Does Balance Sheet Classification Matter? Evidence from Trust Preferred Stock

2010 ◽  
Author(s):  
Konrad Gunderson ◽  
Zane L. Swanson
Keyword(s):  
Balance Sheet ◽  
Preferred Stock

Innovation in Preferred Stock: Current Developments and Implications for Financial Reporting

1999 ◽  
Vol 13 (3) ◽  
pp. 201-218 ◽  
Author(s):  
Peter J. Frischmann ◽  
Paul D. Kimmel ◽  
Terry D. Warfield
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Financial Instruments ◽  
Holy Grail ◽  
Balance Sheets ◽  
Preferred Stock

In this paper we investigate a significant innovation in preferred stock securities issued over the 1993–1996 period. We document trends in preferred stock use which indicate that the introduction of a preferred stock variant, trust preferred securities (TPS), is changing the landscape of corporate balance sheets with an increasing number of companies reporting securities in the “mezzanine” section of the balance sheet (between equity and debt). Referred to by many as the “Holy Grail” of financial instruments, TPS are treated as debt for tax purposes, but not for financial reporting or debt-rating purposes. Since their introduction in late 1993, they have quickly become the primary variant of new preferred stock issues, representing the majority of all new issues of preferred stock. We (1) document this trend in preferred stock issues, (2) discuss the resulting financial reporting effects of this new security, (3) identify the motivations for this trend and (4) evaluate a new FASB proposal that addresses these and other redeemable preferred securities.

Multiple Motivations and Effects: The Case of Trust Preferred Stock

1999 ◽  
Vol 14 (2) ◽  
pp. 269-284 ◽  
Author(s):  
Peter J. Frischmann ◽  
Terry D. Warfield
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Financial Instruments ◽  
Holy Grail ◽  
Balance Sheets ◽  
Preferred Stock

This case examines the interplay of financial reporting, tax and regulatory motivations in a firm's decision to issue securities. The context for the case is a bank's decision whether to issue debt or trust preferred securities (TPS). Currently, TPS are changing the landscape of corporate balance sheets with an increasing number of companies reporting securities in the “mezzanine” section of the balance sheet (between equity and debt). Referred to by many as the “Holy Grail” of financial instruments, TPS appear to be the first securities to be treated as debt for tax purposes, but not for financial reporting or debt-rating purposes. Since their introduction in late 1993, they have quickly become the primary variant of new preferred stock issues, representing 60 percent of all new issues of preferred stock.

scholarly journals An Empirical Investigation Of Preferred Stock Issuance By Utilities: Market Reaction And Firm Motivation

2011 ◽  
Vol 9 (1) ◽  
pp. 100
Author(s):  
Beverly R. Fuller ◽  
G. Rodney Thompson
Keyword(s):  
Empirical Investigation ◽  
Market Reaction ◽  
Balance Sheet ◽  
Conventional Wisdom ◽  
Total Asset ◽  
Common Stock ◽  
Preferred Stock ◽  
Equity Ratio ◽  
Asset Size

Conventional wisdom suggests that preferred stock is a hybridsimilar to bonds in some respects and to common stock in others. This research affirms the conventional wisdom. Specifically, issuers of preferred stock appear to consider preferred to be equity in their adjustments toward their long-term debt-to-equity ratio. However, other balance sheet items including total asset size and asset composition indicate that preferred stock issuers are more like debt issuers than like common equity issuers.

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

Asset Inspection Management System as a Reliable Inspection/ Monitoring Tool

2020 ◽  
Vol 78 (12) ◽  
pp. 1276-1285
Author(s):  
Shibu John A
Keyword(s):  
Asset Management ◽  
Management System ◽  
Balance Sheet ◽  
Integrity Assessment ◽  
Material Evaluation ◽  
The People ◽  
Physical Assets ◽  
Asset Management System ◽  
On Time Delivery ◽  
Capital Intensive

Enterprise asset management (EAM) systems are used by asset owners and/or operators to manage the maintenance of their physical assets. These assets, including equipment, facilities, vehicles, and infrastructure, need maintenance to sustain their operations. An EAM system provides the means to have less unplanned downtime and extended asset longevity, which offers clear business benefits that improve the profit and loss statement and balance sheet. Particularly for capital-intensive industries, like drilling and exploration, the failure of on-time delivery of critical equipment or processes is disruptive and costs nonproductive time and customer satisfaction. Organizations understand these issues and employ an appropriate asset management system to engineer their asset maintenance and management. An EAM system is needed to manage the people, assets/equipment, and processes. EAMs are used to plan, optimize, execute, and track the needed maintenance activities with associated priorities, skills, materials, tools, and information. Similarly, nondestructive testing (NDT) is used as a tool for integrity assessment of assets in drilling and exploration. The main advantage of using NDT is that the item’s intended use or serviceability is not affected. The selection of a specific technique should be based on knowledge and skills that include design, material processing, and material evaluation. Validating the purpose of this paper, we emphasize the importance of optimizing the asset utilization and serviceability to enhance overall efficiency by integrating EAM software that manages assets, the operation management system (OMS) controlling the processes, and asset inspection management systems (AIMSs).

