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Presentation of Financial Statements
Issue:
Volume 1, Issue 1, February 2013
Pages:
1-8
Published:
20 February 2013
Abstract: The main purpose of this paper is to explain the requirements of international standard IAS1 Presentation of Financial Statements. The current version of this standard was issued in September 2007 and has effect for accounting periods beginning on or after January 2009. The objectice of IAS1 is to specify the overall structure and content of general purpose financial statements and so ensure that an entity’s financial statements are comparable with those of previous periods and with those of other entities. The stan-dard sets out: The general features of financial statements Guidelines with regard to their structure, and Minimum requirements for their content. IAS1 is of general application and does not deal with specific transactions or events. These are dealt with in order international standards. This paper also outlines the main requirements of international standard IAS34 Interim Financial reporting.
Abstract: The main purpose of this paper is to explain the requirements of international standard IAS1 Presentation of Financial Statements. The current version of this standard was issued in September 2007 and has effect for accounting periods beginning on or after January 2009. The objectice of IAS1 is to specify the overall structure and content of genera...
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Evaluating a Project Finance SPV: Combining Operating Leverage with Debt Service, Shadow Dividends and Discounted Cash Flows
Issue:
Volume 1, Issue 1, February 2013
Pages:
9-20
Published:
20 February 2013
Abstract: Project finance (PF) investments have consistently grown in the last years, especially if they concern infrastructural Public – Private Partnerships. PF is a long termed and capital intensive investment, guaranteed by expected cash flows, rather than the assets of the project sponsor. Private entities, normally created as ad hoc Special Purpose Vehicles, are typically highly leveraged with non-recourse loans. Since the shareholders may be likely to sell off their stake well before the expiring date of the concession, a professional evaluation of the SPV at different stages of the project’s life seems increasingly important. Innovative considerations about the impact of cash generating EBITDA are linked to operating leverage changes, following continuous remixing of fixed and variable costs, Debt service and shadow dividends payout are also critically investigated, analyzing their impact on leverage, risk and valuation. Fair appraisals fuel and keep alive a still infant secondary market, where investment funds and private equity intermediaries start having an active role. Being PF a cash flow based investment, DCF evaluation techniques are generally used; even if the method may seem straightforward, several awkward factors interact - and sensitivity to different parameters, such as inflation or interest rates, greatly matters. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, so positively affecting both the equity and the enterprise value.
Abstract: Project finance (PF) investments have consistently grown in the last years, especially if they concern infrastructural Public – Private Partnerships. PF is a long termed and capital intensive investment, guaranteed by expected cash flows, rather than the assets of the project sponsor. Private entities, normally created as ad hoc Special Purpose Veh...
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To Manipulate or Not to Manipulate – A Short Comment on the Game of Interest Rate Manipulation
Issue:
Volume 1, Issue 1, February 2013
Pages:
21-24
Published:
20 February 2013
Abstract: In this paper, bankster reputation as a coordination mechanism (“focal arbitrator”) in the game of interest rate manipulation and the effects of punishment will be analyzed with the aid of game-theoretical instruments. In such a game with multiple equilibria, the “bad” to-manipulate equilibrium arises because of “bankster expectations”. Under this condition, the game can, in the short term, only be changed through penalties so that the not-to-manipulate strategy becomes the dominant one. Should it happen that the bankster reputation be destroyed in the long term, penalties would, once again, become superfluous, because the “good” not-to-manipulate equilibrium would appear even in self-interested actions, due to the good banker expectations.
Abstract: In this paper, bankster reputation as a coordination mechanism (“focal arbitrator”) in the game of interest rate manipulation and the effects of punishment will be analyzed with the aid of game-theoretical instruments. In such a game with multiple equilibria, the “bad” to-manipulate equilibrium arises because of “bankster expectations”. Under this ...
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Development Power: The Potential Dynamics in Economic Process
Feng Dai,
Songtao Wu,
Ling Liang
Issue:
Volume 1, Issue 1, February 2013
Pages:
25-37
Published:
20 February 2013
Abstract: Stating from the intrinsic characteristics of macroeconomic development, this paper puts forward the concept of development power and its theoretical frame. The development power is the potential and invisible dynamics to promote economic growth. By means of the development power theory, we can explain some important problems in macro-economy. We discuss the basic properties of development power and obtain some results, such as, the effects of economic policy depends on the development power, the imbalance of economic development is caused by the different levels in development power. The method is given to evaluate development power, and then we may analyze the mutual effects among development powers. Finally, we illustrate that the development power movements exist widely in the economic development.
Abstract: Stating from the intrinsic characteristics of macroeconomic development, this paper puts forward the concept of development power and its theoretical frame. The development power is the potential and invisible dynamics to promote economic growth. By means of the development power theory, we can explain some important problems in macro-economy. We d...
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Environmental Policy under Some Asymmetric Social-Economical Factors
Chien-Chieh Huang,
Huei-Chin Lin
Issue:
Volume 1, Issue 1, February 2013
Pages:
38-42
Published:
20 February 2013
Abstract: We consider situations where some social-economical factors, such as environmental awareness and other factors promoting greener environment, not only affects market demand and output, but also affects firm’s green innovative tendencies. This paper shows that if these social-economical factors are strong enough to move the market demand toward environmental friendliness, firm’s strategies might shift toward greener technology or environmental friendlier practices. If these effects on demand for greener environment are large enough, stringent environmental policy would induce more firms to produce more.
Abstract: We consider situations where some social-economical factors, such as environmental awareness and other factors promoting greener environment, not only affects market demand and output, but also affects firm’s green innovative tendencies. This paper shows that if these social-economical factors are strong enough to move the market demand toward envi...
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Use of Outsourcing in Practice of Slovak Companies
Lucia Badáňová,
Elena Thomasová
Issue:
Volume 1, Issue 1, February 2013
Pages:
43-53
Published:
20 February 2013
Abstract: The article shows the view of outsourcing in Slovak conditions in years 2009-2010. Authors would like to present their results of the research made in Slovak companies follow the domestic and foreign point of view to outsourcing
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Cost Control Development under Stochastic Performance Control
Milad Eghtedari Naeini,
Milad Eghtedari Naeini
Issue:
Volume 1, Issue 1, February 2013
Pages:
54-60
Published:
20 February 2013
Abstract: In this research, a model to forecast project’s cost will be presented with due attention to performance time and cost of the project, based on Earned Value Management (EVM) and with regarding real circumstances caused by uncertainties, risk factors and using simulation methods. All the uncertainties will be related to cost of work packages as well as its changes over time by probability distribution functions. Probabilistic distribution functions will be determined based on existing information obtained from previous projects and experts’ opinion. In this model, project’s activities will be classified to subgroups calling control accounts. Each of them has a controlling limit to control project’s performance. Then, using simulation methods, stochastic s-curve for each control account will be determined to clarify project stochastic s-curve from total of these s-curves. When a percentage of the project has been performed, using modern methods of Earned Value Management, the performance of the project will be measured, therefore, it will be possible to adjust probability distribution functions and forecast the future performance of the project using simulation model of Monte Carlo.
Abstract: In this research, a model to forecast project’s cost will be presented with due attention to performance time and cost of the project, based on Earned Value Management (EVM) and with regarding real circumstances caused by uncertainties, risk factors and using simulation methods. All the uncertainties will be related to cost of work packages as well...
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