One key difficulty for many students studying for accountancy exams is to link material covered in lectures and notes to the real world of business. The Real World Reads series will provide students with some interesting articles and resources about topical business stories that link directly to different parts of subjects you will be studying. […]
This is the final article on approaching consolidation questions which will focus on preparing the consolidated statement of changes in equity (CSOCE). The first article in this series focused on preparing the CSOFP, while the second article focused on preparing of the CSPLOCI. With both these financial statements prepared, the final statement to be prepared […]
In our second post looking at FX risk we examined the internal methods of hedging available to a business to manage its FX risk. We will now turn our attention to the external methods of hedging FX risk as well as discussing an approach to the common style of FX risk exam questions. External Methods […]
In our first post looking at FX risk we explored how various events can have a significant impact on FX markets, how businesses can be exposed to FX movements, and how the market dynamics work in terms of FX rates (e.g. bid-ask rates). We will now turn our attention to the matter of managing FX […]
This is the second article on approaching consolidation questions which will focus on preparing the consolidated statement of profit and loss and other comprehensive income (CSPLOCI). The first article in this series focused on preparing the consolidated statement of financial position (CSOFP) with a particular emphasis on the two main methods to approaching the question […]
One core concern of the finance (or treasury) function in a business and one of the main services the finance industry provides is the area of risk management. While businesses are exposed to a variety of financial risks (e.g. commodity price movements, interest rate movements etc.) and have a variety of mechanisms to reduce such […]