Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form, easy to understand, they include four basic financial statements accompanied by a management discussion and analysis: A balance sheet or statement of financial position, reports on a company's assets and owners equity at a given point in time. An income statement—or profit and loss report, or statement of comprehensive income, or statement of revenue & expense—reports on a company's income and profits over a stated period of time. A profit and loss statement provides information on the operation of the enterprise; these include the various expenses incurred during the stated period. A statement of changes in equity or equity statement, or statement of retained earnings, reports on the changes in equity of the company over a stated period of time. A cash flow statement reports on a company's cash flow activities its operating and financing activities over a stated period of time.
For large corporations, these statements may be complex and may include an extensive set of footnotes to the financial statements and management discussion and analysis. The notes describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements. "The objective of financial statements is to provide information about the financial position and changes in financial position of an enterprise, useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant and comparable. Reported assets, equity and expenses are directly related to an organization's financial position. Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently." Financial statements may be used by users for different purposes: Owners and managers require financial statements to make important business decisions that affect its continued operations.
Financial analysis is performed on these statements to provide management with a more detailed understanding of the figures. These statements are used as part of management's annual report to the stockholders. Employees need these reports in making collective bargaining agreements with the management, in the case of labor unions or for individuals in discussing their compensation and rankings. Prospective investors make use of financial statements to assess the viability of investing in a business. Financial analyses are used by investors and are prepared by professionals, thus providing them with the basis for making investment decisions. Financial institutions use them to decide whether to grant a company with fresh working capital or extend debt securities to finance expansion and other significant expenditures. Consolidated financial statements are defined as "Financial statements of a group in which the assets, equity, income and cash flows of the parent and its subsidiaries are presented as those of a single economic entity", according to International Accounting Standard 27 "Consolidated and separate financial statements", International Financial Reporting Standard 10 "Consolidated financial statements".
The rules for the recording and presentation of government financial statements may be different from those required for business and for non-profit organizations. They may use either of two accounting methods: accrual accounting, or cost accounting, or a combination of the two. A complete set of chart of accounts is used, different from the chart of a profit-oriented business. Personal financial statements may be required from persons applying for a personal loan or financial aid. A personal financial statement consists of a single form for reporting held assets and liabilities, or personal sources of income and expenses, or both; the form to be filled out is determined by the organization supplying the aid. Although laws differ from country to country, an audit of the financial statements of a public company is required for investment and tax purposes; these are performed by independent accountants or auditing firms. Results of the audit are summarized in an audit report that either provide an unqualified opinion on the financial statements or qualifications as to its fairness and accuracy.
The audit opinion on the financial statements is included in the annual report. There has been much legal debate over. Since audit reports tend to be addressed to the current shareholders, it is thought that they owe a legal duty of care to them, but this may not be the case as determined by common law precedent. In Canada, auditors are liable only to investors using a prospectus to buy shares in the primary market. In the United Kingdom, they have been held liable to potential investors when the auditor was aware of the potential investor and how they would use the information in the financial statements. Nowadays auditors tend to include in their report liability restrict
Thomson Reuters Corporation is a Canadian multinational mass media and information firm. The firm was founded in Toronto, Canada, where it is headquartered at 333 Bay Street in Downtown Toronto. Thomson Reuters shares are cross listed on the Toronto Stock Exchange and the New York Stock Exchange. Thomson Reuters was created by the Thomson Corporation's purchase of the British company Reuters Group in April 2008, is majority owned by The Woodbridge Company, a holding company for the Thomson family. Thomson Reuters was ranked as Canada's "leading corporate brand" in the 2010 Interbrand Best Canadian Brands ranking. Thomson Reuters operates in more than 100 countries, has more than 45,000 employees; the company was founded by Roy Thomson in 1934 in Ontario as the publisher of The Timmins Daily Press. In 1953, Thomson moved to Scotland the following year, he consolidated his media position in Scotland in 1957 when he won the franchise for Scottish Television. In 1959, he bought the Kemsley Group, a purchase that gave him control of the Sunday Times.
