Term Of The Week - What Is A Financial Statement?

Posted on Monday, April 30, 2012
It is a summary report that shows how a firm has used the funds entrusted by its shareholders and lenders, and what the current financial position is. the three basic financial statements are: Read the rest of entry »

The RBA Now Has The Room It Needs To Cut Rates

Posted on Tuesday, April 24, 2012
SYDNEY, April 24 AAP - The Reserve Bank of Australia has the room it needs to cut interest rates in May following the release of weaker than expected inflation data, economists say. The consumer price index (CPI) rose 0.1 per cent in Australia in the March quarter, for an annual inflation rate of 1.6 per cent, down from 3.1 per cent previously, the Australian Bureau of Statistics said on Tuesday.
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It Slips To Wilkie

Posted on Monday, April 23, 2012
It has been an interesting few days politically and as House Of Representatives Speaker Peter Slipper resigns Julia Gillard now needs to revisit her 2010 promises Read the rest of entry »

Key Man Insurance

Posted on Tuesday, April 17, 2012
Keyman Insurance Categories

Keyman Insurance policies fall into 3 categories:

1. Revenue protection
2. Capital protection, and
3. Buy sell insurance

Revenue protection is designed to ensure any loss of revenue accrued through the unexpected loss of a key member of a business is compensated up until the time a suitable replacement is found and business may proceed as normal.

Capital protection provides cover for the key person of a business who acts as the business guarantors. This ultimately means that the remaining partners or shareholders will be provided with access to the necessary funds to repay any outstanding business loans should the guarantor be unable to provide collateral due to ill health or death.

Buy Sell Insurance provides the remaining shareholders or partners with the ability to buy out the shares of the key employee should they no longer be able to continue in the business as a result of unexpected death or injury.

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Term Of The Week - What Is A Money Market?

Posted on Monday, April 16, 2012
Network of banks, discount houses, institutional investors, and money dealers who borrow and lend among themselves for the short-term (typically 90 days). Money markets also trade in highly liquid financial instruments with maturities less than 90 days to one year (such as bankers' acceptance, certificates of deposit, and commercial paper), and government securities with maturities less than three years (such as treasury bills), foreign exchange, and bullion. Unlike organized markets (such as stock exchanges) money markets are largely unregulated and informal where most transactions are conducted over phone, fax, or online. Long-term borrowing and lending markets are called capital markets. Read the rest of entry »