Foreign exchange quotation is the amount of currency that is exchanged for a unit of another currency. Foreign exchange quotations can be two types, they are: 1. Direct Quotation 2. Indirect Quotation Direct quotation: A direct quote expresses the price of one unit of foreign currency in terms of domestic currency. In other words, it […]
Exchange Rates: Concepts and Real-World Applications Read More »
Reserve is the term which refers to a sum or percentage of profit that a company retains or keeps aside at the end of a financial year towards meeting future contingencies that may occur. It is also used to strengthen the business. There are two types of reserves in an organisation A capital reserve is created
Provision and Reserve: Important for Accounting and Growth Read More »
The magic figures of the number of days used to determine residential status under the Indian Income Tax Act are extremely important. The sum and applicability of tax on a person, depends upon the Residential Status of such person. Residential status of a person is important in determining the scope of income on which income tax has to
Magic figure of Residential Status Read More »
Direct tax is something that every earning individual faces in life. Even if you are not from a finance background, understanding the basics of direct tax helps you become a responsible taxpayer. In today’s session, let us navigate through the fundamentals of direct taxation to gain a clear, high-level understanding of the subject. Samit is
Understanding Direct Tax Compliance: A High-Level View Read More »
The classroom was unusually quiet today. Students sat alert, notebooks open, eyes fixed on the smart board. The professor picked up the marker and wrote one word slowly: On the smart board, terms like Operating Leverage, Financial Leverage, Fixed Cost, Debt. “LEVERAGE” He turned to the class and said: Today, we are not just learning
Understanding Leverage: Risk behind Business Decisions Read More »
International Business (IB) refers to the exchange of goods, services, capital across national borders and technology. It involves the operations of MNCs, exports, imports, FDI and FPI. Each form creates different financial responsibilities: International business activities do not remain confined to corporate balance sheets; they directly affect a country’s foreign exchange inflows and outflows, and
Different Forms of International Business through the BOP Framework Read More »
The balance of payments (BOP) summarizes the economic transactions of an economy with the rest of the world. This statement includes all the transactions made by individuals, corporates and the government and helps in monitoring the flow of funds to develop the economy. Whenever goods, services, capital, or investments move across countries, they leave a
Balance of Payments (BOP) through Cross-Border Financial Transactions Read More »
Whenever business activities are restricted within a country, transactions are conducted in a single domestic currency. Accounting remains relatively simple and there is no exchange rate risk or uncertainty. However, the moment business goes global and involves more than one country, two or more currencies enter the picture, making financial transactions and accounting more complex.
Understand Forex Basics in the Global Financial World Read More »
I recently attended a session where the speaker began an insightful discussion on the forms of International Business in today’s LPG era — Liberalization, Privatization and Globalization. The speaker was explaining that after the 1991 reforms, India opened its doors to the world, and from that moment, cross-border business became a part of our everyday
International Business through the Lens of International Finance Read More »
The professor walked into the class, smiled at the students, and asked: Before we move ahead, let me ask you something simple… Do you know what the sources of finance are for a business? A few students looked very excited! Some answered loans, shares, profits, but no one gave a complete answer. The professor looked
Sources of Finance: A Classroom Moment Read More »
