Historical summaries: historical problem
Article Abstract:
The lack of a Statement of Standard Accounting Practice requiring historical summaries in corporation reports has led to a chaotic situation where firms decide whether to present historical summaries, what to include in them, and the reporting period to be covered. Some companies do offer historical summaries that adjust past figures to current values, but there is no consistency on what variables are reported on. A survey of the readers of the Society of Investment Analysts' magazine Professional Investor was conducted to determine whether investors would like a historical summary and what information should be covered. Ninety-seven percent of respondents favored historical summaries. Information desired included sales in the profit and loss account (cited by 98% of respondents), tangible fixed assets in the balance sheet (cited by 86% of respondents), and earnings per share in the ratios (cited by 87% of respondents).
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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Lloyd's: no easy money
Article Abstract:
Membership in Lloyd's of London provides members with prestige and the ability to make double-use of their capital. Members provide capital for their syndicates to underwrite insurance and are only required to deposit 30% of their personal premium limit which, in turn, can be invested. Lloyd's has been the subject of reforms to preclude illicit business practices in the past and additional reforms have been proposed to: reduce conflicts of interest by managing agents; abolish unlimited liability; and revise reinsurance arrangements. Recent trends at Lloyd's have included: increased business with the US; specialization in difficult risks; and increased competition from both US and captive insurance companies.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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