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25/10/2024

Transfer pricing is an essential consideration for multinational entities when conducting transactions between parent and subsidiaries or affiliates located in different countries. Transfer pricing provides many benefits to companies, particularly those with foreign operations.

The multinational transfer pricing represents the pricing of goods, services, and intangibles between connected parties in an organization across international boundaries. It is a strategy usually adopted by companies especially multinationals, to redistribute resources between the parent and subsidiaries or affiliates to reduce tax burden.

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Transfer pricing is an essential consideration for multinational entities when conducting transactions between parent and subsidiaries located in different countries.

17/05/2024

Often times in an organization, the compensation of directors, especially the CEO may be tied to the financial performance of the company. As a result, this may create unnecessary pressure on the company's management to manipulate financial information to achieve a predetermined result. Generally, this unethical behaviour is perpetrated due to perceived opportunity, pressure, or rationalization.

Several methods are usually adopted by companies' top level management to commit financial statement fraud, including:

1. Revenue Manipulation
2. Overstating/ Understating Expenses
3. Improper Asset Valuation
4. Concealing Liabilities
5. Fraudulent Disclosures
6. Round-Tripping
7. Related Party Transactions
8. Timing Differences
9. Manipulating Reserves and Accruals
10. Corruption.

Engaging in financial statement fraud have dire consequences for organizations. It can result in financial losses, lawsuits, or erode the company’s reputation. Consider the scandals, and disastrous end of Enron, WorldCom, Wirecard, etc.

Understanding the various methods financial statement fraud are perpetrated, and devising effective detection and prevention measures, can have far-reaching effect on the integrity of the financial reporting and boost the investors’ confidence.

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Financial statement fraud occurs when a company intentionally manipulates financial information to deceive or mislead shareholders, investors, lenders, and other users of the general purpose financial statements.

15/04/2024

Share prices represent the economic worth of a company’s shares. It is the amount at which a company unit share can be traded in an organized financial market. These share prices are determined by several internal and external economic factors, including market conditions. Though, investing in shares can be a very profitable venture but need critical evaluation to avoid the risk of financial losses. The stock market is highly volatile and can make the share prices susceptible to market gyrations. This is because a single misstep can result in disastrous financial outcome for an investor.

The stock market is highly volatile and can make the share prices susceptible to market gyrations. This is because a single misstep can ....

05/04/2024

The Central Bank of Nigeria (CBN) unveiled an exciting update on March 28, 2024, for the review of minimum capital requirements for commercial, merchant, and non-interest banks. Thus, I have delineated in this article, some upsides, and downsides of the recapitalization plan.

In the coming days, the banks will be out to raise additional capital from the public to meet up with the minimum capital requirements. Consequently, as a prospective investor, it is essential that you look before you leap.

Shares acquisition can be a very lucrative opportunity because it will confer on you the ownership status in a company. As a result, you will reap the benefit of your investment whenever the company distributes dividend. On the flip side, investing in shares involves taking some level of risk, including financial losses.

Therefore, caution should be exercised. Don’t buy shares of a company because of sentiment or emotion.


Click below to read the details about the upsides and downsides effect of recapitalization.

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Consistent with the recapitalization exercise, all the relevant stakeholders, including the banks, regulatory agencies, professionals, etc.

03/04/2024

Investment in shares can be a lucrative opportunity and can be very risky. Economic conditions and external factors such as recession, inflation, war, pandemic, regulatory changes, etc. can erode the entire original investment, or part thereof. Hence, it is essential to carry out due diligence, and critically evaluate the investment proposal before committing your hard-earned limited scarce financial resources into buying shares. This is necessary to avoid the risk of financial losses.

However, by exercising caution, asking pertinent questions, seeking professional advice, conducting thorough research and due diligence, you can be equipped to building a well-diversified investment portfolio. Strategic planning and effective risk management can help navigate market volatility to avoid a catastrophic financial outcome.

Below are some of the key considerations for investing in shares, including:

1. Financial Goals
2. Capital Investment
3. Risk Tolerance
4. Company Fundamentals
5. Dividend Payment History
6. Diversification
7. Market & Economic Conditions
8. Regulatory Environment
9. Valuation
10. Liquidity

Click here/ below to read about each factor in detail.

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Factors To Consider Before Investing in Shares Investment in shares can be a worthwhile opportunity but requires critical evaluation and due diligence before committing one’s hard-earned financial resources into any investment proposal. This is necessary to avoid the risk of financial losses. Thou...

31/03/2024

Exchange rate is the amount at which one currency can be exchanged for another currency between trading partners engaging in foreign transactions. It is usually determined by the market forces of demand and supply. Market sentiment and economic factors also have significant influence on the value of a currency.

Click below to read more about what causes the value of a currency to appreciate or depreciate against the other.

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Generally, exchange rate represents the amount at which one currency can be exchanged for another currency. It can be influenced by market sentiment and economic factors.

29/12/2023

In every organization irrespective of the size, there are stakeholders that exercise some influence on the activities of the business. It is therefore imperative for a company to incorporate the divergent interests of the claimants in its governance process or decision making. Otherwise, the withdrawal of contributions or supports from these group of stakeholders can impair the ability of the company to achieve the intended goals.

This post explained the meaning of stakeholders, and why it is essential to engage them.

Please comment, like, or share to keep the conversation going. Also, you can share your experience on stakeholder engagement to educate others.

Stakeholders engagement involves the process of communicating and building understanding and rapport between companies and their stakeholders

11/06/2023

Strategy is needed to win and succeed in the marketplace. It aligns an organization’s mission and purpose with its long-term goals and objectives and varies among companies of different sizes.

Today's business environment is becoming more competitive and challenging due to globalization, evolving technology, regulations, including consumer taste and preference.

Companies must, therefore, align its strategies with the changing circumstances to take advantage of the market conditions.

Click the link below to read about strategy, including its pyramids and requisite KPIs that can used to measure business success.

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Strategy aligns an organization’s mission and purpose with its long-term goals and objectives and varies among companies of different sizes.

01/06/2023

It is essential for companies to have adequate cash balances to execute daily business transactions. Dearth of cash can threaten the going concern of a company and impair its ability to settle financial obligations as and when due.

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It is essential for companies to have adequate cash balances to execute daily transactions since it is the most liquid assets of any business

25/05/2023

Professional accountants are required to comply with the applicable institutional and governmental laws, rules, and regulations while performing their duties. Occasionally, they find themselves in a compromising situation that create ethical dilemma.

Professional accountants in public practice or in business are required to comply with the relevant and applicable laws and regulations....

04/01/2023

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