week 3 dqs finance

I WILL SHAKE AND PAY TONIGHT. PLEASE READ  AND FOLLOW DIRECTIONS. NO PLAGIARISM AND ON TIME THANKS

Required Text

1. Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance. San Diego, CA: Bridgepoint Education Inc.

 

This text is a Constellation™ course digital materials (CDM)

a. Chapter 5: Estimating Cash Flows

b. Chapter 6: Capital Budgeting – Investing to Create Value

Articles

1. Insert Ernst & Young (2013).  US GAAP vs. IFRS: The Basics .  Retrieved from http://www.ey.com/Publication/vwLUAssets/IFRS_vs_US_GAAP_Basics_March_2010/$FILE/IFRS_vs_US_GAAP_Basics_March_2010 here

Multimedia

1. INTELECOM. (Producer). Capital Budgeting. [Video File]. Retrieved from the Intelecom Video Library

2. INTELECOM. (Producer). Management of Working Capital Case Study: “George’s Trains”. [Video File]. Retrieved from the Intelecom Video Library.

 

Discussions
To participate in the following discussions, go to this week’s Discussion link in the left navigation.

1. GAAP vs. IFRS

The United States uses Generally Accepted Accounting Principles (GAAP) as the basis of financial reporting. The International Financial Accounting Standards (IFRS) is an alternative way to report financials.  This article from Ernst and Young compares the two methods of financial reporting.

Ernst & Young’s  

US GAAP vs. IFRS: The Basics

 (http://www.ey.com/Publication/vwLUAssets/US_GAAP_v_IFRS:_The_Basics/$FILE/US%20GAAP%20v%20IFRS%20Dec%202011 )

After reading the article from Ernst and Young, answer the following questions:

· How does the GAAP reporting method cause cash flows to differ from net income?

· How are the features of the Income Statement, Balance Sheet, and Statement of Cash Flow utilized in both the GAAP and the IFRS reporting methods?

· Does it make sense to adapt a worldwide standard for financial reporting?  Should this be mandated or voluntary?

· Calculate some of the potential costs and benefits of switching from GAAP to IFRS.

Capital Rationing 

Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing. Which do you think is better? Why?  Provide examples and evidence from two articles from ProQuest to support your position. Your post should be 200-250 words in length.