He separately acquired the Times in 1967. He moved into the airline business in 1965, when he acquired Britannia Airways and into oil and gas exploration in 1971 when he participated in a consortium to exploit reserves in the North Sea. In the 1970s, following the death of Thomson, the company withdrew from national newspapers and broadcast media, selling the Times, the Sunday Times and Scottish Television and instead moved into publishing, buying Sweet & Maxwell in 1988; the company at this time was known as the International Thomson Organisation Ltd. In 1989, ITOL merged with Thomson Newspapers. In 1996, The Thomson Corporation acquired West Publishing, a purveyor of legal research and solutions including Westlaw; the Company was founded by Paul Julius Reuter in 1851 in London as a business transmitting stock market quotations. Reuter set up his "Submarine Telegraph" office in October 1851 and negotiated a contract with the London Stock Exchange to provide stock prices from the continental exchanges in return for access to London prices, which he supplied to stockbrokers in Paris, France.
In 1865, Reuters in London was the first organization to report the assassination of Abraham Lincoln. The company was involved in developing the use of radio in 1923, it was acquired by the British National & Provincial Press in 1941 and first listed on the London Stock Exchange in 1984. Reuters began to grow in the 1980s, widening the range of its business products and expanding its global reporting network for media and economic services: key product launches included Equities 2000, Dealing 2000-2, Business Briefing, Reuters Television for the financial markets, 3000 Series and the Reuters 3000 Xtra service; the Thomson Corporation acquired Reuters Group PLC to form Thomson Reuters on April 17, 2008. Thomson Reuters operated under a dual-listed company structure and had two parent companies, both of which were publicly listed — Thomson Reuters Corporation and Thomson Reuters PLC. In 2009, it unified its dual listed company structure and stopped its listing on the London Stock Exchange and NASDAQ.
It is now listed only as Thomson Reuters Corporation on the New York Stock Exchange and Toronto Stock Exchange. On February 13, 2013, Thomson Reuters announced it would cut 2,500 jobs to cut cost in its Legal and Risk division. On October 29, 2013, Thomson Reuters announced it would cut another 3,000 jobs in those same three divisions; the Thomson-Reuters merger transaction was reviewed by the U. S. Department of Justice and by the European Commission. On February 19, 2008, both the Department of Justice and the Commission cleared the transaction subject to minor divestments; the Department of Justice required the parties to sell copies of the data contained in the following products: Thomson's WorldScope, a global fundamentals product. The proposed settlement further requires the licensing of related intellectual property, access to personnel, transitional support to ensure that the buyer of each set of data can continue to update its database so as to continue to offer users a viable and competitive product.
The European Commission imposed similar divestments: according to the Commission's press release, "the parties committed to divest the databases containing the content sets of such financial information products, together with relevant assets and customer base as appropriate to allow purchasers of the databases and assets to establish themselves as a credible competitive force in the marketplace in competition with the merged entity, re-establishing the pre-merger rivalry in the respective fields."These remedies were viewed as minor given the scope of the transaction. According to the Financial Times, "the remedy proposed by the competition authorities will affect no more than $25m of the new Thomson Reuters group’s $13bn-plus combined revenues."The transaction was cleared by the Canadian Competition Bureau. In November 2009, The European Commission opened formal anti-trust proceedings against Thomson Reuters concerning a potential infringement of the EC Treaty's rules on abuse of a dominant market position.
The Commission investigated Thomson Reuters' practices in the area of real-time market datafeeds, in particular whether customers or competitors were prevented from translating Reuters Instrument Codes to alternative identification codes of other datafeed suppliers to the detriment of competition. In Dec
Securities research is a discipline within the financial services industry. Securities research professionals are known most as "analysts," "research analysts," or "securities analysts. Research analysts produce research reports and issue a recommendation: buy, hold, or sell; these reports can be accessed from a number of sources, brokerages will offer the reports free to their customers. Research can be categorized by the security type, as well as by whether it is buy-side research or sell-side research. Although associated with fundamental analysis, research focuses on technical analysis, reports will include both. Securities analysts are divided between the two basic kinds of securities: equity analysts and fixed income analysts. There are some analysts who cover all of the securities of a particular issuer and bonds alike. Securities analysts are further subdivided by industry specialization -- among the industries with the most analyst coverage are biotechnology, financial services and computer hardware and services.
