Notes, abstracts, papers, exams and problems of Economy

Consolidated Financial Statements

When Consolidated Financial Statements Cannot Be Compiled

Determine when a parent entity, which is itself a subsidiary, is *not* required to prepare consolidated financial statements:

• When the ultimate parent entity produces consolidated general-purpose financial statements that comply with full IFRSs or with IFRS for SMEs.
• When an entity has no subsidiaries other than one that was acquired with the intention of selling or disposing of it within one year.

Presumption of Control

Identify the circumstances under which control is presumed to exist:

• When the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity.
• When the parent owns half or less of the voting power of

When talking about tourism you always come with ideas like luxurious hotels, incredibles views, relaxing spaces, Paradise and pure fun, this is idea when think in Puerto Colombia.Nobody think and talk about tourism is the risk that this entails, risks as destruction of environment, pollution, overpopulation, among many other risks that result in the development of a tourist destination, but not only can we that about the risks that making Puerto Colombia a tourist city, the risks that would have been tourism in this areas, risks such as losing a large volume of visitors, less investment in the structure of city, that bring as a result less economic income to the city. So that question arise what is better, to make Puerto Colombia tourist destination... Continue reading "The Risks and Benefits of Making Puerto Colombia a Tourist Destination" »

Regional Dynamics

Speculative Housing Bubbles

Regional Comparative Advantage

• Natural Advantages
• Employee Characteristics
• Access to Transportation
• Quality of Life

Base & Service Industries

Location Quotient (LQ) > 1 is a base industry, LQ < 1 is a service industry

Housing Supply

• Housing Starts
• Existing Home Sales

Local Supply Influences

• Interest Rates
• Zoning
• Building Codes
• Land Terrain

Neighborhood Influences

• Public Goods
• School Quality/Capitalization Effect
• Public Services Provided Relative to Taxes Paid

Sales Comparison (Market) Approach

The "subject" is the property being appraised. "Comparables" are recently sold, similar properties.

Estimate the value of the subject by adjusting the sales price of the comparable for any differences.

Subject Value Estimate... Continue reading "Real Estate Valuation and Analysis" »

Convertible Securities: An Overview

Convertible securities are financial instruments that offer investors the flexibility to convert them into a different form or type of security, typically common stock. These securities provide investors with the potential for both fixed income and equity returns.

Types of Convertible Securities

• Convertible Bonds: Bonds that can be exchanged for a predetermined number of shares of common stock.
• Convertible Preferred Stock: Preferred stock that can be converted into common stock.

Key Features of Convertible Securities

• Conversion Ratio: The number of shares of common stock an investor will receive if they exchange their convertible security.
• Conversion Price: The price at which the convertible security can be converted

The United States: From Prosperity to Crisis

The Roaring Twenties

Economic growth in the United States continued throughout the decade following the end of the war (1918-1929). It was the decade of prosperity, the Roaring Twenties, in which the American way of life and the values that underpinned it (initiative, individual effort and success), which guaranteed the wealth and wellbeing of its citizens, became a model for the whole world.

Economic growth was based on a comprehensive transformation of goods manufacturing processes, which were dominated by technical innovation. Taylorism and Fordism helped increase productivity and reduce costs. The rise in workers' wages, advertising campaigns, hire purchase (payment for something in regular amounts)... Continue reading "The United States: From Prosperity to Crisis - The Roaring Twenties and the Wall Street Crash of 1929" »

It affects the behavior of consumers in a broad sense such as, for example, prompting them to make decisions that they would not have otherwise adopted.  

An Overview of Europe’s Film Industry

Ivana Katsarova

Despite pioneering both technological and content innovation in cinema, the EU film industry is currently characterized by the strong presence of Hollywood productions (70% market share in 2013). The major US companies benefit from vertical integration, encompassing both production and distribution, which allows them to spread risk and reinvest profits. To address the financing challenges faced by EU film companies, various film-support schemes have been established, totaling €2.1 billion in 2009.

Within the EU, the "big five" – France, Germany, the UK, Italy, and Spain – account for approximately 80% of releases, industry turnover, and employment.

Challenges Facing the European Film

Economics Study Guide

Fundamental Economic Concepts

Scarcity

Limited amount of resources to fulfill unlimited wants. Law of Diminishing Returns: As a company maximizes its factors of production, production becomes more difficult.

Opportunity Cost

The next best alternative sacrificed when making a choice.

Thinking at the Margin (T@M)

Making decisions based on the next unit or increment.

Production Possibilities Frontier (PPF)

A graph showing the possible combinations of two goods or services that can be produced with given resources and technology. Guns vs. Butter: A classic example of a simple PPF illustrating the trade-off between producing consumer goods and military goods.

Market Systems

Product Market

Where goods and services are bought and sold by... Continue reading "Economics Study Guide: Key Concepts and Definitions" »

International Trade: Barriers, Payments, and Protectionism

• Trade Barriers: Tariff or non-tariff measures.
• Balance of Payments: When trading, financial transactions occur among consumers worldwide, creating constant money flow. This is "the system of accounts that records a nation's international financial transactions, transactions between inhabitants and worldwide, using a double-entry bookkeeping system."
• Payments:
  • Goods imported
  • Spending by tourists
  • Outside investment
  • Foreign military spending
  Receipts:
  • Exports
  • Transportation payments
  • Payments from FDI abroad
• Accounts:
  • Current Account: Export and import of goods and services.
  • Capital Account: Record of investment (direct, portfolio, short-term).
  • Reserves: Export and import of gold, changes in foreign

DIVIDEND POLICY

Factors Influencing Dividend Decisions

Rate of Asset Expansion

Companies planning significant expansion may retain earnings to finance growth, avoiding the cost and time involved in raising new capital.

Profit Rate

A company's profitability directly impacts its ability to pay dividends. Higher profits lead to more available cash for distribution to shareholders.

Earnings Stability

Companies with stable earnings are more likely to consistently pay dividends compared to those with volatile earnings.

Access to Capital Markets

Easy access to capital markets allows companies to raise funds for expansion without retaining earnings, providing flexibility in dividend policy.

Control and Ownership

Management may retain earnings to maintain control... Continue reading "Understanding Dividend Policies: Factors, Models, and Strategies" »