Choosing the certified financial planner certification metropolis as a career option is the saint career option. Making career in this field will give you a secure job, eminence, money, career growth and job satisfaction. Financial planner certification Texas builds intelligence within you to handle money in an optimum way. Many eligible institutions are successfully running best-certified financial planner training courses in metropolis these days you just need to make the right choice. CFP exam for certified financial planner training metropolis includes wide array of topics and includes six individual courses that are relating to financial planning, insurance planning, investment planning, income tax planning, retirement planning and estate planning. The CFP exam for financial planner certification Texas also includes case studies and at least 10 to 20 lessons.

The CFP exam for certified financial planner certification metropolis covers many important aspects of all the major courses offered. The financial planning course for financial planner certification Texas includes financial planning tools and techniques. The courses study aims at making the aspirants comprehend financial statement analysis, basic economics, funding for education needs and dealing with clients. The main aim of these courses is to make the individual aware about the ethics and financial concepts used in business organizations through CFP exam.

Another type of course offered under CFP exam for financial planner certification Texas are insurance and investment planning. The concepts of insurance planning makes the aspirants aware about insurance products and benefits offered under insurance planning. Moreover, the concepts of investment planning for the CFP exam certified financial planner training metropolis includes the study of stocks, bonds and mutual funds. This makes the individuals to become masters in financial planning field and manage people’s money efficiently.

Income tax, retirement and estate planning are also the important topics in CFP exam certified financial planner training Dallas. The courses for income tax planning make them comprehend the impact of income on tax and also the income, expenditure and tax computation. The courses help aspirants be become eligible tax planners and wage people with efficient tax planning consultation services. Under retirement and estate planning, the certified financial planner certification metropolis CFP exam includes retirement planning issues and ownership, taxation and estate planning documentation issues.

Thorough study of all the concerned topics makes an individual capable of handling all the aspects of financial, insurance, investment, income tax, retirement an estate planning. It requires absolute dedication and determination to clear the CFP exam for certified financial planner training Dallas. There is a large demand for financial planners in Texas these days and the one pursuing the CFP exam has wide career scope in the field of financial planner certification Texas. There are various companies and individuals looking for financial planning assistance out there and the one passing the CFP exam will have to cater to a broad consultation.

You can also acquire large amount by selling bonds, stocks and mutual funds without any limit. The industry of certified financial planner training metropolis is at boom and has wide scope in the current job market. You just need to get the certified financial planner certification metropolis and begin your career. The thing you need to keep in mind is the institute you are choosing for the certified financial planner training metropolis needs to be accredited and recognized under a deemed university. You are looking for the best-certified financial planner training courses in metropolis and you should end up paying only to the ideal in the service institutions industry.

The curriculum for financial planner certification CFP courses offered by reputed certified financial planner school Georgia majorly consist of six online academic courses including three case studies and 10 to 20 lessons in apiece course. There are approximately 100 topics being covered under the CFP courses. The major courses offered by college for financial planning Georgia are:

Fundamentals of Financial Planning: The fundamental course is the basic part and provides overview of roles of financial planner certification. They make the aspirants comprehend regarding individualized financial planning and techniques of financial planning analysis with the use of HP 12C and HP 10BII calculators for examining time value of monetary problems.

Insurance Planning: The CFP courses offered by college for financial planning Georgia under insurance planning help comprehend the insurance products. This CFP courses covers all the doable terms and concepts relating to insurance such as risk, medical life and general insurance, disability and income benefits, taxation with insurance and annuity and types of annuities.

Investment Planning: The CFP courses for investment planning at certified financial planner school Georgia includes study of stocks, bonds and mutual funds. These CFP courses usually include study of international security market and equity analysis, quality allocation, derivatives and evaluating portfolio performance for the purpose of insight invest planning study.

Income Tax Planning: Under Income tax planning CFP courses the college for financial planning Georgia helps to make the students comprehend about individualized and business tax planning, tax returns, computing gross and taxable income, and in identifying expenses loses depreciation and property transactions.

Retirement Planning: The CFP courses for financial planner certification at certified financial planner school Georgia includes the comprehensive study of individualized and employee sponsored retirement plans.

Estate planning: The financial planner certification CFP courses for estate planning at college for financial planning Georgia covers the property ownership issues, taxation issues, planning documents and implementation strategies that includes effective estate planning.

All the courses offered under financial planner certification CFP courses at the certified financial planner school Georgia are quite relevant and includes detailed study of all the concerned topics. There are many recognized certified financial planner school Georgia to choose. When you are selecting from the college for financial planner school Georgia you need to check that the college is eligible and has highly regarded course works. There are no tough stipulations you need to fulfill in order to be enrolled into the CFP courses at certified financial planner school Georgia. You just need to complete educational requirements, pass the CFP certification examination, meet experience stipulations and pass the candidate fitness and standards background check.

You also need to check for the faculty, their background and experience. You also need to check what extra services the college for financial planning Georgia offers such as career planning for fresh graduates, personal labs and trainings. The right choice for the school, which has respected or eligible CFP courses, better coursework taught by experienced power and services that work for your lifestyle.

As the economy stabilizes in the aftermath of the world financial crisis, business leaders and individuals everywhere are starting to talk more and more about planning for the unexpected. We have witnessed the effect imprudent financial planning can have on both businesses and individuals. Financial experts advocate now more than ever that the companies and individuals work with financial experts to create a comprehensive financial plan towards minimizing investment risk and leading to a more secure future.

AttisCorp Financial Group is one of the leading companies in the financial services area. The Moncton, NB company has established an exceptional reputation by helping their clientele make the right choices when it comes to their finances – be it related to investment planning strategies or risk management solutions such as comprehensive life, disability and health insurance – so that an unexpected tragedy will not become a financial nightmare in addition to an emotional nightmare.

It is never too primeval to start planning for retirement, and with the flexible options offered through AttisCorp Financial Group, you have the perfect partner to help you embark on your journey to future financial security. The early you begin, the longer you will have to accrue the funds necessary to reach your retirement goals. It’s all about the illusion of compound returns, especially within tax-deferred investment accounts such as RSP’s. For better financial services in Moncton, NB, AttisCorp Financial Group is the clear leader. When you talk to one of the financial planning specialists at AttisCorp Financial Group, the first item on the agenda will be a value discussion to ascertain your priorities in life, and from there a in depth dialogue as to your financial objectives. In apiece case, it is imperative that both a prospective client and your financial advisor at AttisCorp mutually feel that the “fit”is right. Only then can an enjoyable, trusting and mutually beneficial relationship evolve.

The financial experts at AttisCorp Financial Group can advocate tax-smart investment strategies towards minimizing risk and maximizing returns, all within your comfort level, determined by a comprehensive risk profile assessment. Once a personalized investment strategy is created, the financial services experts at this Moncton, NB company can then help the client comprehend the risks that are visaged by them – be they business owners, professionals or executives. This risk-analysis can help to measure businesses assets and solidify the company’s future in the grappling of these, and other risks.

Most business owners want to know that, in the event of their death or disability, their business will either [a] continue to operate smoothly under new management/ownership; or [b] will cease operations and an orderly transfer of assets to their beneficiaries will occur. Careful tax and investment planning by AttisCorp’s expert advisors assist business owners’ in meeting their individualized objectives as regards the future of their businesses, in conjunction with the future of their families.

Ensuring the orderly transfer of a one’s estate to his or her beneficiaries typically forms a substantial part of that person’s financial plan. The advisors at AttisCorp Financial Group work with trust structures, assorted estate-planning tools & strategies, along with relevant tax laws governing the transfer of investment and business assets at death, and can advise as to the most favourable manner in which to structure one’s current holdings towards minimizing tax, and maximizing one’s estate values for their loved ones. In this regard, and as circumstances warrant, AttisCorp advisors advocate that appropriate specialists join the estate-planning ‘team’, such as a tax accountant to assist with tax and estate planning issues. AttisCorp Financial Group also advises on wills and powers of attorney – and as required, they will refer to a legal specialist for more detailed estate planning.

