The use of cell captives to manage financial risks
- Authors: Bakker, Daniel
- Date: 2010-11-22T07:55:04Z
- Subjects: Risk management , Finance
- Type: Thesis
- Identifier: uj:7007 , http://hdl.handle.net/10210/3515
- Description: M.Comm. , Every modern-day company is faced with challenges on a daily basis to improve its performance. This challenge stretches further than the financial target that is received from the shareholders every year and boils right down to the day to day operations of a company. How does the company perform according to the market, does the company have a uniqueness that will allow for a competitive advantage, how can costs be reduced in order to create value in terms of shareholders and how to stay the blueprint company with its competitors seen as followers. The objective of this study is to determine the effect that financial risk management in terms of a cell captive insurance facility has on a company, especially the financial side and ultimately to provide a framework on the implementation of a cell captive insurance facility. A cell captive insurance facility stems from the self insurance principle and is tailored to a unique product offered by various insurance companies. It enables a company to insure its frequent losses at a lower premium than the insurance market and all surpluses resulting from the Captive can be regarded as profit to the owner of the captive or used to lower the following year's contribution. In order to obtain a Cell Captive's insurance facility, a company must purchase shares in an insurance company, known as a sponsor, and hereby receive certain insurance amenities. The captive that is now formed enables a company to insure all business related activities against possible risks with a further extension of the definition 'business related activities'. Due to the unlikely event to completely self insure, with regards to the cost implication and bearing the size of the captive in mind to cover all possible financial losses, an underwritten agreement between the cell captive owner and the sponsor insurance company should cater for all catastrophic risks which protects the captive from collapsing, due to a massive loss. With the creation of a cell captive insurance facility, the owner of the captive can extend on all its business related activities and offer insurance products to its employees and clients, with a reasonably reduce rate compared to the insurance market. The success of theses products can be so-good that the financial impact on the captive proofs the products to be self-reliant and even generates an income for the cell captive insurance facility. As a result of the objective to implement effective risk management via a cell captive insurance facility and to create profit by doing so, the results of the Vodacom Group was used in order to emphasize the successfulness of a cell captive insurance facility. Vodacom Group saved or rather refer to the term as "created" a net underwriting profit that amounts to R 3,385,275 in the first three months by using its Cell Captive Insurance Facility. Thats more than enough to prove the financial gain, but the company also benefited from the fact that it now has the ability to educate its managers and their management styles. The captive can no act as the focal point of the Group's risk management effort, by focusing the minds of senior management on the causes of claims and means to combat that.
- Full Text:
- Authors: Bakker, Daniel
- Date: 2010-11-22T07:55:04Z
- Subjects: Risk management , Finance
- Type: Thesis
- Identifier: uj:7007 , http://hdl.handle.net/10210/3515
- Description: M.Comm. , Every modern-day company is faced with challenges on a daily basis to improve its performance. This challenge stretches further than the financial target that is received from the shareholders every year and boils right down to the day to day operations of a company. How does the company perform according to the market, does the company have a uniqueness that will allow for a competitive advantage, how can costs be reduced in order to create value in terms of shareholders and how to stay the blueprint company with its competitors seen as followers. The objective of this study is to determine the effect that financial risk management in terms of a cell captive insurance facility has on a company, especially the financial side and ultimately to provide a framework on the implementation of a cell captive insurance facility. A cell captive insurance facility stems from the self insurance principle and is tailored to a unique product offered by various insurance companies. It enables a company to insure its frequent losses at a lower premium than the insurance market and all surpluses resulting from the Captive can be regarded as profit to the owner of the captive or used to lower the following year's contribution. In order to obtain a Cell Captive's insurance facility, a company must purchase shares in an insurance company, known as a sponsor, and hereby receive certain insurance amenities. The captive that is now formed enables a company to insure all business related activities against possible risks with a further extension of the definition 'business related activities'. Due to the unlikely event to completely self insure, with regards to the cost implication and bearing the size of the captive in mind to cover all possible financial losses, an underwritten agreement between the cell captive owner and the sponsor insurance company should cater for all catastrophic risks which protects the captive from collapsing, due to a massive loss. With the creation of a cell captive insurance facility, the owner of the captive can extend on all its business related activities and offer insurance products to its employees and clients, with a reasonably reduce rate compared to the insurance market. The success of theses products can be so-good that the financial impact on the captive proofs the products to be self-reliant and even generates an income for the cell captive insurance facility. As a result of the objective to implement effective risk management via a cell captive insurance facility and to create profit by doing so, the results of the Vodacom Group was used in order to emphasize the successfulness of a cell captive insurance facility. Vodacom Group saved or rather refer to the term as "created" a net underwriting profit that amounts to R 3,385,275 in the first three months by using its Cell Captive Insurance Facility. Thats more than enough to prove the financial gain, but the company also benefited from the fact that it now has the ability to educate its managers and their management styles. The captive can no act as the focal point of the Group's risk management effort, by focusing the minds of senior management on the causes of claims and means to combat that.