Analysts will attend quarterly earnings conference calls. Fixed income analysts are often subdivided by asset class—among the fixed income asset classes with the most analyst coverage are convertible bonds, high yield bonds, distressed bonds. Although technically not securities, syndicated bank loans fall within the domain of fixed income analysts, are covered, as if they were bonds, by reference to the industry of their borrowers or asset class in which their credit quality would place them. Research can be further categorized as sell-side research. Sell-side research is conducted by sell-side analysts at investment banks and independent equity research boutiques, is sold to buy-side investors. Buy-side research, however, is not published as it created for internal use at an asset manager or hedge fund. Sell-side research is offered as part of a broad set of financial services including broking and corporate finance. New regulation in Europe, Markets in Financial Instruments Directive II, is set to change how research is bought.
Research must be priced by the research provider. It has been accessed by institutional investors through Thomson Reuters subscription services or Bloomberg terminals but marketplaces like Research Exchange Ltd have emerged where individual research reports or subscriptions can be purchased. Independent equity research has sprung into existence as a result of scandals such as Enron, Lernout & Hauspie and Worldcom where investment banks wrote positive research despite deteriorating fundamentals or fraudulent management. Credit rating agencies such as Moody's, S&P provide a similar service for bond securities. There are a few retail investor firms such as Morningstar, SEENSCO, Zacks Investment Research. Entrance into the profession, very well paid and prestigious, is competitive; those who enter the profession at the junior level have an undergraduate degree from a leading college or university and one to a few years of experience in some other discipline of finance or an MBA or other relevant advanced degree.
Those who enter the field in a junior capacity, can progress to a senior capacity in a brief period of time if they prove themselves talented. Many securities analysts have directly entered the profession at a more senior level. Securities analysts are employed in one of three capacities: sell-side analysts, buy-side analysts, independent analysts, who work for firms which sell research to sell-side and/or buy-side firms, but who do not themselves engage in securities transactions. Buy-side analysts do their work in private. However, the amount of formally published sell-side research is thought to be declining, as it becomes more difficult for brokers to gain a clear revenue stream from the investment; the direct connection between securities research and the underwriting of new issues, which enabled research analysts to claim a share of investment banking fees, was severed as a result of government investigations into excesses of some sell-side analysts in the late 1990s. In actuality before the government probes, direct contact was always an official violation of rules and ethics.
Attorneys and compliance personnel, together known as Chinese wall personnel, were instructed to hinder all "wall crossings" to the best of their ability. However, in the late 1990s this proved to be difficult as well-connected resear
Integrated Authority File
The Integrated Authority File or GND is an international authority file for the organisation of personal names, subject headings and corporate bodies from catalogues. It is used for documentation in libraries and also by archives and museums; the GND is managed by the German National Library in cooperation with various regional library networks in German-speaking Europe and other partners. The GND falls under the Creative Commons Zero licence; the GND specification provides a hierarchy of high-level entities and sub-classes, useful in library classification, an approach to unambiguous identification of single elements. It comprises an ontology intended for knowledge representation in the semantic web, available in the RDF format; the Integrated Authority File became operational in April 2012 and integrates the content of the following authority files, which have since been discontinued: Name Authority File Corporate Bodies Authority File Subject Headings Authority File Uniform Title File of the Deutsches Musikarchiv At the time of its introduction on 5 April 2012, the GND held 9,493,860 files, including 2,650,000 personalised names.
