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Submitted By:  AMIT ARORA<br />Enrolment No: M090700005<br />Dated: 16 Sep,2009<br />		Submitted To:<br />Dr. ASHOK BHANSA...
Information management has become a powerful resource and a large expense for many organizations.<br />Helps in decision m...
Creation of slack resources
Optimum utilization of resources</li></ul>1.NEED FOR INFORMATION<br />
Facility information model<br />Plant information model<br />Building information model<br />Flow of information in an ORG...
Computer Age or Information Era<br />Use of INTERNET - Digital Revolution<br />INFORMATION AGE<br />
Information management (IM) <br />To control the structure & functioning of Org.<br />understanding of the technology<br /...
vast need for decision making <br />prevent individuals from acting strictly rational<br />access, collect and evaluate al...
Reduction of information processing needs <br />Environmental management <br />Creation of slack resources <br />Creation ...
formal records of the financial activities of a business, person, or other entity<br />financial statements are often refe...
Balance sheet: reports on a company's assets, liabilities, and Ownership equity as of a given point in time. <br />Income ...
Owners and managers require financial statements to make important business decisions<br />Employees also need these repor...
Financial institutions use them to decide whether to grant a company with fresh working capital or extend debt securities<...
An Annual report is a comprehensive report on a company's activities throughout the preceding year.<br />Gives shareholder...
Balance statement of financial position<br />summary of a organization's balances<br />Includes Assets, Liabilities & Owne...
Cash flow statement<br />provide information on a firm's liquidity and solvency<br />information for evaluating changes in...
Income statement [(P&L) and Statement of Operations]<br />The purpose of the P&L is to show managers and investors whether...
field of accountancy concerned with the preparation of financial statements<br />fundamental need for financial accounting...
Financial analysis is  performed on statements to provide management with a more detailed understanding of the figures.<br...
Financial analyses are often used by Investorsand are prepared by financial analysts, thus providing them with the basis f...
MANAGERS<br />Aims<br />Formulating strategies <br />Planning and constructing business activities <br />Helps in making d...
CREDITORS<br />It is a person or institution to whom money is owed<br />Accounting classification<br />Long-term liabiliti...
objective of financial statements is to provide information about the financial position<br />useful to a wide range of us...
Media and the general public are also interested in financial statements for a variety of reasons<br />describe management...
INTERVIEW WITH Mr. MURTHY (Infosys)<br />1. How important is financial reporting to a technology company?<br />To understa...
2. Philosophy of Infosys<br />Under promise, Over Delivery<br />3.Financial reporting as a part of business strategy.<br /...
4. Financial disclosure results in competitive disadvantage <br />It should not create asymmetry of benefits<br />We belie...
INTERVIEW WITH Mr. MURTHY<br />6. PRESSURE ON MANAGERS<br /><ul><li>Globalization & competition
Sharing with the investors</li></ul>7.EXPENSING STOCK OPTIONS<br /><ul><li>Do not dilute more than a certain %age
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Assignment on financial accounting

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Transcript of "Assignment on financial accounting"

  1. 1. Submitted By: AMIT ARORA<br />Enrolment No: M090700005<br />Dated: 16 Sep,2009<br /> Submitted To:<br />Dr. ASHOK BHANSALI<br />ASSIGNMENT<br />
  2. 2. Information management has become a powerful resource and a large expense for many organizations.<br />Helps in decision making at various levels.<br /><ul><li>Environmental management
  3. 3. Creation of slack resources
  4. 4. Optimum utilization of resources</li></ul>1.NEED FOR INFORMATION<br />
  5. 5. Facility information model<br />Plant information model<br />Building information model<br />Flow of information in an ORGANIZATION<br />VERTICALLY<br />HORIZONTALLY<br />INFORMATION MODEL<br />
  6. 6. Computer Age or Information Era<br />Use of INTERNET - Digital Revolution<br />INFORMATION AGE<br />
  7. 7. Information management (IM) <br />To control the structure & functioning of Org.<br />understanding of the technology<br />information management entails organizing, retrieving, acquiring and maintaining information<br />practice of Data Management<br />NEED<br />
  8. 8. vast need for decision making <br />prevent individuals from acting strictly rational<br />access, collect and evaluate all environmental information<br />decision at a reasonable price, i.e., time and effort <br />design strategies for organization <br />INFORMATION PROCESSING<br />
  9. 9. Reduction of information processing needs <br />Environmental management <br />Creation of slack resources <br />Creation of self-contained tasks <br />Increasing the organizational information processing capacity <br />Creation of lateral relations <br />Vertical information systems<br />Five main organization design strategies <br />
  10. 10. formal records of the financial activities of a business, person, or other entity<br />financial statements are often referred to as accounts<br />an overview of a business or person's financial condition in both short and long term.<br />2.FINANCIAL STATEMENTS<br />
