gaps transition to ifrs and art of nego
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12.27.10Canadian GAAP And IFRSWali to Accounting,MBA Tags: BC, Engineer, Engineering, expert, government, guru, Leadership, local, manager,MBA, mehran, memon, municipal, negotiation, SFU, Sustainability, Transportation, UBC, Vancouver, Visionary, wali,Walimemon
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Starting in January 2011, CNSX-listed entities like all Canadian public issuers will be converting from
Canadian generally accepted accounting principles (Canadian GAAP) to International Financial Reporting
Standards (IFRS). Like any significant project, this carries both risks and opportunities, not necessarily in
equal measure for all entities.
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For smaller public issuers, some of the most prominent potential benefits easier access to global capital
markets by using a common financial reporting language may not seem particularly relevant, at least in
the short term. The risks, however, are clear for all.
Canadian regulators are already taking an active interest in IFRS adoption. CSA Staff Notice 52-
320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial
Reporting Standardssets out expectations for MD&A disclosure between now and conversion, focusing on an
issuers changeover plan and its progress against that plan. Some small companies have already received
letters from regulators, questioning the adequacy of the activities disclosed to date and asking for more
information on what steps they are taking to ensure they can make the transition to IFRS on schedule and
continue to meet all their regulatory obligations. Even now, therefore, IFRS needs to be an active part of an
issuers communication plan.
Generally speaking, of course, smaller companies will encounter fewer significant conversion issues;
however, it will also be relatively more likely that some of the matters identified might be material to the
financial statements as a whole. For many topics, increased note disclosure under IFRS will shine a brighter
spotlight than exists under Canadian GAAP. To take just one of many examples, its clearer under IFRS that
a provision has to be recognized, at its best estimate, for the obligation arising from an uneconomic or
onerous business contract. In addition, the notes provide a breakdown of the movement in each significant
class of provisions between the opening and the closing balance, disclosing key uncertainties (including
major assumptions) relating to their measurement. This transparency might, for instance, provide a better
basis for regulators to question whether liabilities should have been recognized earlier than they were, or to
challenge their amounts.
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Certifying officers of non-TSX-listed entities do not need to report on the design and effectiveness of
disclosure controls and procedures and internal control over financial reporting. However, they must still
certify on the fair presentation of the key financial information, and this may mean something very different
under IFRS. Using the same example, provisions may not be fairly presented without making changes both
to the core financial statements and to the notes. In turn, the MD&A will often need to expand to address
these changes. This should not be at the cost, however, of drowning out the key decision-critical
information: this would likely not result in a fair presentation either.
Similarly, audit committee members of non-TSX-listed entities are not subject to the same requirements for
independence and financial literacy; however, they still play a key risk management role and must think
about their individual fiduciary duties and potential individual liability. Relying on experience gained under
Canadian GAAP will not provide an adequate basis for overseeing managements IFRS-related decisions,
since so much of IFRS has no direct precedent in Canadian GAAP. This is not to say audit committee
members necessarily need to receive the same degree of training as the financial reporting staff. But they
do need a sufficient awareness to identify what could go wrong, given the companys specific operations and
activities, and to engage with the explanations management provides for its decisions. Its likely many audit
committee members have not yet focused on this personal challenge.
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Lenders and other finance providers have not to this point said very much about IFRS, although we know for
instance that some of the banks are receiving training and thinking about how the transition should impact
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on their loan assessment criteria. IFRS will often change the calculation of key performance measures: on
occasion it may even change something as objective as cash flows (for example, different entities may be
consolidated). Some finance providers will take the impact on covenants in their stride; others may not. At
least for some entities, managing the risks of such collateral impacts will be the most important direct
impact of the IFRS conversion.
All of this said, even small entities can find benefits from IFRS conversion too. The risks described above
allow a fresh look at procedures that may have grown stale. In some areas provisions might again be an
example preparing the information for external reporting may provide a better internal focus for
management as well. But in IFRS as in other things, the best offense starts with the defense
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off12.26.10 Quotes on Negotiation and Conflict (5)Wali to Negotiation Tags: BC, Engineer, Engineering, expert, government, guru, Leadership, local, manager, MBA,mehran, memon, municipal, negotiation, SFU, Sustainability, Transportation, UBC, Vancouver, Visionary, wali, Walimemon
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The term up has no meaning apart from the word down. The term fast has no meaning apart
from the term slow. In addition, such terms have no meaning even when used together, except
when confined to a very particular situation most of our language about the organization and
objectives of government is made up of such polar terms. Justice and injustice are typical. A
reformer who wants to abolish injustice and create a world in which nothing but justice prevails,
is like a man who wants to make everything up. Such a man might feel that if he took the lowest
in the world and carried it up to the highest point and kept on doing this, everything would
eventually become up. This would certainly move a great many objects and create an enormous
amount of activity. It might or might not be useful, according to the standards, which we apply.
However, it would never result in the abolishment of down. Thurman W. Arnold
The conventional view serves to protect us from the painful job of thinking. John Kenneth
Galbraith We never have the time to do it right but always have time to do it over.
