Finance Research, Where to Do It

When dealing with finances it is vital that you conduct research. Some people carry out the research for school projects; others do it to expand their knowledge on the subject or even as a hobby. As an aspiring investor, it is important to understand how the world of finance works. This way, you will be in a position to make an informed decision when it comes to the basics.

It is important that you explore all the divisions of finance so that you are able to compare the different aspects that are there and understand the intricacies involved in each one. There are many places that can provide you with the information that you need. The internet is one of the best places to conduct research. It can provide you with the tools of how to go about the entire process. This can be extremely helpful especially if you have a hard time coming up with the financial projections and analysis.

There are many websites that have information that you can research and get the best offers from various firms. You can also conduct research if you are looking for a financial advisor to give you advice on your finances. You will be able to get a list of all certified advisors and what they specialize in.

You will also be in a position to compare rates and services given by the various firms. Conducting proper and thorough financial research is important if you want to make wise decisions in regards to your finances.

Interest Rates And Credit Reports

If you are currently paying for your mortgage, your financed vehicle or for the funds you loan from the bank then you definitely know about interest rates. Some financial institutions also call it finance charge. It is the fee that a lender charged to a borrower for borrowing. Most often it is expressed in percentage, known as annual percentage rate (APR). It is derived through dividing the amount of interest by the original financed amount or the principal. For instance, your financing company charges you $1000 per year for a vehicle financed for three years with an outstanding balance of $10,000. Your annual percentage rate will be 10% ($1000/$10,000*100).

Many factors affect the annual percentage rate. It could be the inflation rate, it also increases when the inflation rate increased; your geographical location, some states have higher interest rates because they also have higher cost of living and if you are trying to finance a house or vehicle it would also depend on the quality of the product or whether it was used or new. You may sometimes wonder though why you have different finance rate from someone who has same location as you and you are financing for the same product or borrowing the same amount of money. It could most likely be because of your credit score which reflects through your credit report.

It is important to understand how your credit report influences your interest rate. Your credit report does not directly contain your finance charge however your creditors based it depending on what bracket your credit score falls. For example, for borrowers with 700-850 credit score the creditor may charge an annual percentage rate of 10%, for those below 700 may have 15% and those below 600 may be charged 20%. Of course the higher the credit score the lower the interest rate will be. This shows how important maintaining a good credit is in your future financial plans.

However, because of this relation of credit reports to interests if you are one of those people who entered into flexible financing options you may get worried when changes happen within your financing contracts. When your interests are reduced although the remaining outstanding balance will not change you may thought that this abrupt difference may reflect on your credit badly or some future creditors may interpret it as suspicious and deny your loan application. However, this is just a misconception about interests and credit reports because once again, interest rates do not show on credit reports. The monthly payments are included on the account history of your credit report but this does not entirely affect your creditor’s decision on approving or denying your application.

You may have just realized how significant having a good credit score is not only because it would allow you for immediate loan application approval but also because it would establish how much you will need to pay for your loan. This should also be a realization to pay close attention to your credit reports.

International Financial Reporting Standards

he International Financial Reporting Standards are the standards and conceptual framework for international accounting in respects to the preparation and presentation of all financial statements. The Securities and Exchange Commission has stated that it hopes to get the United States following the international accounting standards by the 2014. Recently, the SEC reassured US accountants, investors, and companies that the project to implement the International Financial Reporting Standards is still in progress. The announcement from the Securities and Exchange Commission comes after months of uncertainty on whether or not the project to implement the new rules was still in the works. The announcement, however, has resurrected many past arguments and criticisms of the International Financial Reporting Standards.

The first big criticism involving the International Financial Reporting Standards is whether or not it’s possible for U.S. accountants and auditors to be trained by the proposed 2014 deadline. Another criticism that has drawn much skepticism is the SEC having to cede its regulatory power to a global regulator. Along with these two arguments, opponents also argue that the International Accounting Standards Board, the committee responsible for writing the rules, will succumb to the pressures and stress. One final criticism is that when compared to the U.S. Generally Accepted Accounting Principles, the IFRS is weak and would be taken advantage of by people looking to abuse the system. Despite these criticisms, though, many people contend that if the convergence plan continues on its pace, there won’t be many differences between U.S. GAAP and the IFRS by the year 2015.

At the end of October 2009, the International Accounting Standards Board and the Financial Accounting Standards Board plan to meet to update the agenda and the time line for the transition of U.S. GAAP to the IFRS. The three day meeting between these two Accounting Stands Boards comes seven years after they initially launched the convergence project. Currently, the time line ends after 2011, and it will be in that year when the SEC votes to decide on whether or not to move forward with the mandatory implementation of the IFRS.