Essays on Tax Benefit

Introduction

The Greater Toronto Area has been recognized as one of the most affected provinces in Canada by poverty. This aspect contrasts the distinct image the rest of the world has with regards to the region, especially of Toronto. Stapleton (2015) indicates that Toronto’s economy accounts for almost 11% of the country’s GDP with its exports equaling close to $70 billion in products and services. In addition, it is also a hub for Information and Communication Technology as well as Canada’s media and financial center. As a result, the population in the city is comprised of wealthy ...

There is a considerable and sizeable population of small business in the US economy. Statistically speaking there are over 28 million small business that occurs with small business specifically indicating businesses with fewer than 500 employees. Over 22, million individuals are self-employed without any additional payrolls or having employed other persons. Of the working population, a considerable percentage of over 50% that translates to 120 million individuals work in the small business (US statistics and data, 2016). Small business on average have modest turnovers that attract income taxes on the cash generated. Business entities are relevant in the generation ...

Introduction

In a classic financial world as predicted by Modigliani and Miller (M&M), the risk management should be irrelevant. When there are no information asymmetries, taxes or transaction cost involved, hedging will not add any value to a firm because shareholders or companies can diversify their portfolio in such a way that their overall risk will be totally hedged (Lin and Chang 2006). However, the real world is far from the Modigliani and Miller model. In practice, we see imperfections in the financial market. This imperfection may actually create a rationale to reduce the volatility of earnings for a firm through hedging.

Many empirical ...

Question 1

The factor that would be interesting to an investor is the decline in revenue. The management of the company has reported a decline in revenue from the year 2012, resulting from a contraction in the overall PC market as well as competitive pricing pressures. These causes negatively impacted the performance of the company’s major segments. The factor would be interesting to the investor since the primary objective of investors is to maximise their returns. A decline in revenues indicates that the business is experiencing challenges that if not addressed, may have an adverse effect of the future profitability and growth ...

U.S. GAAP versus IFRS.

ABSTRACT

There are notable differences between the International Accounting Standard Boards and the Financial Accounting Standard Boards models of accounting for income tax. Efforts to harmonize the two standards through the Exposure Draft were dropped in 2009 and have not been reviewed thereafter. In 2012, SEC staff provided a final IFRS framework that outlined its efforts and findings but did not provide any conclusions or recommendations for any actions. The difference between IFRS and US GAAP remain significantly felt in many areas and are of major interests to users of financial statements. The main areas of comparison ...

Analysis of Business Environment in Israel

Analysis of Business Environment in Israel

Executive summary

There are various factors that make Israel a suitable country to establish business enterprise. When an organization is considering establishing operations in a country, there are various factors that are put into consideration. These factors determine the rate at which the business will succeed or fail. There are various factors such as economic factors, social factors, and political factors that determine whether a country is suitable to establish operations. In practice, Israel has been having good public relation with other countries around the globe as a result of respect and adherence to cultural beliefs. Moreover, its ...

Management Memorandum

The main purpose of this memo is to clarify on some issues based on the LIFO inventory management of stock. Over the recent past, it has been noted with a lot of concern that the cost of managing the stock has been tremendously increasing. As a result, some of the existing policies have been modified to rectify the situation while other new policies have been put in place to enable a smooth flow of inventories with no major cost challenges. Increasing stock costs has resulted into the firm incurring increasing losses due to increased costs. After a comparative study of the stock ...

As the global economy deteriorates, the median family wealth falls dramatically, and the cost of raising children becomes more and more expensive. Parents are forced to plan their families and have only the children whom they can care for. The cost of bringing up a child stretches beyond food, shelter, clothing, education, health care, and transport. With the increase in the cost of food, gas, health care, education, and so on, child rearing becomes even more expensive. The overall impact is a decrease in family size. This paper analyzes the family size in two countries, Australia and Saudi Arabia. In particular, ...

1. Executive Summary

Ben’s Joinery is a privately owned company that is located in Barking, United Kingdom. The company has an estimated annual income of $147,712 and employs a staff of about 2 people. The company is seeking to acquire a CNC miller machine however the management of the company has not made a decision whether to buy the machine or lease it. There are several considerations that need to be made when determining the right course of action. This analysis uses several financial statement documents to determine the viability of any decision to be made (whether to purchase or lease). The financial statement ...