The document discusses accounting for leases. It defines key lease terms and outlines the accounting treatment for leases from the perspective of both lessees and lessors. For lessees, a lease that meets capitalization criteria must be recorded as a capital lease, requiring the recognition of an asset and liability. For lessors, leases are classified as direct financing, sales-type, or operating depending on whether they meet capitalization criteria. Direct financing and sales-type leases require recording a receivable, while operating leases use the operating method. Several example problems demonstrate calculating present values and journal entries for lessees and lessors.
This document discusses leasing, which allows one party to use an asset owned by another party. There are two main types of leases: operating/service leases and financial/net leases. Operating leases provide maintenance services while financial leases do not. Leasing offers advantages over ownership like facilitating asset acquisition and improving financial position, but parties must consider tax and ownership implications.
This document provides an overview and summary of key topics related to lessee and lessor accounting for leases. It discusses the classification of leases as capital or operating, accounting and reporting for both types of leases, and issues such as non-level rents, leasehold improvements, tenant incentives, and sale-leaseback transactions. It also provides an overview of the audit approach for testing operating and capital leases. Finally, it discusses current developments from the FASB to require lessees to recognize assets and liabilities for operating leases on the balance sheet.
This document provides an overview and summary of key topics related to lessee and lessor accounting for leases. It discusses the classification of leases as capital or operating, accounting and reporting for both types of leases, and issues such as non-level rents, leasehold improvements, tenant incentives, and sale-leaseback transactions. It also provides an overview of the audit approach to leases and current developments regarding the FASB's proposed changes to the lease accounting standards that would eliminate off-balance sheet treatment of operating leases.
VAS 06 provides guidance on accounting for leases. It defines key terms like financial lease, operating lease, minimum lease payments, and economic life. Leases are classified as either financial or operating based on the degree of risk and rewards transferred from the lessor to the lessee. A financial lease transfers most risks and rewards of ownership, while an operating lease does not. The standard provides examples of provisions that typically result in a lease being classified as financial.
This document summarizes key aspects of Accounting Standard 19 (AS-19) related to accounting for leases in India. It discusses the differences between finance and operating leases, and the accounting treatment for lessors and lessees under each. It also covers sale and leaseback transactions, tax implications, and disclosure requirements as per AS-19.
This document provides an overview of leasing and lease financing. It defines what a lease is and discusses the key aspects of lease agreements such as rental payments, maintenance clauses, cancellation provisions, renewal and purchase options.
It distinguishes between operating leases and finance/capital leases. Operating leases are typically short-term while finance leases are longer-term and transfer most of the risks and rewards of ownership to the lessee.
The document also covers the different methods of lease financing including sales-leasebacks, direct leases, and leveraged leases. It discusses the advantages and disadvantages of lease financing for both lessees and lessors. Finally, it compares long-term debt versus leasing
This document defines leases and outlines the key parties and types of leases. It discusses the main reasons companies utilize leasing, such as lower monthly payments and protection against asset obsolescence. However, leasing is not always the best financial option, as it can be used to avoid capital expenditure controls or make a company's financial statements appear stronger than they are through off-balance sheet financing. Regulatory bodies have provided guidelines on distinguishing between capital/finance leases, which must be recognized as assets and liabilities, and operating leases.
This document discusses different types of leases, including operating leases, finance leases, sale-and-leaseback, capital leases, direct leases, and leveraged leases. It provides examples and definitions for each type. Operating leases involve the lessee using an asset for less than its useful life, while finance leases last for the full useful life and transfer most ownership risks to the lessee. Sale-and-leaseback involves a company selling an asset to a lessor and then leasing it back. Capital and direct leases meet criteria that require them to be treated as purchases by the lessee. Leveraged leases involve a third party lender providing most of the asset funding.
This document discusses leasing, which allows one party to use an asset owned by another party. There are two main types of leases: operating/service leases and financial/net leases. Operating leases provide maintenance services while financial leases do not. Leasing offers advantages over ownership like facilitating asset acquisition and improving financial position, but parties must consider tax and ownership implications.
This document provides an overview and summary of key topics related to lessee and lessor accounting for leases. It discusses the classification of leases as capital or operating, accounting and reporting for both types of leases, and issues such as non-level rents, leasehold improvements, tenant incentives, and sale-leaseback transactions. It also provides an overview of the audit approach for testing operating and capital leases. Finally, it discusses current developments from the FASB to require lessees to recognize assets and liabilities for operating leases on the balance sheet.
