Essay about Valuing Coca Cola Stock - 1214 Words

Valuing of Coca Cola Stock and Analysis Andrew Burgoyne, James Desimone, Bailey Fowble, Hewei Huang, Ryan Leist, Maria Sandoval University of South Florida FIN 4414 Abstract Taking the role as Jessie Jones, we will analyze whether to recommend the Coca Cola stock to potential clients or current clients that do not have it in their portfolio. By using the Capital Asset Price Model (CAPM), Dividends Discount Model (DDM) and the Price/Earnings (P/E) ratio we will come to a conclusion. Background The Coca Cola Company, which is based out of Atlanta, Georgia, is a leader in the global soft drink market. It owns subsidiaries in over 195 countries around the world but has always remained local. According to the most recent†¦show more content†¦The market rate of return for 1996 was 22.96%, however we averaged the previous 5 years to get a better picture of the market rate of return. This averaging put the rate of return 15.91% which is more manageable than 22.96%. We also assumed that the dividend growth rate was 12% and that the shares of Coca-Cola were trading at $58 per share at the time. Capital Asset Pricing Model The Capital Asset Pricing Model or CAPM is one of the most popular methods for estimating an equity investor’s required return by finding the discount rate. From the information provided in the case, we were informed that the current government bond yields were 5.09% on 90-day treasury bills, 5.79% on 5-year bonds, 5.91% on 10-year bonds and 6.22% on 30-year bonds. We were also given that by definition the market had a ÃŽ ² of 1.0, less risky stocks have ÃŽ ² lt; 1.0 and more risky stocks have ÃŽ ² gt; 1.0. Lastly, we were told that Jessie noted that the historical market risk premium (Rm – Rf) was in the 6% range. The equation used to approximate the investors required rate of return is: r = Rf+ ÃŽ ² (Rm-Rf) Rf represents the risk-free return, which U.S Treasury bills are usually the proxy used. ÃŽ ² represents the beta, which is used to measure risk associated with stocks: The adjusted ÃŽ ² of 1.24 was used because it takes into consideration an estimation of future ÃŽ ²Ã¢â‚¬â„¢s rather than just historical which is what the raw ÃŽ ² is based on. Rm representsShow MoreRelatedThe Price Of A Coca Cola1414 Words   |  6 PagesThe graph below represents the price of a Coca-Cola stock from 1988 onwards (the availability of the data is from 1988). Over the past three or four years from 2012 onwards, the price of the stock has fallen from around $14 to around $9. A reasonable growth rate for the company in the future would be around 1 to 2%, taking into account of macroeconomic conditions and changes in consumer preferences. However, since Coca-Cola is a global brand with relatively large market share, the duration of declineRead MoreComparative Human Resource Analysis : Coca Cola And Pepsico1465 Words   |  6 PagesAnalysis: Coca-Cola and PepsiCo. Abhiram Satyadev Goldey Beacom College Course Name 02/16/2017 Table of Contents 1. Competition for Employees†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 2. Compensation of Employees†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 3. Legislation Concerning Employees.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...5 4. Human Relations Discussion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..6 5. Conclusions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 6. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 Comparative Human Resource Analysis: Coca-Cola v/sRead MoreFinancial Ratio Analysis : Coca Cola Company1608 Words   |  7 Pagescase â€Å"numerical† obtained from a firm’s financial statement. They are basis of valuing a company hence it’s a complex task that requires a critical analysis of various components of financial ratio such as profitability ratio, debt ratio, investment valuation ratio, operating performance ratio, cash flow indicator ratio and liquidity measurement ratio. Therefore, the following financial ratio analysis shall value Coca-Cola consolidated company and PepsiCo Inc. (PEP) through a