Myres Holdings (Essay Sample)

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Myer Holdings Limited
Executive summary
Different companies typically employ different accounting principles and rules in calculating their financial statements. Standardization by contrast appears to imply the imposition of a more rigid and narrow set of rules than harmonization. Therefore, the term alignment seems to allow more flexibility than standardization. In relation to international accounting, two terms that are commonly used are standardization and harmonization. The process of harmonization tends to increase the compatibility of accounting practices by setting bounds to their degree of variation (PRAKASH, 2009). In some perceptions, international investors are seen to be better placed to understand the financial performance and position of local companies. There are very little empirical research that provides evidence of the advantage or disadvantage of uniform accounting rules nationally or internationally. The Australian system took the initiative to harmonize its standards with those of the IASS with an attempt to create and a legal framework for the operation of its activities. The standardization of the accounting standards will fail to the standardization of accounting practices. The backbone of the research should remain to be the study of the international differences in accounting which tends to improve the harmony that exist between different accounting practices. Powerful local economic and political forces determine how managers, auditors, courts regulators and other parties influence the implementation of rules (PALOMBA, 2002).
Introduction
He primary aim of the research tries to analyze the complications realized when MYER failed to outline clearly the timing of its profit warning last week. The management team was only in a position to view the particular details just a day before it was informed to the market. The point of focus remains on bedtime aspect of the project team. It remains that the communication channel was not prudently outlined in the above strategy so as to ensure that the company could plan effectively putting in place the financial statements and obligations.
Discussion
Timing is critical. Diverting the company requires so many factors. The factors include volatility and valuation. Different market environments exist, and they account for different exit routes in the financial markets. To ensure that the study is useful, and to analyze the impact that the market conditions can have, it is important to separate the availability of data into two distinct groups (CHOE & DOUKAS, 1998). Each is containing half of the value of date obtained in any particular market. Deciding to diverse can be categorized to involve one decision. Multiple options usually exist, such as the instinct to grab the cash, is not always the best approach. The unwanted business assets can be easily be divested by the company following some three basic principles. The principles that could be employed included a straight trade sale to another buyer and constituted by the parent company that releases a percentage of investment to the public while retaining ownership (STIGLITZ & OCAMPO, 2008). Business sales are normally the simplest form for the analysis of the above principles. It helps in generating cash that the seller can use to invest in the remaining businesses, make an acquisition, pay down debt, or return to shareholders. The market’s reaction to a trade sale often depends on the seller’s intentions for the proceeds. Trade sales are the only exit vehicles. The dealers in the particular case acquire the potential to participate indirectly in the new owner's synergies concerning the new business that has been acquired. Many sellers also choose trade sales in times of high capital market valuation, utilizing the opportunity to quantify seen by others in the assets, especially when it is higher than the current owner’s view. The still emerge to be most common types of deals due to a number of reasons that still exist in the wider markets. They remain to be the quickest and simplest form of transaction to complete (MATHIESON & SCHINASI, 2000).
The Spin-off emerges when the decision put in place is purely meant to refocus the portfolio and targets to exit a line of business in the entire business management. In the return, they are recognized to generate cash but usually produce value.
Explain how you think the market had reacted to this situation as per Capital Market Research
The market’s reaction to the revenue presented during the financial year was not just. The markets tend to respond negatively in relation to the presented data. The results given by the market will not be of much relevance since the impact of the business on the economic growth will always have a negative impact on the generation of revenue. One of the possible problems is the case is that their attention focuses only on the volatility of export revenue, and the effects of import costs are mainly neglected (TORRE & SCHMUKLER, 2007). However, the fluctuation of the import prices could play a crucial role in predicting the revenue expenditure in the capital market. When a country encounters financial shocks, the likelihood of that country's debt rescheduling or default can be reduced. If a state is unable to reduce its imports when its export revenue plummet, the problem will be greatly increased. Consequently, the effect of import costs, or more precisely the simultaneous effect of import prices and export tax, should be incorporated in the study of volatility effects. In estimating a company’s debt service capacity, a commonly used accounting indicator is debt coverage ratio.
Efficient Market Hypothesis (EMH)
Although it is a foundation stone of modern finance, the EMH remains one of the most hotly debated topics in the financial community. Most investment professionals academics do not adhere fully to the EMH, at least in its strong or semi-strong form is more. Over the years, the EMH has been argued over and even refuted, but it remains the null hypothesis of any asset pricing model, the theory to beat. Market ...