Green investments also known as social responsibility investment and quality corporate governance over the time has shown to be a bedrock upon which business success is hinged – corporate bodies build their success by hybrid investment strategy that … [Continue reading]
FUNDAMENTAL ANALYSIS | THE KEY TO SUCCESSFUL STRATEGY ANALYSIS AND CALCULATION OF INTRINSIC VALUE OF AN INVESTMENT
Fundamental analysis is all about intelligent and informed forecast in an attempt to establish an intrinsic value that corrects for that vital information that is missing from the financial statement. Business valuation and financial analysis are … [Continue reading]
CAUSES OF SUBOPTIMAL PRACTICES AND LOST OF MOTIVATION IN MODERN COMPANIES
Suboptimal practices in companies are a situation whereby responsible managers fail to do the right thing just to take advantage of existing controls and procedures. Management and decision makers have to continually struggle with highly … [Continue reading]
DIRECT FOREIGN INVESTMENTS | WHAT YOU MUST KNOW ABOUT INTERNATIONAL MARKETPLACE AS AN ACCOUNTANT
Foreign investment decision is a tough and often complex investment decision that sharply differs from the traditional domestic decision on investing. The normal financial evaluation of discounted cash flows technique are not fully relied on in … [Continue reading]
TRANSFER PRICING | PURPOSES AND REASONS OF FIXING A PRICE WITHIN AN ORGANISATION
Transfer pricing is one single area of managerial accounting that has been generating heat and still generates more heat. The existence of interdependencies in divisional-ised companies creates a problem of determining at what price goods needs to be … [Continue reading]
BUSINESS ANALYSIS | TIPS ON BUSINESS ANALYSIS AND VALUATION FOR ACCOUNTANTS
What is Business Analysis? Business analysis is a methodological process of evaluating a company’s economic prospects and risk in the light of the entity’s strengths and weaknesses. It is an attempt to X-ray a business through the lens of a well … [Continue reading]
ASSET REGISTER | HOW TO PREPARE AN ASSET REGISTER OF A SMALL AND MEDIUM COMPANY / BUSINESS
A lot of people now use the phrase Fixed asset register without truly understanding what it is all about. So many things have been mistaken to be a fixed asset register. In this article, an attempt will be made to explain what an asset register is in … [Continue reading]
IMPLICATIONS OF USING EXPECTANCY INSTRUMENTAL VALENCE THEORY AS A REWARD SYSTEM FOR MIDDLE AND LOWER LEVEL MANAGERS
INTRODUCTION Middle level managers are the tactical managers acting as a link between the strategic and functional managers. Their roles in business processes and decision making cannot be overlooked; hence they need to be adequately motivated. … [Continue reading]
USES OF CONTRIBUTION ANALYSIS IN DECISION MAKING PROCESSES
The use of contribution analysis cannot be fully understood if the meaning of the term is not first explained. Hence, I would like to start with the definition of contribution analysis, and how it is calculated. Contribution analysis is defined … [Continue reading]
VARIANCE ANALYSIS: MEANING, ADVANTAGES AND DISADVANTAGES
Variance analysis is a technical jargon used to explain a situation where actual result or outcome of an event significantly and materially differs from planned, expected or targeted results or outcomes. Note the emphasis on the words significant … [Continue reading]
HOW TO SELECT A FINANCIAL PLANNER: 7 FACTORS TO CONSIDER
In this piece on how to select a financial planner, I would be sharing my personal experience and the techniques that my clients have used in the past to select financial planners. Financial planners are one of those professionals that we … [Continue reading]
BUDGETING PROCESSES AND BUDGETARY PROCESSES
Budgeting process or budgetary system is a critical thinking area of managerial decision making that management accountants needs to handle with care else, make grave mistake that may cost the business all it has ever worked for. Budgetary system … [Continue reading]
BUDGETING: WHAT ARE THE FUNCTIONS OF BUDGETING?
Budgeting in its general sense is the act of quantifying objectives in financial terms. Budgeting assists managers in decision making process in an organization. It is the function of the management accountant to provide information needed in … [Continue reading]
Functions of management accounting / functions of management accountant in decision making
Functions of management accounting cannot be fully appreciated if a working definition and explanation of what a management accounting is all about is not reasonably provided. To this end, I would like to start this article by providing a brief … [Continue reading]
DECISION MAKING PROCESS; WHAT EVERY ACCOUNTANT MUST KNOW ABOUT MAKING DECISION
Decision making process involves strategic planning and control activities. It is a universal fact that information produced by management accountants must be evaluated in the light of its final effect on the outcome of decision made based on it. And … [Continue reading]
INVESTMENT APPRAISAL / CAPITAL BUDGETING – NPV AND IRR
Net present value (NPV) of investment appraisal and Internal Rate of Return (IRR) of capital budgeting are the two methods of using the discounted cash flow (DCF) to evaluate capital investment. This article is a continuation of two previous … [Continue reading]
INVESTMENT ACCOUNTANT | WHO IS AN INVESTMENT ACCOUNTANT?
We are set out in this article to provide an answer to the question; 'who is an investment accountant?' An investment accountant is a finance professional who specializes in and is saddled with the responsibility of; identifying, collecting, … [Continue reading]
IMPORTANCE OF ACCOUNTING IN SCHOOLS
The importance of accounting in schools cannot be over emphasized. Schools are the main hub of every modern economy and would be pulled down to nut if the importance of accounting is not recognized and practiced in schools. In this article are … [Continue reading]
IMPORTANCE OF BUSINESS ETHICS / IMPORTANCE OF ETHICS IN BUSINESS INVESTMENT
Business ethic is that aspect of corporate governance that has to do with the moral values of managers encouraging them to be transparent in business dealings. Business ethics takes into consideration the feelings of customers in fashioning out the … [Continue reading]
ACCOUNTANTS’ ROLE IN THE ACCOUNTING INFORMATION SYSTEM
Accounting information system (AIS) is that subsystem of overall management information system that provides information to an organization in the right format, size, time frame, and within a budget. Accountants have many roles to play as far as … [Continue reading]
QUALIFIED ACCOUNTANT: WHO IS A QUALIFIED ACCOUNTANT?
Having an accounting academic qualification is not enough for you to be called a qualified accountant / certified accountant- even when you are called, you are not one! Someone with B.Sc in accounting or MACC (Masters of Accountancy) qualification … [Continue reading]