1. Financial Market Trends - OECD JournalThe articles in Financial Market Trends focus on trends and prospects in the international andmajor domestic financial markets and structural issues and developments in financial marketsand the financial sector. This includes financial market regulation, bond markets and public debtFinancial Market Trends No. 100 Volume 2011/1Global SIFIs, derivatives and financial stability, June 2011Guarantee arrangements for financial promises: How widely should the safety net becast?,management, insurance and private pensions, as well as financial statistics.Financial markets: Long-term investment and growth, May 2011This off-print issue of Financial Market Trends contains preliminary proceedings froma high-level financial roundtable held on 7 April 2011 addressing issues relating tolonFinance Trends MatterTrends in investing, world culture.1. On a Return to Classical Education. Your educationally-deprived editor muses over thebenefits of a Classical education, and how such a foundation in thinking might help us asinvestors and as citizens of the world.2. Marc Faber: Final Crisis Yet to Come. Wonderful presentation by Marc at this years MisesCircle in NYC, offering a crucial take on US monetary policy and the likely outcomes of theFeds "quantitative easing" experiments. Video and presentation slides included.3. Niall Ferguson on Fiscal Crises and Imperial Collapse. Must hear presentation from Fergusonoffers a historical overview of government debt crises. Highly relevant back in May and onlymore so now that the developed nations sovereign debt crisis continues to unfold here at year-end 2010.4. LTCM and the Lessons of Failure. Thoughts on hedge fund collapses (and fund managerresurrections), the money manager merry-go-round, risk management, and the dangers ofoverconfidence.5. Must Hear Interview with John Burbank of Passport Capital. Part of our series on globalmacro investors and hedge fund managers, this excellent discussion with John Burbank comesto us via Benzinga podcast.6. Michael Burry: An Up & Coming Macro Star? An in-depth look at Michael Burrys gradualtransition from a US stock-focused value investor to an international, global macro investor.Includes an unedited transcript of Bloomberg TVs interview with Burry, in which he offers hisviews on the economy, investing, and his famous subprime short trade.7. Jim Grant, John Hathaway and Peter Munk sit down with Charlie Rose to discuss gold asmoney, the causes of the recent final crisis, and likely outcomes of Fed and governmentintervention in the markets.8. John Allison on "Leadership and Values". The former CEO and Chairman of BB&T bankspeaks to Virginias Darden School of Business on the importance of adhering to a soundethical framework and engaging in "win-win" business transactions. Excellent talk on the spirit oftrue capitalism and personal responsibility.Thats all for 2010. Please join us for more in 2011, as we explore the coming years macro

2. investing themes and future economic events.You can keep up with us in the meantime through our real-time updates on Twitter andStockTwits or via the Finance Trends RSS blog feed. Have a Happy New Year!RECENT TRENDS IN FINANCE REPORTINGThe independent entity of the corporation and its ability to raise resources from public at large,without yielding control of operations to the subscribers has paved the way for the megacropsandthe perpetual succession and professional control has abolished ownership to create themultinational and transnational corporations which rise above political nationalism and operateinthe global economic order.In this, the most important factor is sharing the information and developments in the corporationand industry, with the investors and others to establish and maintain the corporate democracy.FINANCE reporting is now at the centre stage of reforms in view of the shareholders educationbythe companies. Recent developments in corporate financial reporting indicate a greateremphasison better voluntary disclosures by the companies regarding their performance and state ofaffairs.This make their balancesheet more transparent than everbefore. Briefly, the age of BikniReportswhere in what is revealed is not so interesting as what has been concealed, has been out.Presentcorporate scenario has witnessed tremendous advancement in the process of re-engineering ofannual reports by the companies. This paper seeks to discuss, various issues emerging out ofsuch re-engineering process.OBJECTIVES OF THE PAPER The objectives of this paper are:-1. To outline the new areas of increasing importance in the field of financial reporting.2. To point out the steps taken by the regulatory statutes and statutory bodies to ensure properfinancial disclosures by the corporate entities...; and 3. To illustrate the practical aspects ofthese developments with reference to annual reports of some major Indian Companies. ModernVoluntary Disclosures Many new areas have been included in the annual reports of the majorIndian Companies recently.This is the outcome of both voluntary effort on the part of companies to educate theshareholdersand to give a better insight of the management, operations, economy and prospects of thecorporation. They are explained below:a)Management Policies& overview of company The current trend in annual accounts is to impartmore transparency by disclosing various