Accounting

The independence and autonomy of internal audit is a contentious issue in the context of modern business with its given complexities. Three researchers, Joe Christopher, Gerkit Sarens and Philomena Leung have worked together to produce an article entitled, A critical analysis of the independence of the internal audit function evidence from Australia. The stated objective of their study is to analyse critically the freedom of internal audit professionals vis--vis its relationships with management...

Commentary on Financial Ratios Profitability Ratios 1. Operating profit margin on ordinary activities Aer lingus -1.33, Ryan Air 20.16 Aer lingus shows a negative margin of 1.33 for the year 2008 this is largely attributable to the rising fuel costs Aer lingus had to face. This year fuel costs rose almost by 58.4.Another reason to the depleting operating profit margins is the decrease in passenger fares, although the number of passengers that traveled with Aer lingus this year has increased but...

When trying to determine the correct discount rate, corporate financiers calculate a weighted average of the cost of each component or source of finance (capital). The Weighted Average Cost of Capital (WACC) is also known as the opportunity cost of capital (i.e., the amount of return that a rational investor requires for an investment of similar risk) (Arnold, 1998). The WACC is calculated on an after-tax basis, since free cash flows represent cash available to all providers of capital (Damodaran,...

The design of the spreadsheet is important since it presents the information needed by the users. In accounting, spreadsheets are used to keep records needed by the bookkeeper or accountant for data presentation. The importance of spreadsheet can be seen in the increasing number of individuals making use of it for an ease in tracking records. The spreadsheet is designed in such a way that the users of it, including the beginners, could easily understand what the data presents. Few colors are used...