Assignment on Costs of Managerial Accounting

An avoidable cost is a cost that can be eliminated in whole or in part by choosing one alternative over another. By choosing the alternative of going to the movie, the cost of renting the videotape can be avoided, by choosing, the alternative of renting the video tape, the cost of the movie ticket can be avoided.

Only those costs and benefit that differ in total between alternatives are relevant in a decision. If a cost will be the same regardless of the alternative selected, then the decision has no effect on the cost and it can be ignored.

Assignment on Strategic aspects of the make or buy decision-

Vertical integration provides certain advantages. An integrated company is less dependent on its suppliers and may be able to ensure a smoother flow of parts and materials for production then a non-integrated company.
For example, a strike against a major parts supplier can interrupt the operation of a non integrated company for many months; whereas an integrated company that is producing its own parts might be able to continue operations. Also some company feels that they can control quality better by producing their own parts and materials. And some company feels that buying is better than produce. So they buy the products.

Assignment on RAK Ceramic

RAK Ceramics has created the largest and most exclusive range of models in the ceramic world with new models offered every month, appealing to all market segments such as interior designers & architects; engineers, major retail chains, corporate, do-it-yourself retailers & home owners; all keeping in mind of course, the end user across the world.

Assignment on CAPITAL ADEQUACY

The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted. Internationally, the Basel Committee on Banking Supervision housed at the Bank for International Settlements influence each country's banking capital requirements. In 1988, the Committee decided to introduce a capital measurement system commonly referred to as the Basel Accord. This framework has been replaced by a significantly more complex capital adequacy framework commonly known as Basel II. After 2012 it will be replaced by Basel III.

Assignment ASSET QUALITY CAMALS

Asset represents all the assets of the bank, current and fixed, loan portfolio, investments and real estate owned as well as off balance sheet transactions.

Rating factors:
Asset quality is based on the following considerations:

· Volume of problem of all assets.
· Volume of overdue or rescheduled loans.
· Ability of management to administer all the assets of the bank and to collect problem loans.
· Large concentrations of loans and insiders loans, diversification of investments.
· Loan portfolio management, written policies, procedures internal control,
· Management Information System.
· Loan Loss Reserves in relation to problem credits and other assets.
· Growth of loans volume in relation to the bank’s capacity.

Asset quality rating 1:
Asset quality rating “1” is characterized by:
· Ratio of troubled assets to capital is less than 2% or 3%.
· Past due and extended loans kept under control by a specific unit, in accordance with the law.
· Concentrations of credits and loans to insiders provide minimal risk.
· Efficient loan portfolio management, close monitoring of problem loans.
· Adequate Loan Loss Reserves in accordance with CBI’s regulations.
· Non credit assets pose no loss threat.

Asset quality rating 2:

Asset quality rating “2” is assigned to banks that display similar characteristics as “1”, but are experiencing non significant weaknesses, and the management is able to address these issues without close regulatory oversight.

Problem assets do not exceed 10 % of total capital, but:
· The bank is experiencing negative trends in the level of overdue and prolonged credits and of LLR
· There are weaknesses in the management underwriting standards and control procedures
· Loans to insider pose some regulatory concern, but can be easily corrected
· Return on non credit assets is low and they display more than normal risk without posing a threat of loss
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Assignment on MANAGEMENT--CAMALS

Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.
 

Assignment on EARNINGS

Retained earnings:

 In accounting, retained earnings refer to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.

Assignment on SENSITIVITY TO MARKET RISK

Market risk is the risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors. The four standard market risk factors are stock prices, interest rates, foreign exchange rates, and commodity prices.

 The associated market risk is:
Equity risk, the risk that stock prices and/or the implied volatility will change.
Interest rate risk, the risk that interest rates and/or the implied volatility will change.
Currency risk, the risk that foreign exchange rates and/or the implied volatility will change.
Commodity risk, the risk that commodity prices (e.g. corn, copper, crude oil) and/or implied volatility will change.

Assignment on LIQUIDITY CAMALS

An illiquid asset is an asset which is not readily saleable due to uncertainty about its value or the lack of a market in which it is regularly traded. The mortgage-related assets which resulted in the subprime mortgage crisis are examples of illiquid assets, as their value is not readily determinable despite being secured by real property. Another example is an asset such as a large block of stock, the sale of which affects the market value.

The liquidity of a product can be measured as how often it is bought and sold; this is known as volume. Often investments in liquid markets such as the stock market or futures markets are considered to be more liquid than investments such as real estate, based on their ability to be converted quickly. Some assets with liquid secondary markets may be more advantageous to own, so buyers are willing to pay a higher price for the asset than for comparable assets without a liquid secondary market. The liquidity discount is the reduced promised yield or expected return for such assets, like the difference between newly issued U.S. Treasury bonds compared to off-the-run treasuries with the same term remaining until maturity. Buyers know that other investors are not willing to buy off-the-run so the newly issued bonds have a lower yield and higher price.

Assignment on INTERNATIONAL ACCOUNTING STANDRED

The European Union is harmonizing the financial statements of listed companies in order to guarantee the protection of investors. By applying international accounting rules, it sets out to maintain confidence in the financial markets while facilitating cross-border and international securities trading.