corporate and management objectives and policies,profile of the company and analyses of financial conditions and prospects. Some major headsare : Products and Product range Area of Specilisation Customers Profile and Market StageCompetiton.3|Pag Future plans and trends Financial goalsFinancial condition and analysisGovernment PolicyRisks and Threats .Economic Value Added (EVA) : Traditional approaches to measure 3. Shareholders ValueCreation have used parameters such as earnings capitalization, market capitalization andpresentvalue of future cash flows. Extensive equity research has now established that it is not earningsper share , but value which is important. EVA is a new concept being applied to understand andevaluate financial performance.EVA is residual income after charging the company for the cost of capital provided by lendersand shareholders. In other words, EVA represents the Value Added to the shareholders bygenerating operating profits over and above the cost of capital employed in the business. It isthose companies which earn higher returns than cost of capital, that create value. TheCompanies which earn lower returns than cost of capital are destroyers of shareholder value.Exhibit 2 shows the formula and presentation of EVA trends in a balancesheet.Brand Value :A balance sheet disclosesthe financial position of a company which is influencedby the economic sources it controls its financial structure, liquidityand solvency, and its capacityto adapt to changes in the environment.However, it isbecoming increasingly clear that intangibleassets have a significantrole in the growth of a company, so quite often to search for the valuequite oftenleads back to understanding, evaluating and enhancing the intagible assets of thebusiness.A brandis much more than a trade mark or a logo.It is a trust mark of promise of qualityandauthenticity that client can rely upon.Brandequity is the value addition provided to a product orcompnay by its brand (name).It is the financial presuit that a buyer is willing to pay for the brandover a generic or less worthy brand.It is not created overnight.It is the result of valueless pursuitof quality in manufacturing, selling services, advertising and marketing.Capitalizing the value ofa companys intangible assets on the balance sheet is a recentphenomena.The task of measuring brand value is a complex one.Several models are available foraccomplishing this e.g. brand-earnings multiple model, utility cost method, return on capitalmethod,premium profit methods etc.These models are however, still subject of debateamongresearchersand using such models and data in predicting the future of any company, is risky, and should beadjudged critically.Exhibit 3 shows the methodologyfollowedby Infosys Technology for valuing its brand value .d.HumanResource Accounting : Human resources represent the collective expertise,innovations, leadership,entrepreneurial , professional and managerial skills evolved in theemployeesof an organisation.The non human assetis reorganized as an asset and is therefore,recordedin the books and reported in the financial statements, whereas the human assets is STATUTORY DEVELOPMENTS5|Pag Balancesheetabstract and General Business Profile a) : Part IV has been added toschedule VI to the Companies Act vide notification dated May 15, 1995. This is an attemptto disclose the summarized financial position, and performance of the company besidesthe products of the company.Recent ICAI pronouncements : b) Certain ICAI pronouncements of Accounting Standards andguidance note also have an impact on the presentation of accounting information: i) AS-1 :Disclosure of significant Accounting Policies:This standard is mandatory The view presented inthe financial statements of an enterprise of its state of affairsand of the profit or loss can be significantly affected by the accounting policies followed 4. in the preparation and presentation of the financial statements.The accountingpolicies followed vary from enterprise to enterprise.Disclosure of significantaccounting policies followed is necessary if the view presented is to be properlyappreciated.ii) AS-5 :It has been revised and renamedNet Profit or Loss For The Period, Prior Period Itemsand Changes in Accounting Policies. Companies have to give a separatedisclosure in respect of certain items of income and expenses within profit or lossfrom ordinary activities, prior period and extra-ordinary items and changes inaccounting estimates due to changes in accounting policies.iii) The ICAI issued revised AS3 Cash Flow Statements which supersede AS3 Changes inFinancial Position issued in June 1981. This is recommendatory in character and isrecommended for use by companies listed on a recognised stock exchange and othercommercial industrial and business enterprises. c)Technology Absorption etc. : Pursuant toSection 217 of the Companies Act, theCompanies (Disclosure of particulars in the report of Board of Directions) Rules, 1988 nowrequiresan statement in directors report regarding technology absorption, conservationof energy andforeign exchange earnings and outgo.f)Certain alteration have been made in Part I in Schedule VIrequiring separate disclosure of (a)unutilized moniesraised by issue indicating the form of investment; and (b) the outstandingdues owned by companies to small scale undertakings for a sum of Rs. 1 Lakh or more which isoutstanding for more than 30 days.g) Quarterly Results:Clause 41 of the listing agreement has been amended to publish results onquarterly basis within one month of the expiry of the period. The sum total of the four quartersshould not substantially differ from the audit results of the company. All material non-recurring/abnormal income/gain and expenditure and effect of all changes in accounting practicesaffectingBiggest Remodeling Trends for 2011New year, new list of remodeling projects to start around the house. At least thats whatremodelers and contractors are hoping.So, what remodeling projects are on top of everyones list?More from CBS MoneyWatch.com Worlds Most Expensive Home Housing Rebound? 