ABM-12-REVIEWER-PRELIMS-DAY-3 PDF

-PRE-HISTORIC PERIOD- -ANCIENT CIVILIZATION- The only evidence of humanity Ancient Egypt THE NATURE AND HISTORY OF during this time is the art that they - Dance in an...

-PRE-HISTORIC PERIOD- -ANCIENT CIVILIZATION- The only evidence of humanity Ancient Egypt THE NATURE AND HISTORY OF during this time is the art that they - Dance in ancient Egypt is known as DANCE – LESSON 1 left behind. As a result, it’s very their medium of expressing their difficult to know exactly what life religious services and teaching -DANCE- was like. What we do know, though, about their ancient myths. The word dance rooted from the is that dance and art were integral - Life Events German word damson, which in society. - Festivities means “to stretch” or “to drag”. Dance is considered as part of - men and women are never Dance is considered as the oldest communication in prehistoric era. depicted dancing together among all the arts, as it comes from - Some women from wealthy our innate expressions of collective harems were trained in music and feelings and action. dance. The music from the early man - Yet, no well-bred Egyptian would came from the stamping of feet, dance in public clapping, snapping, or any sound that can produce rhythm. It doesn’t require an instrument as Stone Age: The feast detail by an art. Mikhailovich Vastov The dance can be performed to Prehistory is divided into three serve various functions: cultural periods: Social Old Stone Age –Paleolithic Competitive New Stone Age- Neolithic Ceremonial Bronze Age- Iron Age But it also has two distinct forms: life events that were meaningful to Ancient Crete individuals and tribes: - existed from 3000 to 1400 BC, it was Theatrical dance Puberty a cultural link in ancient world is known for having more Birth between Egypt and Greece. elaborate choreography, planning, Courtship - arts and culture. costume, scenery and other elements that make the entire Two distinct types of dance production feel more professional emerged In harmony Joy and celebration Two sub-types HOMER- the Cretans had an excellent army - Sophocles, a famous Greek Participatory social dance playwright, referred to the god Pan most commonly found at Closed as the "dancemaker of the gods" in weddings, social gatherings, and Expanded dances his play "Ajax. " that were inspired by festivals, and they can be enjoyed dances those practiced in Knossos. with folk music both alone or in a group. Out of harmony Jerky and spastic movements These two broad genres can be seen in all of the areas of dance, depending on the nature or purpose of the ritual. - The Cretan painted and sculpted -DEVELOPMENT OF CATHOLIC -7 REASONS WHY DANCE IS A FORM figures CHURCH- OF ART- - When the first Christian emperors 1. Association with Music came, Theatrical entertainment 2. Body Movement to Rhythm was prohibited. 3. Expression of Emotion and Mood - Dance still existed and was 4. Language, Culture and Tradition perfomed within the church 5. Choreographic Art ceremonies. 6. Performance Skills - It became part of worship and 7. Dancing Tell a Story Ancient Greece church services. - Dance in ancient Greece were Lesson 2 - BENEFITS, ELEMENTS, AND incredibly systematic and CHARACTERISTICS OF DANCE structured. - They maximized their movement as -BENEFITS OF DANCE- they, incorporate their rituals, “Dance is fun! It lifts the spirit, symbols and gestures and were strengthens the body, and accompanied by music, both vocal -DARK AND EARLY MIDDLE AGES- stimulates the mind.” – Wayne Sleep and instrumental. - Dance was performed in village squares, and was eventually Physical Benefits welcomed in the castles and -Develops cardiovascular and chateus of feudal lords. muscular endurance - Peasants perfoemd two basic -Improves coordination, balance, types of dancing. flexibility, and body composition - Greek dances could be performed ❖Round dance -Lowers risk of cardiovascular individually or in a group. They could diseases ❖Couple dance tell a story, showcase martial and -Lowers body mass index athletic skills, entertain guests, or -Lowers resting heart rate -EARLY RENAISSANCE- shape processions and other key -Improves lipid metabolism - Dance then was wholly accepted parts of religious rituals. -Enables joint mobility (hip motion in the courts - seemed like a natural response of and spine flexibility) the body, mind, and soul to music. -Helps improve and maintain bone -RENAISSANCE- - Dance and art in general gained density, thus helps prevent impetus osteoporosis -Helps recover coordination and neuromuscular skills after injury Mental/Emotional Benefits Ancient Rome -Helps keep the brain sharp - dance was predominantly -Decreases incidence of dementia performed for religious, social and and Alzheimer’s disease entertainment purposes. -15th and 16th Centuries- -Decreases depressive symptoms - Wealthy Romans generally do not - New cout dances were -Increases self-esteem and improves dance. performed by the nobility. body image - was significantly influenced by - Rise of the art ballet in Italy and -Aids in releasing emotional and Etruscan and Greek traditions. France. physical tension. - known for their expressive and ceremonial dances, impacted - Dance spread across several countries Social Benefits Roman religious and funerary - Other dance also came to light -Gives sense of togetherness within practices. and have been widely recognized a group - Dancing priests to honor PAN worldwide. -Encourages positive social interaction and interpersonal relationship in a group -Contributes to the individual’s potential for self-actualization in society Cultural Benefit -Promotes cultural values. is an example of a suspended shape or form for its choreography movement. to be effective. -ELEMENTS OF DANCE- 6. collapsing- movements are released in tension and gradually or What is FORM? I. SPACE - the area the performers abruptly giving in to gravity, letting -instrument by which ideas and occupy and where they move. the body descend to the floor. elements are arranged or combined into a logical sequence FOUR ASPECTS ALSO KNOWN AS IV. BODILY SHAPES It refers to how which results in unity and SPATIAL ELEMENTS the entire body is molded in space consistency, and by means of which a. Direction- Dance movement can or the configuration of body parts. the content or idea can be travel in any direction. The body can be grounded, expressed and communicated. b. size- Movements can be varied angular, or a combination of two. -The form should progress through by doing larger or smaller actions Other body shapes can be from time from the beginning to the end c. focus- Performers may change wide to narrow and from high to of choreography. Each section is their focus by looking at different low. composed of several units that are directions. connected to each