Sources of Finance - 1934 Words

Sources of Finance The financing of every business is the most fundamental aspect of its management. Get the financing right and the company will have a healthy business, positive cash flows and ultimately a profitable enterprise. The financing can happen at any stage of a business s development. On commencement of your enterprise the business entity will need finance to start up and, later on, finance to expand. Finance sources may be internal or external but they may also be short, medium or long term. * Short Term Finance the Business for up to One year. * Medium Term Finance the business for up to Five years. * Long Term Finance the business for more than Five years. A. Long and Medium Term Sources of Finance 1.†¦show more content†¦* They increase their stability and raise the credit score used by banks that value the company’s risk * It is a low-risk investment which increases the chances of a company securing bank financing for future needs. Disadvantages: * If the company uses more bank loan, it will over-leverage company’s assets. 5. Mortgages It is the transfer of the property to a lender on the assumption that the borrower agrees to terms of repayment of the debt, after which time the asset will be transferred to the borrower’s ownership. A mortgage is a common form of security for a creditor. Advantages: * Interest payments on your mortgage are tax deductible. * Mortgage schedules are pre-set, making cash management more predictable. Disadvantages: * Mortgage requires you to pledge the purchased property to the lender. * Failure to make any payment on time, bankruptcy, insolvency and breaches of any obligations in the mortgage agreement will be there. 6. Leasing It is an agreement between lesser and lessee, the lessee obtains the right to use an item and assets owned by the lesser in exchange for periodic payments. The lessee’s ownership of the assets has expired at the end of given agreement period. Advantages: * It offers fixed rate financing; The Company pays at the same rate monthly. * There is less upfront cash outlay; the company does not need toShow MoreRelatedsources of finance1286 Words   |  6 Pagesï » ¿Sources of finance Some sources of finance are short term and must be paid back within a year. Other sources of finance are long term and can be paid back over many years. Internal sources of finance are funds found inside the business. For example, profits can be kept back to finance expansion. Alternatively the business can sell assets that are no longer really needed to free up cash. External sources of finance are found outside the business. For example from creditors or banks. InternalRead MoreSources of Finance1496 Words   |  6 PagesP3 Introduction For this task I will be considering the sources of finance I will need for my company. Why might a business require finance? A business may require finance because they can either: †¢ Be setting up a new business and they do not have enough money to start up. †¢ They may need new equipment to help make the business expand and make more profit. †¢ Or they may even want to replace old machinery. †¢ They may want to move there store to a better location that might benefit thereRead MoreSources of Finance1111 Words   |  5 PagesIntroduction In this essay we will be looking at different sources of finance available for different type of business. Also will be looking at the definitions of different type of sources of finance, the advantages, disadvantages and also giving reasons to why different sources of finance was chosen for the given case studies. Types of sources of finance Bank Loan – is a long term loan and will often be for large amount of money for starting up a business or to expanding. Business will agreeRead MoreSources of Finance972 Words   |  4 PagesSources of finance What are the main sources and finance for UK firms and why? All firms need some kind of financing. Access to finance may differ considerably from firm to firm depending on what type of business they are and how big/known they are; Sole Trader, Public Limited or Private Limited Company. There are both INTERNAL and EXTERNAL sources of finance. Finance can be short, medium or long term. Internal sources of Finance: 2 main types 1) Funds from the owner(s) and the familyRead MoreSources of Finance1627 Words   |  7 PagesUnit 2: Business Resources Assignment 4:P4 Sources of Finance Internal Sources of finance Owners’ savings- the owner of a business often has to use their own personal savings to start a business, particularly if they are a sole trader. This is because banks may not be willing to take a risk and invest in them. Savings are a good source of finance for a business, as interest does not need to be paid to someone else while the money is being used, and the business remains totally in theRead Moresources of finance2021 Words   |  9 Pagesï » ¿Question:   IDENTIFY THE SOURCES OF FINANCE AVAILABLE TO A BUSINESS Answer: There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business. Large organisations are able to use a wider variety of finance sources than are smaller ones. Finance is not just needed when starting a new business, but you may be required to seek further finance even if you’re business is well established i-e further expansion, RD, new product launchRead MoreSource of Finance3105 Words   |  13 Pages1. Identify and describe the various sources of finance 1.1 Internal source 1.2 External sources 2. Assess the implication of