The implementation of your financial plan – created for you by AttisCorp Financial Group – might result in a portfolio containing several different investment types and statement structures. This might be to satisfy client objectives and/or risk profile, or to respond to different objectives for different investment accounts – or to conform with appropriate product allocation to ideal position you to meet your overall financial objectives with minimal risk. The experts at AttisCorp Financial Group construct financial plans plain to specific client needs and objectives, be they individualized or business oriented. In helping their clientele to achieve their financial objectives, AttisCorp advisors utilize all investment tools acquirable to minimize tax and maximize returns. These tools include a variety of registered accounts such as RSP’s, RRIF’s, RESP’s and TFSA’s, together with various non-registered statement structures.

For most people, protecting their family and assets is of utmost importance. AttisCorp advisors will examine endorsement needs, assess any existing programs already in place, and advise as to requiring attention. These areas might include life insurance, key mortal insurance [should one be a business owner], disability insurance, critical illness insurance and health insurance. Furthermore, they will explain and discuss the concept of “product allocation” in addition to quality allocation – towards minimizing retirement risk such as longevity risk and the ‘retirement risk zone’, being the 5 year period immediately preceding and following retirement.

About AttisCorp Financial Group:

AttisCorp Financial Group provides comprehensive financial planning to business owners, professionals and executives, detailing a clear financial path to lead them toward their financial goals. They are experts are finding the most appropriate investment or insurance product to suit apiece individual client’s requirements. For more information about AttisCorp Financial Group, please visit AttisCorp.

If you have ever assisted a client in a short understanding or loan modification then you are aware that lenders frequently request that your clients make financial disclosure. This financial disclosure is usually a condition precedent to the lender modifying the client’s loan or it’s prefabricated a condition precedent to the lender releasing their lien on the property incident to a short sale. Have you ever thought about whether or not your client should be making financial disclosure?

What is financial disclosure?

Typically, financial disclosure involves our clients turning over individualized financial information to their lender in anticipation of receiving a concession by the lender. This concession comes in the form of a loan modification or the lender releasing its lien on the client’s property to assist a short sale. The information includes: (i) bank statements; (ii) pay stubs; (iv) profit and loss statements; (v) tax returns and the like.

Why do lenders request financial disclosure?

Before I address this question I must point out the obvious. The debtor creditor relationship is one of the most adversarial relationships that exist in our society. On any given day, whether we are in a good economy or a bad economy, you can achievement into your local courthouse and you will find a massive number of lawsuits that have been filed by lenders against borrowers for nonpayment on their loans. With this in mind it is appropriate to pose the question: Why do lenders request financial disclosure?

If someone owed you money on a loan and they were not making payments to you then what paperwork would you find useful in helping you collect your money? Bank statements? Pay stubs? Tax returns? Profit and loss statements? Balance sheets? One reason lenders ask for financial disclosure is that they want to refer individualized and real property belonging to the borrower that can be liquidated to pay down the debt. Another reason lenders ask for financial disclosure is to refer sources of income they can intercept in an effort to pay down their debt. Whenever a borrower fails to pay on a loan that borrower will be confronted by the lender and the relationship between that borrower and that lender will become very contentious.

Are borrowers indebted to make financial disclosure?

Generally a borrower has no legal obligation to make financial disclosure. Likewise, lenders have no legal obligation to make a concession to their borrowers (i. e. , loan modification or lien release in a short sale). Loan modifications and short income essentially involve a new bargaining process. Financial disclosure is part of this bargaining process. The lender has the right to place as a condition precedent to even negotiating with the borrower that the borrower make financial disclosure. Likewise, the borrower is within his/her right to refuse to comply with this condition precedent (financial disclosure). However, when a borrower refuses to make financial disclosure then the bargaining stops and the borrower is left having to make the payments on his original loan or grappling foreclosure.

Bank Fraud

Many of the borrowers that are now looking for a loan modification or to short sell their home are in said income loans. Many loan brokers and borrowers alike treated these said income loans as invitations to lie about the borrowers’ income and assets. This is bank fraud and it is not without consequence.

Under federal law, bank fraud in the United Says is defined, and prefabricated illegal, primarily by the Bank Fraud Statute in Title 18 of the U. S. Code. 18 U. S. C. § 1344 (Bank Fraud Statute) states:

“Whoever knowingly executes, or attempts to execute, a scheme or artifice—

(1) to defraud a financial institution; or (2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises; shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both. ”

There are civil implications associated with bank fraud as well. Fraud is non-dischargeable in bankruptcy. So the question becomes: How does bank fraud relate to financial disclosure?

If a borrower makes financial disclosure to their lender and the financial information conflicts with the information the borrower provided the lender in his / her loan application then the borrower might have inadvertently exposed the fraud that he had committed at the time he / she obtained the loan.

Whether consciously or subconsciously borrowers believe they have bankruptcy as a start back position if they really lose control over their financial obligations. But where there is bank fraud then the bankruptcy option might not exist. A lender can file a lawsuit inside of the bankruptcy court called an opponent proceeding. In an opponent proceeding the lender asks the court that the lender’s debt be determined to have been the product of a fraud and that the borrower’s obligation to repay this debt become non-dischargeable in the bankruptcy. Said differently, in an opponent proceeding the lender seeks to have the borrower’s obligation to pay on the loan survive the bankruptcy.

Normally it is difficult for a lender to establish that a borrower committed bank fraud. However, with the advent of short income and loan modifications it has become easier for lenders to come up with persuasive evidence of the fraud. When a borrower makes financial disclosure they might inadvertently wage the lender with very credible evidence exposing the fraud. In that we are speaking about real estate secured loans we are frequently speaking about loans measured in hundreds of thousands of dollars and sometimes millions of dollars. In a down real estate market a borrower could be looking at liability emanating from his loan(s) easily measured in hundreds of thousands of dollars. Envision an obligation of this magnitude being non-dischargeable in bankruptcy. It is a sobering thought.

What should a real estate agent / broker do?

A real estate agent or broker has a duty to disclose facts that would likely affect their client’s willingness to enter into or complete a transaction. With this in mind, a real estate agent or broker should disclose any suspicions they might have concerning doable bank fraud and recommend that the client speak to a lawyer.

This disclosure should be in writing and signed by the client acknowledging receipt of the disclosure. A real estate agent or broker does not need to ensure that the client actually consult with a lawyer. Merely encouraging the client to do so in writing should suffice so long as it is accompanied by the actual disclosure.

But if the borrower does not disclose then they will not receive a loan modification or the lender might not approve the short sale

The lender usually has the legal right to refuse to alter the loan or release their lien on the property in a short understanding unless the borrower makes financial disclosure. For the borrower experiencing mortgage distress he or she is confronted with a difficult choice. Assume the risk associated with financial disclosure in hopes of saving the home (or facilitating a short sale) or play it innocuous and lose the home to foreclosure. I will be the first one to admit that these are not captivating choices. But, more times than not, these are the choices the borrower has to select from.

The lender usually has the legal right to refuse to alter the loan or release their lien on the property in a short understanding unless the borrower makes financial disclosure. For the borrower experiencing mortgage distress he or she is confronted with a difficult choice. Assume the risk associated with financial disclosure in hopes of saving the home (or facilitating a short sale) or play it innocuous and lose the home to foreclosure. I will be the first one to admit that these are not captivating choices. But, more times than not, these are the choices the borrower has to select from.

I hope you found this article helpful and I wish you all the ideal of luck in your real estate endeavors.

If finance sounds Greek to you, it is ideal to seek consultation from a financial advisor. A financial planner is an authorised individual or firm that advises clients on subjects such as savings, investment and taxation. You can leverage their experience to make small monetary decisions, such as buying a car, or set long-term financial goals.

