Cash is king. Even a highly profitable company can find itself in search of financing due to a lack of cash to honour its obligations. If this situation is only temporary and external sources of finance are freely available, this cash flow obstacle does not have to be detrimental to the...

The attention in this paper has been directed at the problem whether the 30% machinery investment allowance was sufficiently high enough seen against the background of the present double digit inflation. The authors arrived at the interesting conclusion that the shortfall at replacement is...

Risk has so permeated the financial community that no one needs to be convinced of the necessity of including risk in investment analysis. Although the accounting profession has accepted that the purpose of accounting is to facilitate decision-making, implementation of this approach within...

An optimal income appropriation policy for a co-operativeThe income (after interest payable, except on deferred bonuses and before taxation) can be appropriated in three different ways (different combinations are possible), i.e. the payment of cash bonuses, the declaration of deferred bonuses,...

A key problem in estimating the cost of capital for an unlisted company has been the determination of its beta coefficient. Market prices for such companies are not available, therefore the traditional regression methods for estimation are not possible. Thus, it is necessary for a proxy beta to...

Converting co-operatives to companies: A consideration The change in the Income Tax Act in 1977 resulted in co-operatives becoming tax liable from 1 April 1977. In addition, the Co-operatives Act of 1981 resulted in additional restrictions for co-operatives. Consequently certain important...

This article covers a financial evaluation of 31 representative agricultural co-operatives. Although the ratio of the members' interest to the total assets remained reasonably constant during the study period, the share capital and reserves decreased relatively to the total assets. According to...

This article covers an analysis of capital formation of 31 representative agricultural cooperatives and follows on a previous article which covered their financial situation for the period 1975 - 1985. Concerning the capital formation, it appears that share capital did not play a major part as a...

In this article a framework is developed to test whether depreciation based on replacement cost meets cash flow requirements. It also indicates both the extent to which depreciation based on replacement cost can be linked to depreciation based on historical cost and the factors which should be...

In this article we examine some of the inter-temporal and cross-sectional distributional properties of a selected number of financial ratios of South African industrial companies and we evaluate the effect of a simple procedure of outlier rejection. The normality assumption is rejected...