the difference sources of finance related to risk, legal, financial and dilution of control and bankruptcy 2.1 Issue debt 2.2 Issue equity 3. Select appropriate sources of finance and make recommendations on the best ways of raising finance TASK 2: Part 1: Assess and compare various costs involve with each source of finance to Vale filters Limited Part 2: PrepareRead MoreSources of Finance7811 Words   |  32 PagesIntroduction - Sources of Finance Introduction to the Sources of Finance resource. Sources of Finance Introduction This resource is designed for use with Accounting courses at A level. This resource is relevant to the following: * AQA Module 5, Section 14.5: Types of Business Organisation, Sources of Finance * OCR Module 2505, Sections 5.3.2 and 5.6.2 For many businesses, the issue about where to get funds from for starting up, development and expansion can be crucial for the successRead MoreSources of Finance4664 Words   |  19 PagesSection 1 – Sources of Finance There are 4 main types of business ownership: †¢ Sole trader †¢ Partnership †¢ Private limited company (Ltd) †¢ Public limited company (Plc) Each of these types of business needs to raise finance for capital investment Sole Trader This is a business that is owned by one person. Sole Traders are responsible for raising all the finance to set up and run the business. Usually a sole trader would be for a small business/ (businesses with a flatRead MoreInternal Sources Of Finance And Finance Essay2349 Words   |  10 PagesInternal sources of finance: Internal sources of finance are funds that arise from within the business such as profits as they can be retained to grow the finance and selling assets. Retained profit Retained profit is the money kept in the company after paying dividends. It is used to reinvest in the business or to pay debt. It comes by a business after it makes profit and is kept separate to use in other ways such as expanding the business by developing new buildings or certain areas, buying new

Documentary Analysis Depression Out of the Shadows Essay

Depression: Out of the Shadows Depression: Out of the Shadows (2008), is a PBS documentary addressing depression, its effects on the human psyche, and treatment options. Depression affects people differently, depending on the severity and type of depression experienced. There are several different types of depression, ranging from mild depression, which is only experienced over short periods of time, teen depression, experienced during adolescence, hidden depression, when the depression is hidden from others, postpartum depression, experienced after giving birth, and clinical depression, a continued depression lasting several weeks or more. The video also discusses the related illness called Bipolar disorder, which is characterized by†¦show more content†¦Several types of anxiety disorders are discussed in this film. General anxiety disorder is described as a constant feeling of worry and fear for at least six months. A person suffering from general anxiety may experience panic attacks, cold sweats, heavy breathing, and may withdraw from social interactions. It is regularly treated with medications and cognitive behavior therapy, which is a psychotherapy that focuses on helping patients understand the feelings they are experiencing and how those feelings may be contributing to their issue. Post-traumatic stress disorder, or PTSD, is another anxiety disorder discussed in this film. People develop PTSD after experiencing an emotional shock or major trauma. Someone with PTSD may have issues sleeping and controlling their anger; they may experience feelings of detachment, numbness, and may have flashbacks of the traumatic experience causing their PTSD. Like general anxiety disorder, PTSD patients are often treated with medication and cognitive behavior therapy. Recently a new therapy, eye movement desensitization and reprocessing therapy, has been used in PTSD patients. This therapy requires the patient to rapidly move their eyes while recalling the traumatic experience. The third type of anxiety disorder discussed in this film is obsessive compulsive disorder, or OCD. OCD is describedShow MoreRelatedRole of Design in Newspaper Design3844 Words   |  16 Pagesadvertising for their income at various degrees. By the time readers see or read a newspaper, most of them have already learned of the breaking news through television or radio. However, they rely on newspaper to provide details on information and analysis which was rarely offered by the television or radio. Newspaper does not only inform readers but also help readers to understand what led up to the event and how it will affect the world. As a common practice newspaper are normally printed on inexpensiveRead MoreIntroduction to Film Cinema and Literature12137 Words   |  49 Pagesoverwhelming dilemmas and also finds him self participating in his own downfall. The image presented by tragedy is that of a human being who is forced to endure the worst, and yet not surrendering to self-defeat, but who finally is subdued and loses out completely. Tragic characters usually possess admirable traits such as ambition, patience, fortitude, self-confidence, intelligence etc which draw audience affection to them. However, they are eventually confronted by their inadequacies. They are usuallyRead MoreThe Studio System Essay14396 Words   |  58 Pagesstudios formed a rather cut-throat oligopoly--The Motion Pictures Patents Company, or the Trust--ostensibly