The investment sector is one of the hottest money-making markets in the world. Thus, the market is flooded with several financial advisors. With the evolution of the internet, one can also search for financial planning service online. The multiplicity of service providers is certainly beneficial for consumers. However, this also makes choosing a financial advisor extremely difficult. Some service providers specialize in a specific area of financial planning such as estate planning, taxation or retirement savings. To assist consumers in this daunting task of making the most appropriate selection, the UK government has issued a comprehensive guide on how to select a financial advisor. Here’s an extract from that guide.

What is the Need for a Financial Advisor?

Financial advisors are experts in financial instruments. They comprehend yield, risk and other factors associated with an instrument. They also have knowledge of terms and conditions related to investments, which are often underplayed by most of the financial organizations. It is difficult for an individual to acquire such in-depth knowledge of any financial instrument. Moreover, an experienced financial planner has the capability to judge an individual’s financial requirements. They take into consideration annual income, expenses, standard of living and potential emergencies for an individual or family to give advice on smart investments. Thus, hiring a financial advisor ensures greater endorsement of your hard-earned money.

What Information Does a Financial Advisor Provide?

The information provided by a financial advisor depends entirely on an individual’s requirement. If a financial planner specializes in a specific type of investment, the information will be limited. In general, you can receive the following information:

Instruments acquirable for investment and associated terms.
The cost of an investment instrument.
Eligibility criteria for an investment.
Documents such as annual statement or payment alerts related to the investment.
Investment tracking report that will highlight the performance of each instrument.

A financial advisor charges on either each investment or annually, depending on your business agreement. Some service providers charge a percentage when an investment matures. The fees vary significantly among financial planners – some financial advisors are commission based whilst others offer a more transparent fee based structure for remuneration. However, some larger firms might charge high fees for a dedicated fund manager and for portfolio maintenance.

How to Search for a Financial Advisor?

Business pages, telephone directories and online search engine results are flooded with the contact details of financial advisors. Interestingly, nearly each financial advisor claims to offer a high-return yield at an inexpensive rate. Established banks also have dedicated financial planning executives. The ideal solution to this puzzle is to juxtapose different services and make an informed decision.

While juxtaposing different financial advisers check their portfolio, range of services offered and experience, one should try to judge their understanding of the financial instruments by asking a number of questions. They should promise a consultation on your long term investment goals and not merely be selling financial products.

According to the UK government guidelines, one should select a Financial Advisor that is regulated by the Financial Services Authority (FSA). This ensures smart advice and innocuous investments. Also, make sure that the financial consultant has no affiliations with a company selling financial products. To this end, it might be superior to hire an independent financial planner with Chartered Financial Planner status. Considering the importance of retirement planning, make sure you seek expert consultation on long-term saving plans such as Individual Savings Accounts (ISA).

Financial modeling is truly an art form. Great writers draw on a broad vocabulary to find the right word to communicate their ideas. A good financial modeler should be proficient in using a variety of functions so that he or she can closely mirror the behavior of a company’s financial statements in a financial model. Let’s take a look at a few functions that apiece financial modeler should know.

The vast majority of financial modeling can be done with your basic arithmetic operators (+ – x /), but there is also a significant amount of business logic that can't be easily illustrated without incorporating other functions.

The IF function

Let’s say, for example, that we’ve modeled out an income statement, but we want to add a dividend payment. If we don’t have enough net income acquirable to pay out a dividend (and don’t want to draw funds from our retained earnings), we don’t want to pay a dividend. If we do have enough net income on hand, we would like to pay a $0. 10 per share dividend to investors.

This is a perfect place to use Excel’s IF function. The IF function evaluates a certain condition and returns one value if the condition is true and another value if the condition is false. In our case, the function would read as follows:

=IF(net income < dividend payment x # of shares, 0, dividend payment x # of shares)

Specifically, "net income" would reference the cell where net income is calculated. The "dividend payment" would reference a cell that contains the value of the dividend payment, and the "# of shares" would reference a cell the contains the number of shares outstanding.

The "0" input value is the value that is returned if the condition is true. That is, if net income is less than the total amount of dividends that are to be paid, then we won't pay out a dividend.

Finally, if the statement is not true, and there is enough net income to pay a dividend, we will return the amount of the dividend to be paid (a cell referencing the dividend payment amount multiplied by a cell referencing the number of outstanding shares).

This is just one example of how the IF function might be used in a financial model. This function can be critical for any model that involves conditional logic and is used quite often.

The VLOOKUP and HLOOKUP functions

Now let’s state we’ve created a financial model in which we have a number off assumptions, and we want to create several different scenarios that involve different assumptions. Rather than changing the assumptions apiece time we want to look at a different scenario, we can create a plateau of assumptions that include all of our scenarios.

The first column of the plateau would contain the scenario — scenario 1, scenario 2, etc. The next columns would contain apiece assumption for the model along with the corresponding values that should be used in apiece scenario.

To pull these values into our model, we’ll use the VLOOKUP function. Depending on the orientation of your data, you can use the VLOOKUP or HLOOKUP functions to grab data from a plateau based on a value from the first row or column of the table. Since we place the scenario in the first column of our data, we’ll use the VLOOKUP function because the function will use the vertical orientation of our data to lookup values.

First, we’ll create an assumption cell that will contain our scenario. In this cell, we’ll place “scenario 1″ as a placeholder. Next we’ll place the following function of in the assumption cell of apiece of our assumptions:

=VLOOKUP(scenario, assumption plateau range, column number of assumption, FALSE)

“Scenario” will refer to the scenario assumption cell we just created. By changing the value in this cell, we will now be healthy to change the all values for apiece of our scenarios at once. The “assumption plateau range” will be a reference to all the cells contained in the assumptions plateau we created. This will tell the function where to lookup our values.

The “column number” refers to the column of the plateau that contains the assumption that we want. For example, if you want to pull the assumption from the column right after the scenario column, you would place 2 because it is the second column. The “FALSE” value in the last input for the function refers to the fact that we want an exact match of the value from our scenario assumption cell and the value in the scenario column of our table.

Now we can change the value in our scenario cell and all of our assumptions will automatically update to that scenario. This is just one use of the VLOOKUP and HLOOKUP functions, but it illustrates the concept behind them.

The capability to swiftly reference a specific value in a plateau brings the power of a small database into a spreadsheet and can result in significant efficiencies for financial modeling.

The INDIRECT function

Another function that really opens up doors in financial models and helps to sort data in spreadsheets in general is the INDIRECT function. The INDIRECT function uses values within cells to construct a cell reference. For example, if cell A1 contains the value “B5,” and the cell B5 contains the value “$100,” then the function INDIRECT(A1) would result in the value $100.

At first blush, this function might seem inconsequentially. Why not just reference cell B5 directly? But what if we need to pull values from different worksheets within a model?

Let’s adopt we have a model that projects a companies future income statements based on its latest income statement. We want to pull the values from the actual income statement on a separate worksheet journalism and use them in our model to forecast new statements.

Each time the company puts out a new financial statement, we would have to copy and paste the new values into our model. To refrain this tedious process, we can use the INDIRECT function to grab the values off the new financial statement just by adding the new statement as a worksheet in our model and changing the value in a single cell.

Here’s how it can work. Create one input cell that would reference your latest financial statement and place “2010″ in the cell as a placeholder. For the 2010, financial statement worksheet, make sure the journalism is titled “2010″ (note that using spaces in worksheet obloquy will require you to use single quotes around the study of the worksheet in a formula reference).

Then for apiece value in our model where we need to reference a value on the actual financial statement, we use the INDIRECT function. Let’s state that the revenue value is contained in cell D8 on the 2010 financial statement worksheet and our input cell for that worksheet is in A5. We would write the following function:

=INDIRECT(A5&”!D8″)

Excel will interpret this function as a reference that looks like this:

=2010!D8

This will pull the revenue value on the “2010″ worksheet from cell D8. We would use a similar function for all the remaining values that we need to pull, replacing “D8″ with the appropriate cell reference on the financial statement worksheet.