  11. 11. Balance sheet: reports on a company's assets, liabilities, and Ownership equity as of a given point in time. <br />Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time. <br />Statement of retained earnings: explains the changes in a company's retained earnings over the reporting period. <br />Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities. <br />Four basic financial statements<br />
  12. 12. Owners and managers require financial statements to make important business decisions<br />Employees also need these reports in making collective bargaining agreements (CBA)<br />Investorsmake use of financial statements to assess the viability of investing in a business.<br />PURPOSE<br />
  13. 13. Financial institutions use them to decide whether to grant a company with fresh working capital or extend debt securities<br />Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes<br />Vendors require financial statements to assess the creditworthiness of the business. <br />PURPOSE<br />
  14. 14. An Annual report is a comprehensive report on a company's activities throughout the preceding year.<br />Gives shareholders and other interested persons information about the company's activities and financial performance.<br />3.ANNUAL REPORT<br />
  15. 15. Balance statement of financial position<br />summary of a organization's balances<br />Includes Assets, Liabilities & Ownership Equity<br />Equity = Assets - Liabilities<br />FIRST REPORT<br />
  16. 16. Cash flow statement<br />provide information on a firm's liquidity and solvency<br />information for evaluating changes in assets, liabilities and equity <br />indicate the amount, timing and probability of future cash flows <br />SECOND REPORT<br />
  17. 17. Income statement [(P&L) and Statement of Operations]<br />The purpose of the P&L is to show managers and investors whether the company made or lost money<br />Operating section<br />Revenue<br />Expenses<br />THIRD REPORT<br />
  18. 18. field of accountancy concerned with the preparation of financial statements<br />fundamental need for financial accounting is to reduce principal-agent problem<br />used to prepare accounting information for people outside the organization<br />help managers make decisions to manage the business.<br />4.FINANCIAL ACCOUNTING<br />
  19. 19. Financial analysis is performed on statements to provide management with a more detailed understanding of the figures.<br />statements are also used as part of management's annual report to the stockholders.<br />Employees or labor union need these reports in discussing their compensation, promotion and rankings. <br />ROLE<br />
  20. 20. Financial analyses are often used by Investorsand are prepared by financial analysts, thus providing them with the basis for making investment decisions. <br />Projectstakeholders<br />a) Sponsor a project <br />b) Have an interest in a project.<br />Examples : customers, the user group, the project manager, the testers, etc.<br />ROLE<br />
  21. 21. MANAGERS<br />Aims<br />Formulating strategies <br />Planning and constructing business activities <br />Helps in making decision <br />Optimal use of Resource (economics) <br />Supporting financial reports preparation <br />Safeguarding asset <br />ROLE<br />
  22. 22. CREDITORS<br />It is a person or institution to whom money is owed<br />Accounting classification<br />Long-term liabilities<br />'Long-term creditors' <br />Current liabilities<br />'Current creditors' <br />ROLE<br />
  23. 23. objective of financial statements is to provide information about the financial position<br />useful to a wide range of users in making economic decisions<br />Financial statements should be understandable, relevant, reliable and comparable<br />ROLE<br />
  24. 24. Media and the general public are also interested in financial statements for a variety of reasons<br />describe management's performance and the company's financial highlights.<br />effective way for corporations to communicate with individual shareholders.<br />ROLE<br />
  25. 25. INTERVIEW WITH Mr. MURTHY (Infosys)<br />1. How important is financial reporting to a technology company?<br />To understand the strategy of performance <br />Single window for our investors to look into our operations and aspirations.<br />To understand financial values of the company<br />
  26. 26. 2. Philosophy of Infosys<br />Under promise, Over Delivery<br />3.Financial reporting as a part of business strategy.<br />To assess the viability<br />Helps customer to understand the strategy<br />INTERVIEW WITH Mr. MURTHY<br />
  27. 27. 4. Financial disclosure results in competitive disadvantage <br />It should not create asymmetry of benefits<br />We believe to disclose, when in doubt<br />5. Summary of annual report to retail investors<br />It is worthwhile for the company as well as for customers .<br />INTERVIEW WITH Mr. MURTHY<br />
  28. 28. INTERVIEW WITH Mr. MURTHY<br />6. PRESSURE ON MANAGERS<br /><ul><li>Globalization & competition
  29. 29. Sharing with the investors</li></ul>7.EXPENSING STOCK OPTIONS<br /><ul><li>Do not dilute more than a certain %age
  30. 30. Benefit to investors</li></li></ul><li>8. Independent Directors<br /><ul><li>Corporate governance – minimization cost
  31. 31. Risk mitigation – to protect shareholders</li></ul>9. Quarterly reporting discourage risk<br /><ul><li>Profits in Long term investment
  32. 32. Investment will indeed bear fruit</li></ul>INTERVIEW WITH Mr. MURTHY<br />
  33. 33. 10. Globalization / corporate governance in INDIA<br /><ul><li>Maximizing shareholder value
  34. 34. Transparency, fairness and accountability to stakeholders
  35. 35. Pressure to Benchmark
  36. 36. Market capitalization </li></ul>INTERVIEW WITH Mr. MURTHY<br />
  37. 37. THANK YOU<br />
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