critical comparison basedRead MoreCase Study PepsiCo1737 Words   |  7 Pagesin which Pepsi operates in is quite competitive and has global brands such as Coca-Cola Inc. Pepsi has however managed to cut a niche for itself through targeting specific demographic groups and advertising directly to them. The two American companies have been rivals for quite a while now, with each trying to exert dominance over the other in varied markets. In the US, Pepsi controls 30% market share while Coca-cola holds about 42%. Pepsi is heavily involved in sponsorship activities for sportsRead MoreEconomic Theory Suggests That Markets Are Efficient and Security Prices Are Determined on the Basis of Fundamental Value2720 Words   |  11 PagesDetermined on the Basis of Fundamental Value ¡Ã‚ ¨ Market efficiency requires that security prices react immediately in an unbiased way to the receipt of new information (Robert Shiller S1998). In other words, an efficient capital market is one in which stock prices fully reflect available information. In addition, there are three conditions for market efficiency; information flows freely, market is composed of rational investors where all competing against each other with the objective of maximizing wealthRead MoreCapital Structure Policies1538 Words   |  7 Pagesmodel results for PepsiCo Inc. and Coca-Cola Co., over the past three year period the company with the higher amount of leverage, which indicates a higher amount of debt, the ROE is consistently higher. In 2013, for example, PepsiCo had a leverage of 3.19 and ROE of 27.76%, compared with Coca Cola’s leverage of 2.71 and ROE of 25.88%. Going back to 2012 results, the value of the DuPont analysis is evidenced as both companies had similar ROE returns, however; Coc a-Cola’s leverage was only 2.63 comparedRead MoreJob Cost Of Job Costing1267 Words   |  6 Pagesguide to short-run decision making, provided that the unit costs are analysed into fixed and variable elements. 3. As a guide to price determination, in firms which use cost-plus pricing (probably a majority – see Skinner [13]). 4. As a basis for valuing stocks of finished units† (Skinner 1978) Process costing takes into consideration the items which are currently in the process of being manufactured by calculating what is known as conversion costs. Conversion costs are values assigned to the itemsRead MoreEssay about Analysis of the Coca Cola Company4607 Words   |  19 PagesAnalysis of the Coca Cola Company History Coca-Cola enterprises Incorporated, employees 66,199 operates, 444 facilities, 47,235 vehicles, 1.9 million pieces of cold drink equipment and sold 3.8billion unit cases in 46 states in the united states, all 10 provinces of Canada and portions of Europe including Belgium, France, Great Britain, Luxembourg and the Netherlands (Coca-Cola facts 99). An, Atlanta Pharmacist Dr. John Slyth Pemberton founded Coca-Cola on May 8, 1886. The carmel colored ingredientsRead MorePepsico vs. Coca-Cola Essay3692 Words   |  15 PagesPepsiCo vs. Coca-Cola – A Financial Comparison June 13, 2007 AC550 May 2007 Executive Summary The purpose of this comparative analysis is to provide a summary of financial and accounting information to a potential investor who is looking to invest in either Coca-Cola or PepsiCo. This research will cover some facts from the financial statements of both companies for the year of 2004. There are many factors to review when comparing these two companies. They are two of the top manufacturersRead MoreEssay Case Study 13539 Words   |  15 Pagesequity can be thought of any assets after all its debts associated with that asset have been paid off. For example, a car or house with no outstanding debt is considered the owner’s equity because he or she can readily sell the items for cash. Even stocks are equity because they represent ownership in a company (Walther et al, 2012). So in conclusion, if we show equity under asset in the balance sheet, it will not only be unbalanced but because equity is what forms the assets along with its liabilities

Sociology Using Material from Item a Assess Sociological...

