2.3 Re-evaluation of Embedded Value Disclosures at Manulife
As there is significant need to accurately disclose the results of embedded value at Manulife, the Manulife Embedded Value team has committed to revamping their embedded value disclosure process. The following analysis will explain the changes the team has been continuing to implement for the past two years and what the effects of these changes will be.
2.3.1 Mixed Basis Reporting
In prior years, Manulife has reported the embedded value of the company on a Canadian International Financial Reporting Standards (C-IFRS) basis for all business units (Beharry, 2014). This proves difficult for Asian investors to see the value of the company relative to other companies who are using Asia
…show more content…
Keeping the goals of more ownership/accountability of the results by the Divisions and better commentary on all ends (Slichter, 2015), the embedded value team took the initiative of creating divisional, business unit and total company memo builders and templates. This will not only provide commentary on all levels to help get the full picture on embedded value, but it will also speed up the process for the embedded value team come time for annual reporting (Slichter, 2015).
2.3.4 Updated Guidance Procedures
Manulife has and will continue to refer to the updated guidance principles in each region to make sure that the company accurately reflects the embedded value in their financial reports. The updated versions of “Interim Draft Paper on the Considerations in the Determination of Embedded Value for Public Disclosure in Canada” (Canada) and “ASOP 19, Appraisals of Casualty, Health, and Life Insurance” (United States), and the mix of approaches in Asia, including Traditional EV and European EV, are documents continuously referred to while also using the Europe CFO Forum for further guidance (Beharry, 2014).
3.0 Conclusions
As reinforced by the analysis, embedded value has vital importance in valuing the
Following the Global Financial Crisis (GFC) of 2009 BlueScope was in its worst ever market position. As of 2011 the price of shares had hit record lows of 38c compared to $12.03 of just three years earlier, showing a 93% reduction in share prices. Huge financial losses were also recorded. In the 2010/2011 financia...
This narrative is to document the process to record equity in the financial statements. Gibson Energy ULC currently is not a publicly traded corporation and is a wholly owned subsidiary of Gibson Energy Holding ULC who is an indirect wholly owned subsidiary of R/C Guitar Cooperatief U.A., a Dutch co-op owned by investment funds affiliated with Riverstone Holdings LLC. As a result, the risks associated with recording share activity is low due to limited transactions and the process to record Share Capital is covered under the sub-process ‘Journal Entries’ documented in the Corporate Reporting Process Narrative. This narrative is focussed on Contributed Surplus, which currently is an Equity Incentive Plan (Stock based compensation).
Affirming values: Share with team members, regenerating and revitalizing the company vision, beliefs, values, and purposes.
This case discusses the unique value proposition of Dimensional Fund Advisors (DFA), which used academic research to create specialized portfolios focused on Small Capitalization companies. Their investment philosophy particularly focused on research by Fama and French and Banz. They researched how small cap companies tend to outperform large cap companies over time. In addition, FDA created an additional competitive advantage by created trading efficiencies to reduce transaction cost.
In the current industry trend of Universal Health Services, the company has a common stock traded on the New York Stock Exchange under the symbol UHS. This organization acts as the advisor to Universal Health Realty Income Trust (uhsinc.com, 2014). In fact, the annual reports of 2012-2014 show the attributable to UHS was $406.4 million in 2012, $452.1 million in 2013, and $581.8 million in 2014. Hence, compared to 6.96 billion in 2012, the net revenue increased 4.6 percent; to 7.28 billion in 2013, which further increased 10.7 percent; to 8.07 billion in 2014 (Annual Report Archive,
Is The Tyranny Of Shareholder Value Finally Ending? N.p., n.d. Web. The Web.
All financial information and notes are used to asses a company’s health and predict what the coming year may hold. The information found on the financials contains a large amount of information and once one understands how to interpret it then one has a visual of the company’s health.
In a significant step towards convergence, the FASB and IASB (“the Boards”) issued the Exposure Draft, Revenue from Contracts with Customers in 2010. The goal was to create a single joint revenue recognition standard that companies could apply consistently across industries and capital markets thereby improve financial reporting. The Boards highlighted a number of improvements in the proposed standard - removing inconsistencies, improving comparability, requiring enhanced disclosures and clarifying the accounting for contract costs. Instead of focusing on “realized/realizable” and “earned” the Exposure D...
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.
Furthermore, Cocoaland Holdings Berhad has the total revenue of RM50,000,000 in 2015 and RM10,000,000 in 2016. It can be seen that decrease RM40,000,000 compare to this both years. Additionally, this company’s debt consists of 34,685,858 in 2015 and 38,057,668 in 2016. Moreover, it consists of total equity and debt-to-equity ratio inside their capital that is 202,680,654 and 0.17 in 2015 and 2015239,503,310 and 0.16 in 2016. It can conclude that total equity increased and the debt-to-equity ratio was decreased compare to 2015 to
The companies I have selected for this assignment is Malaysia Steel Works (KL) Bhd (5098) and Kossan Rubber Industries Bhd. (7153), both of the company is from industrial products sector and its share is traded in main market.
The primary purpose of a financial report is to explain to users of financial information how an organisation creates value over time, therefore the information obtained must relevant and reliable. The aim of an Integrated Report is to allow a better communication of the organisations short, medium and long-term value creation propositions through providing a concise communication about how an organisation’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value...
Accounting profit can serve as an alternative to intrinsic value. But Buffett states that “...we do not measure the economic significance or performance of Berkshire by its size; we measure by per-share progress.” Accounting reality was conservative, backward looking, and governed by GAAP (measures in terms of net profit), therefore Buffett rejects this alternative. According to the world’s most famous investor, investment decisions should be based on economic reality, not on accounting
Explain how the company’s value-chain activities can be better linked to create value for the company.