Assuming that all financial statements for the company follow the same format, we can now easily update the model for the 2011 financials. We simply copy them into a new worksheet in our model and rename the worksheet “2011. ” We then change our input cell to “2011,” and the INDIRECT function will now pull all the values from the “2011″ worksheet instead of the “2010. ”

There are obviously many ways to go about solving these sorts of problems, but these functions will give a financial modeler some important tools for tackling them. There are many ways that the IF, VLOOKUP/HLOOKUP and INDIRECT functions can be used to pull together data in financial models and other spreadsheet projects. They can even be used together to perform some pretty astonishing feats.

Remember that financial modeling is an art form, and you have to think creatively to come up with efficient solutions for modeling financial relationships. The more functions that you’re familiar with, the more creatively and efficiently you can go about finding these solutions.

Want to look at some sample financial models related to these functions?

Visit Finance Ocean. Or try taking a finance quiz!

It is, with no doubt, the month of December that came to mark the last month of the year, and kick-off hell lot of crazy, messy and noisy activities, which we used to repeatedly do over and over again each year-end, and hope for superior results in the following year.

Such activities, which normally take place during this particular month of the year, make supervisors and employees to go through the usual panic, worries and confusion, place them under the stress and the pressure of the managers to evaluate and assess the results of the current year, and force them to come-up with the annual proposition of actions plan for the upcoming year in a form of illogical and out-of-sense document known by the study ‘business plan’ accompanied with the so called ‘business budget. ‘

During this month of the year, most of the sleeping managers wake up to rap up in a rush their incompetence, and light the fire under the asses of their sub-ordinates in a imperfectness try to please their the large brother, and clean the region from the circulating smelly gases.

Smelly gases?? What are they? From where do they come? And what effect do they have on the financial environment.

The story started long ago when the aspirations and ambitions of the large brother used to circulate and fill the region of the financial institution in a form of smelly gases. Such smelly gases were produced by the large brother’s digestive system, and freed into the region by the large brother while farting around in the workplace. They come as a result of processing heavy meal, full of the shareholders’ chili greed and spicy desires, and, then, trap too much of managers’ stress and pressure in the workplace.

Year after year, those accumulated stress and pressure from the managers induced, unintentionally, high tensions among staff – supervisors and employees – leading to high tension in the workplace resulting with a phenomenon known by the study ‘financial warming’ inside the financial systems.

This phenomenon normally happen when large brother’s smelly gases like stupid ideas, blinded visions, and confused dreams – known collectively as aspirations and ambitions – trap the stress and the pressure of the managers inside the region of the financial institution, which in turn, increase the tensions gradually in the financial environment to high levels creating difficult conditions for staff to work under.

Those difficult conditions, by all means, hurt, in general, the managers, supervisors and employees, and lead many, who could not bear the increasing tensions anymore or showed weak resistance to such conditions, to unemployment either by choice or by force.

Although the main causes of such phenomenon of financial warming come in a form of pollutants that result from processing and burning large levels of chili greed and spicy desires that were considered as the primary sources of energy, shareholders continued to feed their large brothers enormous amount of such meals more than other kinds of meals, which might result in less pollutants, to run their financial institutions.

Those meals – primary sources of energy – disturb, in most of the cases, the digestive systems of many large brothers, and cause them to produce many pollutants like stupid ideas, blinded visions, and confused dreams in a form of smelly gases known by the scientific study ‘green large brother’ gases.

Under the uncontrollable stress and pressure of the managers and the influence of the current business plan and budget, supervisors and employees begin to look and use advanced techniques in the financial world – financial engineering – to capture such pollutants from the region in a way to get rid of the emitted smelly gases that were trapped inside the financial institution, use such pollutants to create toxic products like derivatives and complex financial instruments, and, then, sell – throw – such financial products – garbage – to different organizations – land fills – in the financial system as innocuous cures to financial pains.

Those innocuous cures were, in most of the times, transformed magically by such organizations into energy drinks, and, then, sold at high prices to other people and corporations on the purpose, unknowingly, to feed the dragon – debt – in order to secure superior life conditions. Accordingly, the dragon further sent enormous amount of similar pollutants in the financial environment by simply living on such energy drinks taking this phenomenon of financial warming into higher and higher levels.

Consequently and with time, the phenomenon of the financial warming started to grow and became a global issue that affected negatively and on global scale many parts of the global financial environment crossways all continents.

As a result of the breathtaking high temperature in the financial environment, energy drinks started to evaporate more quickly, and all the ways to please the dragon were gone. As such, we started to see the effect of the global financial warming in giving the way for the dragon grow to enormous size, smash many low calibre assets, swallow many corporations, send others to grave yard, and place the rest in the intensive care units for unknown period of time.

The outcome of such scary situation is having more and more people losing their primary sources of survival along with their strengths to fight back the dragon. Even though people, in general, have superior capability than corporations to adapt to the new difficult developments, they might also grappling similar consequences of suicide, accidental death, or wheel chaired lifetime. When those events happen, the level of defaults on financial commitments will skyrocket causing waves of panic inside the financial environment leading to a serious breakdown in the flow of money in the financial systems.

Unfortunately, global financial warming is becoming one of the most complicated problem covering the financial world, in general, and financial leaders, in particular. It happens when the global financial systems go out of control – as happened in year 2008 – and heat-up as a reflect of the rising tensions in the financial systems, and the consequent gradual meltdown of the financial assets crossways the globe.

The question here is what do we do to limit such depressing consequences? Will proper individualized financial planning solve the problem?

IASB ( International Bookkeeping Standard Board ) has recently concluded on the second phase of the ongoing project of the proposed IFRS 9 ( financial instruments) which is to replace the existing IAS 39( Financial instruments – Recognition and measurement) . The first part of IFRS 9, regarding financial assets – classification is already published and this one ,the second part, is proposed to cover the bookkeeping aspects of financial liabilities and  de-recognition of financial assets .

Highlights  of the second  part of  IFRS 9 , are as follows

In the case of Financial liabilities that are designated on initial recognition at clean value through profit and loss, their reporting date measurement is proposed to be  changed, so as not to recognize  fair value changes  attributed to variation in own credit risk, in the profit and loss statement .
However, no changes are proposed  to the general  principles of recognition and measurement of financial liabilities. In other words , principles as they stand in IAS 39 in vogue would continue to apply generally.
As regards the de-recognition principles in the case of financial assets, the revised IFRS does not propose any changes except for certain additional disclosure requirements.

Although IASB has not recommended any  change to the existing principles in IAS 39 , on recognition and measurement of financial liabilities  , the principles in vogue as per IAS 39 are different from GAAP followed in many parts of the world. This article takes a look at challenges in the bookkeeping of financial liability under IFRS 9.

Challenges on Initial measurement of financial liabilities

Initial measurement  of all financial liabilities shall be at clean value under IFRS. However the guidance  in the Standard clarifies that in an arm’s length transaction the transaction value is the clean value .

