The farmer as asset manager
Article Abstract:
A report by the Ministry of Agriculture, Fisheries and Food has revealed that the aggregate owner equity percentage of UK farm balance sheets has declined from 84% to 70% from 1979 to 1986, mainly as a result of decreased land prices and increased borrowings. Balance sheet ratios have deteriorated because real farm incomes are at the lowest level since World War II. Additionally, farmers' flexibility in choosing enterprises is restricted as a result of long production cycles, limited resources and capital, and quotas. Farmers frequently need professional advice on how to maximize the productivity of their assets, particularly borrowed capital. Extant loans should be carefully studied and redistributed to reduce debt service. Farmers also must increase their real income rates, sell off unproductive assets and increase the income flow from both farming and nonfarming assets.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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You win some, you lose some
Article Abstract:
The rating system for valuing commercial property in the UK is being overhauled. At present, the rating of business properties consists of two elements, an assessment of ratable value by the Inland Revenue, and a levy of a rate poundage by the local authorities. The main problem with the present system is that it is based on property values rather than ability to pay. The new rating proposals that will take effect in 1990 attempt to rectify these problems. Renters should be especially cautious when filing information on properties and rents. The new system will decrease rates for commercial property in the North of England, while increasing rates in the South of England, which is currently more prosperous.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1988
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Business rates: the economic impact
Article Abstract:
In Great Britain, rate payments (payment for use of public utilities) by businesses and industries have increased from 1.8 billion pounds sterling in 1975 to 6.5 billion pounds sterling in 1985. Rate charge increases have outpaced inflation, energy costs and corporate taxes. Because rates are part of overhead costs, heavy rate charges can adversely affect a firm's profitability and competitiveness. In response to criticism from non-domestic rate payers, Parliament has proposed legislation which would change the way in which rates are fixed.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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