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Die gebruik van rekeningkundige ingenieurswese deur maatskappye in Suid-Afrika
- Authors: Bezuidenhout, Jan Jacobus
- Date: 2012-09-05
- Subjects: Financial statements, Misleading - South Africa
- Type: Mini-Dissertation
- Identifier: uj:3574 , http://hdl.handle.net/10210/6957
- Description: M.Comm. , Die probleem vir die gebruikers van finansiele jaarstate is eerstens dat hul nie weet met watter oogmerk die state opgestel is nie. Dit maak dit moeilik om enige metode van ontleding van die state te gebruik, aangesien dit nie uit die opsteller se oogpunt gesien en verstaan word nie. Tweedens het gebruikers die probleem dat hul nie 'n metode het om te bepaal tot watter mate hulle kan vertrou op 'n maatskappy se finansiële state, gebaseer op die doelwitte van die opsteller nie. Die implikasie hiervan, veral vir beleggers, is dat die risiko met sekere beleggings geweldig kan vergroot sonder dat die belegger daarvan bewus is. Beleggers, finansierders en ander krediteure kan groot bedrae geld verloor, terwyl werknemers se werk in gevaar kan wees. DOEL VAN DIE STUDIE Die hoofdoel van die studie is om 'n model te ontwikkel waarmee die gebruikers van finansiële state kan vasstel of hulle op 'n maatskappy se finansiële syfers kan vertrou of nie. Die sekondêre doelwitte van die studie, ten einde die hoofdoel te bereik, is as volg: Die ontwerp van 'n vraelys wat gebruik kan word by die bepaling van die opsteller se oogmerk met die opstel van die finansiele state. Die ontwerp van 'n Suid-Afrikaanse model om die gebruik van rekeningkundige ingenieurswese te bepaal. Die ontwerp van 'n strategiese kontrolelys as verdere kwalitatiewe hulpmiddel om te bepaal of daar op syfers vertrou kan word of nie.
- Full Text:
- Authors: Bezuidenhout, Jan Jacobus
- Date: 2012-09-05
- Subjects: Financial statements, Misleading - South Africa
- Type: Mini-Dissertation
- Identifier: uj:3574 , http://hdl.handle.net/10210/6957
- Description: M.Comm. , Die probleem vir die gebruikers van finansiele jaarstate is eerstens dat hul nie weet met watter oogmerk die state opgestel is nie. Dit maak dit moeilik om enige metode van ontleding van die state te gebruik, aangesien dit nie uit die opsteller se oogpunt gesien en verstaan word nie. Tweedens het gebruikers die probleem dat hul nie 'n metode het om te bepaal tot watter mate hulle kan vertrou op 'n maatskappy se finansiële state, gebaseer op die doelwitte van die opsteller nie. Die implikasie hiervan, veral vir beleggers, is dat die risiko met sekere beleggings geweldig kan vergroot sonder dat die belegger daarvan bewus is. Beleggers, finansierders en ander krediteure kan groot bedrae geld verloor, terwyl werknemers se werk in gevaar kan wees. DOEL VAN DIE STUDIE Die hoofdoel van die studie is om 'n model te ontwikkel waarmee die gebruikers van finansiële state kan vasstel of hulle op 'n maatskappy se finansiële syfers kan vertrou of nie. Die sekondêre doelwitte van die studie, ten einde die hoofdoel te bereik, is as volg: Die ontwerp van 'n vraelys wat gebruik kan word by die bepaling van die opsteller se oogmerk met die opstel van die finansiele state. Die ontwerp van 'n Suid-Afrikaanse model om die gebruik van rekeningkundige ingenieurswese te bepaal. Die ontwerp van 'n strategiese kontrolelys as verdere kwalitatiewe hulpmiddel om te bepaal of daar op syfers vertrou kan word of nie.
