For real estate in Malaysia, Credit constraints, small bank lending, entrepreneurship & SME finance Journal
Wednesday, June 25, 2008
What does an audit report contain
One modification to an auditor's report is very serious - when the CPA firm says that it has substantial doubts about the capability of the business to continue as a going concern. A going concern is a business that has sufficient financial wherewithal and momentum to continue it normal operations into the foreseeable future and would be able to absorb a bad turn of events without having to default on its liabilities. A going concern does not face an imminent financial crisis or any pressing financial emergency. A business could be under some financial distress but overall still be judged a going concern. Unless there is evidence to the contrary, the CPA auditor assumes that the business is a going concern. If an auditor has serious concerns about whether the business is a going concern, these doubts are spelled out in the auditor's report.
Making a Profit Balance
Everyone knows profit is a good thing. It's what our economy is founded on. It doesn't sound like such a big deal. Make more money than you spend to sell or manufacture products. But of course nothing's ever really simple, is it? A profit report, or net income statement first identifies the business and the time period that is being summarized in the report.
You read an income statement from the top line to the bottom line. Every step of the income statement reports the deduction of an expense. The income statement also reports changes in assets and liabilities as well, so that if there's a revenue increase, it's either because there's been an increase in assets or a decrease in a company's liabilities. If there's been an increase in the expense line, it's because there's been either a decrease in assets or an increase in liabilities.
Net worth is also referred to as owners' equity in the business. They're not exactly interchangeable. Net worth expresses the total of assets less the liabilities. Owners' equity refers to who owns the assets after the liabilities are satisfied.
These shifts in assets and liabilities are important to owners and executives of a business because it's their responsibility to manage and control such changes. Making a profit in a business involves several variable, not just increasing the amount of cash that flows through a company, but management of other assets as well.
Wednesday, June 18, 2008
Bernanke concerned with growth than inflationary worries
The GBP/USD pair came close, but did not top the 1.9685 highs made less than 24 hours ago. A strong move was made from 1.9615 to highs near 1.9673 ahead of the CPI data later at 8:30 GMT. It would seem that buyers of this pair are looking for a CPI number that will press the case for the BoE to hike rates.
In the USD/JPY pair, we saw the Dollar facing some selling pressure as well, with the Dollar coming close to revisiting the lows of the NY session near 1.0378. While never breaking the 80 level in quiet trading, it was obvious that traders were keen on locking in earlier profits on the back of Dollar strength. EUR/JPY broke the 167.80 level briefly, but was back in sideways trading by session end.
Although it would seem that the Dollar buying mindset has hit a temporary pause, it is safe to believe that many are looking to the slew of US data to be released tomorrow, including; PPI, Current Account Balance, Industrial Production and Housing Starts. Beyond that, as is now par for the course, keep an eye on Crude Oil and its wild price action to see if it can top yesterday's record highs.
Sources: Forex News
Employers Checking credit report?
An increasing number of employers are now checking credit reports prior to hiring someone. Many people do not agree with this, and feel that it is unfair. Afterall, not all people have bad credit because of mishandling their finances.
So, why do employers check your credit?
Employers believe that your credit report explains a lot about your behavior. They believe that if you manage your money right, that you’ll also perform well within your career. Although I understand where they are coming from, I don’t think a credit report can show the entire picture. There are often times when credit can be ruined under circumstances beyond someone’s control.
Perhaps employers should discuss with the potential candidates about why their credit is not up to par. What do you think?
Tuesday, June 17, 2008
Petronas Explain Why oil Price Must Increase Urgently
Is this still cheap? Ya! I guest it slightly cheaper but for a small country like Malaysia compared to Thailand still expensive. But the reality, it's not Petronas burden but Petronas and Malaysia Government are stealing people money, Im wondering are these Government asking money from Petronas? and Petronas can't pay all these money - So, to bill-up Abdullah Ahmad Badawi project they slotter all Malaysian especially its hurt our business, its down our market share. Are these badawi Government spending more than they can effort? who knows? Only Petronas know .
"So badawi, are you trying to prove something? desperate to show that you capable to manage these country? forget it you are looser!"
Today, Petronas Malaysia representative President and CEO Tan Sri Dato Sri Mohd Hassan Marican who is interviewed by RTM 1 has said in conclusions "oil price must be increase, If not we are unable to overcome our operations burden".
Well since the increase everybody excited to talk about oil price. Like to quote from Malaysia Kini written by Al Tugauw from Malaysia Kini.
Who is asking Petronas to hand over all its profits? In the first place nobody
is asking Petronas to hand over all its profits to the government to continue
subsidising fuel. Is that what that has been happening all these years? How does
this 'subsidy' work anyway? Why don't they explain the mechanism of this
so-called 'subsidy' or are they merely talking about opportunity cost here? I
think they should invite Tun Dr. Mahathir and debate in front of all people,
besides the journalist from The edge and Bernama. Well for me there is nothing
Malaysian can do, when the Government and Petronas start to increase in never
down. And yeah! The Government keeps it promise for not to increase oil price
between 2 years. After 2 years its increase like hell.
But Im questioning Petronas;
1. - Why does a nation which exports HIGH grade oil with low sulfur content lose money due to oil subsidy to its population?
2. - Why does a nation which has huge natural resources such as palm oil, rubber, etc does not make any money?
3. - It is also reported that Malaysia is losing one million ringgit per day due to lost custom and taxes due to deficiencies in the custom's department. What the heck?
After this must be some one will ask Petronas to hand-on its account statement to public and all this statement has been creatively made by accountant. Heeheheee