Provision Accounting – are we covering enough for the future expenses?
INTRODUCTION Provisions in accounting are a testament to prudence and foresight, crucial for safeguarding a company’s financial integrity. By embracing the matching concept, provisions ensure that future expenses are aligned
ROIC vs ROCE – which is a better metric to measure?
INTRODUCTION In the intricate landscape of corporate finance, two profitability ratios stand out as pivotal tools for assessing a company’s performance: Return on Invested Capital (ROIC) and Return on Capital
Research and Development (R&D) Expenses – are we innovating enough for the future?
INTRODUCTION Research and Development (R&D) expenses are crucial investments for companies aiming to innovate and stay competitive in their industries. These expenses cover a wide range of activities aimed at
Bank Financial Statement – what is so different about them?
INTRODUCTION Financial statements are essential tools for assessing different entities’ financial health and operational performance. Yet, the bank financial statement differ significantly from those of regular manufacturing and service companies.
Pension Accounting – are your employees protected well enough?
INTRODUCTION In the ever-evolving landscape of corporate finance, pension accounting stands out as a crucial yet complex area that significantly impacts a company’s financial health and its employees’ future security.
Non-Controlling Interest – what’s consolidated but not due to us?
INTRODUCTION In the realm of corporate finance, non-controlling interest (NCI) plays a crucial role in understanding the ownership and financial dynamics between parent companies and their subsidiaries. Also known as
Mergers and Acquisition Accounting – did we pay more than we got?
INTRODUCTION Mergers and Acquisition (M&A) refer to the process where two companies combine (merger) or one company purchases another (acquisition). These intricate transactions can significantly affect a company’s financial statements.
Other Comprehensive Income (OCI) – what can move the net profit?
INTRODUCTION Other Comprehensive Income (OCI) is a critical element in financial reporting, encompassing specific gains and losses that do not contribute to net income. It provides a more comprehensive view
Stock Based Compensation – are you better off than paying in cash?
INTRODUCTION Stock based compensation (SBC), or equity compensation, is a method companies use to reward and incentivize their executives’ employees and directors by offering them shares of the company’s stock.
Operating Leases – can you own 1 asset but not buy it?
INTRODUCTION Operating leases are a common financial arrangement in which the lessee (user) rents an asset from the lessor (owner) for a specified period without the intention of ownership. This