In situations where  transactions involve other considerations( than that are involved in  arms length transactions) that  affect the pricing or contractual terms of a liability, the clean value is likely to be different from transaction value. However application guidance provided with the Standard prescribes that on initial measurement, while recognizing a liability at its clean value no profit or acquire will be recognized in its income statement . The inference is that , where  the clean value of a financial liability is less than its transaction value, the latter  itself becomes the basis of measurement on initial recognition. However practices followed by entities to comply with this stipulation of initial measurement at clean value are different . Loan liabilities in the accounts of a subsidiary  company ,  payable to a parent company , taken at concessional rate of interest can be a typical example in this context. Since such transactions are not priced  at market rates ,  fair value of financial liability is less than its transaction value . The IFRS standard is not specific as how the difference between the clean value and transaction value has to be accounted for. Appropriate application guidance would be necessary in this context, , to ensure uniform practices, crossways the globe.
Another area of challenge is related to bookkeeping of costs incurred in connection with origination of a financial liability. Transactions costs related to financial liabilities ( other than those measured at clean value through profit and loss ) are to be charged to the liability itself. For instance , cost of issue of debentures or bonds  has  to be reduced from the proceeds of those debts and accordingly the  liability will be reflected at its net of cost of issue, on initial measurement. There are a good number of economies where such cost of raising debt is a direct charge to profit and loss account. Under IFRS, bookkeeping for interest  has to be under effective interest method. Most of the third world countries follow contractual  interest method in its place and that in effect require them to charge upfront fees paid on raising loans ( processing fees etc. . ) to profit and loss statement on day one. On the contrary under effective interest method, such initial charges are in substance the part of the effective interest and hence have to become part of the periodical charge of interest rather than a onetime charge as expense at the time of incurrence. During the intervening time of amortization those charges are offset from liabilities rather than shown as separate unamortized asset. This also changes the way financial liabilities will be presented under IFRS. Balances carried in the statement of financial liabilities will not represent contractual obligation. That necessitates maintenance of two sets of account; one from contractual point of view and the other from bookkeeping point.
In the cases of trade liabilities ,where extended credit period is allowed, the consideration includes interest for the credit period also. The stipulation of  measuring   a financial liability  at clean value for initial measurement can pose  challenges in such cases as the total consideration has to be broken into  clean value of goods or services  and interest . Under IFRS principles, the interest cost will not become the liability until it accrues and hence a reduced liability is measured initially.
There are cases where liabilities are proposed  to be settled through equity shares. In the case of convertible bonds, the holders have option to get shares at a prefixed price. At the time of issue of such bonds , the management of a company might be  unsure about the likelihood of the bond holders exercising the option of getting shares. However the pricing of bond is affected because of the convertible option. In other words , without a convertible option , the price( interest rate) of bond  would have been different. Therefore the combination of  bond bundled with an equity option is a combination, the  value ( issue price)  of which has two components, the bond and the option to get equity shares. They require to be split so that the correct clean value of liability can be captured on initial measurement .    This is a marked departure from practices followed under local GAAPs in many countries  where the whole of bond value is a liability. The process of splitting pre-requires the testing whether the combination is of a liability and equity or not by virtue of the definitions as in IAS 32.

Reporting date measurement

In addition to the challenges at the time of initial measurement, the subsequent measurement of financial liabilities under IFRS also is at variance from IGAAP. Unlike in IGAAP, most of the financial   liabilities under IFRS are measured at amortized cost as on reporting date.   With the initial measure of financial liability at clean value, when interest (calculated according to  effective rate of interest method) is applied  and adjustments for  the cash flows related to liabilities are done, till the date of reporting , the resultant is  the amortized cost. Effective rate of interest in a variable interest contract has to be on estimated basis. Such estimations involve subjectivity. It is doable that a lender and a borrower might have different estimates about future interest scenario and hence different rates of effective rate of interest for  same contract.  This points to a scenario where a financial liability  statement as per contract will be looking different from a financial liability statement as per the IFRS accounts. Entities would require to maintain multiple ledgers   in that context and IT systems need appropriate modifications.

Apart from measuring financial liabilities at amortised cost , there are certain financial liabilities that are measured at clean value even for reporting date. They are either those financial liabilities that are in the category of held for trading  or designated by companies initially as items at clean value through profit or loss . In both these categories their clean value variations affect the Income Statement. Financial liabilities start under held for trading category when they are the result of a business model of short term profit booking ( including derivatives, but not designated effective hedging instruments).

Financial liabilities are designated at clean value through profit and loss under  three situations . They are

(a)    when the liability is a combination of  debt and a derivative where from  the cash flow from derivative is  significantly at variance from the host liability , as per the general stipulation of IFRS such combination ( embedded derivatives) require to be split and the derivative needs to be measured  at clean value and the host needs to be measured at amortised  cost. Alternatively the whole of the combination can be designated at clean value through profit or loss as permitted by  this IFRS.

(b)    When the designation at clean value through profit or loss eliminates an bookkeeping mismatch. For instance a bank manages a portfolio of asset  under held for trading category and measures at clean value through profit or loss. There is a corresponding liability against it ( state payable to the port folio investors). It is saint to measure those liabilities also at clean value. The bank can designate them so.

(c)     When the internal monitoring of a portfolio liability, for management neutral is at clean value ,  its measurement for reporting can also be at clean value.

Change proposed in IFRS 9

The proposed change through IFRS 9 is regarding the measurement of the financial liabilities designated at clean value through profit or loss ( covered by points(a) to (c) . According to the proposed change, clean value change on reporting date on such financial liabilities might be attributable to various reasons ;one amongst them being change in own credit rating.   When the credit rating of a company decreases , recoverability of debt from that company also decreases. That means value of liability will have a lesser clean value. That would result in profit, which is undesirable. Therefore the proposed IFRS 9 prescribes bifurcating clean value changes for such liabilities as attributable to (a) own credit rating and (b) others. Fair value change attributable to the former  is not recognized in profit or loss, instead in equity through the Other Comprehensive Income Statement (OCI).

While this proposed change is a prudent step, a couple of questions are  relevant here.

Why is that the proposed change is applicable only in the case of items designated at clean value through profit and loss   and not the liabilities under Held for Trading Category. Suppose, a company had written options and defaulted on payments when the buyers have exercised the option. This is a case where the credit worthiness of the company would be  impaired significantly . Market value of the same written options would decrease  as a result of credit risk increase  . These  written options start under HFT category and hence are to be measured at  fair value through profit and loss statement . However the clean value change here is  attributed to own credit risk( at least partly if not fully), which if separated and kept out of profit and loss statement would have a higher loss recognized in the profit and loss account. The proposed viands in IFRS  9 ignore these situations.
When bookkeeping is a means and not an end in itself, the process of separation of clean value change as attributable to (a)own credit risk and (b)others is an exercise likely to invite more cost than benefit. The ideal course could have been to follow a conservative method under which net losses are taken to profit and loss statement and net gains are to equity , with suitable to viands for reversal of such losses and gains to be place along side the place of origins.

In conclusion, IFRS bookkeeping of financial liabilities  is cumbersome and in an analysis of cost versus benefits , it is  advantage professionals and not to entities

C V SAJAN

Financial aid for single mothers is prefabricated for those, who are really in need of it. You can find various sources that offer financial aid to single moms, who urgently need money. In the example you can take the federal government. The government makes viands of money as a source of financial aid to those who indeed need some kind of financial aid. You can also grab this opportunity by applying in the right way for the money. You can search world wide web where you can find the various websites containing different aid programs which are acquirable at present. Accordingly you can apply for that one which perfectly suits your need.

As far as financial aid for single mothers is concerned education plays an important role for the single moms. This is because you might find that the single mothers with degree hardly suffer from financial difficulties as compared to those single mothers who don’t have degree. Therefore, it is good if you are single mother to have degree with you for which you can rejoin the college. You can look in your college where you are considering attending the lectures for the financial aid for single moms. This is because the colleges wage some kind of financial aids for moms. You can find the institutions providing financial aid for single mothers who are going to be attending the lectures.

There is also financial aid for single mothers in the form of scholarships. If you are a single mother want to oppose your further studies but don’t have adequate amount of money to complete your education. In such circumstances, you can apply for the allows given by the colleges. In order to get the allow you can contact to the financial help office of your education institution. Apart from this, you can also apply for the financial help from the non-profit organizations; they have some allows as financial aid for single mothers especially in the form of scholarship for education.

It is not difficult to get financial aid for single moms, but at the same time you need to have some kind of determination to acquire financial aid. Financial aids for single mothers also include the poor mothers who are struggling to serve their children. There are a number of sources who help such poor mothers in making their financial condition stable. There are a number of financial aid programs acquirable where these struggling mothers can apply for it.

