Benefits of Computerised Accounting Systems
In today’s fast-paced, technology-driven world, businesses need to keep up with the latest advancements to remain competitive. One area where embracing technology is crucial is in financial management. Gone are the days of manual bookkeeping and piles of paperwork. The advent of computerised accounting systems has revolutionised the way businesses handle their finances. There are […]
What is a Consolidated Financial Statement?
A consolidated financial statement is a report of financial position and performance of a parent company and its subsidiaries as a single entity. It is an essential tool for investors, analysts, and other stakeholders to assess the overall financial position and performance of a group. Consolidated financial statements are particularly significant in the context of […]
What does mean reporting period in accounting
The reporting period, also known as the accounting period, refers to the specific timeframe for which a company’s financial performance and position are measured and reported. This timeframe serves as the foundation for a company’s financial statements, including the income statement, balance sheet, and cash flow statement. Common reporting periods Annual: Most companies follow the calendar […]
What is Meant By Impairment of Assets
In simple terms, an impaired asset is one whose market value has fallen below its value listed on the company’s balance sheet. Think of it as a valuable painting fading or a fancy smartphone becoming obsolete. These assets, once prized possessions, no longer command the same price they used to. Similarly, companies hold various assets […]
What is Securities Transaction Tax (STT)?
STT can be defined as a tax imposed on the purchase and sale of securities in the financial markets. Its primary role is to regulate and monitor securities transactions, ensuring transparency and compliance. The scope of STT encompasses various types of transactions, including equity, derivatives, and mutual funds. Its applicability may vary across different financial […]
Indirect Method of Preparing Cash-Flow Statement
A cash flow statement is a crucial financial statement that provides insights into a company’s liquidity and its ability to generate cash. When it comes to preparing a cash flow statement, there are two methods: direct and indirect. In this article, we will focus on the indirect method and explore its significance in reconciling net […]
What is the Capital Adequacy Ratio?
In finance, stability is a key determinant for keeping the public trust and economic activities smooth. One of the critical measures that regulators and banks rely on to measure such stability is the Capital Adequacy Ratio (CAR). Often called the backbone of prudent banking, this metric plays a significant role in determining a bank’s financial […]
What is Asset Management?
Asset management is a systematic process of developing, maintaining and selling assets to maximize their value and achieve organizational goals. The process involves the management of diverse types of assets: financial assets such as stocks, bonds, and real estate on one hand; equipment, buildings, infrastructure, etc, on the other. The main objective of asset management […]
Fintech: disruptive technologies transforming financial services
Fintech, an abbreviation for financial technology, is a term that encompasses the use of technology to deliver innovative and transformative financial services. Over the past decade, Fintech has gained tremendous traction and is now revolutionizing the financial services industry. Its disruptive technologies are challenging traditional business models, streamlining processes, and enhancing customer experiences. Fintech’s unprecedented […]
5 Important Types of Technical Analysis
Technical analysis serves as a vital tool in financial markets, providing investors with valuable insights to guide their decision-making process. Among the numerous approaches in technical analysis, understanding the different types and their significance is crucial for effectively managing the uncertainties of the market. Trend Analysis Trend analysis is a method of technical analysis used […]