This section contains papers discussing how to determine the value of a security, which is critical to deciding whether a share is under or over valued, whether to invest in it or to continue to invest in it.
Title: The Z Score and its use in the Investment Selection Process
Author: Colin Farrier
Edward Altman adopted a mathematical technique called ‘discriminant analysis’ in order to combine several accounts ratios with a specific objective. This paper discusses the application of this technique to the Investment Selection Process.
Title: Final Salary Pension Schemes – A Profit Problem for Companies (published June 2014) This paper is restricted to members only
Author: Barry McConnell
This paper describes how pension scheme liabilities affect company valuations. The history of defined benefit pensions in the UK is presented, giving a clear insight into how they have been affected by legislative changes and changes in investment returns. Pointers are given to what to look for when assessing the value of a company from an investment perspective.
Author: Jim ShoesmithDescription:
Title: International Financial Reporting Standards (IFRS)
Author: Jim Shoesmith
Private investors, many of whom are not accountants, need to have some knowledge of these changes if they are to make good use of company accounts. This paper seeks to provide a very simple guide to the major changes.