1.0 Introduction
The proposed project will present a detailed study of the financial reporting practices of Mansard Insurance Plc which will largely be based on it published financial statement for the year ended 2012. The project will cover all areas of the financial reporting systems that will include, reporting history, accounting policies, corporate governance, financial analysis, future outlook and limitations inherent in the Financial Statements.
The project proposal therefore presents brief information of Mansard Insurance Plc, evaluation of its current financial reporting practices, project methodology, proposed chapter headings and sub- Headings for the project report and a work program
Generally, the company financial reporting practices is structured to ensure full compliance with all applicable laws affecting financial statements and relevant accounting standard as specified by the Internal accounting Standard Board(IASB).
2.0 Mansard Insurance Plc Background
The company was incorporate as “Heritage Assurance Limited”, in June 23, 1989 as a private limited liability company. it was recognized and issued license to operate as a composite company by the regulator - National Insurance Commission(NAICOM) in March 2004. It changed its name to Guaranty Trust Assurance limited in 2004 when it was acquired by Guaranty Trust Bank. In 2006, it name was changed to Guaranty Trust Assurance Plc when it was listed at the Nigerian Stock Exchange. Following divestment of the Guarantee Trust Bank, its 67.8% holding was acquired by Assur Africa Holding (Mansardinsurance, 2014, p.3)
Mansard Insurance is one of the fastest growing and most profitable Insurance company in Nigeria, it is also the only in Nigeria with an ...
... middle of paper ...
...Using financial projection, economic value analysis and shareholder value analysis along with management and stakeholders’ expectation, this project will evaluate the future outlook for the company.
• Limitations inherent in the financial statement: This section will discuss the limitations inherent in the analysis of the company’s fianncials which will include regulatory issues, valuation and measurement issues and any other related information.
• Summary and conclusion: This is the final part of the project and will provide summary and conclusion arising from various findings. It will also state any recommendation that the author feels might create and add value to the company.
5.0 Project Timelines:
The project commences with a detailed proposal in week 4 and will run for four week to day 7 of week 7. The timeline is as highlighted in Appendix
The conclusion should be written out word for word. The conclusion should contain the following objectives:
The two main issues in this case are the project analysis and financial forecasting. The project should be analyzed before doing the forecasting, because any recommendations on the project will affect financial forecasting for the next two years.
Financial statement analysis: theory, application and interpretation / Leopold A Bernstein and John J. Wild 6th edition Mc Graw Hill 1998
This project belongs in the engineering-efficiency category; therefore, it has to fit at least 3 of 4 performance hurdles, which are 1. Impact on EPS; 2.Payback; 3.Discounted cash flow and 4. Internal rate of return.
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
Conclusion and Evaluation:
First is to examine each of those projects to the corporate objectives, compare and contrasting project selection criteria and justify why a project meets the selection criteria.
This section is subdivided into three parts. The first part explores on the methodology employed in achieving the results. This section includes tools and approaches employed in the research. The second section contains the results from the research. The final section discusses these results to identify any correlation with the thesis statement and the implications of the outcome to the investors and creditors.
... recommendation is that better protection should be provided for the management of financial risk. Benkol could use the Net Present Value technique to cover that. Benkol also lacks a proper risk assessment method. Benkol does not use a risk assessment matrix, nor scenario analysis and probability analysis is done by the project manager using subjective assumptions. This can be refined by implementing proper probability analysis and risk assessment matrix.
Insurance is a very important part of modern life and business. In this paper I will discuss the basic concepts of insurance, claims-made and occurrence liability policies, factors for selecting an insurance company and policies, and the difference between workers compensation and liability insurance.
According to the conceptual framework, the potential users of financial statements are investors, creditors, suppliers, employees, customers, governments and agencies, and the general public (Financial Accounting Standards Board, 2006). The primary users are investors, creditors, and those who advise them. It goes on to define the criteria that make up each potential user, as well as, the limitations of financial reporting. The FASB explicitly states that financial reporting is “but one source of information needed by those who make investment, credit, and similar resource allocation decisions. Users also need to consider pertinent information from other sources, and be aware of the characteristics and limitations of the information in them” (Financial Accounting Standards Board, 2006). With this in mind, it is still particularly difficult to determine whom the financials should be catered towards and what level of prudence is necessary for quality judgment.
Catastrophe bonds are a new type of insurance securitization and have become increasingly popular in the insurance industry throughout the 21st century. Unlike traditional reinsurance products, cat bonds are “fixed income instruments issued primarily by insurers and reinsurers as a way of passing on their exposure to potential large financial risks associated with natural catastrophes” (Ip). in the form of an insurance linked security. These securities are designed to protect insurers and reinsurers against “super” catastrophes, or events that are high severity, but low frequency of occurrence, defined as having around a 1% or 1 in 100 years probability. Cat bonds first emerged in the 1990s, after hurricane Andrew and the Northridge Earthquake in California wiped approximately USD 30 billion off balance sheets of insurers and reinsurers. Insurers and reinsurers noticed the industry’s vulnerability to such “super” catastrophes. “The potential cost of a disaster had outgrown the capacity of the insurance industry to protect against it” (Ip). Reinsurers had to increase equity levels in order to protect against a natural disaster which increased the price for catastrophe risk. Although catastrophe bonds have parameters which strictly limit the type and location of a disaster they cover, cat bonds have had a positive impact on the insurance industry because cat bonds add reinsurance capacity through the financial market, cat bonds influence the price of traditional reinsurance, and cat bonds enable regional insurance carriers to expand underwriting.
The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.