A distributed ledger is a database held and updated independently by each participant (or node) in a large network. Rather than have a central authority, records are independently constructed and held by every node (computer). Each node has the ability…
Introduction Fintech has had a huge impact on investment management. The ability to create computer programs that can learn on their own and improve over time creates new opportunities for investment professionals across the board. Applications of Fintech in the…
Introduction Big data is a term used to refer to complex, extremely large data that may be analyzed computationally to reveal patterns, trends, and associations, especially those leading to human behavior. It encompasses both traditional data sources such as company reports,…
Introduction Since computers whirred into life in the early 1960s, the world has witnessed unprecedented innovation and transformation in almost every aspect of life. Tasks that could only be performed by humans just over 20 years ago have now been…
Introduction A company’s choice of inventory valuation method can have a significant impact on the presentation of its financial statements. Financial items such as cost of sales, gross profit, net income, inventories, current assets, and total assets as well as…
Introduction Financial ratios are very useful tools for comparing the financial performance of a company across time as well as against the performance of its peer companies or industry. In relation to inventory management, there are specific ratios which…
Introduction Financial statements analyses which fail to consider the impact of differences in methodologies adopted, disclosures made, and presentation formats are likely to result in faulty conclusions. An analyst has to have a critical mind and give consideration to the…
Introduction Disclosures are very useful to users of financial statements, especially when analyzing a company’s performance. Not surprisingly, the disclosure and presentation requirements are very similar under IFRS and US GAAP. Presentation and Disclosures Relating to Inventories Under IFRS, the…
Introduction Under IFRS, whenever the value of inventory declines below the carrying amount on the balance sheet, the inventory carrying amount must be written down to its net realizable value and the loss recognized as an expense on the income…
Introduction Under IFRS, inventories may be measured and carried on the balance sheet at the lower of cost and net realizable value. US GAAP, on the other hand, specifies the lower of cost or market to value inventories. Market value,…