Overall the analysis of duration of assets is appropriate. However there are still some small shortages that need to be improved. While the proposed program appears logical and well planned, we are weary of how the duration for the portfolio was determined and how untested the program is. Despite these criticisms, we would conditionally approve the program. For external purposes, hedge effectiveness and the fair market value of the swaps must be determined and reported.
The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks,
Decision Making Accounting (ACC) 561 November 11, 2010 Eddie Mattison, Facilitator Decision Making Budgets and Performance Reports “Budgets…help to coordinate and implement plans. They are the chief devices for disciplining management planning. Without budgets, planning may not get the front and center focus that it usually deserves.” (Horngren at el. 2008, p. 13) Guillermo must be able to operate within his budgets; otherwise he may begin to operate at a profit loss. Creating a budget will allow Guillermo to know the exact amount of money that he has to allocate to specific expenses.
Organisations need accurate and timely financial information as this information is analysed to produce information that can be used by management and employees in the organisation. The financial data is then used to inform organisational, strategic and operational plans. Information relating to costs, operations, assets, credit analysis, GST transactions, inventory management, invoices and accounts is required to manage the organisation’s finances. All employees and departments of an organisation are responsible for the financial
“Staff size limitations may obstruct efforts to properly segregate duties, which requires the implementation of compensating controls to ensure that objectives are achieved.” (k-state.edu) They are chances of human errors and technical errors with computer systems. In conclusion, although internal control has its limitations it is very important to have a checks and balance system in place. It is important for everyone to have a specific job or duty and be held responsible to assure things are running smoothly. If there is an error within the system it would make things much easier to find the source of the problem because everyone has one job and one job only and they are being double check by someone else. Internal controls is beneficial in everything in business and accounting.
An organization that provides a financial statement to the public, investors or government funding entities must follow the set standards developed by Financial Accounting standards Board (FASB). Information documented within a report must be reliable, consistence, and have comparability outcomes and measurements delivery objectives. An
BSBFIM501A - Manage budgets and financial plans Written / Oral Questions 1. Why do organisations need accurate and timely financial information? What information is required to manage the organisation’s finances? Who is usually responsible for an organisation’s financial management? -Financial management ensures that a business is monitoring their finances.
The data set would gain validity if more test subjects from different Autoplex were included. The data analysts should note the data set information on if the rebates are included in the figures or left out. The consumer may receive false information or slightly misleading information to entice the buyer to visit the Whitner Autoplex based on cheaper prices. This data set does not provide the analyst with personal information on the consumers but in some cases personal information will be included, and the analyst must be careful to not let the information out to where someone could improperly use the
Managerial accounting presents information to support the broad roles, the development of objectives, strategies, operating plans, identification of organizational problems or potential problems and ensures that resources are obtained for use according to plans for achieving the internal objectives for the internal uses. Managerial accounting also provides the internal information on different levels of management that value the adding process of planning, designing, measuring and operating on a non-financial and financial level. The levels of management are based on operational level, middle and upper management and senior executives. The purpose for the information is to be generated at different levels for internal users to see an overview of the reports that are relevant to the budget and how this will effect decisions supported by a budgeting process. Financial accounting differs from managerial accounting for the reason with financial accounting is used for external users such as investors and creditors.
There are not always happy endings to fairy tales. The financial risk can either boost or hinder a company to succeed. No matter if the money is from one’s pocket, borrowed or funded; there is a huge risk in losing a lot of money. If the money is borrowed, one will end up having a lot of debts. To prevent this, one needs to create good budget plans for the company and manage his money wisely.