Sociology Topic 6 ‘Using material from item A assess sociological explanations of gender inequality in todays society’ In the last 30 years women in the UK working has risen to 2.45 million whereas men working has risen by 0.5 million. Item A suggests a variety of gender inequalities in today’s society for example the pay difference women receive as it is suggested according to item A that women earn a quarter of a million pounds less than men and this is without women not having any children if she did have children it would be  £140,000 less. The pay gap reduces family income overall which isn’t beneficial for families. Another issue is that women mainly work in low paid sectors like retail or caring and due to women having a glass†¦show more content†¦pay is low in occupations where there are many women. This could be because the jobs require less training and promotion prospects for this job in which men are in the majority. Human capital assumes that experiences of employment means the increase in wage whereas experience in part time work is associated with less wages. Some sociologists believe that a dual labour market exists and is divided into 2 sectors primary and secondary. Primary is secure, well paid and with good prospectus whereas the secondary is poor pay insecurity and no ladder of promotion. Barron and Norris concluded that women are likely to be in the secondary this is due to women being unsuitable, disrupted career developments and weak legal and political framework supporting women. Liberal feminists argue that the traditional forms of gender role socialisation in families, education and in the media are responsible for reproducing a sexual division in labour in which masculinity is seen as dominant whereas femininity is seen as subordinate.Oakly argues that the reason for the subordination of women in the labour market is the dominance of motherhood/housewife roles for women. Patriarchal ideology stresses the view that women’s only purpose is to raise children. Sharpe believes that education and careers are main priorities of teen girls. Girls also perform better in education which suggests that society will change at a later stage due to girls performing so wellShow MoreRelatedSociology Essay20437 Words   |  82 PagesAS Sociology Sociology Nik Jorgensen Text  © Nelson Thornes Distance Learning 2010 Illustrations  © Nelson Thornes Distance Learning 2010 All rights reserved. The copyright holders authorise ONLY users of NTDL AS Sociology to make photocopies for their own or their students’ immediate use within the teaching context. No other rights are granted without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited, of Saffron House, 6–10 Kirby Street

Cover Letter Free Essays

Cover Letter Veselina Anatolieva Ignatova 44 Paisii Hilendarski str. Kneja, Pleven, Bulgaria 5835 November 2, 2010 Mr. Viktor Georgiev, HR Manager Griffid Hotels Club 13 Rose str. We will write a custom essay sample on Cover Letter or any similar topic only for you Order Now , Golden Sands Dear Mr. Georgiev: Please accept this letter as an expression of interest in the position of Front Office Manager. I have enclosed a copy of my resume for your review. I am familiar with the requirements for success in the Managers profession and I believe I possess the right combination of organizational, management and language skills.My current position is also Front Office Manager in Marina Palace Hotel and my main responsibility is to coordinate the team of the receptionists, organize them and follow the reward and recognition scale in order to motivate my team. My experience here has provided me the opportunity to work in a high-pressure, team environment, where it is essential to be able to work closely with my colleagues and guests of the hotel in order to deliver good quality of service.As a person working for so long in the hotel service industry I have never lost my patience with the people around me, never been arrogant or with bad manners. I’m responsible for my duties, taking the lead when necessary, communicative, empowering my team and always with good sense of humor. Than k you for your time and consideration. I would welcome the opportunity to personally discuss my potential contributions to your company with you. Please telephone me at after 5. 00 p. m. to suggest a time that we may meet. I look forward to your reply. Sincerely, Veselina Ignatova How to cite Cover Letter, Papers Cover Letter Free Essays How to Write a Cover Letter What Should Your Cover Letter Do For You? It should answer the question – Why should I hire you? It should grab the employers’ attention and point out why you, above all other applicants, should be contacted for a personal interview. The resume should never travel alone. Each time you submit your resume to an employer, you should enclose a cover letter that explains why you are submitting the resume. We will write a custom essay sample on Cover Letter or any similar topic only for you Order Now A cover letter is critical to creating interest in your candidacy, even for an internship or volunteer opportunity. The cover letter is your â€Å"sales pitch†. It gives you the opportunity to draw an employer’s attention to the skills and experience outlined in your resume. You can expand on certain courses or job responsibilities that particularly match the position for which to be considered. It also gives you a chance