to standardize the technological guts of filmmaking. In actuality, their pooled, exclusive patents essentially locked others out of the market. When Warner Bros. gambled that talkies would be popular with viewers, by offering the first bit of synchronized speech in The Jazz Singer, a period of turmoil blanketed the film industry. Studios now had proof that aRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pageslong nineteenth century, which was ushered in by the industrial and political revolutions of the late 1700s. But at the same time, without serious attention to the processes and misguided policies that led to decades of agrarian and industrial depression from the late 1860s to the 1890s, as well as the social tensions and political rivalries that generated and were in turn fed by imperialist expansionism, one cannot begin to comprehend the causes and consequences of the Great War that began in

Corporate Accounting and Impairment of Assets

Question: Discuss about the Corporate Accounting and Impairment of Assets. Answer: Introduction This report is made for Longreach Ltd management to give them an idea about the implementation of impairment test of assets. The company has decided to undergo a practice of impairment testing of their assets as per the Australian Accounting Standard Board standard no 136 on 30the June 2014. As thy are new applicant of this standard, they are keen to understand the process of impairment testing of different assets along with the process of impairment testing to be done to reach the real value of assets with the present context and thus to evaluate the company valuation of tangible and intangible assets including goodwill of the company. As I was approached to guide them regarding this subject, I will highlight different aspects of impairment test of assets including the objective of impairment test of assets, the implication of goodwill in the practice of impairment of assets, and the basic steps to be followed for impairment testing of assets. This report will highlight the above is sues to make the management of Longreach Ltd understand the implication of this activity to comply with AASB 136 which is being endorsed by the Corporation Act 2001 of Australia(Aasb, 2009). Main purpose of Impairment testing of Assets Main purpose of this application is endorsed by AASB Standard 136. This is as per guideline fixed by Section 334 of Corporation Act 2001. This standard has been placed for further discussion by the critiques on 15th July 2004. This discussion is meant for highlighting the shortcomings and positivity of the application enforced through this standard. Further this standard is being enforced finally since 1st July 2007 for the corporate entities after the finalization. The enhanced version of impairment testing standard vide Standard 136 had replaced erstwhile AASB standard 116(Austlii, 2001). Main objective of AASB 136 is for implementation of standardized platform which is logical for the application of impairment valuation of assets. This standard is being implemented for the impact on financial statements of the corporate to ensure International Accounting Standard 36. To make the convergence effort with IASB, AASB had implemented several accounting standards for the globalization of their accounting standard. As financial statements of the company is projecting the financial performance, it is obligatory of the Board of Directors to implement several standards to make the stakeholders understand the actual financial position of the company. The annual financial reporting of the company is the main resource through which stakeholders can understand the actual financial position of the company. This is instrumental for different stakeholders to make future decision. Impairment testing of assets can find the true value of the assets in real time factor. The main purpose of impairment testing of assets is to reach the present value of asset by considering several factors which are instrumental for this practice. It is mandatory for the Board of Directors to make proper disclosure of impairment testing of assets with certification along with subsequent certification by auditors. This is mandatory for business identities that are practicing the preparation of financial report as per specification made in Part 2M.3 of Corporation Act of 2001 for General Purpose Financial Report or GPFR(Aasb, 2015). Goodwill and its impact on Impairment testing of assets To identify goodwill in the accounting procedure of any entity, it is mainly distinguished as intangible assets. This asset is there to derive the value of the entity not in monetary standard neither it can add value to the cash flow of the entity. The impact of goodwill in respect of impairment of assets is being discussed in AASB Standard 136 through its paragraphs with nos. 80 to 84(Aasb, 2011). Paragraph 80 of the standard 136 had emphasized on the basic fact of consideration that goodwill of any business should be treated as per the guideline which directs the allocation of cash generating units of any business entity. It is also defined that valuation of goodwill as allocated to any business organization is determinant for representation of minimum valuation within the business entity as considered by internal assessment by the management of the entity. Proper guideline to this aspect is being directed through AASB 8 which had made restriction of the value of goodwill within the value of operating segment of the