Tag Archives | Company

Why do we Need to Prepare Financial Statements?

Get the answer of: Why do we Need to Prepare Financial Statements? Financial Reporting Standards: Having discussed various stakeholders group of an entity, let us now turn to financial reporting system which facilitates the preparation and presentation of general purpose financial statements. International Financial Reporting Standards (IFRSs) have recently emerged as global financial reporting standards […]

Difference between Stakeholders and Shareholders | Financial Accounting

This article will help you to learn about the differences between stakeholders and shareholders. Shareholders are definitely the important stakeholders of a company; nevertheless they are not the only group who are interested in the company’s activities, its financial performance, financial position and cash flows. Of course, the shareholders in addition would be interested to […]

Shareholding Pattern of Reliance Industries | India

After reading this article you will learn about the shareholding pattern of reliance industries in India. A public company is usually characterised by a large body of equity shareholders. You should be aware of that equity shareholders are the provider of capital to the company and bear the business risk just like the owner(s) of […]

Top 5 Elements of Financial Statements | Accounting

This article throws light upon the top five elements of financial statements. They are: 1. Assets 2. Liabilities 3. Equity 4. Income 5. Expense. Element # 1. Assets: Features of an asset: i. The future economic benefit embodied in an asset is the potential to contribute, directly or indirectly, to the flow of cash and […]

Preparation of Financial Statements

After reading this article you will learn about the preparation of financial statements. Financial Statements: As per IFRSs financial statements comprise of Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and related notes to accounts. Statement of Compre­hensive Income has two sub-components – Statement of Income […]

Kinds of Capital Issues: 4 Kinds | Company

The following points highlight the four kinds of capital issues. The kinds are: 1. Initial Public Offering (IPO) 2. Follow on Public Offering (FPO) 3. Rights Issue (RI) 4. Preferential Issue. Kind # 1. Initial Public Offering (IPO): When an unlisted company, for the first time makes a fresh issue of securities or an offer […]

Equity Shares: Advantages and Disadvantages | Company

In this article we will discuss about the advantages and disadvantages of equity shares. An equity interest in a company may be said to represent a share of the company’s assets and a share of any profits earned on those assets after other claims have been met. The equity shareholders are the owners of the […]

An Overview on Debt Instruments | Company

The below mentioned article provides an overview on debt instruments. Debentures: According to section 2(12) of the Companies Act, a “Debenture includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not”. From this definition it is not very clear what is a […]

Opportunity and Marginal Cost of Capital (With Diagram)

In this article we will discuss about the opportunity and marginal cost of capital, with the help of suitable diagrams. Opportunity Cost of Capital: When an organization faces shortage of capital and it has to invest capital in more than one project, then the company will meet the problem by rationing the capital to projects […]

Top 4 Elements of Cost of Capital | Company

The following points highlight the top four elements of cost of capital. The elements are:- 1. Cost of Equity Capital (Ke) 2. Cost of Retained Earnings (K) 3. Cost of Preferred Capital (Kp) 4. Cost of Debt (Kd). Element # 1. Cost of Equity Capital (Ke): The funds required for the project are raised from […]

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