This document provides an overview and summary of key topics related to lessee and lessor accounting for leases. It discusses the classification of leases as capital or operating, accounting and reporting for both types of leases, and issues such as non-level rents, leasehold improvements, tenant incentives, and sale-leaseback transactions. It also provides an overview of the audit approach to leases and current developments regarding the FASB's proposed changes to the lease accounting standards that would eliminate off-balance sheet treatment of operating leases.
VAS 06 provides guidance on accounting for leases. It defines key terms like financial lease, operating lease, minimum lease payments, and economic life. Leases are classified as either financial or operating based on the degree of risk and rewards transferred from the lessor to the lessee. A financial lease transfers most risks and rewards of ownership, while an operating lease does not. The standard provides examples of provisions that typically result in a lease being classified as financial.
This document summarizes key aspects of Accounting Standard 19 (AS-19) related to accounting for leases in India. It discusses the differences between finance and operating leases, and the accounting treatment for lessors and lessees under each. It also covers sale and leaseback transactions, tax implications, and disclosure requirements as per AS-19.
This document provides an overview of leasing and lease financing. It defines what a lease is and discusses the key aspects of lease agreements such as rental payments, maintenance clauses, cancellation provisions, renewal and purchase options.
It distinguishes between operating leases and finance/capital leases. Operating leases are typically short-term while finance leases are longer-term and transfer most of the risks and rewards of ownership to the lessee.
The document also covers the different methods of lease financing including sales-leasebacks, direct leases, and leveraged leases. It discusses the advantages and disadvantages of lease financing for both lessees and lessors. Finally, it compares long-term debt versus leasing
This document defines leases and outlines the key parties and types of leases. It discusses the main reasons companies utilize leasing, such as lower monthly payments and protection against asset obsolescence. However, leasing is not always the best financial option, as it can be used to avoid capital expenditure controls or make a company's financial statements appear stronger than they are through off-balance sheet financing. Regulatory bodies have provided guidelines on distinguishing between capital/finance leases, which must be recognized as assets and liabilities, and operating leases.
This document discusses different types of leases, including operating leases, finance leases, sale-and-leaseback, capital leases, direct leases, and leveraged leases. It provides examples and definitions for each type. Operating leases involve the lessee using an asset for less than its useful life, while finance leases last for the full useful life and transfer most ownership risks to the lessee. Sale-and-leaseback involves a company selling an asset to a lessor and then leasing it back. Capital and direct leases meet criteria that require them to be treated as purchases by the lessee. Leveraged leases involve a third party lender providing most of the asset funding.
The document discusses various types of term loans and lease financing. It defines term loans as debt that is scheduled to be repaid in more than one year but generally less than ten years. Term loans typically involve regular payments of both interest and principal. The document also discusses the costs and benefits of term loans versus lease financing. It provides examples of different types of leases and factors to consider when deciding whether to lease or purchase equipment.
The document describes various types of term loans and lease financing. It discusses term loans, provisions of loan agreements, sources and types of equipment financing, and different types of lease financing including operating leases and financial leases. It also provides an example comparing the present value of cash outflows for a company deciding between leasing or purchasing a new machine.
Leasing is a contract between an owner (lessor) and lessee for the hiring of an asset. There are two main types of leases: operating leases and finance leases. An operating lease lasts for a period less than the asset's useful life, while a finance lease lasts the asset's full useful life and transfers substantially all risks and rewards of ownership to the lessee. When evaluating a lease, firms should compare the NPV of leasing versus purchasing an asset using the after-tax cost of debt as the discount rate. Common lease types include capital/financial leases, direct financing leases, and sale-leaseback agreements. Finance leases require lessees to capitalize the leased asset and
Lease financing allows firms to use assets through rental payments rather than buying them outright. There are two parties in a lease: the lessor who owns the property, and the lessee who obtains use of the property in exchange for rental payments. The main types of leases are operating leases, financial/capital leases, sale-and-leaseback arrangements, and combination leases. Lessees must evaluate whether leasing an asset is less costly than buying by comparing the present value of leasing cash flows to owning cash flows. Lessors evaluate potential leases based on determining costs and cash flows to ensure adequate return on their investment. Tax benefits also factor into the lease decision-making process for both parties.
