally accepted accounting principles ensures consistent and reliable reporting.
This document discusses fiscal management in education. It covers budget formulation and types of budgets. Key aspects of fiscal management include goal setting, designing targeted budgets, and overseeing budget approval and use of funds. Sound budgets are realistic estimates that clearly present needs, involve staff consultation, and ensure equitable allocation of resources. The document also discusses revenue sources, policies like pay-to-play, and budgeting approaches such as zero-based budgeting and PPBES (Planning-Programming-Budgeting-Evaluation System). Financial officers are responsible for various duties including budget planning, purchasing, facilities management, and accounting.
This document discusses fiscal management in education. It covers budget formulation and types of budgets. Key aspects of fiscal management include goal setting, designing targeted budgets, and overseeing the budget process. Sound budgets are realistic estimates that clearly present needs, involve staff consultation, and allow flexibility. The document also discusses revenue sources, pay-to-play policies, and budgeting approaches like zero-based budgeting and PPBES. Financial officers are responsible for tasks like budget planning, purchasing, facilities management, and accounting.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
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LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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