other. These d. level- Movements can be done in a. symmetrical-balanced shape; small units are called phrases a high, medium, or low level. movements are practically identical or similar on both sides What is a PHRASE? II. TIMING - The movements in timing b. asymmetrical-unbalanced -is the smallest unit of form in the may be executed in varying tempo shape; movements of two sides of whole dance. Commonly, a single (speed). Performers move with the the body do not match or phrase consists of eight counts. tempo of an underlying sound, completely different from each known as beat or pulse. other What is a MOTIFF? -the style and intention of a dance - III. DANCE ENERGIES - The ***GROUP SHAPES - a group of One good example of a dance with movements are propelled by dancers perform movements in motif is the Itik-Itik Philippine energy or force. A force can either different group shapes. They are folkdance. initiate or stop an action. Dance arranged in ways that are wide, uses different energies and a varied narrow, rounded, angular, CHARACTERISTICS OF A GOOD use of theses minimizes the symmetrical and asymmetrical and DANCE monotony of the movements in a are viewed together as a total 1. UNITY- The interconnected performance picture of arrangements within a phrases of the dance are coherent picture frame and flow smoothly together. The Six Qualities of Dance Energies movements fit together and each 1. sustained- movements are done What makes a good dance? plays an important role that smoothly, continuously, and with -a good dance displays a significant contributes to the entirety of a flow and control. It does not have a meaning or conveys a message. dance. clear beginning and ending. Sometimes it portrays life 2. CONTINUITY and DEVELOPMENT- 2. percussive-movements are experiences. Dance may be The phrases of the dance that are explosive or sharp. They have a presented abstractly or symbolically organized progressively, making clear beginning and clear ending. but it still conveys emotion and each movement phrase move 3. vibratory- movements consist of meaning. A good dance lifts and naturally into the next. There is a trembling or shaking. A faster version transports the audience from their continuous development of the of percussive movements that seats during the performance. A movement of phrase and the produces a jittery effect good dance has: audience is swept along to the end. 4. swinging- movements trace a 1. beginning- may come in a form of 3. VARIETY and CONTRAST- add curved line or an arc in space. The shape, a pose, or an entrance excitement and flavor in the dance movements are relaxed and giving 2. middle- consists of a *Variety- changing direction, use of in to gravity on the downward part development or the exploration of energy, timing, and avoiding of the motion, followed by an the main idea repeating them in the exact way upward 3. ending/ conclusion- should be *Contrasting movements- slow to 5. suspended- movements are clear and may be in a form of a fast, short to long, minimal to large perched in space or hanging on air. shape, a pose, or an exit -A good movement Holding a raised leg in any direction dance therefore, must have a 4. TRANSITION- link between movements, phrases, and sections of the dance. It keeps the unity and -PRIVATE FINANCE- continuity of the dance. Personal Finance 5. REPETITION- needed so the FINANCE AND FINANCIAL - Gained popularity among the audience can see the movements MANAGEMENT DEFINED younger generation of income again and identify their earners. Encompasses everything significance, Usually, when a certain -FINANCE- that pertains to personal financial phrase or section of choreography is Verb – “to provide funding” planning, including coming up with repeated, it is the main message of Noun- a field in business and a budget that matches one’s short- the dance. economics and long-term needs, creating a 6. CLIMAX- This is where the apex of - is the allocation of scarce savings plan for contingencies, and energy in the danced is reached. resources which include money. investing in financial products such - In business, it is the function or area as retirement plans and insurance. How is the quality of the dance which is responsible for managing evaluated? the aspect of the operations that Corporate Finance (or business The success of the dance deals with money matters. finance) performance may depend on who - Is primarily concerned with the the evaluators are. Appreciation on The study of finance addresses three management of all the financial the importance of dance comes basic questions activities of an enterprise or a from the points of view of: 1. What types of investments should business organization. Its ultimate 1. Choreographers- they will the firm undertake goal is to maximize shareholder evaluate a part of an ongoing 2. What sources of funds should the value through sound financial process of developing a personal firm tap to fund the investments planning. style which is both spontaneous and 3. How can the firm ensure that its organized. cash flows will suffice to support its The following are examples of 2. Dancers- they will evaluate day-to-day operations? situations that show how corporate according to the specific demands finance is practiced in that the performance places on -FINANCIAL MANAGEMENT- organizations: them. - it covers planning, organizing, 1. The accounting supervisor is 3. Audiences- they will evaluate leading, and controlling of all preparing a cost-and-benefit according to the particular context financial activities of an analysis on whether it more costly (or of the dance. organization. cheaper) to purchase or rent a - Puts emphasis on managing the piece of equipment. Stages in Assessing a Dance funds of an organization in order to 2. The marketing manager is (Dance Critique) create value for the firm by meeting with the finance officer to 1. Description- involves close minimizing risks (costs and expenses) discuss the pricing of a new product observation of all the elements, and maximizing returns (sales and before it is launched in the market. characteristics, and components of profit). 