There are seven main types of GND entities: LIBRIS Virtual International Authority File Information pages about the GND from the German National Library Search via OGND Bereitstellung des ersten GND-Grundbestandes DNB, 19 April 2012 From Authority Control to Linked Authority Data Presentation given by Reinhold Heuvelmann to the ALA MARC Formats Interest Group, June 2012
National Diet Library
The National Diet Library is the national library of Japan and among the largest libraries in the world. It was established in 1948 for the purpose of assisting members of the National Diet of Japan in researching matters of public policy; the library is similar in scope to the United States Library of Congress. The National Diet Library consists of two main facilities in Tōkyō and Kyōtō, several other branch libraries throughout Japan; the National Diet Library is the successor of three separate libraries: the library of the House of Peers, the library of the House of Representatives, both of which were established at the creation of Japan's Imperial Diet in 1890. The Diet's power in prewar Japan was limited, its need for information was "correspondingly small"; the original Diet libraries "never developed either the collections or the services which might have made them vital adjuncts of genuinely responsible legislative activity". Until Japan's defeat, the executive had controlled all political documents, depriving the people and the Diet of access to vital information.
The U. S. occupation forces under General Douglas MacArthur deemed reform of the Diet library system to be an important part of the democratization of Japan after its defeat in World War II. In 1946, each house of the Diet formed its own National Diet Library Standing Committee. Hani Gorō, a Marxist historian, imprisoned during the war for thought crimes and had been elected to the House of Councillors after the war, spearheaded the reform efforts. Hani envisioned the new body as "both a'citadel of popular sovereignty'", the means of realizing a "peaceful revolution"; the Occupation officers responsible for overseeing library reforms reported that, although the Occupation was a catalyst for change, local initiative pre-existed the Occupation, the successful reforms were due to dedicated Japanese like Hani. The National Diet Library opened in June 1948 in the present-day State Guest-House with an initial collection of 100,000 volumes; the first Librarian of the Diet Library was the politician Tokujirō Kanamori.
The philosopher Masakazu Nakai served as the first Vice Librarian. In 1949, the NDL became the only national library in Japan. At this time the collection gained an additional million volumes housed in the former National Library in Ueno. In 1961, the NDL opened at its present location in Nagatachō, adjacent to the National Diet. In 1986, the NDL's Annex was completed to accommodate a combined total of 12 million books and periodicals; the Kansai-kan, which opened in October 2002 in the Kansai Science City, has a collection of 6 million items. In May 2002, the NDL opened a new branch, the International Library of Children's Literature, in the former building of the Imperial Library in Ueno; this branch contains some 400,000 items of children's literature from around the world. Though the NDL's original mandate was to be a research library for the National Diet, the general public is the largest consumer of the library's services. In the fiscal year ending March 2004, for example, the library reported more than 250,000 reference inquiries.
As Japan's national library, the NDL collects copies of all publications published in Japan. Moreover, because the NDL serves as a research library for Diet members, their staffs, the general public, it maintains an extensive collection of materials published in foreign languages on a wide range of topics; the NDL has eight major specialized collections: Modern Political and Constitutional History. The Modern Political and Constitutional History Collection comprises some 300,000 items related to Japan's political and legal modernization in the 19th century, including the original document archives of important Japanese statesmen from the latter half of the 19th century and the early 20th century like Itō Hirobumi, Iwakura Tomomi, Sanjō Sanetomi, Mutsu Munemitsu, Terauchi Masatake, other influential figures from the Meiji and Taishō periods; the NDL has an extensive microform collection of some 30 million pages of documents relating to the Occupation of Japan after World War II. This collection include the documents prepared by General Headquarters and the Supreme Commander of the Allied Powers, the Far Eastern Commission, the United States Strategic Bombing Survey Team.
