What Two Approaches Can Companies Use to Build Ethical Standards

question 47

Essay

What two approaches can companies use to build ethical standards?

Understand the impact of stock transactions such as stock splits and reverse stock splits on market price, liquidity, and shareholder value.

Comprehend the reasons and implications of different dividend policies and practices.

Identify the significance of flotation costs on a firm's financial strategies.

Recognize the rights and entitlements of shareholders in relation to dividend distributions.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

Fair Value Accounting

An accounting approach where companies measure and report the value of certain assets and liabilities on a fair value basis.

Net New Borrowing

The difference between the new debt taken on and debt that is repaid during a given period, reflecting a company's or government’s net financing activity.

Statement of Comprehensive Income

A financial statement that shows all changes in equity during a period except those resulting from investments by and distributions to owners.