3. The marketing officer is advised a dance. that the budget for advertising and 2. Interpretation- involves an BRANCHES OF FINANCE promotion is not enough to include appreciation of the ideas, contents, social media advertising. images, and style contained within -PUBLIC FINANCE- 4. The human resources manager is the dance. - covers management of public explaining to the other members of 3. Evaluation- takes into funds, national budget, and tools for the management team how hiring consideration how effectively the fiscal policy such as government additional staff will help with features (i.e., elements, expenditure and taxation. productivity but may also impact characteristics) and the context of - Public revenue is generally derived cost and profitability. the dance have been utilized in the from taxes, while public expenditure 5. The logistics manager is actual performance of the dancers involves allocation of national requesting for a new vehicle that will to portray the content and the budget programs designed to be used for delivery. However, the quality of the dance. benefit the public. finance officer explains that the - examples are construction of benefits of purchasing a new public roads, markets, and other vehicle will not be enough to justify infrastructure projects for public use. the amount to be spent. It is evident from the given examples that finance is not confined to just one department in an organization. Every cross- what to do with the firm's excess -Finance managers are involved in functional area or department is cash planning. They contribute in somehow connected to functions optimal inventory levels identifying goals and objectives, related to finance. working capital management setting targets, and establishing how much of the earnings should control measures in order to monitor The study of corporate finance may be paid out to dividend versus how performance be categorized to four interrelated much should be reinvested in the - Financial information is generated areas: firm by different departments. 1. Financial markets and institutions whether to merge with or acquire - Financial information also serves as - This area covers banks, insurance other firms an effective communication tool companies, finance companies across departments. The following (nonbank institutions that offer both RELATIONSHIP BETWEEN are snippets from conversations short-term and long-term loans to ACCOUNTING AND FINANCE between organizational members: individuals and other firms), and -Although finance and accounting Human Resources to Accounting: other financial intermediaries. are closely related, they are distinct "Ma'am, I would like to know the Financial intermediaries are also disciplines that have different possible effects of hiring two nonbank financial institutions that focuses. One of the main features of additional employees in production offer specialized financial services finance is managerial accounting. It on our overall profitability assuming to businesses. involves the preparation of reports that output will increase by 30%. 2. Investments - This area focuses on that are intended to aid internal Thank you." investment options and decisions users in decision-making to ensure Accounting to Sales: "My concern made by both individual and good or better performance in the is that the sales department is not corporate investors. Some of the future. Managerial accounting is achieving its sales targets and at the considerations made are the risk- sometimes referred to as same time exceeding budget for return trade-off, the prices of management accounting. It promotion. financial products (securities), and provides the financial data that One employee to another: "Our the financial products to be help internal users in making future- manager explained to us that even included in one's portfolio of oriented decisions. Some of the if we can increase our sales, it will still investments in order to maximize most common reports prepared in not improve the company's return. managerial accounting are finances if we do not control our 3. Financial services - This area refers budget, cost analysis, inventory operating expenses." to services offered by organizations analysis, sales and profit projections, whose line of business is to help and risk-return analysis. Managerial The overall financial plan, which individuals and other organizations accounting may rely on the use of includes a detailed budget for manage money. These historical data provided by financial different programs, is in some way organizations include banks, accounting. Financial accounting synonymous with measurable goals. insurance companies, brokerage keeps track of all the historical firms, and similar companies that transactions of a business that will The following discussion illustrates provide professional guidance on be used in preparing reports the importance of finance in the decisions pertaining to how money intended for use by external parties different areas of operation in an should be managed in order to such as government agencies, organization: achieve certain goals such as investors, and creditors. Research and purchasing a home, setting up a Development retirement fund, investing on new FINANCIAL MANAGEMENT IN Employee Relations equipment, and maximizing a BUSINESS Marketing Promotion shareholder's wealth. - Decision makers in a business Expansion 4. Managerial (business) finance - organization depend largely on Meeting Contingencies This area will be the core focus of this financial information gathered, Government Agencies module. Every organization, public prepared, and analyzed by finance Asset Management or private, depends on sound managers. The key to the effective Information Systems decisions on the following. use of such information is how net cash flow (inflow less outflow) finance is applied in other business -FINANCIAL INSTITUTIONS- how to finance the acquisition of functions within the organization - A financial institution is an assets and other growth plans such as production, marketing, organization that handles financial which financing options to access human resource, procurement, and transactions for individuals, groups, when the supply of cash is deficient operations. and other organizations-profit, nonprofit, private, or government is similar to an S&L. The interest rates organizations invest in investment owned. Some financial institutions offered by credit unions on savings portfolios that are managed by are smaller than others, as in the accounts are generally higher or professionals who keep track of case of community-based rural lower on certain types of loans market trends and the performance banks compared to large urban- compared to what most banks will of different financial products or based commercial banks. offer. Because of the association instruments. - Financial institutions can either be with cooperatives, only members depository or nondepository. A are serviced by credit unions. -FINANCIAL INSTRUMENTS- depository institution, as the name Investment banks - Operations of - A financial instrument is a implies, manages money that is investment banks are different from document that signifies a legal or deposited by individuals and commercial banks. Generally, binding agreement between two organizations. Examples of investment banks do not have any parties. Financial products are depository institutions are banks, dealings with the general public. signified by instruments