The Laws and Preliminary Records Collection consists of some 170,000 Japanese and 200,000 foreign-language documents concerning proceedings of the National Diet and the legislatures of some 70 foreign countries, the official gazettes, judicial opinions, international treaties pertaining to some 150 foreign countries. The NDL maintains a collection of some 530,000 books and booklets and 2 million microform titles relating to the sciences; these materials include, among other things, foreign doctoral dissertations in the sciences, the proceedings and reports of academic societies, catalogues of technical standards, etc. The NDL has a collection of 440,000 maps of Japan and other countries, including the topographica
U.S. Securities and Exchange Commission
The U. S. Securities and Exchange Commission is an independent agency of the United States federal government; the SEC holds primary responsibility for enforcing the federal securities laws, proposing securities rules, regulating the securities industry, the nation's stock and options exchanges, other activities and organizations, including the electronic securities markets in the United States. In addition to the Securities Exchange Act of 1934, which created it, the SEC enforces the Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes–Oxley Act of 2002, other statutes; the SEC was created by Section 4 of the Securities Exchange Act of 1933. The SEC has a three-part mission: to protect investors. To achieve its mandate, the SEC enforces the statutory requirement that public companies and other regulated companies submit quarterly and annual reports, as well as other periodic reports. In addition to annual financial reports, company executives must provide a narrative account, called the "management discussion and analysis", that outlines the previous year of operations and explains how the company fared in that time period.
MD&A will also touch on the upcoming year, outlining future goals and approaches to new projects. In an attempt to level the playing field for all investors, the SEC maintains an online database called EDGAR online from which investors can access this and other information filed with the agency. Quarterly and semiannual reports from public companies are crucial for investors to make sound decisions when investing in the capital markets. Unlike banking, investment in the capital markets is not guaranteed by the federal government; the potential for big gains needs to be weighed against that of sizable losses. Mandatory disclosure of financial and other information about the issuer and the security itself gives private individuals as well as large institutions the same basic facts about the public companies they invest in, thereby increasing public scrutiny while reducing insider trading and fraud; the SEC makes reports available to the public through the EDGAR system. The SEC offers publications on investment-related topics for public education.
The same online system takes tips and complaints from investors to help the SEC track down violators of the securities laws. The SEC adheres to a strict policy of never commenting on the existence or status of an ongoing investigation. Prior to the enactment of the federal securities laws and the creation of the SEC, there existed so-called blue sky laws, they were enacted and enforced at the state level and regulated the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws varied among states, they all required the registration of all securities offerings and sales, as well as of every U. S. stockbroker and brokerage firm. However, these blue sky laws were found to be ineffective. For example, the Investment Bankers Association told its members as early as 1915 that they could "ignore" blue sky laws by making securities offerings across state lines through the mail. After holding hearings on abuses on interstate frauds, Congress passed the Securities Act of 1933, which regulates interstate sales of securities at the federal level.
The subsequent Securities Exchange Act of 1934 regulates sales of securities in the secondary market. Section 4 of the 1934 act created the U. S. Securities and Exchange Commission to enforce the federal securities laws; the Securities Act of 1933 is known as the "Truth in Securities Act" and the "Federal Securities Act", or just the "1933 Act". Its goal was to increase public trust in the capital markets by requiring uniform disclosure of information about public securities offerings; the primary drafters of 1933 Act were Huston Thompson, a former Federal Trade Commission chairman, Walter Miller and Ollie Butler, two attorneys in the Commerce Department's Foreign Service Division, with input from Supreme Court Justice Louis Brandeis. For the first year of the law's enactment, the enforcement of the statute rested with the Federal Trade Commission, but this power was transferred to the SEC following its creation in 1934. In 1934, Roosevelt named his friend Joseph P. Kennedy, a self-made multimillionaire financier and a leader among the Irish-American community, as the insider-as-chairman who knew Wall Street well enough to clean it up.