entity(Aasb, 2011). Paragraph 81 of AASB Standard 136 is there to define the process of recognition of goodwill along with clarifying the treatment of goodwill as an asset which is with the nature of non-recognizable with non-identifiable so far its existence for material value is concerned. This paragraph is also emphasizing on the fact that goodwill can not dictate feature of cash flow for any asset of the business entity. On the other hand it has the ability to add value for different units which are instrumental for generation of cash of the specific business entity(Aasb, 2007). Paragraphs 82 to 84 are providing direction for the business entities to be followed for ensuring proper evaluation of impairment testing of goodwill as per decision made by the management along with specific allocation of the same(Aasb, 2015). Basic steps for application of impairment testing of assets As per Standard 136 of AASB, six probable steps are identified to apply impairment testing of assets. They are: Life of Cash Generating Units or CGU Working Capital Movement Entitys Capital Expenditure Flow Payment of tax for derivation of benefit from interest Industry Discount Rate Terminal or Perpetual value of EBIT or EBITDA along with projection of future cash flow(Ey, 2008). Conclusion The concept of impairment testing of assets is being considered to make proper evaluation of assets with derivation of present value in comparison to fair value of assets. This concept had been endorsed by different globally acclaimed accounting standards to provide better level of financial information to the stakeholders enabling them to decide judiciously. Logreach Ltd, being a new entity to start this practice in their financial practices, had asked for the suggestions for proper implementation of this standard and the above discussion will give proper guideline form them so far its application is concerned. Case Study of impairment testing of Assets Crossbow Ltd It is found in the case study of Crossbow Ltd that this business entity has opted for practicing of impairment test of their assets to arrive at the present value of their assets. This practice is being prescribed to understand the real value of the company so far its assets are concerned in the changed scenario of business decrement. It is being observed that the company is facing business loss due to change of customers fascination towards online platform rather that going to the Crossbow outlets for purchase of goods. It is also observed that the decrement of business is also affected due to stiff global competition. In this scenario the company had opted for impairment testing of assets which had found impairment loss of $ 260,000 as the fair value of assets, booked in the accounts was $1,680,000 had been impaired to $1,420,000 which was resulted as such loss as per the experts deployed by the company and with the proper application of AASB standard 136. This result is not specif ic asset-wise; instead the same had been arrived at by generalized practice as prescribed in AASB standard 136. The respective journal entry related to booking of this impairment loss is furnished below: Journal Entries- Impairment loss of CrossBow Ltd as per as on 30.06.2015 Date Particulars amount amount 30.06.2015 Impairment loss of assets A/c debit $260,000 Accumulated Impairment Loss A/c Credit $260,000 Evaluation done as per impairment testing of Crossbow Ltd as on 30.06.2015 It is also observed that while the company had sold land, the same had incurred loss of $29,000 which had been arrived at by considering the fair value of land as $ 200,000 though the consolidated financial statement of the company as on 30.06.2015 and the recovered amount from sales proceeds of $ 171,000 of the land which had incurred loss of $ 29,000. This is to be booked in the books of accounts of Crossbow Ltd as below: Journal Entries loss from sale of land - CrossBow Ltd as on 30.06.2015 30.06.2015 Accumulated Impairment Loss A/c Debit $29,000 Land A/c Credit $29,000 Being the loss on land booked through sale With the above journal, the generalized Accumulated Impairment Loss A/c is being reduced by $ 29,000 through the actual sale of land with subsequent loss incurred by the company. References: Aasb, 2007. Impairment of Assets. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB136_07-04_COMPapr07_07-07.pdf [Accessed 18 January 2017]. Aasb, 2009. Impairment of Assets. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB136_07-04_COMPjun09_01-10.pdf [Accessed 10 January 2017]. Aasb, 2011. Fair Value Measurement. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB13_09-11.pdf [Accessed 18 January 2017]. Aasb, 2011. Investments in Associates and Joint Ventures. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB128_08-11.pdf [Accessed 18 January 2017]. Aasb, 2015. Presentation of Financial Statements. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf [Accessed 18 January 2017]. Aasb, 2015. Presentation of Financial Statements. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf [Accessed 18 January 2017]. Austlii, 2001. CORPORATIONS ACT 2001 - SECT 334. [Online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s334.html [Accessed 18 January 2017]. Ey, 2008. Impairment accounting the basics of IAS 36 Impairment of Assets. [Online] Available at: https://www.ey.com/Publication/vwLUAssets/Impairment_accounting_the_basics_of_IAS_36_Impairment_of_Assets/$FILE/Impairment_accounting_IAS_36.pdf [Accessed 18 January 2017].