when credit unions, and savings and loan Instead, they perform the task of an individuals and organizations alike associations. A nondepository intermediary which facilitates the deal with each other in completing institution, on the other hand, does transactions of individuals and financial transactions, thus the use not handle deposits. Instead, it institutions in investing. For instance, of the term financial instruments. serves as an intermediary between investment banks may facilitate the Financial instruments typically have savers and demanders of funds, or buying and selling of stocks. monetary values associated with individuals, households, and other Insurance companies - Insurance them. businesses that need additional companies provide individuals and funds to support their personal organizations a way on how to Most common financial instruments needs or business operations. manage risk. They operate on the Savings - A savings account in a Nondepository institutions borrow principle of pooling of risks wherein bank is the most common type of funds from those who have excess premiums are collected from clients. financial product that is offered to funds (called savers). Examples of In exchange, these clients are customers. Savings could be just a nondepository institutions include protected from unexpected events regular account, one where the insurance companies, pension like fire, flood, earthquakes, and in depositor is issued a passbook funds, securities and brokerage some cases, lawsuits, illnesses, and/or an ATM card, or on a more firms, and mutual funds. disabilities, and other related losses. long-term basis such as a time - Financial institutions are also Those who have experienced losses deposit where the depositor is issued referred to as financial can file financial claims if there is a time deposit certificate. Savings is intermediaries because at times coverage under the policy. low risk. It offers relative liquidity. they facilitate the flow of funds Brokerage - A brokerage is a However, an investor also earns between the savers and demanders financial institution that earns minimal interest in this type of of funds in an economy or a through commissions. Brokerage financial product. financial market m and system. firms facilitate the buying and selling Loans - What do banks do with the of capital securities such as bonds deposits? They loan them to TYPES OF FINANCIAL INSTITUTIONS and equities. A brokerage firm can individuals and organizations who either be a discount or a full service need funds. The interest rate that Commercial banks - Commercial brokerage firm. Discount brokerage banks charge on the loans is higher banks accept deposits from firms allow their clients to do their than what they pay to the individuals and organizations that own research about investment depositors. Short-term loans are have excess funds and provide options. These firms simply facilitate payable within one year or less while loans to those who want to borrow the transaction up to its completion. long-term loans are those that are money. Full service brokerage firms, on the due beyond one year or more. Savings and loans banks - They are other hand, provide clients advice There are also collateralized and also referred to as S&L or thrift banks. and help them manage their noncollateralized loans. A collateral Unlike in commercial banks, the bulk investment portfolio. An investment is an asset, such as a piece of real of the financial transactions in S&Ls portfolio is a collection of financial estate property or a vehicle that is are dedicated to residential products owned by a single investor, attached to a loan. In case of a mortgages. either an individual or an default in payment, the lending Credit unions - Credit unions are organization. institution may take ownership of the usually an offshoot (or are Investment companies - Investment collateral in lieu of money. associated with an offshoot) of companies are corporations Bonds - Business organizations need cooperatives. The way they operate wherein individuals and other additional funds to support their operations. For additional funds, mutual fund company. The fund (IPO) are primary market they can avail of short-term and manager creates an online transactions. The secondary market, long-term loans through account for each investor. Each on the other hand, covers trade of commercial banks. A bond is a loan account is protected by a password previously issued securities. The buy granted to other organizations by and only the investor or his or her and sell of outstanding shares individuals and organizations with authorized representative has through the stock exchange is an excess funds. access to the account. The investor example. Similarly, a bondholder Security - When an investor has a can monitor how his or her selling his or her ten-year bond to security, this means that he or she investment is performing in the another investor with three years left has a financial instrument signifying market in terms of yield. to maturity is an example of a ownership of stocks of a publicly secondary market transaction. traded company, or a bond issued -FINANCIAL MARKETS- by a government agency. A - A financial market is a means for The Role of Financial Intermediaries publicly traded company is a stock the buying and selling of stocks, in Financial Markets corporation that has opened the bonds, and other financial Reduce Costs selling of shares of stocks to the instruments. Stocks are shares of a Diversification general investing public. corporation sold to investors while Pooling of Funds Treasury bills - The government may bonds are, in essence, money Financial Flexibility also issue financial instruments or loaned. The financial market is also securities to the public. Often a means where individuals and FLOW OF FUNDS IN A BUSINESS referred to as I-bills, treasury bills organizations who need funds find ORGANIZATION yield no interest but are sold at a investors and lenders. discount. The earnings on T-bills are - Money markets are where minimal as the risk level is very low. transactions involving short-term insurance products - Almost debt securities take place. A short- everything can be insured-homes, term debt, just like in accounting, is vehicles, businesses, and many one that is due and / or more. People also buy insurance demandable within one year or less. coverage for illnesses, injuries, Some examples of money market accidents, and disabilities. Life securities include treasury bills, insurance provides financial commercial paper, and negotiable protection to surviving loved ones certificates of deposit issued by upon passing of the policyholder. governments, businesses, and other Life insurance coverage is financial institutions. CAREERS IN FINANCE sometimes even