Mart -to- Market Accounting Essay Example | Topics and Well Written Essays - 250 words

Mart -to- Market Accounting - Essay Example Thus all the assets and liabilities recorded on the balance sheet of the firm are recorded at their cost value and are further adjusted by the value of the depreciation or any impairment. However, as the overall complexity of the assets and liabilities increased, it became evident that that the values of these assets and liabilities can also vary due to the changes in their market values. A substantial decline in the value of the asset can actually erode the profitability of the firm and as such if their values are not recorded properly, they may give a different picture to the investor than the actual. It is in this perspective that the role of mark to market accounting emerges wherein the values of the assets are periodically recorded at their market value and all gains or losses are subsequently adjusted in the profit and loss account of the firm. (Schuetze and Wolnizer). During current financial crisis, mark to market accounting played critical role because due to reduction in the values of the assets, firms were forced to record them at lower level thus they booked substantial losses. 3) It may be prudent to relax this idea during the time of crisis because if the overall risk return characteristics of the assets remain same during the crisis, they should not be written down to their market

Reserch proposal Essay Example | Topics and Well Written Essays - 1500 words

Reserch proposal - Essay Example ning to the emergence of Strategic Human Resource Management (SHRM) from the approach of conventional Human Resource Management (HRM) will be provided. According to Armstrong (2006,) human resource is linked with strategic goals to improve the over performance of business and to develop such an organizational culture that fosters flexibility, innovation, as well as competitive advantage. For a company, SHRM refers to viewing functions of HR and accepting those functions as a strategic partner of the company that involves in implementation and formation of business strategies through activities like Training, Recruitment and Selection, Performance Appraisal etc. Currently, HRM is considered as nothing more than an administrative duty. In modern era, the responsibilities of HR Manager are higher than ever before. Due to Globalization, it must be ensured that human resource department is handled effectively and smartly. Globalization has causes a diversified workforce where people come from varying background. Globalization also causes technological changes, changes in the context of business, concern of business from moving to profit-oriented to growth-oriented and many others (Devana, Fombrumm, & Tichy, 1981; Wrightt, 1998). In modern era, in order to make a business grow, companies need to achieve a competitive edge and not only look into the transactional activities and administrative aspect of the job, but also formulate those strategies that align with the goals of business. In case the company does not adopt these tactics, then it will lose its relevance sooner or later. According to Huselid and Becker, (1997) companies that align orga nizational goals with human resource management system, a considerable change in financial position is observed. SHRM is considered as more extensive approach than conventional HRM because it links the activities of an organization with its goals (Singh, 2003). The performance appraisal system involves a strong reward plan.