EXPERT INSIGHTS
Expert Insights are short articles designed to provide readers with a professional “tune-up” no matter what your job might be…

Finance and Accounting

Simple Physical Natural Gas Pricing for Both Producer and Consumer

Author : O’Neill, Peter;McNew, Leslie
Bio : Peter O’Neill is currently Chief Risk Officer and Head of Finance for Uniper Global Commodities North America. He has been involved in energy markets and risk management for almost 20 years, having worked and held roles in various multinational energy firms.

Leslie McNew is currently Managing Director of N3Q, MMspire Trading Company and Executive in Residence of the Kania School of Management, University of Scranton. She has 30 years of experience in physical and financial markets, and has held senior risk management roles in five Fortune 500 companies.
ISBN : 9781631578946
Publish Date : 2017/4/26
Page Count : 34
Description :
Despite natural gas being the second largest primary source of energy consumed in the United States, it is difficult to find pricing of physical natural gas structures (fixed pricing, market sensitive pricing, and price stability in the form of options) in example format. Physical products are those whose contracts involve the physical delivery of the energy. This brief covers equations, pricing, and examples of the primary gas structures from both the producer and consumer point of view. Examination of basic pricing equations, day count issues, locational hubs, structural mechanics (flow and forward curve), weather, and hedging of deals is presented. This brief is experiential in nature, allowing the participant to gain from a firm grounding in the simple pricing of physical natural gas structures.

Accounting in a Nutshell 4: Deferred Taxes

Author : Joel Shapiro
Bio : Joel Shapiro has been an accounting instructor at Ryerson University in Toronto, Canada for 20 years. Previously, he developed an accounting and inventory management software system for small businesses. In his spare time, he enjoys working on “Kakuro” and cryptic crossword puzzles, and travels throughout Ontario as a bridge tournament director.
ISBN : 9781631579707
Publish Date : 2017/8/17
Page Count : 8
Description :
This short article explains the generally accepted methods of accounting for deferred (future) taxes. Both timing (temporary) and permanent differences between accounting income and taxable income are illustrated, with a comprehensive multi-year problem and solution. As well, the issues of loss carry-backs, loss carry-forwards, and tax rate changes are discussed.

Accounting in a Nutshell 5: The Cash Flow Statement

Author : Joel Shapiro
Bio : Joel Shapiro has been an accounting instructor at Ryerson University in Toronto, Canada for 20 years. Previously, he developed an accounting and inventory management software system for small businesses. In his spare time, he enjoys working on “Kakuro” and cryptic crossword puzzles and travels throughout Ontario as a bridge tournament director.
ISBN : 9781631579691
Publish Date : 2017/7/31
Page Count : 8
Description :
This short article explains how the cash flow statement is prepared (both the indirect and direct methods) with a comprehensive example. In addition, guidance is provided with respect to the analysis and interpretation of the cash flow statement.

VaR Primer with Excel Modeling

Author : Peter O’Neill; Thomas Egan; Leslie McNew
Bio : Peter O’Neill is currently chief risk officer and head of finance for Uniper Global Commodities North America. He has been involved in energy markets and risk management for almost twenty years, having worked and held roles for various multinational energy firms.

Thomas Egan is currently the senior portfolio manager with Trust Company of Illinois. He has over 30 years of financial analysis and portfolio management experience, including positions with Big Four accounting firms and Fortune 500 companies

Despite the use of the value-at-risk (VaR) methodology being widespread in finance, many individuals are not offered the opportunity to understand the methodologies of the various basic VaR models, the model limitations, and how to produce a quick VaR model in Excel. This brief covers a fundamental overview of risk theory, the three most presented VaR model methodologies, historic and parametric VaR equations, and using VaR to help set risk limits and to set allocation of risk capital. The final portion of the brief is devoted to building both the onefactor historic VaR model and the two-factor parametric VaR model in Excel. This brief is experiential in nature, allowing the participant to gain a firm understanding of VaR, the methodologies and limitation of different VaR models, and how to produce basic VaR models in Excel.
ISBN : 9781631578939
Publish Date : 2017/7/11
Page Count : 26
Description :
Despite the use of the value-at-risk (VaR) methodology being widespread in finance, many individuals are not offered the opportunity to understand the methodologies of the various basic VaR models, the model limitations, and how to produce a quick VaR model in Excel. This brief covers a fundamental overview of risk theory, the three most presented VaR model methodologies, historic and parametric VaR equations, and using VaR to help set risk limits and to set allocation of risk capital. The final portion of the brief is devoted to building both the onefactor historic VaR model and the two-factor parametric VaR model in Excel. This brief is experiential in nature, allowing the participant to gain a firm understanding of VaR, the methodologies and limitation of different VaR models, and how to produce basic VaR models in Excel.