to highlight special achievements that might otherwise go overlooked. In summarizing your qualifications, highlight your most appropriate skills or background in relation to a particular position without simply reiterating the information on your resume. Refer the reader to your enclosed resume for further elaboration your past accomplishments. Be direct and brief. Structure your cover letter with three sections: FIRST PARAGRAPH: This is the â€Å"why I’m writing to you† paragraph which immediately tells the employer the position you want to be considered for. This is short – usually 2-3 sentences. Points to cover: Why you are writing and which position you are applying for. ? How you heard about the position is irrelevant unless it is a mutual contact or recruiting program. Do not write, â€Å"I learned of this opportunity through the Career Services Office. ? Show from your research why you are interested in this position or organization. The goal is to make a connection – do this briefly and specifically or leave it out; sweeping statements will not work. SECOND PARAGRAPH: This is the â€Å"why I’m qualified† paragraph. Highlight some of your most relevant experiences and qualities as the y relate to the position for which you are applying. Choose 2 – 3 points you want to make about Specific experiences/accomplishments or about general qualities you have exhibited, and provide Specific examples to support those points. This paragraph will change according to the job/employer for which you are applying. This is usually the longest paragraph of the letter. You may break this paragraph into two if it looks too lengthy or if your points work best in separate paragraphs. Points to ponder: ? ? The first sentence should be a hard-hitting opener. It is a quick introduction, which is accomplishment-oriented and directed at the skills and qualifications needed for the job/industry. The body of the paragraph should provide evidence to back up what you’ve just claimed. Cite specific jobs/internships/activities/projects and accomplishments associated with those experiences. Use your resume to come up with some specifics, but NEVER reiterate passages from your resume word for word. Discuss why what you did is to the employer- relate the facts to the job. Strong examples are important! The final sentence is a summary of what you’ve discussed above. It’s a good idea to mention the position title and company name to bring the reader back to the specific job in question. ? FINAL PARAGRAPH: This is a short 2-4 sentences paragraph. You should refer to the enclosed resume, request an interview and let the reader know what will happen next (Contact them within specific period of time unless it is a recruiting program). It is vital that you thank the reader for his/her time and consideration. Cover Letter Rules 1. Address to a specific name and title. If you are uncertain who to address, look in the library reference materials or call the company and ask the receptionist for the appropriate name and title. To gather this information, tell the receptionist; â€Å"I am sending some important papers to the head of the Department. However, I’m not sure I have the correct name and address. Could you please tell me to whom I should address these documents? † Writing style should be direct, powerful and error free. Edit to eliminate extraneous words and to check grammar, spelling and punctuation. In addition to stating your purpose, the letter tells the reader how well you communicate. The cover letter should be no more than one page. It should follow good business format. Do not overwhelm the reader with a lengthy cover letter or excessive repetition of the resume content. Keep the letter short and to the point. Three or four paragraphs will suffice: Paragraph 1: State your interest and purpose. Paragraph 2 ( 3): Highlight your resume by stressing what you will do for the employer. Paragraph 3: Request an interview and, if possible, indicate that you will call to discuss potential opportunities. 5. Use appropriate language. Repeat terms that the employer uses, without plagiarizing the job description or quoting from the resume. Avoid jargon and the passive voice. Use action verbs and the active voice. Do not try to be cute or too aggressive. Be employer focused – tell the employer what you have to offer, not what you hope to gain from them or the position. Always be positive by stressing your base accomplishments and skills as well as your future value. 2. 3. 4. 6. 7. Be sure to keep copies of all correspondence. It is possible that you will need to refer to it in the future . Sample Cover Letter for an Internship (courtesy of about. com) Your Name 111 Main Street Reading, MA 01867 (781) 555 -5555 youremail@yahoo. com Date Name Job Title Company Street City, State Zip Dear Ms. LastName: I am interested in applying for the scientific research summer internship position that was listed through the Name University Career Services Office. I have had a great deal of laboratory experience in chemistry, biology, and geology, both indoors and in the field. In the lab, I have performed chemical reactions and I am currently using microscopes to observe many specimens. In environmental field studies, I have conducted outdoor labs to assess water chemistry. Last summer, I worked as conservation assistant at Clumber National Park. I am seeking to complement this outdoor experience with a