Table of Contents1 What is Time Value of Money?2 Concept of Time Value of Money2.1 Inflation2.2 Risk2.3 Personal Consumption Preference2.4 Investment Opportunities3 Reasons for Time Value of Money4 Components of Time Value of Money4.1 Risk Premium4.2 Interest Rate or Time Preference Rate4.3 Required Interest Rate4.4 Compounding4.5 Discounting5 Multiple Compounding Periods6 Application of Time Value of
Table of Contents1 What are Financial Documents?2 Definition of Financial Documents2.1 Profit and Loss Accounts2.2 Balance Sheet3 Objectives of Financial Documents4 Importance of Financial Documents4.1 Importance to Management4.2 Importance to Investors4.3 Importance to Creditors4.4 Importance to Government4.5 Importance to Others5 Types of Financial Documents Analysis6 Types of Financial Analysis6.1 External Analysis6.2 Internal Analysis6.3 Horizontal Analysis6.4
Table of Contents1 What is Balance Sheet?2 Definition of Balance Sheet3 Nature of Balance Sheet3.1 Assets Side of Balance Sheet3.2 Liabilities Side of Balance Sheet4 Profit and Loss Account and Balance Sheet4.1 Definition of Profit and Loss Account5 Concept of Balance Sheet and Profit and Loss Account5.1 Money Measurement Convention5.2 Realization Convention5.3 Matching Convention5.4 Historic
Table of Contents1 What is Financial Planning?2 Types of Financial Plans2.1 Short-Term Financial Plan2.2 Medium-Term Financial Plan2.3 Long-Term Financial Plan3 Objectives of Financial Planning4 Importance of Financial Planning5 Steps in Financial Planning5.1 Establishing Objectives5.2 Policy Formulation5.3 Establishing Financial Procedures6 Characteristics of Financial Plan6.1 Simplicity of Purpose6.2 Optimum Use or Intensive Use6.3 Based on Clear-cut Objectives6.4
Table of Contents1 What is Financial Forecasting?2 Advantages of Financial Forecasting3 Tools of Financial Forecasting3.1 Financial Statements Forecast3.2 Balance Sheet3.3 Income Statement3.4 Projected Balance Sheet3.5 Comparative Balance Sheet3.6 Common-Size Statements3.7 Statement Showing Changes in Working Capital3.8 Statement showing Changes in Owner’s Equity3.9 Funds Flow Statement3.10 Cash Flow Statement4 FAQs about the Financial Forecasting What is
Table of Contents1 What is Merger and Acquisition?2 Types of Mergers2.1 Horizontal Merger2.2 Vertical Merger2.3 Conglomerate Merger3 Advantages of Merger and Acquisition3.1 Economies of Scale3.2 Synergy3.3 Strategic Benefits3.4 Tax Benefits3.5 Utilization of Surplus Funds3.6 Diversification4 Legal Procedure of Merger and Acquisition4.1 Permission for Merger4.2 Information to Stock Exchange4.3 Approval of Board of Directors4.4 Application in
Mergers and acquisitions may degenerate into the exploitation of shareholders, particularly minority shareholders. They may also stifle competition and encourage monopoly and monopolistic corporate behavior. Therefore, most countries have legal frameworks to regulate merger and acquisition activities. In India, mergers and acquisitions are regulated through the provision of the Companies Act, of 1956, the Monopolies
The finance manager’s main responsibilities are to procure and effectively utilize funds while considering the financial implications of all decisions. All decisions involving the management of funds fall under their jurisdiction. The finance manager must manage funds to optimize utilization and ensure that procurement is balanced in terms of risk, cost, and control. The accountant’s
The term financial management has emerged from the generic discipline of management. In order to understand financial management, it is better to start with an understanding the term management. Management, simply put, is all about securing the optimal use of the resources at the disposal of the firm towards the attainment of some predetermined goals.
The academic discipline of financial management may be viewed in terms of various specialized fields. In each field, the financial manager is dealing with the management of money and claims against money. Distinctions arise because different organizations pursue different ‘Objectives and do not face the same basic set of problems. Table of Contents1 Field of