attached to an - Capital markets are where Banker/Investment banker - investment account and yield transactions involving long-term Banking is probably the most interest. Insurance products are debt securities, or those maturing in common career path for a finance bought by policyholders from more than one year, take place. professional. A finance major who insurance companies as protection The buying and selling of stocks has just finished college or someone of both life and property. The issued by corporations also take who has had some special training policyholder is referred to as the place in capital markets. The in finance will usually start as a bank insured while the insurance Philippine Stock Exchange (PSE) clerk and move his or her way up company is the insurer. facilitates the trading of stocks in the the corporate ladder. Mutual funds - Although mutual country. Stocks may also be traded insurance agent / Broker - Finance funds have been around for the over the counter or outside an professionals have the option of past decades, they have gained organized exchange. They are becoming insurance agents or popularity in the Philippines only in handled by agents and brokers who brokers. Insurance agents and the recent years. If insurance are oftentimes paid through brokers do not merely sell insurance products are based on the pooling commissions. products. They also give financial of risks, mutual funds are based on - Capital market transactions may advice to clients. the pooling of funds from different be classified according to type of Financial advisor - Companies that investors. The funds are then issue as primary or secondary. The are engaged in the selling of invested into different financial primary market covers all new issues investment products employ products such as securities, stocks, of capital securities. For example, financial advisors who give financial and bonds. The fund is managed by issuance of new bonds or a planning advice to both individual a fund manager employed by a company's initial public offering and corporate clients. Stockbroker - A stockbroker is similar QUALITIES OF A FINANCE require companies to follows its to a financial advisor in the sense PROFESSIONAL standards. However, many that he or she advises his or her 1. Competence countries, including the Philippines, clients on matters pertaining to 2. Integrity require publicly traded companies financial products, market and 3. Analytical Thinking to follow the IAS in financial industry trends, and other 4. Ability to think strategically reporting. In 2001, a new set of investment options. The major 5. Leadership standards-the International difference between the two is that Financial Reporting Standards- was a stockbroker is licensed to facilitate STANDARDS IN FINANCIAL established by the International the buying and selling of stocks for REPORTIING Accounting Standards Board (IASB). investors. A financial statement is a record Fund manager - Fund managers are that gives a picture or description of International Financial Reporting employed by mutual fund how an individual, a business, or an Standards companies. They are called fund organization looks in terms of The increasing acceptance of the managers because that is what financial health. Financial International Financial Reporting they do-they manage funds pooled statements summarize all the Standards (IFRS) has presented a by several investors. financial activities within a specified challenge to finance professionals Academe - If a finance professional period of time. to keep up with the changes in the chooses to be in the academe and acceptable global standards in teach, he or she will be required to THE GENERALY ACCEPTED financial reporting. The IRS was obtain a master's degree from a ACCOUNTING PRINCIPLES established in order to have Higher Educational Institution Finance managers follow the common standards that will be offering an accredited program Generally Accepted Accounting followed by organizations across Corporate consultant - A corporate Principles (GAAP) in the international boundaries. The IASB consultant is not employed by a preparation, analysis, and reporting set this objective in 2000: "To particular organization. Rather, he of financial statements to intended develop, in the public interest, a or she is commissioned to do work users. According to Investopedia, single set of high quality. on a temporary or per project basis. GAAP is a standard practice for understandable and enforceable A corporate consultant is usually an businesses in presenting financial global accounting standards that expert in the field who is tapped to statements to maintain the require high quality, transparent, address specific problems or issues. continuity of information and and comparable information in Country manager - A country uniformity of presentation across financial statements and other manager is employed by a international borders. financial reporting to help multinational firm. He or she is tasked participants in the world's capital to oversee the operations of an Qualitative Characteristics of markets and other users make affiliate in the host (foreign) country. Financial Statements economic decisions. Corporate finance manager/officer 1. Materiality - The core of a finance manager's 2. Faithful Representation Different factors were job is financial analysis, which 3. Substance over form considered by the Philippines in its encompasses risk assessment, return 4. Conservatism decision to adhere to international on different investment options, and 5. Understandability accounting standards. These factors preparation and analysis of 6. Comparability were the following: financial statements (and reporting 7. Consistency Support of international the results to top management). 