Basic objectives Financial reporting should be rich with information that is Useful to provide information to potential investors and creditors and other financial market users in making rational investment, credit, and other financial decisions. Helpful to assess the amounts, timing, and uncertainty of prospective cash receipts. Key to make financial decisions. About economic resources, the claims and the changes in those resources. Improving the performance of the business Provide information to make long-term decisions. Useful [...]

Both Futures and Forwards Contracts are agreements to trade or do a deal on a set future date, but there are some significant differences. Futures are highly standardized and should follow the standards, while each and every Forward contract is personalized and unique between the parties interact with the trade or deal. Futures are settled at the end with the details final price; whereas etc on the last trading date of the contract while the [...]

JIT in time concept was initiated in Japan making the Toyata as its mater piece. JIT is system whether company starts manufacturing/purchasing once the customer orders the good effectively making zero inventories. In other words, in a JIT environment materials are purchased and produced as and when it is needed. The whole idea is based on the phrase provide the goods just in time as promised when the order is placed by the customer. The [...]

Forex arbitraging is defined as making a grain or profit by buying and selling of currencies which are priced wrong. The market in which trader buys the forex has a lower quote and the market in which the currency is sold has a higher quote for the same currency which allows the trader to make profits out of that transaction. As an example, if a person buys US Dollars for Great Britain Pounds and sells [...]

Minimum Variance Portfolio The minimum variance portfolio theory was adopted from the Portfolio Theory where the variance level of a portfolio is adopted to indicate the risk level of the portfolio. The variance portfolio is defined as a portfolio of assets which has a low beta value when compared to the beta value of the individual financial assets included in the portfolio. Beta value indicates the volatility of the portfolio indicating the risk level attached [...]