The document discusses accounting for leases according to IAS 17. It defines a lease as an agreement where a lessor conveys to a lessee the right to use an asset for an agreed period of time in return for payments. Leases are classified as either finance leases or operating leases. For finance leases, substantially all risks and rewards of ownership are transferred, while operating leases do not transfer substantially all risks and rewards. The document provides examples of accounting entries for lessees and lessors for both finance and operating leases.
A lease is a contractual agreement between a lessor, who owns an asset, and a lessee, who uses the asset. There are two main types of leases from an accounting perspective: operating leases and capital leases. For operating leases, the asset is not recorded on the lessee's balance sheet, while lease payments are expensed over time. For capital leases, the asset and liability are recorded on the lessee's balance sheet similar to a purchased asset. Leases allow companies to acquire assets without large upfront cash outlays and provide off-balance sheet financing advantages.
Leasing & Hire purchase, factoring & forfeiting and venture capitalRohit Kumar
This document discusses accounting standards for leases and provides examples of accounting entries for capital and operating leases. It defines key lease terms and outlines the criteria for classifying a lease as a capital lease from the lessee's perspective. A capital lease exists if ownership transfers to the lessee by the end of the lease term, there is a bargain purchase option, the lease term covers at least 75% of the asset's useful life, or the present value of lease payments equals or exceeds 90% of the asset's fair value. The document provides an example of a capital lease and the corresponding journal entries to record the transaction from the lessee's perspective over the lease term.
Leasing involves the periodic payment of rentals in exchange for the right to use an asset for a fixed period of time. There are advantages to both the lessor and lessee. For the lessor, it provides a stable business and opportunities to sell spare parts or the asset after the lease term. For the lessee, leasing allows for efficient use of funds without capital investment and a potentially cheaper source than outright purchase. Both parties must consider factors like taxes, costs of capital, and break-even rental rates to determine if a lease is financially advantageous.
Finvision impact series 1 - ed leases - lessee accountingFinvision
This document summarizes a revised exposure draft on lease accounting from the IASB and FASB. The draft proposes changes to improve transparency and comparability around lease accounting. For leases over 12 months, entities will recognize assets and liabilities for the rights and obligations conveyed by the lease. It outlines a "right of use" model requiring lessees to recognize assets and liabilities for the right to use leased assets and future lease payments. It also discusses classification of leases, measurement of assets and liabilities, subsequent accounting, disclosure requirements, and the potential impact on businesses.
IND AS 116 establishes new principles for the recognition, measurement, presentation and disclosure of leases. It introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The standard also contains revised requirements for lessor accounting. The key changes introduced by IND AS 116 include bringing most operating leases onto a lessee's statement of financial position in a similar way to finance leases, enhancing the required disclosures to help users better understand the amount, timing and uncertainty of cash flows arising from leases, and aligning lease accounting according to the underlying right of use asset.
The document provides an overview of IAS 17 which prescribes accounting policies and disclosures for leases. Some key points:
- IAS 17 distinguishes between a finance lease and an operating lease based on whether substantially all risks and rewards of ownership are transferred.
- For a finance lease, the lessee recognizes an asset and liability at an amount equal to the lower of fair value or present value of minimum lease payments. The asset is depreciated over its useful life.
- For an operating lease, the lessee recognizes lease payments as an expense on a straight-line basis over the lease term.
- A finance lease results in the recognition of an interest expense, while an operating lease
Leasing involves a lessor providing equipment or property to a lessee in exchange for periodic payments. There are several types of leases, including finance leases where ownership transfers to the lessee, and operating leases which are shorter term. Key elements of any lease include the parties, asset, lease term, and rental payments. The leasing process involves selecting an asset, signing a lease agreement, and the lessor acquiring the asset for the lessee. Leasing provides advantages to both lessors and lessees such as tax benefits and avoiding large upfront costs.
This document provides an overview of leasing and hire purchase. It defines leasing as a contract where the lessor gives the lessee the right to use an asset for an agreed period in exchange for lease rentals. The key advantages of leasing are saving capital, flexibility, cash flow planning and improved liquidity, while disadvantages include commitment to the contract period and higher fixed costs. Hire purchase allows a purchaser to pay for goods in installments over time, with ownership transferring once fully paid. The document also discusses various lease and hire purchase terms, the history of leasing in India, accounting treatment and myths about leasing.
IAS 17 provides guidance on classifying and accounting for leases. It distinguishes between finance and operating leases and sets out the required accounting treatment for each type from the perspectives of lessees and lessors. Key aspects covered include criteria for lease classification, accounting for lease payments and incentives, sale and leaseback transactions, and disclosure requirements.