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Determining tax liability of immovable property leases
- Authors: Du Preez, Andries Stephanus
- Date: 2011-12-06
- Subjects: Real property and taxation
- Type: Thesis
- Identifier: uj:1787 , http://hdl.handle.net/10210/4151
- Description: M.Comm. , The for-profit business must maximise owners' wealth over the long term. It is accomplished by legally structuring the lease to minimise tax liability. Accounting profits and tax liability arising from the lease are determined in different ways: different lease structures could result in similar accounting profits, but different tax liability. A lease's accounting profits may be preestimated with relative certainty, but it's difficult to pre-estimate its tax liability. It's especially difficult with long-term leases that stretch over a number of accounting periods and tax years. There isn't a specific framework with which tax liability arising from the lease of immovable property may be determined and minimised. This study focuses on determining and minimising income tax liability within the context of the leasing of immovable property in South Africa. The workings of the factors that give rise to the tax liability are distinguished. Different types oflease agreements, reflecting the commercial objectives, are identified. A framework is then constructed from these factors to simplizy determination of the tax liability, and to structure the lease so that tax liability may be reduced. The different types of lease agreements are imposed on the framework to subordinate the reduction of tax liability to the parties' commercial objectives.
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- Authors: Du Preez, Andries Stephanus
- Date: 2011-12-06
- Subjects: Real property and taxation
- Type: Thesis
- Identifier: uj:1787 , http://hdl.handle.net/10210/4151
- Description: M.Comm. , The for-profit business must maximise owners' wealth over the long term. It is accomplished by legally structuring the lease to minimise tax liability. Accounting profits and tax liability arising from the lease are determined in different ways: different lease structures could result in similar accounting profits, but different tax liability. A lease's accounting profits may be preestimated with relative certainty, but it's difficult to pre-estimate its tax liability. It's especially difficult with long-term leases that stretch over a number of accounting periods and tax years. There isn't a specific framework with which tax liability arising from the lease of immovable property may be determined and minimised. This study focuses on determining and minimising income tax liability within the context of the leasing of immovable property in South Africa. The workings of the factors that give rise to the tax liability are distinguished. Different types oflease agreements, reflecting the commercial objectives, are identified. A framework is then constructed from these factors to simplizy determination of the tax liability, and to structure the lease so that tax liability may be reduced. The different types of lease agreements are imposed on the framework to subordinate the reduction of tax liability to the parties' commercial objectives.
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The mitigation of financial risk associated with capital projects
- Authors: Gentle, Frank Edward
- Date: 2011-12-06
- Subjects: Risk management
- Type: Mini-Dissertation
- Identifier: http://ujcontent.uj.ac.za8080/10210/376890 , uj:1802 , http://hdl.handle.net/10210/4165
- Description: M.Comm.
- Full Text:
- Authors: Gentle, Frank Edward
- Date: 2011-12-06
- Subjects: Risk management
- Type: Mini-Dissertation
- Identifier: http://ujcontent.uj.ac.za8080/10210/376890 , uj:1802 , http://hdl.handle.net/10210/4165
- Description: M.Comm.