Anonymous
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You cant turn back the clock. But you can wind it up again. Bonnie Prudden
When youre at the edge of a cliff, sometimes progress is a step backwards. Anonymous
Science cannot resolve moral conflicts, but it can help to more accurately frame the debates
about those conflicts. John Owen
You cant stay in your corner of the Forest waiting for others to come to you. You have to go to
them sometimes. Winnie-the-Pooh (A. A. Milne)
A problem is a chance for you to do your best. Duke Ellington
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What do we live for, if it is not to make life less difficult for each other. George Eliot
Commitment in the face of conflict produces character. Anonymous
One might as well try to ride two horses moving in different directions, as to try to maintain in
equal force two opposing or contradictory sets of desires. Robert Collier
If necessity is the mother of invention, conflict is its father. Kenneth Kaye
Conflict is neither good nor bad. Properly managed, it is absolutely vital. Kenneth Kaye
If we manage conflict constructively, we harness its energy for creativity and development.
Kenneth Kaye
Within-group conflict is always personal and emotional even if it begins with impersonal
issues. Kenneth Kaye
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Opposites attract and then cant stand each other. Kenneth Kaye
If you are leaning over to starboard to balance the boat against the other guys propensity to
lean too far to port, both of you are about to get wet. Kenneth Kaye
No matter how thin you make a pancake, it always has two sides. Anonymous
You dont have to worry about being bit if the dog doesnt have any teeth. Success has made
failures of many men. Anonymous
The aim of argument, or of discussion, should not be victory, but progress. Joseph Joubert
Difficulties are meant to rouse, not discourage. The human spirit is to grow strong by conflict.
William Ellery Channing
The most intense conflicts, if overcome, leave behind a sense of security and calm that is not
easily disturbed. It is just these intense conflicts and their conflagration which are needed to
produce valuable and lasting results. Carl Jung
It is through cooperation, rather than conflict, that your greatest successes will be derived.
Ralph Charell
Nothing strengthens the judgment and quickens the conscience like individual responsibility.
Elizabeth Cady Stanton
Instead of suppressing conflicts, specific channels could be created to make this conflict
explicit, and specific methods could be set up by which the conflict is resolved. Albert Low
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Great ideas often receive violent opposition from mediocre minds. Albert Einstein
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Non-cooperation is a measure of discipline and sacrifice, and it demands respect for the
opposite views. Mohandas K. Gandhi
If we cannot end our differences at least we can make the world safe for diversity. John F.
Kennedy
The fibers of allthings have their tension and are strained like the strings of an instrument.
Henry David Thoreau
Dont wrestle a pig in a mud hole. You both get all dirty, and the pig enjoys it. Anonymous
We own almost all our knowledge not to those who have agreed but to those who have
differed. Charles Caleb Colton
The heart has arguments with which the logic of mind is not acquainted. Blaise Pascal
I cannot divine how it happens that the man who knows the least is the most argumentative.
Giovanni della Casa
The war existing between the senses and reason. Blaise Pascal Contradiction should
awaken Attention, not Passion. Thomas Fuller
Conflict leads to less-than-adequate performance, resentments, and lack of motivation. Fran
Rees It is impossible to defeat an ignorant man in argument. William Gibbs McAdoo
Hear me, my chiefs! I am tired. My heart is sick and sad. From where the sun now stands, I will
fight no more forever. Chief Joseph
The greatest glory in living lies not in never falling, but in rising every time we fall. Nelson
Mandela
The direct use of force is such a poor solution to any problem, it is generally employed only by
small children and large nations. David Friedman
True peace is not merely the absence of tension: it is the presence of justice. Martin Luther
King, Jr.
In any free society, the conflict between social conformity and individual liberty is permanent,
unresolvable, and necessary. Kathleen Norris
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Peace can not be kept by force. It can only be won, through understanding. Our longing for
understanding is Eternal. Albert Einstein
It is the acid test of nonviolence that in a nonviolent conflict there is no rancor left behind, and
in the end the enemies are converted into friends. Mohandas K. Gandhi
Let us work without disputing. It is the only way to render life tolerable. Voltaire
I always cheer up immensely if an attack is particularly wounding because I think, well, if they
attack one personally, it means they have not a single political argument left. Margaret
Thatcher
During the Depression, or back when we were fighting Hitler, people didnt have time to sue a
company if the coffee was too hot. There were urgent, pressing problems. If you think you have
it tough, read history books. Bill Maher
Take your life into your own hands, and what happens? A terrible thing, no one to blame.
Erica Jong
The most dramatic conflicts are perhaps, those that take place not between men but between a
man and himselfwhere the arena of conflict is a solitary mind. Clark Moustakas
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First keep the peace within yourself, then you can also bring peace to others. Thomas a
Kempis Beware, as long as you live, of judging people of appearances. Jean de la Fontaine
When angry, count to ten before you speak; if very angry a hundred. Thomas Jefferson
To believe in something, and not to live it, is dishonest. Mohandas K. Gandhi
The torment of human frustration, whatever its immediate cause, is the knowledge that the self
is in prison, its vital force and mangled mind leaking away in lonely, wasteful self-conflict.