Taking Responsibility Essays - School Shooting, Internet

Taking Responsibility Taking Responsibility 1999 must be a great year to be alive if you are a criminal! Nobody takes responsibility for his or her own actions anymore. Someone commits a heinous crime, and anything but the criminal gets blamed. It was a harsh childhood, abusive parents, violent movies and video games, the availability of guns and bomb making materials, the Internet, pornography, peer pressure, etc. In my mind, if you commit a crime, then you are a criminal. I am the only one that makes the decisions I make in life. Others may influence my decisions, but ultimately, I am the one that makes that final choice. No matter how hard and pathetic you think your life is, or how badly society treats you, or what you watch on TV, or what you can buy from the store or read on the Internet, you made the decision to break the law-nobody made the decision for you. Oliver Stone didn't tell you to watch Natural Born Killers and then go mimic the crimes. The NRA did not make you illegally purchase guns. The Internet did not force you to download recipes for bombs. The massacre at Columbine High School was a tragedy. Instead of looking at these kids that committed the crime and putting blame where it belongs, everyone was more than willing to point a quick finger of blame so they could feel better somehow. Unfortunately, some have used this tragedy as nothing more than an event to be exploited for their own political gains. People that are afraid of the Internet were quick to point out that Nazi and hate propaganda and bomb-making recipes are easily accessed on the Internet, and that "alternative" ideas seem to flourish on the Internet. Immediately everyone wants to censor the hell out of the Internet and keep their kids away from it. They fail to mention the business and education values of the Internet, and dwell on the negative. Antigun people quickly "forget" about the 60+ bombs that were found and focused merely on the fact that firearms were used by these psychos. They immediately want more gun laws and bans (but fail to mention that dozens of existing gun laws were broken by these boys as it is, and that the laws now being proposed in the aftermath would not have prevented this sort of thing). Others quickly point out that these kids played violent arcade games and watched violent movies--ban these things as well. People that don't like or understand new music blame Marilyn Manson and other alternative and/or metal bands. Am I the only one that is saying, "These kids were psychos that should have been stopped before it got this far?" These kids already had criminal records. They wore Nazi paraphernalia to school, they threatened other kids. They had Web pages detailing their bombs and various hate messages. They managed to amass bomb-making materials right in their homes. They got older friends to buy guns for them, et cetera. Did nobody notice this? Where were the parents when these kids were building BOMBS right in the garage? Am I the only one saying, "I use the Internet. I watch violent movies. I play video games. I've listened to heavy metal music. I have been ridiculed by classmates, but I've never even thought about killing anybody!" I have seen Natural Born Killers. I have played Doom. I've listened to black metal. I own several swords used in martial arts practice. I use the Internet everyday. As far as the finger-pointing crowd goes, I must seem like the most dangerous person in America. And yet I haven't committed a school massacre. I have never wanted to, nor will I ever. And yet all these things are somehow to blame for these kids going nuts and attacking their fellow classmates at school. Can we stop the finger-pointing for just a second to realize these two kids, and these two kids alone (unless it is proven there were other conspirators involved), made the decision to go into that school and set off bombs and shoot at minorities and jocks? I take full responsibility for my actions, and I navely expect others to do the same. Maybe I should just point fingers and blame others for bad stuff that happens to me. Sorry, but I take too much pride in working for what I want out of life instead of sitting back and blaming others for what I don't have. And in the same respect, if I screw up, I admit that I screwed up. Nobody's fault but my