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Delivering broadband to the mass market : the cable business model
- Gertenbach, Jacobus Johannes
- Authors: Gertenbach, Jacobus Johannes
- Date: 2012-02-06
- Subjects: Broadband communication systems
- Type: Mini-Dissertation
- Identifier: uj:2019 , http://hdl.handle.net/10210/4371
- Description: M.Comm. , The successful delivery of broadband communication services to the mass market is a critical factor in the technological advancement of modern society. As broadband transitions from a nascent technology for the early adopter into a mass market platform that will reach tens of millions of customers over the coming years, the market outlook suggests fast but manageable growth and very solid returns for broadband investors. In the United States of America, a number of companies are racing to deliver broadband services to consumer and small businesses using various different technologies. Among these companies, Broadband Cable Operators have emerged as new entrants, utilizing the latest network technology available to build new high-speed, two-way communication networks. But the emerging broadband providers have shown weak operating performance, characterized by excessive net losses and negative cash flow, causing significant delays in reaching breakeven and turning profitable. The primary problem is whether the broadband business model, in its current form, can generate adequate gross and net profit margins to realize an acceptable risk adjusted return on investment. its obsolescence in the next decade. Financially, the latent demand for broadband services will allow subscriber growth and pricing to grow revenue and generate positive cash flow from the fourth year of operations. The capital expenditure and operational costs can be controlled to enable an adequate risk adjusted return on investment On the downside, the payback period extends into the gth year of operation, an indication of the level of financial risk involved. The profitability of the venture is able to outperform the required risk adjusted return on capital, but the terminal value, although estimated conservatively, represents a significant portion of the value of the venture. The risk of technological obsolescence could have a significant impact on the venture a decade from today.
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- Authors: Gertenbach, Jacobus Johannes
- Date: 2012-02-06
- Subjects: Broadband communication systems
- Type: Mini-Dissertation
- Identifier: uj:2019 , http://hdl.handle.net/10210/4371
- Description: M.Comm. , The successful delivery of broadband communication services to the mass market is a critical factor in the technological advancement of modern society. As broadband transitions from a nascent technology for the early adopter into a mass market platform that will reach tens of millions of customers over the coming years, the market outlook suggests fast but manageable growth and very solid returns for broadband investors. In the United States of America, a number of companies are racing to deliver broadband services to consumer and small businesses using various different technologies. Among these companies, Broadband Cable Operators have emerged as new entrants, utilizing the latest network technology available to build new high-speed, two-way communication networks. But the emerging broadband providers have shown weak operating performance, characterized by excessive net losses and negative cash flow, causing significant delays in reaching breakeven and turning profitable. The primary problem is whether the broadband business model, in its current form, can generate adequate gross and net profit margins to realize an acceptable risk adjusted return on investment. its obsolescence in the next decade. Financially, the latent demand for broadband services will allow subscriber growth and pricing to grow revenue and generate positive cash flow from the fourth year of operations. The capital expenditure and operational costs can be controlled to enable an adequate risk adjusted return on investment On the downside, the payback period extends into the gth year of operation, an indication of the level of financial risk involved. The profitability of the venture is able to outperform the required risk adjusted return on capital, but the terminal value, although estimated conservatively, represents a significant portion of the value of the venture. The risk of technological obsolescence could have a significant impact on the venture a decade from today.
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An investment decision framework for non specialist investors
- Hickman, Thomas Nicolaas John
- Authors: Hickman, Thomas Nicolaas John
- Date: 2010-10-04T08:37:50Z
- Subjects: Investments , Investments decision making , Individual investors
- Type: Thesis
- Identifier: uj:6918 , http://hdl.handle.net/10210/3429
- Description: M.Comm. , Many people work for their money but do not know how to make their money work for them. The subject of investment is foreign and even daunting to many people that can potentially benefit from investing their money wisely. While earning money is something most people are actively focussed on through the application of their skills, talents and gained knowledge, not many people are so focused on or adept at the management of their money after they earned it. Such individuals include professionals like engineers, lawyers, doctors, accountants as well as managers, entrepreneurs or tradesmen. In actual fact it includes all people that have not been specifically trained or exposed to the selection and management of investments. It is for this reason that a decision framework to aid such non specialist investors in their investment decisions have been conceptualised. This study will demystify general considerations related to investments and investment management and to open the field of investment management to non specialist investors by providing them with an investment selection decision framework. The study conducted thorough research into the different investment types available as well as the considerations that go with the subject of investment and investment management. The research findings clarify why people need to invest their money, the options that exist to choose from, the distinguishing features and considerations of investments options, how to gain access to different investment options and also who the stakeholders in the investment industry are. The decision support framework combines the learnings from the research into a simple to use tool whereby potential investors are guided through structured questions to derive at a list of investment types that most likely will meet their investment needs and preferences.