Elizabeth Drew
The spirit indeed is willing, but the flesh is weak. Matthew 26:41
My interest is in the future because Im going to be spending the rest of my life there.
Charles Kettering
Its when youre safe at home that you wish you were having an adventure. When youre having
an adventure you wish you were safe at home. Thornton Wilder
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The truth is that our finest moments are most likely to occur when we are feeling deeply
uncomfortable, unhappy, or unfulfilled. For it is only in such moments, propelled by our
discomfort, that we are likely to step out of our ruts and start searching for different ways or
truer answers. M. Scott Peck
One hour of thoughtful solitude may nerve the heart for days of conflict girding up its armor
to meet the most insidious foe. Lord Percival
Marriage means expectations and expectations mean conflict. Paxton Blair
All married couples should learn the art of battle as they should learn the art of making love.
Good battle is objective and honest never vicious or cruel. Good battle is healthy and
constructive, and brings to a marriage the principle of equa l partnership. Ann Landers
Make sure you never, never argue at night. You just lose a good nights sleep, and you cant
settle anything until morning anyway. Rose Fitzgerald Kennedy
A marriage without conflicts is almost as inconceivable as a nation without crises. Andre
Maurois
There is no squabbling so violent as that between people who accepted an idea yesterday and
those who will accept the same idea tomorrow. Christopher Morley
That may appear as the truth to one person will often appear as untruth to another person.
But that need not worry the seeker. Where there is honest effort, it will be realized that what
appeared to be different truths are like the countless and apparently different leaves of the same
tree. Mohandas K. Gandhi
Whenever two good people argue over principles, they are both right. Marie Ebner Von
Eschenbach
As long as you keep a person down, some part of you has to be down there to hold him down, so
it means you cannot soar as you otherwise might. Marian Anderson
Robert Mnookin talking with his book ~ Bargaining with the Devil: When to Negotiate, When to
Fight
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off12.24.10 Financial RatiosWali to Accounting,Economics,Finance,MBA Tags: BC, Engineer, Engineering, expert, government, guru, Leadership,local, manager, MBA, mehran, mem
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Liquidity Analysis Ratios
Current Ratio
Current Assets
Current Ratio = Current Liabilities
Quick Ratio
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Quick Assets
Quick Ratio = -
Current Liabilities
Quick Assets = Current AssetsInventories
Net Working Capital Ratio
Net Working CapitalNet Working Capital Ratio =
Total Assets
Net Working Capital = Current AssetsCurrent Liabilities
Profitability Analysis RatiosReturn on Assets (ROA)
Net IncomeReturn on Assets (ROA) = -
Average Total Assets
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
Return on Equity (ROE)
Net Income
Return on Equity (ROE) =
Average Stockholders Equity
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Average Stockholders Equity
= (Beginning Stockholders Equity + Ending Stockholders Equity) / 2
Return on Common Equity (ROCE)
Net Income
Return on Common Equity =
Average Common Stockholders Equity
Average Common Stockholders Equity
= (Beginning Common Stockholders Equity + Ending Common Stockholders Equity) / 2
Profit Margin
Net Income
Profit Margin = Sales
Earnings Per Share (EPS)
Net Income
Earnings Per Share =
Number of Common Shares Outstanding
Activity Analysis Ratios
Assets Turnover Ratio
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Sales
Assets Turnover Ratio = -
Average Total Assets
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
Accounts Receivable Turnover Ratio
SalesAccounts Receivable Turnover Ratio =
Average Accounts Receivable
Average Accounts Receivable
= (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Inventory Turnover Ratio
Cost of Goods SoldInventory Turnover Ratio =
Average Inventories
Average Inventories = (Beginning Inventories + Ending Inventories) / 2
Capital Structure Analysis Ratios
Debt to Equity Ratio
Total Liabilities
Debt to Equity Ratio = -Total Stockholders Equity
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Interest Coverage Ratio
Income Before Interest and Income Tax ExpensesInterest Coverage Ratio = -
Interest Expense
Income Before Interest and Income Tax Expenses
= Income Before Income Taxes + Interest Expense
Capital Market Analysis Ratios
Price Earnings (PE) Ratio
Market Price of Common Stock Per Share
Price Earnings Ratio =
Earnings Per Share
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Market to Book Ratio
Market Price of Common Stock Per Share
Market to Book Ratio = -Book Value of Equity Per Common Share
Book Value of Equity Per Common Share
= Book Value of Equity for Common Stock / Number of Common Shares
Dividend Yield
Annual Dividends Per Common ShareDividend Yield =
Market Price of Common Stock Per Share
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8/22/2019 Gaps Transition to Ifrs and Art of Nego
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Book Value of Equity Per Common Share
= Book Value of Equity for Common Stock / Number of Common Shares
Dividend Payout Ratio
Cash Dividends
Dividend Payout Ratio =
Net Income
ROA = Profit Margin X Assets Turnover RatioROA = Profit Margin X Assets Turnover Ratio
Net Income Net Income Sales
ROA = = X
Average Total Assets Sales Average Total As
Profit Margin = Net Income / Sales
Assets Turnover Ratio = Sales / Averages Total Assets
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