8. Verifiability accounting standards by local Chief finance officer - The CFO is 9. Timeliness organizations such as the Securities one of the members of the top 10. Cost Constraint and Exchange Commission (SEC), management team. He or she is the Board of Accountancy (BOA), often referred to as an executive. International Accounting Standards and the Philippine Institute of The CFO is responsible for managing - The International Accounting Certified Public Accountants (PICA) all the financial aspects of the Standards (IAS) is the standards set Increasing internationalization of business- investments, capital on how financial transactions should business which has heightened the expenditures, budget allocation, be recorded and reflected in interest in A common language for cost control measures, cash flow, financial statements. The IAS was financial reporting and sourcing of funds. developed by the International Improvement of international Accounting Standards Committee accounting standards-removal of (IASC). The IASC has no authority to free choices of accounting practices vary from one country to Accountancy Act of 2004, the FRSC treatments another. was established by the Professional Increasing recognition of There are differences in the Regulatory Commission (PRC) to international accounting standards following: assist the Board of Accountancy by the World Bank, Asian a. Economic and social frameworks- (BOA) in the exercise of its power Development Bank, and World language, culture, currency and function to enact accounting Trade Organization exchange, inflation, and other standards in the Philippines. The variables that affect how financial FRSC is basically the IFS with several The benefits of adhering to data is obtained and processed limited modifications. a single set of global accounting b. Quality of education obtained by Financial institutions - The PFRS is standards are the following. accounting professionals required. Companies gain access to foreign c. How capital markets in certain Separate company financial capital markets. countries operate statements - Companies that use Domestic capital markets gain Each company (depending on the the IFS adapted as PFRS are credibility and become more country of origin) has its own set of required to use the standards in their attractive to foreign investors. practices and ways of handling/ separate financial statements. Compliance with standards processing financial data. increases a company's credibility, The IFRS endorsement: thus letting it gain access to better Philippine Financial Reporting Which standards do companies financing terms. Standards follow? They follow the PFRS. For companies that operate in the Financial Reporting The auditor's report asserts different countries, the preparation Standards Council issued its compliance with: It must comply of financial statements is organized standards in a series of with the PFRS. such that consolidated statements pronouncements called the Modifications to IFS: The limited and country or subsidiary Philippine Financial Reporting modifications made to the IFS in statements adhere to the same Standards (PFRS). The PFRS include adopting the standards as PFRS global accounting standards. the following: relate to revenue recognition by Financial data is easily understood PFRS which correspond to IFRS real estate companies and some by users across countries. Philippine Accounting Standards guidance for insurance (preneed) Processing of data becomes less which correspond to IAS companies, banks, mining costly. Philippine Interpretations which companies, and recipients of Sharing of financial data between correspond to interpretations of the government grants that are not or among users is more transparent. International Financial Reporting entirely consistent with the IFS. Compliance with standards makes Interpretations Committee (IFRIC) Endorsement process for new or reports more acceptable from the and the Standing Interpretations amended standards: The process perspective of regulatory agencies. Committee, and interpretations includes the FRSC, BOA, and SEC It is easier to ensure continuity. developed by the Philippine Knowledge is easily shared across Interpretations Committee The following are the countries. Training and accounting standards required for development workshops are easily In the Philippines, the small and medium enterprises coordinated as well. following accounting standards (SMEs): Credentials of professionals are required for publicly accountable SMEs that are above the specified comparable across locations. entities (listed companies and size thresholds must use full PFRS. financial institutions) shall apply: SMEs that are below those size The following are the Listed companies - Large and/or thresholds but are not microsized reasons why there are accounting publicly accountable entities entities may choose to use the full variations among countries: (including all listed companies and PFRS if they meet certain criteria; Companies have to meet both financial institutions) must use the otherwise, they must use the PFRS for political and economic constraints PFRS which was adapted by the SMEs (which are identical to the IRS in their host countries. Political and Financial Reporting Standards for SMEs). economic conditions such as tax Council (FRSC), the Philippine SMEs that are microsized entities laws and labor laws (laws on wages institution that oversees financial have the option to use the income and nonwage benefits which affect reporting standards in the country. tax basis, accounting standards a firm's cost structure) affect how In accordance with the effective 31 December 2004 laws and regulations are enforced Implementing Rules and (standards before entities on businesses. Accounting Regulations of the Philippine transitioned to the PFRS) or the PFRS stockholders to represent them. The for new products or the for SMEs. board of directors usually consists of improvement of existing ones. highly qualified, very experienced Government - The government STOCKHOLDERS VS STAKEHOLDERS people in the field or industry. They through its various agencies is are tasked to ensure the financial another external stakeholder. The A stockholder is a person well-being of the company through Bureau of Internal Revenue (BIR), for who bought shares of stocks of a the creation of policies. instance, review the financial publicly traded corporation. Labor unions - A labor union is an statements of firms to determine Because stocks represent ownership organization of employees whose payment of income taxes or the of a company, stockholders mission is to represent the applicability of certain exemptions. become part owners of the employees in negotiations with They may also perform regular business. Stockholders are employers. Labor union leaders and audits to ensure compliance with alternatively referred to as members review financial financial reporting standards. Other "shareholders." On the other hand, statements for them to gain an government agencies such as the stakeholders include not only understanding of the firm's capacity Securities and Exchange shareholders but everyone who has to give the demands of employees. Commission (SEC) also ensures that an interest or a stake on how the A collective bargaining agreement firms comply with licensing business is performing or how it is (CBA) is a contract between the requirements and regulatory managed. Stakeholders may be employer and the labor union. standards. Other relevant largely classified into internal or government agencies that may use external stakeholders. An external stakeholder is someone company financial statements to who is not directly involved in the ensure compliance include the Internal stakeholders are directly business but, in one way or another, Social