- Full Text:
- Authors: Hickman, Thomas Nicolaas John
- Date: 2010-10-04T08:37:50Z
- Subjects: Investments , Investments decision making , Individual investors
- Type: Thesis
- Identifier: uj:6918 , http://hdl.handle.net/10210/3429
- Description: M.Comm. , Many people work for their money but do not know how to make their money work for them. The subject of investment is foreign and even daunting to many people that can potentially benefit from investing their money wisely. While earning money is something most people are actively focussed on through the application of their skills, talents and gained knowledge, not many people are so focused on or adept at the management of their money after they earned it. Such individuals include professionals like engineers, lawyers, doctors, accountants as well as managers, entrepreneurs or tradesmen. In actual fact it includes all people that have not been specifically trained or exposed to the selection and management of investments. It is for this reason that a decision framework to aid such non specialist investors in their investment decisions have been conceptualised. This study will demystify general considerations related to investments and investment management and to open the field of investment management to non specialist investors by providing them with an investment selection decision framework. The study conducted thorough research into the different investment types available as well as the considerations that go with the subject of investment and investment management. The research findings clarify why people need to invest their money, the options that exist to choose from, the distinguishing features and considerations of investments options, how to gain access to different investment options and also who the stakeholders in the investment industry are. The decision support framework combines the learnings from the research into a simple to use tool whereby potential investors are guided through structured questions to derive at a list of investment types that most likely will meet their investment needs and preferences.
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Die interaktiewe bestuur van 'n vennootskap en die kontinuiteit na ontbinding
- Authors: Human, Seugnet
- Date: 2012-01-25
- Subjects: Partnership
- Type: Thesis
- Identifier: uj:1960 , http://hdl.handle.net/10210/4318
- Description: M.Comm.
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- Authors: Human, Seugnet
- Date: 2012-01-25
- Subjects: Partnership
- Type: Thesis
- Identifier: uj:1960 , http://hdl.handle.net/10210/4318
- Description: M.Comm.
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A risk management system for the international services marketing division of a financial institution
- Authors: Swanepoel, André Pieter
- Date: 2011-12-06
- Subjects: ABSA Bank , Risk management , Financial institutions management
- Type: Mini-Dissertation
- Identifier: uj:1856 , http://hdl.handle.net/10210/4213
- Description: M.Comm. , The International Banking division of Absa has an administrative as well as a sales aspect forming the basis of services delivered to the banking customer. For the administrative aspect a risk management system along with audit methodology have been implemented whilst for the Sales aspect no control procedure have been applied at all. The purpose of this dissertation therefore was to put forward a risk management system which could be applied to the International Services Marketing division of a Financial Institution like Absa. This was achieved by performing a literature study of risk management applied in the financial industry in order to identify relevant risks and relating it to the International Banking division and its sales process to design an adequate risk management system. The system was designed and implemented with relative ease although sceptism contrived to some teething problems. However, in a joint effort to mitigate risk all obstacles in the application of the system were removed, resulting in a successful risk and control analysis being performed along with implementing risk management plans. The system has been applied in the local as well as several African financial industries with great success in mitigating risk relevant to the International Banking Sales divisions of the financial institutions. The emphasis is now on implementation in more developed (western) financial industries where Absa has several subsidiaries as well as the design of audit methodology for the relevant divisions.
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- Authors: Swanepoel, André Pieter
- Date: 2011-12-06
- Subjects: ABSA Bank , Risk management , Financial institutions management
- Type: Mini-Dissertation
- Identifier: uj:1856 , http://hdl.handle.net/10210/4213
- Description: M.Comm. , The International Banking division of Absa has an administrative as well as a sales aspect forming the basis of services delivered to the banking customer. For the administrative aspect a risk management system along with audit methodology have been implemented whilst for the Sales aspect no control procedure have been applied at all. The purpose of this dissertation therefore was to put forward a risk management system which could be applied to the International Services Marketing division of a Financial Institution like Absa. This was achieved by performing a literature study of risk management applied in the financial industry in order to identify relevant risks and relating it to the International Banking division and its sales process to design an adequate risk management system. The system was designed and implemented with relative ease although sceptism contrived to some teething problems. However, in a joint effort to mitigate risk all obstacles in the application of the system were removed, resulting in a successful risk and control analysis being performed along with implementing risk management plans. The system has been applied in the local as well as several African financial industries with great success in mitigating risk relevant to the International Banking Sales divisions of the financial institutions. The emphasis is now on implementation in more developed (western) financial industries where Absa has several subsidiaries as well as the design of audit methodology for the relevant divisions.