esearch internship in order to acquire the background necessary for a future career in scientific research. I believe that I would an asset to your program. This internship would provide me with the ideal opportunity to assist at your organization and to expand my research skills. I will call next week to see if you agree that my qualifications seem to be a match for the position. If s o, I hope to schedule an interview at a mutually convenient time. I look forward to speaking with you. Thank you for your consideration. Sincerely, Signature FirstName LastName This is to be used as a REFERENCE ONLY. PLEASE DO NOT COPY EXACT STATEMENTS for your letter. Every cover letter must be tailored to the job for which you are applying! Sample Cover for a Volunteer Opportunity (courtesy of UMASS Amherst) Your Name 111 Main Street Reading, MA 01867 (781) 555 -5555 youremail@yahoo. com August 9, 2012 Person’s Name Volunteer Coordinator Massachusetts Community Water Watch 44 Winter Street Boston, MA 02108 Dear Ms. X: This letter is to apply as a volunteer with Massachusetts Community Water Watch found through the Office of Community Service Learning at the University of Massachusetts Amherst. I am available to intern from September 1st 2012 to May 16th 2013. I am a first year student interested in pursuing a career in the field of biology. Through my coursework at the University, I continue to master the art and science of collecting, analyzing and interpreting data. I have strengthened my organizational skills through my lab courses and have developed specialized skills in using Excel. With my experience as a camp counselor, I am confident in interacting with and presenting educational topics to a young audience. Specifically, I was assigned by my supervisor to serve the role of Head Counselor. Through this role, I was able to coordinate and collaborate with other counselors and share ideas on fun interactive activities for campers. I look forward to utilizing my organizational and leadership skills in addition to my interest in biology to this internship. Thank you for your time and consideration. Sincerely, Your Name Enclosure: resume This is to be used as a REFERENCE ONLY. PLEASE DO NOT COPY EXACT STATEMENTS for your letter. Every cover letter must be tailored to the job for which you are applying! How to cite Cover Letter, Papers Cover Letter Free Essays Dear Hiring Manager, I have enclosed my resume. I am currently enrolled in City University of New York majoring in Education concentrated in Early Childhood. I have over 5 years of experience working in an educational environment with children between the ages 2 and 5. We will write a custom essay sample on Cover Letter or any similar topic only for you Order Now While in Middle School, I volunteered at an after work program tutoring my peers in key curriculum courses needed to pass State Testing. Once in high school I nurtured my passion for helping others strive to be the best. I was hired at Antioch Daycare Academy as a Part Time Instructor. As an instructor I was responsible for a class of 20 students between the ages of 2 and 4. I was required to complete a daily curriculum with my students that included the fundamentals needed in order to advance to Pre- K. I held monthly meetings with my student’s parents to discuss the growth, strengths and weakness of each student. My experiences in the classroom and work place have taught me how to effectively assess the short and long-term goals of children, and establish mutually agreed on methods to meet their needs. Throughout my years at Antioch, I was noticed and promoted to the positioned as Director’s Assistant, where I was able to strengthen my teaching and leadership abilities. I have shown to successfully work as part of an interdisciplinary team, collaborating with diverse professionals to provide a holistic approach to care. I have volunteered at daycare centers and outreach teen programs, emphasizing the importance of an education and the limitless opportunities it allows. In addition to my academic success and work experience, I have learned to not only organize my time effectively, but also use my experiences to spread awareness and educate others. In addition to working, I recruited members of my community and signatures of over 100 parents, which qualified Antioch as a potential UPK grant recipient. After several proposals, budgeting plans and curriculum outlines, we were awarded the full amount for UPK. My volunteer work, academic courses and work experience makes me a well-rounded candidate for the position was as a Family worker. I will bring new innovative ideas and proposals to further develop the classroom. Our mission is intertwined, to provide a safe and academically enriching program for children. I am currently up to date and certified CPR and First Aid, Anti-Bully and I have clearance from the Department of Health and the Department of Education. My salary requirement is negotiable based on the job responsibilities and total compensation package. Thank You, How to cite Cover Letter, Papers

The Concept of Immateriality-Free-Samples-Myassignmenthelp.com

