The paper "Financial Management in Health" is an outstanding example of a finance and accounting assignment. Organisations have a number of stakeholders who include; constituents like voluntary members of the association or business owners, employees, government and suppliers among others (The Open University, 2012). It is important to maintain good relations with the government at all levels and keep them updated with the activities of the project and expected impacts. Support from the government may be crucial to the organisation’ s success and regular involvement with several public and regulatory authorities is normally needed for the success of the business.
The government might have a long-lasting relationship with the community affected by the project as well as other stakeholders that are involved in convening together and facilitating discussions between the stakeholders. The government may also partner with the organisation in the provision of services and in communicating any information to the local people as well as combining development plans for the community with project’ s operational needs (Ifc. org, nd). Business owner’ s sets various objectives for the organisation, together with financial objectives that make them have a solid plan which will enable the organization to move towards long-term success.
There are several financial objectives such as; profit maximization, maximization of shareholders’ wealth, revenue growth and sustainability through retrenchment during hardships and payment of debts. The non-financial objectives include business ethics that is the organisation’ s attitude towards shareholders in that it is required to treat them fairly and honestly (Ingram, 2012). Employee’ s welfare is a vital objective; this is associated with issues like salaries and wages, favourable working environment, employees’ benefits, and recognition of efforts through promotions or pay increase.
Thus, the organisation must attract and retain a high-quality workforce (Tutor2u. net, 2011). Suppliers are trading associates of the organisation. Large organisations normally have significant purchasing power over suppliers which must be utilized with care. Suppliers’ objectives may include payment timing and any other terms of doing business (Tutor2u. net, 2011). Question 2 Notes to financial statements offer additional and detailed information that explains information in the major financial statements such as income statement, cash flow and balance sheet (Businessaccent. com, 2009). Normally, information that may not be included in financial statements is reported in such notes.
It is very boring to the financial statement’ s users to read these notes because they are detailed and are the longest section of the financial statements. But it is vital for the users like creditors, shareholders and investors to read financial statements notes. Such notes contain important information like the firm’ s general information, financial statements preparation basis, stock option and pension plans information, accounting policies and main accounts breakdowns (Businessaccent. com, 2009). There are various accounting policies disclosed in the first note to financial statements mostly with a heading “ Summary of Significant Accounting Policies” , which describe policies principal amounts reported in financial statements (Hanesbrands Inc, 2012).
These summaries of important policies include consolidation if the company has subsidiaries, utilisation of estimates, translation of foreign currency, recognition of sales and incentives, coupons, discounts and rebates, volume-based incentives, inventory valuation, cash equivalents, property, valuation of accounts receivable, goodwill and other intangible assets, income taxes, stock-based compensation and financial instruments (Hanesbrands Inc, 2012).
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Hanesbrands Inc. (2012). Investors: 2010 Annual Report. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=200600&p=irol-faq
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The Open University. (2012). The relationship between stakeholders and the organisation. Retrieved from http://openlearn.open.ac.uk/mod/oucontent/view.php?id=397369§ion=1.2
Tutor2u.net. (2011). Non-financial objectives of a business. Retrieved from http://tutor2u.net/business/accounts/valuation_nonfinancial_objectives.htm
Weakonomist. (2010). Liquidity Vs. Solvency. Retrieved from http://weakonomics.com/2010/05/20/liquidity-vs-solvency/