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Evaluering van tegniese analise vir beleggings in genoteerde aandele
- Van der Merwe, Petrus Johannes
- Authors: Van der Merwe, Petrus Johannes
- Date: 2012-09-05
- Subjects: Johannesburg Stock Exchange , Stocks - South Africa , Investments - South Africa
- Type: Thesis
- Identifier: uj:3618 , http://hdl.handle.net/10210/6997
- Description: M.Comm. , The Johannesburg Stock Exchange provides an opportunity for investors to realise huge returns. A variety of tools are used by these investors to invest capital in shares for growth in excess of the market movement. Technical analysis is one of the techniques claimed by some parties to be the key aspect in investment decision making. A trading system can be derived from technical indicators to provide the investor with buying and selling signals. It is the objective of this investigation to make a judgement on the effectiveness of a few technical trading systems based on performance relative to the normal market movement. The trading systems under investigation are the basic moving average system, multiple moving average crossing system, real strength indicator system, multiple moving average convergence-divergence trading system, moving average chord system and the market momentum system. The results show that these trading systems all performed worse than the normal market movement on the 95% statistical confidence interval. It is therefore concluded that the use of technical analysis in isolation will not insure a good investment decision on the Johannesburg Stock Exchange.
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- Authors: Van der Merwe, Petrus Johannes
- Date: 2012-09-05
- Subjects: Johannesburg Stock Exchange , Stocks - South Africa , Investments - South Africa
- Type: Thesis
- Identifier: uj:3618 , http://hdl.handle.net/10210/6997
- Description: M.Comm. , The Johannesburg Stock Exchange provides an opportunity for investors to realise huge returns. A variety of tools are used by these investors to invest capital in shares for growth in excess of the market movement. Technical analysis is one of the techniques claimed by some parties to be the key aspect in investment decision making. A trading system can be derived from technical indicators to provide the investor with buying and selling signals. It is the objective of this investigation to make a judgement on the effectiveness of a few technical trading systems based on performance relative to the normal market movement. The trading systems under investigation are the basic moving average system, multiple moving average crossing system, real strength indicator system, multiple moving average convergence-divergence trading system, moving average chord system and the market momentum system. The results show that these trading systems all performed worse than the normal market movement on the 95% statistical confidence interval. It is therefore concluded that the use of technical analysis in isolation will not insure a good investment decision on the Johannesburg Stock Exchange.
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Valuation of intellectual property and intangible assets
- Authors: Van der Walt, Deon
- Date: 2010-02-24T08:40:26Z
- Subjects: Intellectual property valuation , Intangible property valuation , Valuation
- Type: Thesis
- Identifier: uj:6637 , http://hdl.handle.net/10210/3038
- Description: M.Comm. , Intangible assets are increasingly becoming the critical determinant of value creation and future profitability of most businesses. There is a clear distinction between the accounting treatment of physical assets and are reported on the firm’s balance sheets, but intangible assets are by large written off in the income statement, along with regular expenses such as wages, rents and interest. This distorted treatment of intangibles in an accounting sense, has dire consequences for managers, investors and policymakers relying on financial information, thus giving an extremely limited view of a company’s potential for value creation and are virtually worthless as a basis for assessing the value of intangible assets as a whole. This paper is limited to the valuation of intellectual property and intangible assets not reflected on the balance sheet and is primarily aimed at researching, exploring and identifying various intangible asset valuation techniques used to make investment decisions; the advantages and disadvantages of each valuation method so identified; identifying which one or more of the valuation methods identified is the most appropriate measure to valuate intangible assets; identifying the accuracy of the most appropriate valuation method selected as compared with the other methods. The problems posed by intangible assets appear to be based on two levels. The first is the difficulty to identify, collect and analyse data regarding intangible assets. The second overlapping level is the lack of external financial reporting on intangibles. The problem herein manifests itself in the lack of recognition of the current accounting principles, thus resulting in intangible assets not being systematically reported in financial statements leading to a lopsided view of the assets employed by a company to generate revenues.
