February, 2012 | Global Business Information

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Implication of Singapore Tiger Airway’s Q3 results.

02 Feb2012

Tiger Airways Singapore posted a net loss of S$17.4mil in Q3 FY 2011, as compared to a net profit of S$22.5mil in same period last year.

The net loss for the Group was largely attributable to: losses generated from Tiger Airways Australia as a result of the CASA suspension, under-utilisation of aircraft fleets (due to 38.8% increase in the average size of the operating aircraft fleet and significant increase in fuel costs. Fuel costs (net of gain/losses on fuel hedging) has increased from S$54.5mil in Q3 FY 2010 to S$75.7mil in Q3 FY 2011.
Tiger Airways made the following comments in the outlook statement of its announcement:

“The Group expects to report a significant net loss for the financial year largely as a result of the CASA suspension in Australia, the under-utilisation of the Group’s aircraft fleet and exposure to high and volatile jet fuel prices.”
Implication of Tiger Airways’ results.

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Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Auditing- Industry News, Auditing- Recession. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan 26 Comments

Classification of male pig and female pig

02 Feb2012

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In English:

A male pig is called a boar.
A female pig is called a sow.

In Accounting:

A male pig is classified as fixed asset.
A female pig is classified as inventory.

Disclaimer: just a joke, no bias against any gender.

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Joke; Auditing- Funny. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan One Comment

Audit considerations for Japan real estate companies

02 Feb2012

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According to report from Standard & Poor’s with regard to Japan’s property market:

“ Diversified real estate companies had strong condominium sales in fiscal 2010 but at the expense of margins. Companies cut selling prices to clear inventory despite unrealized losses on fixed assets. Earnings could come under further pressure in fiscal 2011 because of possible delays in construction completions or sales slippage due to the earthquake. Japanese real estate investment trusts have turned acquisitive after recapitalizing their balance sheets, and this has”

[Note: the paragraph above was quoted from Standard & Poor’s]

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Auditing- Property. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan 27 Comments

Implication of Bangkok’s floods to Company’s financials

02 Feb2012

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Earlier on, Thailand Finance Minister commented that the devastating floods in Bangkok could lower Thailand’s Gross Domestic Products. The floods have caused damage to equipment in the flooded industril plant.

Your audit client may have a plants / factories located in the areas affected by the massive flood. In this instance, a proper check need to be performed to assess if the audit client’s plants / factories are affected.

Assuming that the plants / factories are affected by the flood, the following procedures need to be performed, including (but not limited to):

- are the machineries and equipments been damaged in the flood. Should impairment been recorded given that the machineries and equipments are damaged?
- are there any going concern issue, given that the operations are likely to be stop?
- is your audit client able to produce financials on time for reporting?
- is there any penalty on contracts with customer if audit client is not able to deliver agreed items on time?
- is your audit client able to collect outstanding debts from customers who maybe affected as well?

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Auditing- Impairment. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan One Comment

Value of external audit to retail investors

02 Feb2012

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This is an interesting article with regard to the value of external audit to retail investors in Singapore. Please refer to the link:

http://bizdaily.com.sg/newsite/most-singapore-retail-investors-find-value-in-external-audit-survey/

A survey was conducted by the Association of Chartered Certified Accountants (ACCA) and Securities Investors Association (Singapore) (SIAS), who sent out survenys to their own 390 members. As evient from the link above, 80% of the respondents opined that audited financial statement is important sources of information to guide their investment decisions.

In addition, the respondents also commented that the scope of audit should be extended, especially for two main areas:specific assurance on a company’s internal controls and a report on the adequacy and effectiveness of a company’s risk management programme.

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan Comments off

Olympus scandal: hid investment losses in the past 20 years

02 Feb2012

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Japanese company, Olympus Corp has finally admitted that they used inflated acquisition costs ( specifically: advisory fees) to hide investment losses incurred in the past 20 years.

Earlier on, the market was vigorously discussing on the scandalous US$687 million payment for financial advice and expensive acquisition of companies unrelated to its mainstream businesses.

