To be creative implies creating something that is unique, something new, something original. Well, creative accounting fails in all those respects unfortunately.
So what is creative accounting exactly? Why is it not such a nice thing? Why does it pop up everytime we discuss financial standards and corporate governance?
Creative accounting, to be put simply is earnings management. Earnings management, is a fancy way of saying 'fudging the numbers'.
Sunday, November 16, 2014
Tuesday, November 4, 2014
About Me
Hi and welcome to my blog. I primarily use it to communicate with my students and disseminate finance and accounting related information, but occasionally I will share my thoughts on other topics like education, economics, politics and society. It is largely an opinion blog and I hope you find it useful for whatever purpose.
Also, if you are a potential employer, feel free to browse through my portfolio. Alternatively, you can click on the Portfolio link at the top of the page.
Samir Harith Portfolio
The Following E-Portfolio is constantly updated. Hardcopies and softcopies are available upon request
On Editing Articles
Today I just finished editing my first journal article. It seems a bit strange, knowing that your input can affect someone's career. Someone you don't even know, don't even care for but yet, part of me wanted to be nice. I wanted to not be too harsh because i know that one day, there will be some anonymous person from around the world, reviewing my article and I would like them to be favourable towards me.
What school do I send my daughter to?
As the years pass, my daughter grows older and I come to that point that all parents must consider: What kind of school do i send my child to?
I want to believe in the public school systems. I really do. I want to believe that the Malaysian education system can provide the right environment for my child to thrive, think critically and develop without being ostracised. I am a product of the public school system but I can't help thinking that I was one of the lucky ones. Lucky enough to have gone to good public schools and lucky enough to have been brought up in a predominantly english speaking urban area where my friends were Malaysians who could claim their first language to be English. Growing up in the Klang Valley exposed me to many opportunities which I feel may not exist in the rural North. Perhaps its the elitist PJ snob in me talking but how well will Northern children accept my english-speaking daughter? Will she be made fun of? Ostracised because she can't speak Malay well? Granted, she will learn the language, but at what cost?
Sunday, December 1, 2013
WTF is Equity????? - Part 3
Ok, so we have established that Equity is your investment into YOUR business and it is an important aspect of financing your business.
We have also established that bringing in more Equity means having to share your business with other people. Its kind of like bringing another person in to tell you how to live your life (why would ANYONE want to do that???).
Ok, but what we still have not explored is how Equity works out in the stock market.
First off, let us take a look at your normal business. It starts off as a normal single-owner business and then said single owner finds some partners to expand his business and they grow larger. So lets say the business grows EVEN larger, it needs more sources of finance. Debt is expensive, so said owner gets EVEN more people to contribute money to the business.
We have also established that bringing in more Equity means having to share your business with other people. Its kind of like bringing another person in to tell you how to live your life (why would ANYONE want to do that???).
Ok, but what we still have not explored is how Equity works out in the stock market.
First off, let us take a look at your normal business. It starts off as a normal single-owner business and then said single owner finds some partners to expand his business and they grow larger. So lets say the business grows EVEN larger, it needs more sources of finance. Debt is expensive, so said owner gets EVEN more people to contribute money to the business.
Monday, November 18, 2013
WTF is Equity???? - Part 2
Ok, so now we know what the dealie is with Equity, right? For those of you who forgot, you can continue reading, pretending that you DO know, or you can have a quick look here.
Equity is that magical word which basically represents your share of ownership in the business. So, as mentioned in the previous post, if you put in $1000 into your business, that means that you own a $1000 in you business. Right? Of course.
Now, you can continue with this 'arrangement' of being a lonely soul, owning your business all by yourself 100%. But yet, for some strange reason, Business Owners, (Just like Single Men) decide to go out and find a partner, even though they were doing perfectly fine on their own (Just like Single Men). So, lonely business owner seeking partner finds a partner and says, 'Hey, invest in my business and we can share profits equally!'
Equity is that magical word which basically represents your share of ownership in the business. So, as mentioned in the previous post, if you put in $1000 into your business, that means that you own a $1000 in you business. Right? Of course.
Now, you can continue with this 'arrangement' of being a lonely soul, owning your business all by yourself 100%. But yet, for some strange reason, Business Owners, (Just like Single Men) decide to go out and find a partner, even though they were doing perfectly fine on their own (Just like Single Men). So, lonely business owner seeking partner finds a partner and says, 'Hey, invest in my business and we can share profits equally!'
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