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- Authors: Van der Walt, Deon
- Date: 2010-02-24T08:40:26Z
- Subjects: Intellectual property valuation , Intangible property valuation , Valuation
- Type: Thesis
- Identifier: uj:6637 , http://hdl.handle.net/10210/3038
- Description: M.Comm. , Intangible assets are increasingly becoming the critical determinant of value creation and future profitability of most businesses. There is a clear distinction between the accounting treatment of physical assets and are reported on the firm’s balance sheets, but intangible assets are by large written off in the income statement, along with regular expenses such as wages, rents and interest. This distorted treatment of intangibles in an accounting sense, has dire consequences for managers, investors and policymakers relying on financial information, thus giving an extremely limited view of a company’s potential for value creation and are virtually worthless as a basis for assessing the value of intangible assets as a whole. This paper is limited to the valuation of intellectual property and intangible assets not reflected on the balance sheet and is primarily aimed at researching, exploring and identifying various intangible asset valuation techniques used to make investment decisions; the advantages and disadvantages of each valuation method so identified; identifying which one or more of the valuation methods identified is the most appropriate measure to valuate intangible assets; identifying the accuracy of the most appropriate valuation method selected as compared with the other methods. The problems posed by intangible assets appear to be based on two levels. The first is the difficulty to identify, collect and analyse data regarding intangible assets. The second overlapping level is the lack of external financial reporting on intangibles. The problem herein manifests itself in the lack of recognition of the current accounting principles, thus resulting in intangible assets not being systematically reported in financial statements leading to a lopsided view of the assets employed by a company to generate revenues.
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'n Ondersoek na alternatiewe metodes van kredietrisikoverskansing in die staalbedryf
- Van der Walt, Johanna Cornelia
- Authors: Van der Walt, Johanna Cornelia
- Date: 2011-12-07
- Subjects: Risk management , Steel industry and trade
- Type: Thesis
- Identifier: uj:1858 , http://hdl.handle.net/10210/4215
- Description: M.Comm. , Many companies, especially in the steel industry, are today required to dedicate much of their time to managing the risks they are faced with. Risk can be defined as the uncertainty or probability of the potential deviation from the expected or the norm. Risk management therefore encompasses all activities undertaken by management, which seek to reduce either the probability of a potential deviation and/or the quantum of the potential deviation. The risk management process is therefore aimed at ensuring that the steel company will deliver to its shareholders the earnings that are expected of them. In order to avoid these potential risks, the steel company has to make sure that the clients that the company are doing business with have the ability and willingness to pay their accounts. There is a very thin line between choosing potential clients and the sales that will be gained from dealing with these debtors, and the risk that these debtors has for the steel company. It is therefore important to categorize the debtors into different risk profiles. After the category of risk is identified, the steel company has to choose between different credit insurance methods to cover risks. The methods that are currently available in the steel industry are rigid, and are costing the company money, that could have been invested elsewhere in the company. It is therefore important to look at alternative methods to either avoid the risks or cover the risks. It depends on the type of client the company is doing business with. The clients can be classified as A, B, C or D risk profile. The composition of the debtors book in terms of risk profiles will be the criteria for choosing a method for credit insurance.
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- Authors: Van der Walt, Johanna Cornelia
- Date: 2011-12-07
- Subjects: Risk management , Steel industry and trade
- Type: Thesis
- Identifier: uj:1858 , http://hdl.handle.net/10210/4215
- Description: M.Comm. , Many companies, especially in the steel industry, are today required to dedicate much of their time to managing the risks they are faced with. Risk can be defined as the uncertainty or probability of the potential deviation from the expected or the norm. Risk management therefore encompasses all activities undertaken by management, which seek to reduce either the probability of a potential deviation and/or the quantum of the potential deviation. The risk management process is therefore aimed at ensuring that the steel company will deliver to its shareholders the earnings that are expected of them. In order to avoid these potential risks, the steel company has to make sure that the clients that the company are doing business with have the ability and willingness to pay their accounts. There is a very thin line between choosing potential clients and the sales that will be gained from dealing with these debtors, and the risk that these debtors has for the steel company. It is therefore important to categorize the debtors into different risk profiles. After the category of risk is identified, the steel company has to choose between different credit insurance methods to cover risks. The methods that are currently available in the steel industry are rigid, and are costing the company money, that could have been invested elsewhere in the company. It is therefore important to look at alternative methods to either avoid the risks or cover the risks. It depends on the type of client the company is doing business with. The clients can be classified as A, B, C or D risk profile. The composition of the debtors book in terms of risk profiles will be the criteria for choosing a method for credit insurance.
