Capitalisation is. Total amount of long term funds available to the company. Economic order quantity is based on the assumption that the demand for the material concerned is uniform throughout a year.
Bill of materials. Match The Following. Nayak committee. Dahejia committee. Chhore committee. Marathe committee. The Economic Order Quantity model is based on the assumption of. Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year. One of the basic objectives of cash management is to maintain the optimum cash balance.
Situation of capital rationing may involve problems in the form of. Project Indivisibility , Mutually dependent project , Multi period projects. The functions of a Finance Controller are :. Budgeting , Record Keeping , Annual Reporting. Re-order level is the highest level of inventory to be maintained above which the inventory should not rise. Increase in a fixed asset due to purchase is. Use of funds. The recommendations of the Tandon committee included.
Internal rate of return considers time value of money. Return on Capital invested. ABC Analysis. Classification of ratios. Profitability ratio. Advantages of Ratio Analysis. It helps in planning and forecasting. Limitation of Ratio Analysis. Facts only those which can be expressed in financial terms are considered. Measure ad performance.
Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. For corporations, shareholder equity SE , also referred to as stockholders' equity, is the corporation's owners' residual claim on assets after debts have been paid.
Shareholder equity is equal to a firm's total assets minus its total liabilities. Shareholder equity can be either negative or positive. If positive, the company has enough assets to cover its liabilities. If negative, the company's liabilities exceed its assets.
If the shareholder's equity of a company remains negative for an extended period of time, this is considered balance sheet insolvency. Retained earnings is part of shareholder equity and is the percentage of net earnings that were not paid to shareholders as dividends.
Retained earnings should not be confused with cash or other liquid assets. This is because years of retained earnings could be used for either expenses or any asset type to grow the business. In liquidation, physical asset values have been reduced and other extraordinary conditions exist. For this reason, many investors view companies with negative shareholder equity as risky or unsafe investments.
Shareholder equity alone is not a definitive indicator of a company's financial health. If used in conjunction with other tools and metrics, the investor can accurately analyze the health of an organization. All the information needed to compute a company's shareholder equity is available on its balance sheet.
Total assets include current and non-current assets. Current assets are assets that can be converted to cash within a year e. Long-term assets are assets that cannot be converted to cash or consumed within a year e.
Total liabilities consist of current and long-term liabilities. Current liabilities are debts typically due for repayment within one year e. Although climate change affects nearly all companies, the level and type of exposure and the impact of climate-related risks may vary by sector or geography.
Certain sectors may be more exposed to climate-related risks because they emit high levels of greenhouse gases, are dependent on fossil fuels or are vulnerable to water supplies — e. Nevertheless, companies across all sectors may need to consider the potential implications of climate-related risks for their going concern assessment.
For some companies, climate-related risks could give rise to events or conditions that may cast significant doubt on their ability to continue as a going concern. These events may arise from physical risks such as the destruction of a manufacturing plant in a hurricane, or crop destruction due to forest fire, flood, drought or some other climate event. These events may also stem from a large carbon footprint. This could trigger, for example, litigation that results in significant penalties for exceeding emission targets or a shift in customer preferences that results in loss of a major customer.
Depending on the company and the sector in which it operates, the expected impact of climate-related risks on the going concern assessment may not yet be material. However, given the rapidly changing circumstances, companies need to consider and monitor this on an ongoing basis.
For some, these risks may already trigger the immediate need for robust and company-specific disclosures. For others, the impact may not be imminent but will need monitoring in view of the rapidly changing circumstances. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, considering the possible outcomes of events and changes in conditions, and the realistically possible mitigating responses to these events and conditions that are available.
As part of its assessment, management includes the potential impacts of climate-related risks. In addition, those assumptions should not conflict with information related to climate-related risks disclosed elsewhere in the annual report.
Climate-related risks could impact cash flow forecasts. For example:. Climate change may present opportunities that could impact cash flow forecasts. The key issue for the company is whether it will have sufficient liquidity to continue to meet its obligations as they fall due.
The extent to which a company is exposed to climate-related risks may impact its ability to obtain funding so that it can continue to meet its obligations.
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