In short, I can state that there are three sources of financial aid for single moms. These sources include; federal government, educational institutions and NGOs.

of determination to acquire financial aid. Financial aids for single mothers also include the poor mothers who are struggling to serve their children. There are a number of sources who help such poor mothers in making their financial condition stable. There are a number of financial aid programs acquirable where these struggling mothers can apply for it.

In short, I can state that there are three sources of financial aid for single moms.

Ways of turning cash means into investments. Sources belonged to he investments in the objects of industrial and nonindustrial spheres, mostly come out in the initial form of cash means. Turning of these latest into the investments might be provided in different ways. The easiest way takes place in the case, when industrial subject manages and owns definite means, uses them for widening and improvement of production and also for creation of nonindustrial objects. In the resembling type savings of those persons, which begin activities with own savings turn into investments.

Though, in other cases turning savings into investments is a difficult process. The fact is, that most part of the population has no opportunity to wage investments straight into the production, because for this they must have manners of enterprise administration, and of course, own definite minimal amount for this or those reasons. Part of the enterprise profit also does not turn into the investments.

Herewith, form one side, population and some enterprises own free cash sources, from another, many enterprises need additional means for their investment program realization. Transmission of sources is realized by the channels of financial market, where owners of cash means appear to be the distributors of investment capital, and those persons, who influx sources – consumers.

Basic channels for transmission of cash means from distributors to consumers. Depending on how transmission of cash means is realized from distributor to the consumers, we can point out two basic channels at the financial market. First is the market of banking credits. Banks accumulate temporarily free cash means of the juridical and physical persons. Of course, they pay definite percents at the influxed sources and later give credits to the borrowers (to those ones, who wage real investments) for high percent. Thus, process of money movement from the owner, to the borrower is realized with the help of a bank.

In many cases such way of transmission of the cash means answers to the interests of the cash owner. Though this latest takes too tiny percent from the bank, but thus he/she avoids the risk of not returning of money from the borrower. Except security, banking deposits are high liquidate, as the depositor can take own amount out and also investment of cash means is reachable even for the smallest depositors (owners of the savings).

Bank pays very tiny percent to the depositors comparing with those it takes from the borrowers, that’s why it is natural, that the distributor has a desire to invest capital exactly into the relation with these borrowers.

As to the capital consumers (borrowers), it is advantage for them to get in direct touch with distributors. The fact is that getting banking credit is often followed by great difficulties. For example, often the bank doesn’t lend credit in the term, which is needed by the borrower; the bank might not have total amount requested by the borrower, for realization of the large-scale projects and so on. All these lead us to the large-scaled realization of attracting free cash sources together with the banking credit by capital consumers in other way – by emission of securities.

Somehow this way answers the interests of distributor of investment resources and their consumers. Distributors of resources (owners of savings) often are healthy to invest their sources in relatively advantage conditions, then banking deposits are and for longer period of time. Quite simple procedure of placement of sources is realized in the way of selling and purchasing of securities. Also, if securities are characterized by quite high level of liquidity, then the investor can invest wasted sources by selling own securities if necessary.

From the point of investment resources consumers’ view emission of securities has priority relatively to the banking credits. Hey (capital consumers) are given opportunity to influx cash sources from a lot of distributors of capital and accumulate big amount of money. Also, sources might be influxed for long period of time, sometimes for indefinite terms, if the affair touches upon securities.

Thus, market of banking credits and market of securities in the modern conditions appear to be necessary rings for investment processes, basic areas, with the help of which savings are turned into investments and are used for development of the production.

As stated above, depending at objects of capital investments they separate real, financial and intellectual investments (drought 5. 7. ). Under real investments they mean placement of sources (capital) into creation of real assets (as of material, so immaterial ones), which are in touch with the realization of operative activities of economical subjects, salvation of their social-economical problems. Under financial investments they mean placement of capital into different financial instruments, in the first place into the securities.

Financial investments either have speculative character, or are oriented towards long-termed investments. They recognize to be the form of financial investment placements of sources into shares and securities, also into the loan banking deposits.

Financial investment oriented towards long-termed placements of sources is related with strategic goals of participation in the management of the investor’s object, in which the capital is invested.

Fictive capital. Concepts of real and financial investments are in close touch with the ones of real and fictive capital. In the economical literature they usually mean securities under fictive capital. Real capital is place into production and securities serve for the title of property, which represent this capital. Financial capital is “the capital which exists in the grappling of securities, bring profit to the owners. Different from real capital, which is place into various fields of the industry, fictive one has no inner value and is not considered to be real wealth, that’s why it has no function in the process of capitalist further production. and, according to this, we want to pay attention to the following: for apiece separate owner securities (fictive capital) represent valuable, which brings to him totally real income. Though, from the point social capital securities don’t represent real prosperity. Growth or reduction of the value of functioning securities in the society might take place independently from real capital. According to this, securities appear to be a fictive capital.

Real capital of the society is grown at the expense of investments into the real assets, while fictive capital might be increased without financial investments, at the expense of course value of the securities emitted earlier. A significant example of the process of fictive capital growth is process of emission of the so-called produced securities. Here they don’s take into statement real investments, but they give rights for purchasing securities already produced or emitted earlier. In this case financial investments are followed by the growth of real capital of the society.

Though, to our mind, this subject is not so easy, as it seems. The fact is that growth of the share course is realized not itself, but by the fact that the effectiveness of using real capital is growing.   The growth of course value of the enterprise shares expresses the fact, that the market gives too high estimation of the given enterprise.

Herewith, we can make a conclusion, that fictive capital is not a real wealth; it provides marketing estimation of real capital of the society in apiece given period of time. Envision that we have two enterprises with totally same real assets, though one enterprise uses these assets superior and works more effectively. It is evident, that course value of the shares of this enterprise is higher, then those of other ones. That’s why fictive capital is being grown not itself, but expresses the position of real capital. Size of fictive capital is nothing but the marketing value of the real capital, the title of which is fictive capital considered to be.

Herewith it is difficult to concur with, that “fictive capital acts no function in the process of capital further production”. Securities (a fictive capital) play important role in the process of further production while turning of the savings into investments. A fictive capital (securities) makes income for its owners. Exactly the desire of making profit makes the owners of the savings to invest sources into securities. Amounts gathered by the issuerare used for creation and purchasing of the real assets, accordingly the growth of the volume of production takes place.

Movement of financial investments reminds us the movement of loan capital. As K. Marx showed us, in the process of movement of loan capital one and the same capital amount appears in the degree of capital-owner and capital-function. Income of the functional capitalist is divided into two parts – into the loan percent and the income of the clerk. Under the conditions of weak development of the joint-stock company free capital was place into the production in the form of loan capital. Real investments in the production are realized at the expense of own and loan capital from the functioning capitalists.

By realization of the joint-stock form of the enterprise the character of the investment process is essentially changed. In this case, they mean the joint-stock company might realize real investments at the expense of own sources (indivisible profit) or at the expense of banking credits. So, that they don’t apply for the financial investments.

Though, it is different in the case of joint-stock company. While foundation of the joint-stock company the founders are enter property, cash means, and intellectual property into the initial capital. Each deposit is estimated in the cash form and apiece founder buys a definite package of shares for appropriate share, which is entered into the initial capital of the society. Amount of one and the same investments turns into real or financial investments. the process of real capital growth is followed by the growth of fictive capital. Herewith, in this case real investments can not be realized without share emission, i. e. without financial investments.

In the case of growing initial capital of the joint-stock company emission of new shares is taking place, then it is followed by real investments. Thus, financial investments are considered to be necessary attributes for the investment process. Real investments are impossible without financial ones. Real investments take finished grappling by realization of financial investments.

Widening of the production might be realized, also by the borrowed sources, which are influxed with the help of emission of the loan securities. Consequently, even in this case the process of real investments is realized with the help of financial investments.