- Full Text:
Service quality measurement for non-executive directors in public entities
- Authors: Van Wyk, M.F.
- Date: 2012-09-12
- Subjects: Corporate governance -- Quality control , Directors of corporations -- Rating of
- Type: Thesis
- Identifier: uj:10167 , http://hdl.handle.net/10210/7545
- Description: D.Comm. , In commercial corporations shareholders, at least in theory, evaluate the performance of the boards they have appointed. Such evaluation is mainly based on the financial performance of the entity. Public (state funded) entities have only the state as shareholder and the performance of their boards is not evaluated by the taxpayers who ultimately pay the directors' fees. The term "public entity" refers to 20 corporations with an annual turnover in excess of R 55 billion which are substantially tax-funded or are awarded a market monopoly in terms of legislation by parliament. Although these public entities are regularly criticised by the press, the academic literature reports neither an assessment of the quality of governance by their non-executive directors' nor any instrument to use in such an assessment. The aim of this study was to measure the expectations and perceptions of executives in public entities about their non-executive boards' corporate governance service. This began with a literature was analysis, firstly to define what "proper" corporate governance and secondly to find a recognised methodology to use in the development of an assessment instrument. It was found that two main corporate governance models were generally recognised, namely the United Kingdom model and the German model. The United Kingdom model advocates a single board comprising both executive and non-executive directors while the German model has a supervisory board of non-executive directors overseeing the activities of an executive management board. It was further found that, contrary to King's (1994) recommendation to use unitary boards, the 20 listed public entities all had supervisory boards as advocated in the German model. A procedure advocated by Churchill (1979:65-72), in his paradigm for developing measures of marketing constructs, proved to be very successful in the development in the United States of America of an instrument named SERVQUAL which was applied in the general service arena where a paying client evaluated a service. Churchill's method was therefore used in this study to develop an instrument called ECGSI to measure the quality of governance of listed public entities' non-executive boards. The opinions of executives attending board meetings, e.g. to make presentations, were used both to develop ECGSI and to measure the quality of the non-executive directors' service.
- Full Text:
- Authors: Van Wyk, M.F.
- Date: 2012-09-12
- Subjects: Corporate governance -- Quality control , Directors of corporations -- Rating of
- Type: Thesis
- Identifier: uj:10167 , http://hdl.handle.net/10210/7545
- Description: D.Comm. , In commercial corporations shareholders, at least in theory, evaluate the performance of the boards they have appointed. Such evaluation is mainly based on the financial performance of the entity. Public (state funded) entities have only the state as shareholder and the performance of their boards is not evaluated by the taxpayers who ultimately pay the directors' fees. The term "public entity" refers to 20 corporations with an annual turnover in excess of R 55 billion which are substantially tax-funded or are awarded a market monopoly in terms of legislation by parliament. Although these public entities are regularly criticised by the press, the academic literature reports neither an assessment of the quality of governance by their non-executive directors' nor any instrument to use in such an assessment. The aim of this study was to measure the expectations and perceptions of executives in public entities about their non-executive boards' corporate governance service. This began with a literature was analysis, firstly to define what "proper" corporate governance and secondly to find a recognised methodology to use in the development of an assessment instrument. It was found that two main corporate governance models were generally recognised, namely the United Kingdom model and the German model. The United Kingdom model advocates a single board comprising both executive and non-executive directors while the German model has a supervisory board of non-executive directors overseeing the activities of an executive management board. It was further found that, contrary to King's (1994) recommendation to use unitary boards, the 20 listed public entities all had supervisory boards as advocated in the German model. A procedure advocated by Churchill (1979:65-72), in his paradigm for developing measures of marketing constructs, proved to be very successful in the development in the United States of America of an instrument named SERVQUAL which was applied in the general service arena where a paying client evaluated a service. Churchill's method was therefore used in this study to develop an instrument called ECGSI to measure the quality of governance of listed public entities' non-executive boards. The opinions of executives attending board meetings, e.g. to make presentations, were used both to develop ECGSI and to measure the quality of the non-executive directors' service.
- Full Text:
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