In the fiscal consultancy and Accounting Services in Singapore, transactions initiated take place where the economic value of a company or business is relevant as a fiscal tax base. An adequate basis for the valuation is of paramount importance.
It should be primarily thought of merger and acquisition. Transactions are based on different motives established. So it can go to increase the sales, expansion into new markets, achieving synergy benefits etc. A price often based on rules of thumb (multiples) established.
The concept of economic value is increasingly being used for resolving disputes. These do not only relate to disputes relating to exit of partners. Improper or fraudulent acts may affect the economic value of the company. If unlawful conduct can be demonstrated, the next step often consists of the determination of the extent of the damage.
Methodology
To determine the value of a company, there are different methods of calculation used by Accounting Services in Singapore. Financial institutions determine the value of shares on the market shares on the basis of business valuation methods, these methods are part of the fundamental analysis.
Credit risk is the potential loss assumed by a lender as a result of breach of contractual obligations by the borrower. The concept is usually related to financial institutions and banks but also affects companies and organizations from other sectors.
A first classification of the various types of credit risk can be based on either type of agent that supports it. Individuals face a credit risk when they place their money in a bank, lend, or sign contracts in which they are forced to make a deposit (like a lease). Employees of a company are also exposed to the risk that it will not pay salaries. The risk of loss can affect the financial future of an individual.
In some countries, governments recognize that the ability of citizens to evaluate credit risk is limited and that it could reduce the efficiency of the economy. Hence, there are a series of laws, such as those protecting depositors in banks. The Deposit Guarantee Fund provides such guarantees.
Companies are exposed to credit risk when they sell to term. Many companies have risk departments whose job is to assess the financial health of their customers to determine if it is possible to sell on credit. Many insurance companies also offer credit insurance covering certain types of default.
Financial institutions bear a credit risk when they lend money to their customers through products, such as credit cards, mortgages, lines of credit or personal loans. Most banks develop models to assign risk levels to customers.
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