We have different situation, when we apply for secondary market of the securities. If the investors buy shares for already activated enterprise, then sources wasted for purchasing shares already are investments. But these sources get to the previous owner of the shares that’s why growth of the real capital of the enterprise doesn’t take place. It is same with the purchasing of securities of any kind at the secondary market. In this case (if the course of securities are not grown) the growth of fictive capital of the society doesn’t take place. Only the distribution of fictive capital among the members of society takes place. Thus, financial investments, which are realized in the forms of purchasing securities at the secondary market, are considered to be relatively independent form and it is not directly related with the process of real investments.

According to the stated above, we can make the following conclusion: financial investment is the connecting ring of turning of the savings into real investments. With its help the savings get into the production; at the same time they can appear to be relatively independent form of the investments. Foreseeing the fact, that this day joint-stock company is considered to be quite spread, organization-legislative form of the enterprise; we might come to conclusion, that financial investments and security market play very important role in the investment process on the way of turning savings into real investments.

Intellectual investment definition. Investment market is a difficult system consisted of various structural elements, among which there is a numerous connection. Scheme (in the drought 5. 8. ) represents a clear example about structure of the world investment market.

As seen from the matter, investment objects are divided into financial and material (real) assets. Each of them has quite diversified structure.

Financial assets concern financial and payment obligations of apiece kind, which are basically created by the economical agents while their work. This is cash money; deposits existed at the current accounts, short-termed loan obligations, for example, shares and other financial documentation, which establish the property of right at the capital or setting arrangement at the movement of financial resources.

Material assets are: movable and unmovable property, lend, buildings, precious metals, commodities of long-termed usage, material valuables or inventory having short-terms of produced service and so on.

Modern structure of investment, in the first place, expresses significant surplus of the financial assets at material ones (accordingly 57. 7% and 42. 3%), ant second, in the structure of financial assets itself securities, short-termed obligations and accounts having investment character occupy more and more larger place.

Correlation of financial and material assets of the investment market might be expressed by the coefficient of financial interrelation. Idea of involving such coefficient belongs to R. Goldsmith, who is the author of the works written about the structure of national wealth and financial systems of developed countries. This scientist in the second part of 50s and beginning of 60s worked out the method of calculation of the coefficient of interrelation. He calculated this coefficient as conformity of total financial assets with the size of material assets received by deducing of the country net foreign assets. Net foreign assets show conformity of foreign debt of the given country and its residents with the one, which are owned by the foreign country and its residents towards this county. Citizens, companies and other juridical persons have right to have accounts abroad, to give credits to the foreign citizens and to have property abroad. Also, they are doable to get in debts themselves towards the foreign citizens. If the size of foreign property and financial wealth of the country resident surpluses debts towards the foreigners, then net foreign assets appear to be positive size and on the contrary.

According to the investment nature, which basic kinds of the investment market – financial and material ones, or the real investment markets in the modern conditions might be added by the market of intellectual investments. This latest functions in the way of licenses, engineering-consulting service, Now-how, scientific processing, income and purchasing of projects and others.

As in the marketing economics, so at the transmitting stage, substitute variants of using resources, investment resources among them. The principle of inter changing touch upon the realized investments as in the material forms, so in the human capital. It is well known that under the modern conditions investment in the human capital is very important and gives a big profit. This is stated in many economical works. K. Sax and F. Lauren point to the investments into the human capital. They notice that investments into the human capital have a great importance for marketing economics. Nowadays a theory of intellectual capital makes foundation to the realization of investments into the human capital. The authors of this theory concern, that intellectual capital is a difficult category. It is wider than the human capital, as in it information is considered to be the independent industrial resource. Investments into the intellectual capital differ from the ones realized into the human capital. It also concerns the elements of structural capital, which means investments realized into the furniture, computers, programs, patents and trade marks. On the basis of intellectual capital theory a concept of social partnership was formed. This conception leans upon the investments place into the social capital. Social capital theory means relations of mutual help and development of trust relation in the separate groups or readiness of participation in the unions. More educated and eligible workers have more possibilities for formation of social capital and economical macro-system. On the basis of investments realized subjective leaders of captivating investment surrounding is formed in the social capital, that influence significantly upon the development of intellectual investment market.

Intellectual investment market has the following peculiarities:

First, intellectual investment market is the consisting part of service market. It provides realization of specific commodity by straight contracts between producers and consumers. Herewith, trade mediating is not the exception. Though there is a principle distinction between mediating and consuming commodities at the market of intellectual investments. Analyzes of different researches show, that in the conditions of transitional period growth of the share of mediator structures in the section of consuming commodity of big request take place in Georgia. The mediator is not requested to have a special knowledge, only initial information is enough. Of course, mediating at the market of intellectual investments requires high qualification level of the firms’ specialists. The mediators themselves, which unite “producer-consumers”, are not many. Herewith, mediator service at the market of intellectual investments is different form analogue service of the market of big request commodities in the equal conditions by calibre and effectiveness (at the expense of reducing expenses of the interested sides).

Second, the market of intellectual investment influences greatly upon capital movement and the market of fag forces.

Third, intellectual investments are fortified by the say from the foreign competition, also by export and import of final result of using intellectual investments. Functioning of the market of intellectual investments can't exist without endorsement of rights at the objects of intellectual property.

Fourth, for entering international market by inner market organizations and intellectual investments additional are not needed.

Fifth, formation of market values is specific at the results of using intellectual investments.

Values of intellectual investment products have not direct connection with the work spent on it. The value of intellectual investment product is defined by what it gives by using in the production process. Herewith, value of intellectual investment process is defined as expression of effect received by this product usage by money.

Market value at the intellectual investment product is formed as agreement one, by using two prices (of seller and purchaser). The purchaser might apply for the fact that a profit received from using intellectual investment product, minimally, is to compensate the expenses prefabricated by the seller for selling this product and also expanses of the buyer for its realization. The seller doesn’t often sell the intellectual investment product, but transmits only the right for its using. Thus, agreement value on this production is close to the buyers’ one in practice.

Realization of intellectual investments at the market might be provided in the following forms:

-      by transmitting rights for using licenses, Now-How, commodity sighs and so on;

-      by selling-transmission of Now-How, technological experiences and so on. Agreements on such acts of sell and buy from license agreements are different by the fact, that the owner of Now-How doesn’t refuse its selling, but doesn’t concur with its patenting;

-      by providing engineering services;

-      by transmission of technologies, in the way investment partnership, within the bounds of which takes place not only sell and purchase, but in other ways of its distribution consultations, limiting specialists, transmission of droughts and technological exchanges.

Engineering is one of the basic forms of realization are the market of intellectual investments. It means providing different engineering-consulting service on the commercial basis. They divide engineering service into two groups: 1) service related with preparing production process; 2) service related with supplying of normal continuing of the process of production and its realization. To the first group belong: a) pre-projecting service (social-economical researches; topographic processing and planning of location; researching grounds; searching for the minerals; technical-economical statement of project and so on); b) projecting service (preparing general plan and recommendations; estimation of expenses prefabricated on its exploitation beforehand; preparing technical specialists and so on); c) further service of he project (preparing contracting documentation; organization of auction; estimation of suggestions; making contracts; managing building process; making and granting certificates about finishing work, making technical conclusion about building and so on); d) special service (researching about utilization, various juridical procedures and so on). To the second group of engineering service belong: service related with the managing and organization of the production process, service related with the examination of the object; consultations in the financial questions; service related with the production realization (researching the conjuncture of the market, advertisement organization), service related with the involving the system of informational supplying and so on. Engineering consultations, in the conditions of deficit of high-qualified personnel, can wage intellectually the investment process, help firms to rise effectiveness, fasten circulation of the investment resources.

Portfolio investment market is the consisting part of the financial investment market. By forming society of share-holders and with the help of financial institutional investors, their activity at the financial investment market support significantly accumulation of independent cash sources in the country, also attracting of foreign investors, fastened circulation of financial investments, effective insurance for financial-investment risks and so on.

