The Factors That Influence Companies

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Abstract : Analysis of financial statement of a company is an important because it is useful to obtain Information

SUMMARY OF STUDY OBJECTIVES 1Identify the sections of a classified balance sheet. In a classified balance sheet, companies classify assets as current assets; long-term investments; property, plant, and equipment; and intangibles. They classify liabilities as either current or long-term. A stockholders' equity section shows common stock and retained earnings. 2Identify and compute ratios for analyzing a company's profitability. Profitability ratios, such as earnings per share (EPS), measure aspects of the operating success of a company for a given period of time. 3Explain the relationship between a retained earnings statement

The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future

In intellectual property assets and software showed its opening balance, closing balance, additions, disposals, accumulated amortization and impairment currency translation differences and net amount. Goodwill just showed the opening and closing balance and currency translation difference not any impairment loss. However, in intangible capital work in progress, it also showed other more informationabout amount transferred to software intangibles and transferred from PPE. At the end of the notes 12 of intangible assets, it provided additional information about the amortization charge that was recognized in general and administration expenses in the statement of comprehensive income （CSL annual report 2011）and impairment tests for cash generating units containing goodwill. CSL Behring and CSL Blotheraples all were CSL’s goodwill. The total intangible assets in 2011 were lower than before because of amortization in every year.

Intangible assets are one of the most significant items in Myers financial statement. It consists of goodwill, brand names and trademarks, software and leases. AASB 136 Impairment of Assets requires Goodwill and some of the brand names that are indefinite useful life to test for the impairment. In Myer, there is no impairment loss. Furthermore, the accumulated amortisations of the other intangible assets are shown in the table X have a total value of $73585 thousand. According to AASB 117 Leases, the total rentals leases over the leases term are being expensed on a straight-line basis. In contrast, Myer’s competitor David Jones has only two intangible assets goodwill and software. The accumulated amortisation for software is $28808 thousand which is shown in the table X and it is the total value of accumulated amortisation.

5. Newmont Mining Company can be linked with balance sheet number three. First clues is the number for PPE, 62, 6 % of total assets, which represents all the heavily machinery for mine excavation. The level of inventory suits best for this company when we take into

For BHP Billiton, its buildings are estimated to have a useful life of 25 to 50 years while its plant and equipment are generally has useful life of 3 to 30 years. In addition, amounts paid for the acquisition of identifiable intangible assets such as software and licences are capitalised at the fair value of consideration paid and are recorded at cost less the accumulated amortisation and impairment charges. Identifiable intangible assets with a finite life are amortised on a straight-line basis over their expected useful life, which is typically no more than eight years. BHP Billiton has no identifiable intangible assets for which the expected useful life is indefinite.

An extra acquisition price can also be assigned to anticipated benefits that are expected to be derived from the investment. For accounting purposes, these amounts are presumed to reflect an intangible asset referred to as goodwill. Goodwill is calculated as any excess payment that is not attributable to specific accounts. For the year 2002 and beyond, goodwill is no longer amortized.

This report analyses the financial performance of BHP Billiton, a diversified natural resources group, for a potential investor. It uses the financial ratios to analyse the company’s profitability, liquidity, efficiency and investment potential.

The Influence of Economic, Political, and Social Factors on Firms The long controversy exist over the influence of economic , political and social factors on the success of the firms. With many economist believing that economic factors such as management structure contribute to the success of the firm. Karl Marx (1976)[1] and other economist argued that economic factors are not the sole determiner of firm’s success. Marx believes that political, social and economics plays a part in making the firm to be effective.

This paper provides the horizontal and vertical analysis of the income statement and the balance sheet. Equally, financial ratios have been computed to show the leverage, liquidity, efficiency, profitability and the equity of the Hewlett Packard enterprises. Recommendations and conclusion have been made on the results depicted by the analysis. Lastly, an evaluation was made on the different ways that stakeholders utilize the financial statements.

Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation

This is a persuasive paper arguing for a concept of company traits that builds and sustain companies’ growth. Companies that have survived for hundreds of years versus shortly lived companies share sustainability and harmony with their surroundings and adaptation. They expand when times are prosperous and go into survival mode during times of crisis (De Geus, 1988). The purpose of this research is to find what traits are utilized in long living companies to ensure survival and growth, versus what negative traits that causes companies to disappear. This is to support the positive traits that are recommended for companies to follow and improve chances for survival. Multiple studies on business success have found similar traits shared by successful companies. A global quantitative research is suggested for more accurate results of successful characteristics.

Implementation of the result makes people enable to use it as per the situation and provide new literature for the undertaking study. Scope of this study will assist several business operators to recognize the factors that affect their business and allow them to be a part of the study and providing basic information. In current time period new entrepreneur are not much aware about the business external environment and also not know how to design business strategies by considering all business environmental dimensions. It is also clear that most of the employee those are working at floor level have common tendencies towards incentives and also considered their value and belief is on the priority in business perspective. Broad business area come under this study and each business operator can utilize the findings of the study for designing their business strategies. Each entrepreneur wants to make their business successful which is only possible when all areas of business will be assessed in proper manner by considering different kinds of factors.