Olympus issued a statement saying that an independent panel investigating the allegations had found that the acquisitions were used to cover up losses on investments dating to the 1990s. During that time in Japan known as the “Lost Decade,” many Japanese companies took to making speculative investments in securities to offset sluggish sales following the bursting of Japan’s economic bubble.

Olympus Corp’s president, Takayama also confessed that the corporation needed higher level of corporate governance to ensure that similar things will not happen in the future.

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Auditing- Scandal. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan 11 Comments

Importance of Suppliers’ Evaluation Process

02 Feb2012

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One of the key emphasis of internal audit is to evaluate whether your audit client has appropriate process in place to evaluate the suppliers.

Unfavorable event in any part of the supply chain will causes disruption to the distriubtion of products to end-customers successfully. It is important to evaluate the suppliers to ensure that they have the capability and stability to conduct sustainable business with your audit client on a long term basis.

On an ideal basis, management/ procurement of your audit client should have a formal policy on the entire process of evaluating suppliers. The evaluation has to be developed and documented in a proper format.

For instance, a background check on the suppliers is required (e.g. is the supplier a subsidiary of any congolmerates, is the supplier financially sounds). Another key document is the financial statement of the supplier. This is to ensure that supplier is financially stable to operate on a going concern basis.

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Auditing- Internal Control. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan One Comment

#107- Audit tips on reviewing legal expenses

02 Feb2012

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This post intend to share with our Accouting & Auditing blogs readers on a number of tips while performing the review of audit client’s legal expense account, as follows:

a) Review the invoice & billing details sent by the audit client’s lawyer to identify any law suits / legal cases that’s against the audit client [ note: disclosure is required in the financial statement, if the exposure is material]

b) To investigate further if there’s vague and inadequate descriptions on the billings from the lawyers.

c) Review the engagement letter / contract entereted into by audit client with the lawyers to find out how detailed the firms’ fee bills should be.

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud, Auditing- Legal. Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan One Comment

#105- What can an auditor do?

02 Feb2012

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Below is the query raised by one of our blog’s readers:

” Somehow I came across ur blog online. I’m curious to know the difference between a auditor n accountant. I’m stuck in a situation where my company’s accounts was done using MYOB Software to keep records, then when the YAs ended, we will send to our accounts auditor to do for us. but the problem nw is, when our accounts does not tally, they did not help to check for us n throw back to us to do all checking. I mean, we are not certified accountants( we onli used the MYOB software) to keep our accounts records. Now our accounts is stuck. Does it means tat auditor do not do accounting jobs? ”

Our view are as belows:

Category: Accounting, Accounting For New Businesses, Accounting Software, Accounting system, Adam Smith, Adbusters, advertising, Advice For Starting a New Business Website, Affluenza, Agenda for a New Economy, AIG, Al Gore, Albina Community Bank, Alternative Economics, alternative transportation, American Accounting Association, American Recovery and Reinvestment Act of 2009, Amy Goodman, Antarctica, Appreciative Inquiry, Arie de Geus, At Home Business, Auditing Career, Auditing News, Auditing Standard, Auditing- Asset, Auditing- Audit Opinion, Auditing- Bad Debt., Auditing- Cash, Auditing- Cash Flow., Auditing- Corporate Governance., Auditing- Costs, Auditing- Expenditure, Auditing- Financial Statement., Auditing- Foreign Exchange, Auditing- Fraud Tags: a business plan, business banking, business finance, business funding, business insurance, business link, business listings, business loan, business loans, business partnership, business plan, business plan example, business plan sample, business plan template, business planning, business plans, business strategy, example business plan, franchise business, free business plan, insurance business, insurance for business, loan for business, partnership business, registering a business, template business plan One Comment

Archive for » February, 2012 «

Implication of Singapore Tiger Airway’s Q3 results.

Classification of male pig and female pig

Audit considerations for Japan real estate companies

Implication of Bangkok’s floods to Company’s financials

Value of external audit to retail investors

Olympus scandal: hid investment losses in the past 20 years

Importance of Suppliers’ Evaluation Process

#107- Audit tips on reviewing legal expenses

#105- What can an auditor do?

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