For clearing investment motivations up and defining levers is say influence we thing advisable discussion of peculiarities of the investment circulation in the process of further production of material (basic and turnover) and financial capitals.

Investment circulation in the process of investment activity is realized in the following basic directions:

investments in the material assets (production of basic and turnover capital); investments in financial assets; investments in the intellectual valuables.

Let’s discuss investment circulation in the process of further production of the material assets (basic and turnover capitals). Its apiece element might be divided into movable and immovable properties. Furniture, mechanisms, turnover capital belongs to the elements of movable physical capital and elements of passive part of basic capital (buildings, equipment, industrial infrastructure) – to the unmovable one.

Further production of the movable physical capital is realized in the industry, and of unmovable ones – in the building. Investment activity might be realized in the way of showing of unmovable property, furniture and other elements of physical capital at the market, or in the case of absence of needed commodity, in the way of their production (building).

Investment activity might be realized at the expense of different sources: own, borrowed, attracted sources for investments, budgetary assignations. Structure of sources depends at organization legislative forms of active and newly formed enterprise. Investments might be displayed as in the cash, material forms so in the grappling of property rights and intellectual potential. Foreseeing stated above, investment circulation in the further production of a physical capital might be represented in the following way:

Economical essence of the given chain of transformation exists in the following: investments in different for (cash, productive, commodity) are place into the objects of investment requests for industrial activity. After this a process of transformation of investments into industrial factors takes place. Thus materialization of investments takes place, which appears in the grappling of rising value of investor’s capital property.

Exactly the new transformation of capital value finishes investment circulation in the Soviet economical literature. They departed artificially stage of formation of new capital value and stage of their functioning, which defines real level of income of profitableness of these valuables, and finally the period of self-compensation of investments.

As main goal of investment are making profit, investment circulation definitely concerns a period of exploitation of bought capital valuables till the moment of financial recourses, by which investments in the capital production are compensated.

In this case, production, which is produced in the form of investment commodity, is realized at the markets of different investments (real estate, furniture, materials and other markets).

What is the distinction between investments and investment commodity, as they coincide with apiece other in the material form and capability of making income? To our mind, basic distinction is in the “universality” degree of investments and investment commodity. Any investment commodity for realization at the markets in the future becomes a bourgeois of production in concrete material or cash forms. Material transformation of a capital doesn’t mean further production, it might be even threadbare – morally and physically, and investments, as they are movable form of cash capital – might make endless and permanent profit. To our mind, this makes investments different from the investment commodity.

Investments into the financial assets take place in relation with their profitableness norms. Income, according to the different financial assets, is divided into dividends (kind of industrial income) and percents. This is defined by what capital they represent – industrial or loan.

A process of investments into the financial assets might be represented in the following way:

First, intellectual investment market is the consisting part of service market. It provides realization of specific commodity by straight contracts between producers and consumers. Herewith, trade mediating is not the exception. Though there is a principle distinction between mediating and consuming commodities at the market of intellectual investments. Analyzes of different researches show, that in the conditions of transitional period growth of the share of mediator structures in the section of consuming commodity of big request take place in Georgia. The mediator is not requested to have a special knowledge, only initial information is enough. Of course, mediating at the market of intellectual investments requires high qualification level of the firms’ specialists. The mediators themselves, which unite “producer-consumers”, are not many. Herewith, mediator service at the market of intellectual investments is different form analogue service of the market of big request commodities in the equal conditions by calibre and effectiveness (at the expense of reducing expenses of the interested sides).

Second, the market of intellectual investment influences greatly upon capital movement and the market of fag forces.

Third, intellectual investments are fortified by the say from the foreign competition, also by export and import of final result of using intellectual investments. Functioning of the market of intellectual investments can't exist without endorsement of rights at the objects of intellectual property.

Fourth, for entering international market by inner market organizations and intellectual investments additional are not needed.

Fifth, formation of market values is specific at the results of using intellectual investments.

Values of intellectual investment products have not direct connection with the work spent on it. The value of intellectual investment product is defined by what it gives by using in the production process. Herewith, value of intellectual investment process is defined as expression of effect received by this product usage by money.

Market value at the intellectual investment product is formed as agreement one, by using two prices (of seller and purchaser). The purchaser might apply for the fact that a profit received from using intellectual investment product, minimally, is to compensate the expenses prefabricated by the seller for selling this product and also expanses of the buyer for its realization. The seller doesn’t often sell the intellectual investment product, but transmits only the right for its using. Thus, agreement value on this production is close to the buyers’ one in practice.

Realization of intellectual investments at the market might be provided in the following forms:

-      by transmitting rights for using licenses, Now-How, commodity sighs and so on;

-      by selling-transmission of Now-How, technological experiences and so on. Agreements on such acts of sell and buy from license agreements are different by the fact, that the owner of Now-How doesn’t refuse its selling, but doesn’t concur with its patenting;

-      by providing engineering services;

-      by transmission of technologies, in the way investment partnership, within the bounds of which takes place not only sell and purchase, but in other ways of its distribution consultations, limiting specialists, transmission of droughts and technological exchanges.

Engineering is one of the basic forms of realization are the market of intellectual investments. It means providing different engineering-consulting service on the commercial basis. They divide engineering service into two groups: 1) service related with preparing production process; 2) service related with supplying of normal continuing of the process of production and its realization. To the first group belong: a) pre-projecting service (social-economical researches; topographic processing and planning of location; researching grounds; searching for the minerals; technical-economical statement of project and so on); b) projecting service (preparing general plan and recommendations; estimation of expenses prefabricated on its exploitation beforehand; preparing technical specialists and so on); c) further service of he project (preparing contracting documentation; organization of auction; estimation of suggestions; making contracts; managing building process; making and granting certificates about finishing work, making technical conclusion about building and so on); d) special service (researching about utilization, various juridical procedures and so on). To the second group of engineering service belong: service related with the managing and organization of the production process, service related with the examination of the object; consultations in the financial questions; service related with the production realization (researching the conjuncture of the market, advertisement organization), service related with the involving the system of informational supplying and so on. Engineering consultations, in the conditions of deficit of high-qualified personnel, can wage intellectually the investment process, help firms to rise effectiveness, fasten circulation of the investment resources.

Portfolio investment market is the consisting part of the financial investment market. By forming society of share-holders and with the help of financial institutional investors, their activity at the financial investment market support significantly accumulation of independent cash sources in the country, also attracting of foreign investors, fastened circulation of financial investments, effective insurance for financial-investment risks and so on.

For clearing investment motivations up and defining levers is say influence we thing advisable discussion of peculiarities of the investment circulation in the process of further production of material (basic and turnover) and financial capitals.

Investment circulation in the process of investment activity is realized in the following basic directions:

1.    investments in the material assets (production of basic and turnover capital);

2.    investments in financial assets;

3.    investments in the intellectual valuables.

Let’s discuss investment circulation in the process of further production of the material assets (basic and turnover capitals). Its apiece element might be divided into movable and immovable properties. Furniture, mechanisms, turnover capital belongs to the elements of movable physical capital and elements of passive part of basic capital (buildings, equipment, industrial infrastructure) – to the unmovable one.

Further production of the movable physical capital is realized in the industry, and of unmovable ones – in the building. Investment activity might be realized in the way of showing of unmovable property, furniture and other elements of physical capital at the market, or in the case of absence of needed commodity, in the way of their production (building).

Investment activity might be realized at the expense of different sources: own, borrowed, attracted sources for investments, budgetary assignations. Structure of sources depends at organization legislative forms of active and newly formed enterprise. Investments might be displayed as in the cash, material forms so in the grappling of property rights and intellectual potential. Foreseeing stated above, investment circulation in the further production of a physical capital might be represented in the following way:

Thus, whole system of investment market forms total investment-market space. In this space a market of financial investments is filled by real and intellectual investment market.

Lamara Qoqiauri

Real Member of Georgian Academy of Economic Sciences

and New-York Academy of Science;

Doctor of Economics; Professor