11 Spots Where Prices Are Rising Tea Party: Dont Let Renters VoteThe National Association of the Remodeling Industry (NARI) conducted an exclusive poll of theirtop builders and developers for us and found that while most people are not starting majorrenovation projects due to the economy, now is the time to take care of the smaller jobs aroundyour home.Call it the over-arching remodeling trend for 2011: Tackling small projects while you wait to dothe really big remodeling project thats on your list. 5. Here are 12 top remodeling trends to welcome in the "aught teens":1. Save Money: Remodel Your Bathroom. Old tile getting a little grungy? It looks like 2011 is theyear for a bathroom update. Dennis D. Gehman, president of Gehman Custom Remodelingsays, "Bathrooms are the hottest project, we think its due to the economy. Baths cost less thana kitchen or addition and most houses have more than one bath, so there are more available tobe remodeled."2. Must-Do Remodeling Projects. Rather than going through major renovations, next yearpeople will continue to only complete the projects that need to be done, like repairs to siding orroof leaks. Mitch Speck of Specktacular Home Remodeling says he is seeing a trend of peopledoing "have-to projects instead of want-to projects.3. Warming Up The House. Warmer tiles and colors are coming back. People tend to be movingaway from minimalist, white designs in favor of cozier, earth tones. The trend, however, is notrustic. Instead, its a mash-up of earthiness and modern design. Judy Mozen, president ofHandcrafted Homes, Inc., says she is seeing people favor rooms that are more contemporaryand calming, but are "still not totally contemporary."4. Getting Decked Out. George Christiansen of Pequot Remodeling Corporation says his clientsare building outdoor spaces for themselves. "It appears that people want to sit outside againand are staying at home more frequently. Many pools are also being built in the neighborhood."5. Hiring A Great Contractor. Darius Baker of D & J Kitchens and Baths, Inc. says that"consumer diligence" is on the rise. "Folks are finally getting the message that it is important tolook closer at the companies they are considering for their project. They are asking thequestions we have been telling them to ask for years."6. Paying in Cash. Rather than taking out loans for renovation projects, homeowners are usingcash for projects. Steve Klitsch of Creative Concepts Remodeling, Inc. says homeowners aregiving themselves a budget and picking and choosing what projects they can do with themoney. One way to save money is by updating features, like cabinets, but not remodel an entireroom.7. Opening Up Rooms: "Open floor plans are in, so were removing interior walls and openingup the spaces in older houses to modernize them," says Gehman. Open floor plans helpfamilies be more flexible with the square footage they already have.8.Bronze Age. Along the with warmer tones in homes are warmer tones in metallic features.Kathy Adams of J&C Adams Co., Inc. says "oil rubbed bronze, aged bronze, or distressedhardware" will be big in the coming year.9. Going Green. Bamboo floors, grass thatched roofs, and bark siding may sound likesomething from "Jungle Book," but they are just a few of the newest green home products. Inaddition, people are getting energy efficiency upgrades. Adams says upgrades on glass will becontinue to be big, and adds that "people are even asking for tri-pane (windows)!"10. Industrial Flair. Exposed beams will continue to be popular, but so will "stainless steel cableand architectural products," says Michell Milestone, director of sales and marketing at JGDevelopment, Inc. With so many people working from home, home will take on more of anindustrial or commercial look to enforce business credability. 6. 11. Creating Relaxation Space: With home values still falling in many areas and a newprediction of three more lousy years of real estate, homeowners are more stressed than ever.So its no surprise that when they are developing new spaces, tranquility comes to mind. Mozensays people are asking for "zen-like" bathrooms. "The bathrooms dont have to be big-but theyhave to be relaxing and soothing. They seem to prefer showers with the works-steam, seats,body sprays, etc."12. Planning ahead: "We are seeing many clients thinking about their retirement years," saysJillian Renner of Golden Rule Remodeling & Architecture, Inc. Her clients-even those far fromretirement-are putting in easy-opening cabinetry, hand-held showers, and more accessiblekitchens and baths. Renner adds, "Even though the clients dont need those things right now,they are planning for when they might find them needed."