Daniel Kahneman (Nobel Prize winner) and Amos Tversky developed a theory known as Prospect Theory which shows that, as individuals, we make decisions based on the value of potential losses and gains rather than the final outcome. The horizontal x axis measures the value of our gain or loss, whilst the vertical y axis measures…
Tax law generally applies to actual terms on which a transaction has been concluded as opposed to what the transaction would have been had it been entered into at arm’s length. Some exceptions exist where tax arbitrage can take place if the actual terms of a transaction are susceptible to manipulation. The most comprehensive of…
Great leaders lead through inspiration, persuasion and personal relations and others through authority and power. Great leaders have the confidence to stand alone, the compassion to listen to the needs of others, and the courage to make tough decisions. Great leaders become leaders by the fairness of their actions and the truthfulness of their focus…
The December holidays are generally celebrated as time away from the office and with friends and family. But these past holidays had me spending a little bit of quality time … with none other than my boss! It wasn’t in a meeting room and we didn’t focus on work – it was driving through a…
Let’s start with a question. You’re offered the chance to take part in a little bet. A fair coin will be tossed. If you win, you’ll receive R100. If you lose, you need to give up R100. Would you take up the bet? Let’s change it up a bit. You still need to pay R100…
Risk management can feel like going to war: there are threats on the horizon and it could take substantial investments of time, resources and effort to achieve victory. Some of the threats your business will face are bad debts, theft or fraud, loss or theft of data and natural disasters. The good news is your…
Information technology is one of the most valuable yet often least understood assets in a business. It takes an insightful enterprise to recognise the benefits of information technology and use it to drive stakeholder value. Moreover, successfully managing information technology in a business also means understanding and mitigating the risks associated with it, including increased…
The release of the definitive International Integrated Reporting <IR> Framework in December 2013 has cleared the confusion about what an integrated report actually is and how companies should implement it. Until now many ‘integrated reports’ were anything but except in title, with one survey concluding that only 30% of so-called integrated reports truly made the…
Australia is rich in fossil fuels. Vast reserves of black and brown coal drove the development of coal-fired power stations which have supplied power for many years to Australian industry at comparatively low prices, creating a cost advantage that attracted energy-intensive industries and supported the growth of manufacturing. This story is similar to South Africa’s…
By using earnings per share as a measure of financial performance, do we interpret it appropriately? Pundits in the know and other users of financial statements perhaps not that well informed have been touting earnings per share (EPS) as the holy grail of financial performance for a very long time. The requirement for companies in…