Sunday, May 10, 2009

Financial Analysis

Most businesses produce annual and monthly financial statements and comply with record-keeping requirements, yet financial statement analysis is often overlooked or not performed on a systematic and timely basis so as to obtain insight into the financial performance of the business. Other businesses seek to interpret and assess their financial statements yet lack the tools to do so. To assist decision makers, analysis-one provides a structured framework of financial analysis tools to analyse financial statements and deliver actionable insight from the business intelligence contained within.

Financial ratio analysis is employed for Income Statement Analysis and Balance Sheet Analysis and is incorporated in the Financial Scorecard Tool, to provide a unique picture of a company's financial position. Key financial ratios measured by analysis-one represent standard performance measures used by the accounting profession on a daily basis, and seek to analyze the income statement and balance sheet from a variety of financial performance perspectives, which include - Profitability, Liquidity, Efficiency, Asset Usage and Gearing.

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Friday, May 8, 2009

The Pension Killer

Pension Funds: Proposed solution to the solvency issue
  1. The ITA 10% limit should be repealed and replaced by a requirement that any emerging surplus or deficit revealed by a triennial statutory actuarial report be amortized over a fixed period of 15 years.

  2. Moreover, whenever the funding ratio (i.e. assets divided by actuarial liabilities) of a given DB RPP would be less than 100%, the underlying pension debt (i.e. liabilities minus assets) shall be backed up on a first priority basis by the pension plan sponsor’s assets until the funding ratio returns to 100%

  3. Furthermore, contribution holidays would not be permitted under any circumstance.
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