Question: Explain, with Suitable examples from your Workplace, what is meant by an Immateriality item with respect to Accounting. References should be made to the relevant accounting Concepts and Standards. Answer: Immateriality accounting refers to the application of the concept of materiality. The information of immateriality doesnt considerably impact users decisions, like owners and managerial authorities. Accountants are required to make use of expert judgment to conclude either the amount is immaterial or not. There is a need of defining materiality level for the financial records (Edgley, 2014). Thus, when an aggregate of inaccuracy is held in the total level of materiality than in leads to misleading of financial records. While determining immateriality, it is important to make consideration of the manner and size of the specific item. By considering the manner or nature refers that if a small amount transaction is taking place abnormally it can be material, but in case it is a daily transaction it can be immaterial. For example, at my workplace huge amount of papers are used in banking transaction however its cost is immaterial for business as it is used on a daily basis even for nomin al work. The concept of immateriality also affects accounting provisions as all accounting transaction cannot have same effect irrespective of the fact that they belong to same nature of assets. In relation to banking business both computers and calculators are considered to be an asset and have a useful life of more than one year but computers are recorded as fixed asset and calculator is covered the cost of stationery which is recorded as an expense due to the concept of immateriality. It is all because of the cost associated with the assets (Hu, 2013). Recording calculators as an expense will not affect financial statements as it has nominal costs for banks Furthermore recording depreciation on calculators is not a sane aspect in banks as it will unnecessarily make accounting process length and irrelevant. This concept clarified the fact that superseding of matching concept will not have a significant impact on the financial statements for the banking company. In terms of accounting, professional judgment is required to determine whether the accounting transaction or event is material or immaterial. It is because when $5,000 is assessed as the immaterial amount for an international company but for the small bank, it can be considered as a material amount. Consideration of materiality is not done by items monetary amount; it is done by the items nature. Several factors inclusive of either the item is engaged in illegal transactions, must be assessed while verifying materiality (Cameron, 2014). For example, an amount like $.50 or $.30 is immaterial individually, but same is material for the bank as cumulatively it becomes material amount because banks have thousands of such transactions on a daily basis. Due to this fraud like transferring minute amount, several times to a single account is material fraud. Bank has to deal with various organisations as it is public body thus they are required to provide their services accordingly. These transactions create various assets and liabilities but not all considered to the material. At my workplace, judgement of immateriality is based on the percent of revenue. If a transaction is within the limit of 3% of total revenue or asset, then same is considered to be immaterial, and manipulations or other related aspects are ignored if it occurs occasionally. Take an example of a noticeably immaterial item; there is a $100 prepaid of rent on a post office box for six months; according to the matching principle, charging the rent as an expense on six months is required (Acito, Burks, Johnson, 2016). However, as the transaction amount is so minute that the financial statements reader will not be misinformed if the entire amount is charged as an expense to the particular period instead of scattering the same over the usage period. In point of time, whe n the figures of financial statements are rounded to the nearest thousand or million dollars, then this accounting transaction will not make any alteration the financial statements at all. The concept of immateriality is crucial for banking entity as it assists managerial authorities on focusing on crucial factors which can affect the decision of rational stakeholders. For this aspect, it is important for managers, to prioritise the strategic aspects they required to focus (Kovcs, 2015). This approach also assists in better planning and allocation of resources in order to achieve the objective of optimum utilisation. Along with this, financial statements of business become more viable as it is prepared by considering the significance of the day to day transactions. Present study clarifies the fact that immateriality is subjective concept according to which company measure and disclosure transaction which are sufficiently material and can affect the interest of stakeholders. References Acito, A., Burks, J. J., Johnson, W. B. (2016). The materiality of accounting errors: evidence from SEC comment letters and implications for research proxies. Cameron, R. (2014). Applying the Materiality Concept: The Case of Abnormal Items.CORPORATE OWNERSHIP CONTROL, 428. Edgley, C. (2014). A genealogy of accounting materiality.Critical Perspectives on Accounting,25(3), 255-271. Hu, M. (2013,). Pondering over the Problems of Immaterial Assets. In2013 Conference on Education Technology and Management Science (ICETMS 2013). Atlantis Press. Kovcs, Z. I. (2015). Immaterial Assets in the Hungarian Accounting System and Financial Statements.Public Finance Quarterly,2, 227.