Application of Discounted Cash Flow

As per the ratio analysis determined from the financial statements of TNO Limited, it can be said that the net profit ratio of the company declined in the current unaudited period compared to that of the previous year by around 9%. Similarly, return on assets of the company also declined by around 10%, which indicates that the capacity to generate revenue from the assets is not sufficient. Working capital ratio of the company reflected 1.91, which was higher in the previous audited financial year indicating that the value of assets has been declined in the current year to meet the current liabilities. According to the financial statements of the company, it can be said that the net income reflected declining trend in the current financial year. It has been observed that the revenue of the company also reflected 58% decline compared to that of the previous year 2009 indicating reduction in the overall expected rate of return. During the current financial year, it has been noticed that the solvency ratio of the company declined in the current year, which was 0.50 in the previous audited period that may lower the return on investment and increase the cost of capital structure (Knechel & Salterio, 2016). On the contrary, liquidity ratio of the company reflected increased value in the current financial year, which reflects the ability of the company to convert resources in cash within short- term period (Lu, Wu & Yu, 2017). Considering the non- current assets of the company, it can be said that the value of investments has been increased in the current year. Increase in value of investments has been measured through properties, which was valued by directors as per the basis of financial year 2010 (Kou, Peng & Wang, 2014). Accordingly, it can be said that the investment valuation of the company reflected risk of decline in market value that may affect the true and fair view of the assets value. In addition, the account of intangible asset valuation reflects significant risk of correct valuation, appropriate amortization charges and value as per the current and fair market rates (Uechi et al., 2015). While planning and performing analytical procedures, it is essential to measure the significant risk present in the financial statements to assess the materiality and relevance of the financial performance of the company. In the present case, the areas that have been considered for significant risks are investments and intangible assets other than overall income statement and balance sheet. The investment account has been identified for significant risk since it covers a significant area of company’s asset and overall financial position. It is essential for a company to measure the appropriate and correct value of investments in accordance with the fair market value (Delen, Kuzey & Uyar, 2013). In case of TNO Limited, investment of surplus funds and property market is principal business activities therefore it is essential to conduct appropriate audit test on the value of investments. It is important to conduct detailed valuation of the investment together with the current mar ket value as well as interest rates along with the verification of accounting records of investment. On the other hand, valuation of intangible assets has been considered since it involves a significant area in the company’s overall asset resources. Since, TNO limited has been involved in research and development of technologies, it is essential to consider appropriate value of intangible assets as per the current market structure. Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring firm performance using financial ratios: A decision tree approach.  Expert Systems with Applications,  40(10), 3970-3983. Dudzi?ska-Bary?a, R., & Michalska, E. (2015). Visualisations of the risk investment valuation and the level of inventory control using the GeoGebra software.  Studia Ekonomiczne,  247, 7-19. Knechel, W. R., & Salterio, S. E. (2016).  Auditing: assurance and risk. Routledge. Kou, G., Peng, Y., & Wang, G. (2014). Evaluation of clustering algorithms for financial risk analysis using MCDM methods.  Information Sciences,  275, 1-12. Lu, L. Y., Wu, H., & Yu, Y. (2017). Investment-related Pressure and Audit Risk.  Auditing: A Journal of Practice and Theory. Mohammed, M. I., Omirin, M. M., Singhry, I. M., & Auwal, U. (2016). Application of discounted cash-flow (DCF) models in the valuation of investment properties in Nigeria.  International Journal of the Built Environment and Asset Management,  2(1), 25-36. Uechi, L., Akutsu, T., Stanley, H. E., Marcus, A. J., & Kenett, D. Y. (2015). Sector dominance ratio analysis of financial markets.  Physica A: Statistical Mechanics and its Applications,  421, 488-509.

Response Paper 5 Essay Example | Topics and Well Written Essays - 500 words

Response Paper 5 - Essay Example The third chapter does not have ways gentle methods of controlling children in their â€Å"middle years,† but measures of living and comprehending a teenager’s way of thinking and behavior (Boston Womens Health Book Collective, 1978). This way, parents can assist their children in becoming the best of themselves. Bell emphasizes that this should not be achieved through fear or looking for approval, but through freewill. The authors’ guidance eases parenting by eliminating the struggling aspect. The third chapter entails real stories by parents and children, which frequently move the reader in terms of joy and pain. The emotional rollercoaster of the examples used eventually lead readers, especially parents, to learn that there is a kinder method of dealing with children in their middle years. The entire reading presents a communication formula for parents with children of all ages. This formula offers a combination of communication and behavioral learning skills and tools for parents. The tools allow parents to go further than their original fruitless response to a response that links and empowers children and parents (Boston Womens Health Book Collective, 1978). The problems children face during their middle years are not for them alone to deal with. This lesson pervades all through the reading. The authors emphasize the parent’s role in assisting his or her child in dealing with their problem. To handle this problem, the parent must first communicate with the child to learn about its source and effect on him or her. Acquiring problematic information from the child should certainly include realizations on the parent’s side regarding the child’s entrance into the public world. In addition, changing physically contributes to the effect or source of these problems. To help the child with them, the parent should consider

How Has Hooliganism (Spectator Violence) Permeated The World Of Essay

How Has Hooliganism (Spectator Violence) Permeated The World Of English Soccer - Essay Example The activities or manner is now known as soccer hooliganism which began in England near the beginning of 1950's (Giulanotti, 1994, Pp 12-13). In other European countries, parallel models of behaviour appeared about fifteen or twenty years later, near the beginning of 1970's. Italian fans fashioned a mainly obsessive variety of football support known as Ultras, who are now a chief force in the Italian sport and are widespread in a some other EU states. Football hooliganism is extremely complicated to describe, mostly for the reason that the media have been tremendously supple and undefined in assigning the "hooligan" tag to diverse occasions. The majority to mean disarray or confusion concerning football enthusiasts sees football hooliganism. Frequently this engages illegal actions and in the majority - but surely not all - cases takes place either at or just earlier than or after a football contest. Much football-throng chaos is impulsive, but a lot is set by bunch of criminals or gangsters who connect themselves to football societies and assemble to meet, and clash, from other societies (Crawford, 2004, Pp 42-43). It is frequently stated that hooliganism at football competitions turn out to be much more widespread in the 1970's and 1980's, with extra details of range of violence at contests. Nevertheless, yet again it is hard to know whether the quantity of chaos amplified or whether the rising media attention in, and exposure of, throng's chaos has destined it is reported faraway more often. Fundamental Problems Of Hooliganism Hypothetical explanations of football spectator hostility dwell in four different categories. First, there is the early on approach which accentuates that hooligan activities is a representative effort by blue-collar fans to reinstate some power over a game which they feel gradually more estranged from. Second, there is the ethogenic approach, which sees football watchers fighting as a custom appearance of mannish violent behavior. A third clarification, the planned segmentation approach focuses the implication of lower working class group arrangements and premature socialization as the key to perceptive the models of violent behavior shown by football hooligans. A concluding group of approaches see football viewer's chaos as a way of recompensing for the defeat of society sourced by post-war business and municipal expansion. This analytical research supplies a critical evaluation of some key features of the outcomes of comebacks to racism within British football. Other three features are recognized as: the conflation of racism with hooliganism'; the responsibility of antiracist operations within the sport; and the refutation of the trouble of racism within football sport. It is disputed that even as some of these interferences are praiseworthy, a common flaw is a malfunction to understand the environment and forcefulness of diverse racisms. This worry reflects more universal debates about the need to theories the intricacy and variety of the notion of racism and to recognize its opposing temperament. Writers in the past have stressed out the significance of touching away from extraordinary outsets of