Tag Archives | Notes

Notes on Contra-Cyclical Budget | Fiscal Policy

In modern days budget is recognized as an efficient fiscal instru­ment in the hands of the Finance Minister for materializing the prime objective of economic growth and development. However the ortho­dox economists refuse to accept the efficacy of the budget. For them budget was only a financial statement showing the revenue and expenditure of the […]

Management of Joint Stock Companies

General: The internal management of companies is carried on according to the articles of association. The articles define the relationship between members and between members and the company. On this basis, members are bound to each other but neither the company nor the members are bound to outsiders. Articles may supplement the terms of a […]

Disclosure and Consideration for Amalgamation

The below mentioned article provides a note on the Disclosure and Consideration for Amalgamation. Disclosures made for Amalgamations: For all amalgamations, the following disclosures should be made in the first financial statements following the amalgamation: (a) Names and general nature of business of the amalgamating companies; (b) Effective date of amalgamation for accounting purposes; (c) […]

Multilateral Tax Agreement

This article provides a note on multilateral tax agreement. Introduction to Multilateral Tax Agreement: There have been several efforts to agree on a multilateral tax treaty. In 1958, the OEEC Fiscal Committee attempted to draft a multilateral convention but was unsuccessful due to the difficulties of definition and application. Similar conclusions were also reached by […]

Study Notes on Foreign Tax Relief

The below mentioned article provides a study note on foreign tax relief. After reading this article you will learn about: 1. Introduction to Foreign Tax Relief 2. Expense Deduction 3. Exemption Method 4. Foreign Tax Credit 5. Country Examples of Foreign Tax Relief. Contents: Introduction to Foreign Tax Relief Expense Deduction Exemption Method Foreign Tax […]

Short Notes on Foreign Loan

The loans obtained from official and private sources of foreign countries are called foreign loans which are granted for a period of 5 years or more. They are of two types, viz., (a) Hard loan, i.e. loans repayable in foreign currency; and (b) Soft loan, i.e., loans repayable in Indian currency. i. International Monetary Fund […]

Preference Share Capital (With Formula)

The procedure for measuring the cost of preference share capital creates some conceptual problems. We have seen from the previous explanations that in case of a debt/borrowing, there is a legal obligation to pay interest at a specified fixed rate while in case of a preference share, there is no such legal obligation. It may […]

Liquidity and Profitability| Working Capital

This article provides a short note on Liquidity and Profitability:- 1. Meaning of Liquidity 2. Measurement of Liquidity 3. Meaning of Profitability 4. Liquidity-Profitability Tangle. Meaning of Liquidity: Liquidity means one’s ability to meet claims and obligations as and when they become due. In the context of an asset, it implies convertibility of the same […]

Notes on Standard Ratio

An analyst irrespective of his cast and creed has; however, to bear in mind that, interpretation of Financial Statements of a firm with the help of ratios becomes significant and meaningful when the same is accomplished in the backdrop of some established Standard in this regard. This Standard depends upon the own experience of the […]

Notes on Management Audit Criteria

This article provides notes on Management Audit Criteria. The management functions are fundamentally of two types—qualitative and quantitative. Even if quantitative criteria or standards are identifiable or determinable and auditable, the qualitative aspects are difficult to audit. With respect to Management Audit, the objective is to identify for management the typical problems the company faces […]

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