A Simple Accounting-based Valuation Model for the Debt Tax Shield

This paper describes a simple way to integrate the debt tax shield into an accounting-based valuation model. The market value of equity is determined by forecasting residual operating income, which is calculated by charging operating income for the operating assets at a required return that accounts for the tax benefit that comes from borrowing to raise cash for the operations. The model assumes that the firm maintains a deterministic financial leverage ratio, which tends to converge quickly to typical steady-state levels over time. From a practical point of view, this characteristic is of particular help, because it allows a continuing value calculation at the end of a short forecast period.

Lean Logistics - Innovative Bewertungsmethodik zur Auswahl schlanker Materialbereitstellungsstrategien

Die starke Individualisierung der Kundenwünsche hat eine stetig wachsende Variantenvielfalt zur Folge. Unternehmen, insbesondere aus dem Automotive- und High-Tech-Sektor, sind bestrebt, ein dauerhaftes Vorhalten aller Variantenteile im Montageprozess aufgrund hoher Kapitalbindung, zunehmenden Flächenbedarfs sowie steigenden Handlingaufwands zu vermeiden. Durch die konsequent wertschöpfungsorientierte Planung der Montageprozesse ist es möglich, innerhalb eines Montagetakts größere Teileumfänge zu verbauen. Das Angebot an Bereitstellflächen erhöht sich jedoch nicht, so dass Kosteneinsparungen aus Montageoptimierungen zum Teil nicht ausgeschöpft werden können. Diese Einsparungen können erst zusammen mit einem angepassten und standardisierten Materialbereitstellungsprozess voll wirksam werden. Die Materialbereitstellung muss darüber hinaus auch für individuelle Teilespektren eine adäquate Teileversorgung sichern sowie innerhalb ihrer Systemgrenzen einen optimalen Prozessablauf ermöglichen. Für die Auswahl geeigneter Bereitstellungsstrategien fehlt eine auf den Bereitstellungsprozess abgestimmte Bewertungsmethode, die eine nach Lean Management Grundsätzen vergleichende Prozessbetrachtung ermöglicht und zudem bauteilspezifische Kriterien wie Variantenvielfalt, Reichweite oder Größe berücksichtigt. Ziel des Beitrags ist es daher, eine neuartige Bewertungsmethode vorzustellen.

Lean-Production-Methods for XXL-Products

This paper discusses the different characteristics used to describe XXL-products and, furthermore, presents fundamental aspects concerning the construction (e.g. principles, methods) of production systems. A survey of experts at XXL-producers is used to identify the most commonly implemented Lean-Production-Methods of production systems. The article presents the survey results and finally concludes with an outlook on further steps.

Finely Textured Lean Beef as an Ingredient for Processed Meats

Lean, finely textured beef (LFTB) is a lean product derived from beef-fat trimmings. Characterization of LFTB showed that, while it is high in total protein, the LFTB contains more serum and connective tissue proteins and less myofibrillar proteins than muscle meat. Because of the protein differences, LFTB has less functionality in processed meats, resulting in lower yields and softer texture. Appropriate use of sodium chloride, sodium tripolyphosphate, k-carrageenan, or isolated soy protein achieved desired stability and yields in frankfurters with FTLB. The softer texture may be used to advantage in high-protein, low-fat meat products where excessive toughness or firmness is often a problem.

Decision-usefulness of ideal cost- and ideal value accounting for valuation and stewardship

This paper contrasts the decision-usefulness of prototype accounting regimes based on perfect accounting for value, i.e. ideal value accounting (IVA), and perfect matching of cost, i.e. ideal cost accounting (ICA). The regimes are analyzed in the context of a firm with overlapping capacity investments where projects earn excess returns and residual income is utilized as performance indicator. Provided that IVA and ICA systematically differ based on the criterion of unconditional conservatism, we assess their respective decision-usefulness for different valuation- and stewardship-scenarios. Assuming that addressees solely observe current accounting data of the firm, ICA provides information which is useful for valuation and stewardship without reservation whereas IVA entails problems under specific assumptions.

Accounting for baseline differences and measurement error in the analysis of change over time

If change over time is compared in several groups, it is important to take into account baseline values so that the comparison is carried out under the same preconditions. As the observed baseline measurements are distorted by measurement error, it may not be sufficient to include them as covariate. By fitting a longitudinal mixed-effects model to all data including the baseline observations and subsequently calculating the expected change conditional on the underlying baseline value, a solution to this problem has been provided recently so that groups with the same baseline characteristics can be compared. In this article, we present an extended approach where a broader set of models can be used. Specifically, it is possible to include any desired set of interactions between the time variable and the other covariates, and also, time-dependent covariates can be included. Additionally, we extend the method to adjust for baseline measurement error of other time-varying covariates. We apply the methodology to data from the Swiss HIV Cohort Study to address the question if a joint infection with HIV-1 and hepatitis C virus leads to a slower increase of CD4 lymphocyte counts over time after the start of antiretroviral therapy.