Telaahan Penerapan Sistem Informasi Akuntansi Berbasis Komputer Akuntansi (Menggunakan Microsoft Excel) dalam Penyajian Laporan Keuangan (Studi Kasus pada Rumah Sakit Islam Bogor)

2010 ◽  
Vol 6 (02) ◽  
pp. 49
Author(s):  
Syarief Gerald Prasetya
Keyword(s):  
Information System ◽  
Balance Sheet ◽  
Accounting Information ◽  
Financial Statement ◽  
Microsoft Excel ◽  
Financial Reports ◽  
Accounting Information System ◽  
Achievement Data ◽  
Medical Needs ◽  
Processing Data

Hospital was established to serve the medical needs of the citizen. In addition to serving, hospitals also need to explore the benefits for the sustainability and the development of the hospital. To achieve financial reports have involved a large role. Accounting information system computer-based accounting will help serving the financial reports, so that more accurate and faster. Errors can be diminished.  Research object is selected by the author to conduct research is Bogor Rumah Sakit Islam. A hospital that is located on Jl. Perdana Raya. 22 Budi Agung, Jakarta Utara. This hospital was established on May 12, 1991. The location is strategic as it is in the center of Bogor. In doing activity, accounting information system based on computerized accounting still not yet common use. Computer already exist but support application to create an accurate and fast financial statement does not exist. So much weaknesses if we still using manual method. Like slowly processing data, still using much worker and much step while processing. The information result is still contained high mistake. To solve all problems above we need accounting software as tool for accounting division. For that I try to apply computerized accounting using Microsoft Excel for helping creating financial statement. By doing observation and interview with related employee, this research can do well. Journalize transaction process by using Microsoft Excel is to make a column for each transaction such as Journal Voucher, General Ledger, Balance Sheet. After making a column, the next step is inputing achievement data to Journal Voucher. After inputing data, General Ledger and Balance Sheet can automatically fill up. By using computer, processing data is more faster, information result is more accurately, human resource is less needed. Related management can get information they need more faster, because amount recalculated every doing transaction.

ANALISA PERBANDINGAN LAPORAN KEUANGAN DAN RASIO KEUANGAN SEBAGAI ALAT UKUR KINERJA KEUANGAN PADA KOPERASI KARYAWAN SUCOFINDO (KOPERASI SUCOFINDO JAYA) TAHUN 2009 – 2011

2019 ◽  
Vol 9 (2) ◽  
pp. 35
Author(s):  
Sri Marti Pramudena
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Fiscal Year ◽  
Percentage Increase ◽  
Net Worth ◽  
Average Value ◽  
Financial Position ◽  
Profitability Analysis ◽  
Equity Ratio ◽  
The Cost

This study aims to determine the financial position and financial performance Cooperative Sucofindo Jaya (KOPSUCOFINDO JAYA) from fiscal year 2009-2011 through a comparative analysis / comparisons and ratio analysis. From the research, the authors obtained a picture that results of the financial position and financial performance of KOPSUCOFINDO JAYA as follows: (1) To Horizontal Analysis of the Balance Sheet shows the overall unfavorable developments as the rise of short-term debt experienced a greater percentage increase than the increase in current assets (2) For Horizontal Analysis of the SHU, SHU in 2010 an increase of 125.38% compared to 2009 and in 2011 increased by 282.47% compared to 2009, but this increase was not followed by a reduction in the burden of cost of goods, especially business and this increase was obtained from the contribution percentage increase in other income. (3) For Vertical Analysis of the Balance Sheet shows that in terms of assets, current assets are assets that make up the largest component but also cause considerable investment value embedded in current assets and also showed asset turnover, receivables turnover and working capital is very low under 1 times. (4) For the SHU Vertical analysis shows that income JAYA KOPSUCOFINDO more than 85% absorbed in the Cost of Goods. (5) For liquidity analysis showed that highly liquid KOPSUCOFINDO JAYA obtain an average value above 400%. (6) For solvency analysis shows that the performance is not good / not solvable because the results of the analysis LITA average of above 95%, Total Debt to Equity Ratio in the top 2.000%, and Net Worth Debt Ratio to average below 4%. (7) For activity ratios indicate that the performance is not good for Turnover of Assets value of 1 times. (8) For the rentability analysis KOPSUCOFINDO JAYA show results for ROA of 0.86% (2009), 1.31% (2010), 1.18% (2011), ROE in 2009 is 14.81%, 26.43% in 2010 and 2011 amounted to 31.11%, for the ROI of 0.56% in 2009, in 2010 was 0.96% and by 0.93% in 2011. (9) For the analysis of profitability, for the analysis of GPM in 2009 amounted to 1.49%, in 2010 of 2.31% and 3.92% in 2011. As for the analysis of NPM in 2009 amounted to 0.97%, in 2010 by 1.70% and by 3.10% in 2011. Keywords:  Cooperative Financial Performance, horizontal analysis, vertical analysis, Analysis of Liquidity, Solvency Analysis, Activity Analysis, Profitability Analysis, profitability analysis

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