What Is Economic Value-Added (EVA) And The Comparision To Earnings Per Share Or Return On Assets
As part of the role to assist senior management, the financial executive needs to find the best metric to measure the financial performance of his organization.
Normally, many companies are still using Earnings per share, Returns on Assets as the key performance metric.
Introduction:
Economic value-added (EVA) has increasingly gain acceptance amongst many top-notched organization. Those who used [...]
October 24, 2009
Tags: Economic Value Added Definition, EVA, What is Posted in: EVA 
One Comment
What is Timing Difference in Tax and Timing Differences Versus Permanent Differences
As the taxable profit is computed based on taxation laws which differ from the accounting policies applied to determine the accounting profit, hence the taxable profit and accounting profit can differ. The difference between taxable profit and accounting profit can be classified into:
permanent differences
timing differences
This articles looks at the aforesaid differences and their impact on [...]
September 14, 2008
Tags: Timing differences, What is Posted in: Others No Comments
What is the Advantage(s) of Having Departmental Accounting
 This article looks at some of following reasons / justifications / advantages of having department accountsÂ
Advantages
     Each department is viewed as separate profit centre where department accounts is useful to evaluate performance of individual department by ascertaining trading, profit or loss of each department
      The financial results namely trading profit or loss of each department [...]
July 2, 2008
Tags: departmental accounting, What is Posted in: Others No Comments
What is the Difference Between Joint Venture And Partnership
For those unfamiliar between Joint Venture and Partnership, tabulated below in summary some of the differences:
Joint Venture
Partnership
Limited to a specific venture.
Not limited to a specific venture.
Partners are called co-ventures.
Persons carrying on partnership business are called partners.
No specific Governing Act for joint venture.
Partnership firms are governed by the Partnership Act.
No common firm’s name in joint [...]
July 2, 2008
Tags: Joint Venture, What is Posted in: Joint Venture(s) One Comment
What is Growth Companies?
Whilst analyzing the annual reports of companies, can we spot what are so called growth companies?
Let’s look at different definition or interpretation of growth companies from the view point of the following two great investors:
Benjamin Graham:-
considers it as a company that has performed better than the industry average over a period of years and is [...]
March 25, 2007
Tags: definition, growth companies, wha, What is Posted in: Articles No Comments
What is Cash Operating Cycle And Ways To Improve Cash Flows
GO TO MAIN PAGE COVERING ALL TOPICS ON CASH OPERATING CYCLE/CASH CONVERSION CYCLE
Cash operating cycle is a close loop cycle which encompasses the five stages of normal operating business cycle:
(1) The receipt of raw materials from suppliers;
(2) Conversion of the raw materials into work in progress and finally to finished products;
(3) Delivery of goods [...]
July 5, 2006
Tags: Cash flows, Cash operating cycle, What is Posted in: Cash conversion cycle, TREASURY articles 2 Comments
What Is Bonus Issue And What Is Its Purposes/Reasons (Part 1 of 2)
An alternative strategy when you have a small capital base, future prospects seems bright and the environment is good it’s time to go for bonus issue.
Bonus issue can be quite prevalent hence can be one of the popular company alternative to attract investors to participate in the listed company’s shares, this article seeks to look [...]
May 28, 2006
Tags: Bonus issue, What is Posted in: Financial Strategy One Comment