Estimating Diagnostic Test Accuracies for Brachyspira hyodysenteriae Accounting for the Complexities of Population Structure in Food Animals

For swine dysentery, which is caused by Brachyspira hyodysenteriae infection and is an economically important disease in intensive pig production systems worldwide, a perfect or error-free diagnostic test ("gold standard") is not available. In the absence of a gold standard, Bayesian latent class modelling is a well-established methodology for robust diagnostic test evaluation. In contrast to risk factor studies in food animals, where adjustment for within group correlations is both usual and required for good statistical practice, diagnostic test evaluation studies rarely take such clustering aspects into account, which can result in misleading results. The aim of the present study was to estimate test accuracies of a PCR originally designed for use as a confirmatory test, displaying a high diagnostic specificity, and cultural examination for B. hyodysenteriae. This estimation was conducted based on results of 239 samples from 103 herds originating from routine diagnostic sampling. Using Bayesian latent class modelling comprising of a hierarchical beta-binomial approach (which allowed prevalence across individual herds to vary as herd level random effect), robust estimates for the sensitivities of PCR and culture, as well as for the specificity of PCR, were obtained. The estimated diagnostic sensitivity of PCR (95% CI) and culture were 73.2% (62.3; 82.9) and 88.6% (74.9; 99.3), respectively. The estimated specificity of the PCR was 96.2% (90.9; 99.8). For test evaluation studies, a Bayesian latent class approach is well suited for addressing the considerable complexities of population structure in food animals.

Production Streamlining through Design, Implementation, and Analysis of Lean Manufacturing Methods

Through the correct implementation of lean manufacturing methods, a company can greatly improve their business. Over a period of three months at TTM Technologies, I utilized my knowledge to fix existing problems ans streamline production. In addition, other trouble areas in their production process were discovered and proper lean methods were used to address them. TTM Technologies saw many changed in the right direction over this time period.

Tracking the Trends in Inventory Management in the Automobile Manufacturing Industry Throughout the Business Cycle

This paper investigates the trends in inventory management in the automobile manufacturing industry during recessionary vs. non-recessionary periods. It is an empirical approach to testing the validity of the hypothesis that firms which carry leaner inventories perform better throughout the business cycle and are less affected by variability in the economy than less lean firms. The research also hopes to shed some light on how firm's financial statements can be manipulated through discretionary adjustments made by management pertaining to the valuation of inventories.

The International Financial Reporting Standards and Their Implementation into the US Accounting System

This paper examines the differences between the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). The areas closely examined are the differences inrevenue recognition and reporting of intangibles. By investigating the differences in the two sets of standards I put into context the changes that would be necessary for domestic companies adopting the IFRS. The differences between these two standards are important because the implementation of IFRS into the U.S. is a current issue for domestic companies. It is important to note how the new standards will affect different companies in different ways. Depending on the size and industry, some companies will have a harder time transitioning to the new standards. However, once these companies make the transition to IFRS they will have better recognition and reporting of revenues and intangibles.

Debate over Fair Value Accounting: Should we allow Politics to take an active role in setting accounting standards or should we trust that the SEC knows best?

In light of the recent economic downfall, there has been significant media coverage on the topic of fair value accounting. There are many critics of the accounting rule, who place blame on it for the destruction of billions of dollars in capital between financial institutions. Other commentators, however, see the rule as necessary and applaud its ability to bring the turmoil in the economy into the spotlight promptly so that it could be addressed effectively. This paper will begin by conducting a study of fair-value accounting from its inception in previous standards and then follow it through to Statement No. 157. I will then discuss the SEC’s most recent study of FAS157 and their decision as a result of the study.

Accounting for Athletics: A Balanced Scorecard Approach

The Balanced Scorecard is a managerial accounting system designed for internal use in order to align four different facets of a business with its overall vision and strategy. It emphasizes that an organization should not be judged on financial performance alone, but also on a variety of non-financial metrics. Using the Balanced Scorecard, the Athletic Department at the University of Connecticut has been analyzed as to which metrics are the most important in terms of fulfilling their mission statement.