Security System (SSS) and involved in the management or has a stake on how the business is BSP. The SSS can check if the operation of the business. They managed or how it is performing. company pays the correct include the following: The following are external employee benefits. Similarly, the BSP Employees - They are concerned stakeholders: ensures that its mandates and with the way things are run in the Customers - They are the most regulatory standards are being organization- from policies and important external stakeholders. followed and implemented by procedure, hiring and retention, to They are the lifeblood of the banks and other financial compensation and benefits, which business. Companies across institutions. is their most important concern. industries, regardless of size, devote Competitors - Competing firms Stockholders - As defined earlier, a considerable amount of resources within an industry monitor one stockholders are those who bought for customer acquisition and another's activities and overall shares of stocks of a publicly traded retention, making sure that their performance (e.g., product corporation. Stockholders who have needs and demands are met and offerings, pricing strategies, voting rights may vote for or against satisfied. Finance managers need investments made, relationships company policies. an understanding of customer with external stakeholders, and Top management - Members of the demands for proper budg movement of prices of stocks for top management team are Suppliers - The relationship between publicly traded corporations). employees as well, but from the suppliers and business organizations Financial institutions - Financial financial management perspective, has evolved over time, from being institutions review financial they are most concerned with the merely supplier-customer statements to see if a firm applying quality of financial data that are relationship to a more sustainable for a loan is creditworthy. Using a made available to them. They use partnership. Traditionally, suppliers scoring system of creditworthiness, a these financial data for analysis and simply sell goods directly to loan application is assessed based decision-making. businesses and get paid within the on the borrower's ability to pay the Department managers - Various terms of the sale. Nowadays, loan or the probability of default. internal users may use financial finance managers, in collaboration Potential investors - Similar to statements differently. While top with the marketing officer, seek stockholders, potential investors management use them for high- marketing support from suppliers in review financial statements to assess level decision-making, department the form of free products for the potential return if they invest in a managers may use them to assess giveaways, event sponsorship, business versus the risks associated operational efficiency. printing of marketing materials, and with such investment. Board of directors - This is a group of even research and development individuals who were elected by the  ETHICAL ISSUES IN FINANCE information falling into the wrong EAPP hands. Just like any other field in business, Professional duty versus company ACADEMIC AND PROFESSIONAL finance operates in an environment standards - Finance practitioners TEXT surrounded by ethical issues. are sometimes torn between Finance managers are expected to meeting company standards and - ACADEMIC WRITING - adhere to high ethical standards. adhering to ethical standards. - is a style practiced or used by Ethics is defined as a set of rules or Quotas, targets, and other financial teachers and students as they norms on what is right or wrong; metrics put pressure on employees. produce educational materials good or bad thinking, behavior, or When people fear the negative - It has a searious tone judgment. In any discipline, the consequences of not meeting the - Should be in third person point of basic steps for an ethical decision standards set by the organization, view model, according to the book they may be tempted to ignore - Academic writing is often Business and Personal Finance, are ethical standards. characterized by its formal tone and as follows: Individual judgment versus objectivity. 1. Determine the ethical issue. demands from clients - Finance 2. Identify the actions for handling professionals are sometimes EXAMPLES: the situation. confronted with demands from Thesis or research papers 3. Identify the people affected by certain clients that are unethical in Annotated bibliography the situation. nature. Finance professionals Literature review 4. Analyze how the situation affects sometimes face ethical dilemmas Essay the people involved from certain clients. For instance, a 5. Decide which actions to take. family friend and client is asking a - PROFESSIONAL WRITING - claims adjuster for a higher - encompasses a broader range of Most large companies insurance settlement amount. A written communication used in have a formally written document valued client is asking a finance professional settings across various called code of ethics. This analyst to fudge the numbers to industries and disciplines. document is communicated to all have a slightly higher valuation of his - focuses on giving opinion. employees from different levels or her company. - Should be in first-, second- and within the organization. Employees, Misrepresentation - Finance third-person point of view managers, and nonmanagers alike professionals at all times must - Professional writing is less formal. are expected to follow the present all material facts. A piece of company's code of ethics. information is considered material if EXAMPLES: knowledge of such would have Email As mentioned, financial changed or could affect any Memo information needs to be accurate. decision made. Resume That is why in the conduct of their Conflict of interest - A finance profession, finance professionals are professional, being a resource - ACADEMIC AND PROFESSIONAL expected to adhere to high ethical person for individuals and WRITING - standards. organizations, must have no conflict - Academic writing and professional Finance professionals are of interest. Conflict of interest arises writing serve different purposes and often confronted with ethical issues. when someone has a self-serving are used in different contexts, but Below are some of these issues: interest, which makes him or her an they share some common features, unreliable source. such as clarity, conciseness, and Full disclosure and transparency - coherence. Finance professionals face the dilemma of full disclosure and - READING - transparency while still maintaining - is a lifelong skill that could power confidentiality. Safeguarding your communication skills in both confidential financial information as oral and written forms. well as client information is crucial to - It helps in building a healthy self- organizations. Finance professionals image and cultivating your should find a balance between capacity to foster connection with transparency and confidentiality to other people, ultimately leading avoid losses due to confidential vast, fruitful personal and professional relationships.  - READING STRATEGIES - - Time-consuming and requiring able) often offer a clue on what Think about your reasons for reading more efforts. words mean. the text: - This strategy is deemed most you are interested because appropriate in holistically it is about your subject, or it determining the contents of a is related to your subject written materials and in fully you want background understating its meaning. information, or detailed information Key Points for Detailed Reading you want to know what the Comprehension writer's views are Analysis you are going to have a Connection discussion Reflection -PREVIEWING- Finding the Main Thesis/Idea of a - Getting an overview of a text Text. without fully reading its body. - Is the central concept around - This can involve reading the title, which details center. - It may be explicitly (directly stated - CONTEXT CLUES - headings, subheadings, images, and spelled out) or implicitly - are hints and extra information in a captions, and other text features to (indirectly stated or implied) sentence or passage that help you gather an overall understanding. mentioned in the text. understand the meaning of an - Examining the content and - Paying attention to the text unknown word. organization of a text in order to opening and closing sentences can - These clues are found in the become familiar with it before help determine the main idea. sentence or paragraph containing reading. - Stating the text in your own words the unfamiliar word and may - Tells what you will learn and all the in terms of how you remember and appear before, after, or close to it. main points. understand its meaning. - It appears as definitions of the unfamiliar word and are set off by -SKIMMING- - VOCABULARY BUILDING - commas, dashes, or parentheses. - refers to quickly reading the text, so - A wide vocabulary enriches all - Phrases such as which is, that is, you can get an idea of what it is possible area of communication. could also imply hinted meaning. about. - It sharpens one’s listening, - Meanwhile, phrases like such as, - To get the gist of the content, speaking, reading, and writing skills. like, for examples, which are also a focusing on main ideas rather than - Academic and Professional writing form of context clue. details. often requires specific vocabulary - The presence of synonyms (is a - involves quickly reading the actual to communicate a message in an word that means exactly the same text and picking up ideas from objective and formal manner. as, or very nearly the same as, paragraphs, without too heavy on - You need to build your vocabulary another word in the same details. to help you read and write language) and antonyms (is a word - you read introductory sentences academic and professional text that means the opposite of another and conclusions. more easily. word) in a sentence likewise guides you on the meaning of an unfamiliar -SCANNING- -LEXICAL DEFINITIONS- word. - involves rapid reading, but it is done with intention of finding a - Also known as the dictionary definition that examine their Examples particular information in mind prior structure, and analyzing the context - Emancipation, that is the liberation to reading. within which they are used in the from certain forces like politics or - To locate specific information text. social class, is an indicator of quickly without reading everything. - As for word structures, prefixes (are development. - Identify and focus on keywords or added at the beginning of words to - The coach doesn’t allow taunting, phrases related to the information change their meaning: dis-trust, im- so don’t let her hear you making fun you seek. mature, counter-productive) and of the other team. suffixes (are added at the end of - Mika seemed genial at first, but -DETAILED READING- words to change their form: when we started discussing politics, - It pertains to the careful perusal, wonder-ful, improve-ment, adapt- she became hostile and even rude. analysis, and interpretation of a text.  -Creative Writing- -TONE- - field-specific language - - Hinges on authors’ imaginative, - You may also want to be mindful of creative expression. word use. Words typically used in Contagion - Medicine - These are normally theme- spoken language or slang may not - Refers to the spread of disease. focused, follow a story arc, and be the best choice when writing place fewer limits on word choice. academic papers. Hydroponics - Agriculture - Place little to no reliance on - A method of growing plants factual evidence. without soil, using nutrient-rich water. EXAMPLES: Short Stories Enlightenment - History Novels - Refers to the intellectual and Poetry cultural movement in the 17th and 18th centuries. -JOURNALISTIC writing- -POINT OF VIEW- - Dependent on factual evidence. - It also aids in setting a formal tone. Genomics - Genetics - Follows its own structures and Statements written in 1st and 2nd - The study of genomes, the conventions. POV make writing sound too complete set of DNA within an personal. Meanwhile, 3rd POV organism. EXAMPLES: makes the paper formal. News Kurtosis - Statistics Feature - A statistical measure that describes Editorial the distribution's tails' heaviness. Academic and professional texts Innovation - Business can be set apart in five common - The process of creating new ideas, ways: products, or methods. -FORM- Dummy - Journalism - Your primary concern is the -VOICE- - A mock-up or prototype of a concrete words, instead of abstract. - Sentences in the active voice newspaper or magazine page. Abstract words pertain to intangible emphasize the subject or the doer characteristics, qualities, ideas, or of the action. In contrary, passive Combustion - Chemistry concepts. On the other hand, emphasize the action done. - A chemical reaction that typically concrete words are tangible, involves the rapid oxidation of a characteristics, or qualities that can substance. be perceived by the senses. Mastication - Nutrition - The process of chewing food. Julienne - Culinary - A method of cutting vegetables into thin, matchstick-like strips. Active Voice Sheena will do the craft work. -STRUCTURE- Passive Voice - It consists of three distinct parts: Craft work will be done by Sheena. Introduction, Body, Conclusion. For a start, you could look into Active Voice eliminating contractions in your Distance is measured in kilometers. sentences. Passive Voice Kilometers is a measurement unit for distance.