Accounting in a Nutshell 1: Accounts Receivable

Author : Joel Shapiro
Bio : Joel Shapiro has been an Accounting instructor at Ryerson University in Toronto, Canada for 20 years. Previously, he developed an accounting and inventory management software system for small businesses. In his spare time, he enjoys working on “Kakuro” and cryptic crossword puzzles, and travels throughout Ontario as a bridge tournament director.
ISBN : 9781631579424
Publish Date : 2017/6/13
Page Count : 8
Description :
This article will explain the generally accepted methods of accounting for trade accounts receivable and the related allowance for doubtful accounts and bad debt expense. Three methods of estimating the allowance are illustrated, with sample problems and solutions. In addition, guidance is provided with respect to the analysis and interpretation of key financial ratios related to accounts receivable.

Accounting in a Nutshell 2: Inventory

Author : Joel Shapiro
Bio : Joel Shapiro has been an Accounting instructor at Ryerson University in Toronto, Canada for 20 years. Previously, he developed an accounting and inventory management software system for small businesses. In his spare time, he enjoys working on “Kakuro” and cryptic crossword puzzles, and travels throughout Ontario as a bridge tournament director.
ISBN : 9781631579721
Publish Date : 2017/6/26
Page Count : 8
Description :
This article will explain the generally accepted methods of accounting for inventory and the related cost of goods sold expense. Four methods of applying dollar values to inventory are illustrated, with sample problems and solutions. As well, the issues of goods in transit, inventory shrinkage, and obsolescence are discussed. In addition, guidance is provided with respect to the analysis and interpretation of key financial ratios related to inventory.

Accounting in a Nutshell 3: Property, Plant, and Equipment

Author : Joel Shapiro
Bio : Joel Shapiro has been an Accounting instructor at Ryerson University in Toronto, Canada for 20 years. Previously, he developed an accounting and inventory management software system for small businesses. In his spare time, he enjoys working on “Kakuro” and cryptic crossword puzzles, and travels throughout Ontario as a bridge tournament director.
ISBN : 9781631579714
Publish Date : 2017/6/26
Page Count : 8
Description :
This short article explains the generally accepted methods of accounting for tangible long-lived assets and the related depreciation expense. Four methods of calculating depreciation are illustrated, with sample problems and solutions. As well, the issues of impairment and disposals are discussed. In addition, guidance is provided with respect to the analysis and interpretation of key financial ratios related to tangible long-lived assets.

Finance in a World of Negative Rates

Author : Varma, Jayanth R
Bio : Indian Institute of Management
ISBN : 9781631576744
Publish Date : 2016/12/13
Page Count : 10
Description :
Many European countries and Japan have introduced negative interest rates, and the Swiss franc denominated bonds of many US companies now trade at negative yields. Why do central banks push interest rates negative and what are the costs of benefits of doing so? How much more negative can rates go or have we reached the limit in some countries? How does a bank remain profitable when you have to pay your borrowers to take money from you? How do investors allocate their portfolios in an environment where the government bond is offering not a risk free return, but a guaranteed loss? What happens to the equity risk premium in such a world? How do companies manage working capital in a situation where you want to pay your suppliers instantly and want your customers to delay their payments to you? What happens to standard present value formulas in a negative rates world? Does the present value of a perpetuity actually become negative? These are a few of the disturbing questions that arise when negative interest rates upend our traditional assumptions about how the financial system works. Our piece would try and answer these questions in a non technical style and provide a lucid guide to managers trying to make sense of this brave new world.

Is Your Risk Management Too Good?

Author : Nason, Rick
Bio : PhD, CFA, Dalhousie University
ISBN : 9781631576447
Publish Date : 2016/12/13
Page Count : 8
Description :
Regulation and risk management have become buzzwords of modern business, but is it possible to have too much? The concept of Risk Homeostasis shows that indeed it is possible to overdo risk management. From child safety to bank regulation, the irony is that the more measures you put in place to protect something, the more danger you may be creating.