Two of the other five commissioners were Ferdinand Pecora. Kennedy added a number of intelligent young lawyers, including William O. Douglas and Abe Fortas, both of whom became Supreme Court justices. Kennedy's team defined the mission and operating mode for the SEC, making full use of its wide range of legal powers; the SEC had four missions. First and most important was to restore investor confidence in the securities market, which had collapsed because of doubts about its internal integrity, fears of the external threats posed by anti-business elements in the Roosevelt administration. Second, in terms of integrity, the SEC had to get rid of the penny-ante swindles based on fake i
Conflict of interest
A conflict of interest is a situation in which a person or organization is involved in multiple interests, financial or otherwise, serving one interest could involve working against another. This relates to situations in which the personal interest of an individual or organization might adversely affect a duty owed to make decisions for the benefit of a third party; the presence of a conflict of interest is independent of the occurrence of impropriety. Therefore, a conflict of interest can be discovered and voluntarily defused before any corruption occurs. A conflict of interest exists if the circumstances are reasonably believed to create a risk that a decision may be unduly influenced by other, secondary interests, not on whether a particular individual is influenced by a secondary interest. A used definition is: "A conflict of interest is a set of circumstances that creates a risk that professional judgement or actions regarding a primary interest will be unduly influenced by a secondary interest."
Primary interest refers to the principal goals of the profession or activity, such as the protection of clients, the health of patients, the integrity of research, the duties of public officer. Secondary interest includes personal benefit and is not limited to only financial gain but such motives as the desire for professional advancement, or the wish to do favours for family and friends; these secondary interests are not treated as wrong in and of themselves, but become objectionable when they are believed to have greater weight than the primary interests. Conflict of interest rules in the public sphere focus on financial relationships since they are more objective and quantifiable, involve the political and medical fields. Judicial disqualification referred to as recusal, refers to the act of abstaining from participation in an official action such as a court case/legal proceeding due to a conflict of interest of the presiding court official or administrative officer. Applicable statutes or canons of ethics may provide standards for recusal in a given proceeding or matter.
Providing that the judge or presiding officer must be free from disabling conflicts of interest makes the fairness of the proceedings less to be questioned. In the legal profession, the duty of loyalty owed to a client prohibits an attorney from representing any other party with interests adverse to those of a current client; the few exceptions to this rule require informed written consent from all affected clients, i.e. an "ethical wall". In some circumstances, a conflict of interest can never be waived by a client. In the most common example encountered by the general public, the same firm should not represent both parties in a divorce or child custody matter. Found conflict can lead to denial or disgorgement of legal fees, or in some cases, criminal proceedings. In 1998, a Milbank, Hadley & McCloy partner was found guilty of failing to disclose a conflict of interest and sentenced to 15 months of imprisonment. In the United States, a law firm cannot represent a client if the client's interests conflict with those of another client if the two clients are represented by separate lawyers within the firm, unless the lawyer is segregated from the rest of the firm for the duration of the conflict.
Law firms employ software in conjunction with their case management and accounting systems in order to meet their duties to monitor their conflict of interest exposure and to assist in obtaining waivers. More conflicts of interest can be defined as any situation in which an individual or corporation is in a position to exploit a professional or official capacity in some way for their personal or corporate benefit. Depending upon the law or rules related to a particular organization, the existence of a conflict of interest may not, in and of itself, be evidence of wrongdoing. In fact, for many professionals, it is impossible to avoid having conflicts of interest from time to time. A conflict of interest can, become a legal matter, for example, when an individual tries influencing the outcome of a decision, for personal benefit. A director or executive of a corporation will be subject to legal liability if a conflict of interest breaches his/her duty of loyalty. There is confusion over these two situations.
Someone accused of a conflict of interest may deny that a conflict exists because he/she did not act improperly. In fact, a conflict of interest can exist if there are no improper acts as a result of it; as an example, in the sphere of business and control, according to the Institute of Internal Auditors: conflict of interest is a situation in which an internal auditor, in a position of trust, has a competing professional or personal interest. Such competing interests can make it difficult to fulfill her duties impartially. A conflict of interest exists if no unethical or improper act results. A conflict of interest can create an appearance of impropriety that can undermine confidence in the internal auditor, the internal audit activity, the profession. A conflict of interest could