A Conceptual Approach to the Problem of Incorporating the Phenomenon of Debt Interdependencies upon Liquidation
Article Abstract:
When accounting for a corporate bankruptcy, the accountant and/or liquidators are faced with the difficult problem of estimating realizable values of assets when intercorporal, interdependent debt is a factor. Five alternatives of accounting for or estimating the realizable value of interdependent corporate debts, three of which are very arbitrary, are commonly used by accounts. The two analyzed in detail here are a valuation procedure employing a recursive process involving matrix algebra and a linear programming procedure. The use of the first method requires time-consuming calculations based on an algorthm that cause the method to be inefficient particularly when a large number of companies are involved in interdependent corporate debts. The most efficient and accurate method is determined to be the linear programming approach. This sophisticated business tool is effective for the solution of other corporate estimating problems that require complex mathematics.
Publication Name: Accounting and Finance
Subject: Business
ISSN: 0810-5391
Year: 1983
User Contributions:
Comment about this article or add new information about this topic:
Towards a conceptual framework for government auditing
Article Abstract:
This article attempts to contribute to a conceptual framework for government auditing by using agency concepts in government and public finance for the examination of underlying theoretical and practical issues. Three models of government auditing are formulated: sole monitoring, dual monitoring, and commercial monitoring. The main assumptions of these constructs are examined and their operations assessed in the context of international co-operation and dialogue among government auditing institutions. Problems relating to auditing accountability, audit mandate and auditor independence are identified and discussed. Despite some differences in these areas, there is a global tendency for the government auditing function to transcend the traditional parameters of financial attestation and legislative compliance in order to espouse broader notions implicit in the various gradations of comprehensive auditing. (Reprinted by permission of the publisher.)
Publication Name: Accounting and Finance
Subject: Business
ISSN: 0810-5391
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
Utilisation and restrictiveness of covenants in Australian private debt contracts
Article Abstract:
This paper investigates the accounting based covenants typically contained in the private debt contracts of listed Australian firms. In particular, cross sectional determinants of variation in covenant utilisation and restrictiveness are investigated. The primary source of data presented in the paper is a questionnaire completed by senior corporate managers of banks lending to listed Australian firms. In addition, standard and actual bank loan agreements are analysed. The survey results indicate that there is considerable cross-sectional variation in the utilisation and restrictiveness of covenants included in Australian private debt contracts, with this variation being partially explained by firm size and industry membership. The covenants most likely to be included are leverage, interest coverage, and prior charges ratios. (Reprinted by permission of the publisher.)
Publication Name: Accounting and Finance
Subject: Business
ISSN: 0810-5391
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: A synthetic factor approach to the estimation of value-at-risk of a portfolio of interest rate swaps. Evaluating implied RNDs by some new confidence interval estimation techniques
- Abstracts: A principled approach to providing assurance. Computer accounting - the way forward
- Abstracts: Accuracy and reliability of a technique for quantifying foot shape, dimensions and structural characteristics
- Abstracts: A binomial model for the valuation of corporate voting rights. The market valuation and trading volume effects of the creation of the Florida Hurricane Catastrophe Fund on property-liability insurers
- Abstracts: The TQM route to the top of the class. The Character Group. Tribal Group