This document provides an overview of leasing. It discusses the history and meaning of leasing, including definitions from experts. It outlines the steps in a typical leasing process and describes various types of leases. The advantages to lessors include assured regular income, preservation of ownership, tax benefits, and high profitability. Advantages to lessees are use of capital goods, tax benefits, cheaper financing, and technical assistance. Disadvantages are also presented, such as inflation risk for lessors and compulsory payments even if the asset is not needed for lessees. In summary, the document defines leasing, outlines the leasing process, and discusses the pros and cons from the perspectives of both lessors and les
This document provides an overview of equipment leasing basics. It defines what a lease is and describes the main types - capital/finance leases and operating leases. Capital leases are similar to purchases, while operating leases are more like rentals. The document discusses some common myths about leasing and explains the key benefits, such as preserving cash flow, obtaining tax benefits, and allowing for off-balance sheet financing with operating leases.
After watching the video on Earmarks httpswww.khanacademy..docxMARK547399
After watching the video on Earmarks:
https://www.khanacademy.org/humanities/ap-us-government-and-politics/interactions-among-branches-of-government/structures-powers-and-functions-of-congress/v/earmarks-pork-barrel-projects-and-logrolling
Discuss why might the ability of members of Congress to direct monies to projects in their states or districts help representation? How might it be unfair or damaging to the interests of the nation as a whole?
.
After watching City of God (Brazil, 2002) and reading Chapter 8 .docxMARK547399
The document discusses editing techniques used in the film City of God and asks for 4 examples of: a) organizing fragmented action through editing, b) creating meaning by juxtaposing shots, c) establishing spatial relationships between shots, and d) setting pace and rhythm through editing.
The document discusses various types of term loans and lease financing. It defines term loans as debt that is scheduled to be repaid in more than one year but generally less than ten years. Term loans typically involve regular payments of both interest and principal. The document also discusses the costs and benefits of term loans versus lease financing. It provides examples of different types of leases and factors to consider when deciding whether to lease or purchase equipment.
The document describes various types of term loans and lease financing. It discusses term loans, provisions of loan agreements, sources and types of equipment financing, and different types of lease financing including operating leases and financial leases. It also provides an example comparing the present value of cash outflows for a company deciding between leasing or purchasing a new machine.
Leasing is a contract between an owner (lessor) and lessee for the hiring of an asset. There are two main types of leases: operating leases and finance leases. An operating lease lasts for a period less than the asset's useful life, while a finance lease lasts the asset's full useful life and transfers substantially all risks and rewards of ownership to the lessee. When evaluating a lease, firms should compare the NPV of leasing versus purchasing an asset using the after-tax cost of debt as the discount rate. Common lease types include capital/financial leases, direct financing leases, and sale-leaseback agreements. Finance leases require lessees to capitalize the leased asset and
Lease financing allows firms to use assets through rental payments rather than buying them outright. There are two parties in a lease: the lessor who owns the property, and the lessee who obtains use of the property in exchange for rental payments. The main types of leases are operating leases, financial/capital leases, sale-and-leaseback arrangements, and combination leases. Lessees must evaluate whether leasing an asset is less costly than buying by comparing the present value of leasing cash flows to owning cash flows. Lessors evaluate potential leases based on determining costs and cash flows to ensure adequate return on their investment. Tax benefits also factor into the lease decision-making process for both parties.
The document discusses accounting for leases according to IAS 17. It defines a lease as an agreement where a lessor conveys to a lessee the right to use an asset for an agreed period of time in return for payments. Leases are classified as either finance leases or operating leases. For finance leases, substantially all risks and rewards of ownership are transferred, while operating leases do not transfer substantially all risks and rewards. The document provides examples of accounting entries for lessees and lessors for both finance and operating leases.
A lease is a contractual agreement between a lessor, who owns an asset, and a lessee, who uses the asset. There are two main types of leases from an accounting perspective: operating leases and capital leases. For operating leases, the asset is not recorded on the lessee's balance sheet, while lease payments are expensed over time. For capital leases, the asset and liability are recorded on the lessee's balance sheet similar to a purchased asset. Leases allow companies to acquire assets without large upfront cash outlays and provide off-balance sheet financing advantages.
Leasing & Hire purchase, factoring & forfeiting and venture capitalRohit Kumar
This document discusses accounting standards for leases and provides examples of accounting entries for capital and operating leases. It defines key lease terms and outlines the criteria for classifying a lease as a capital lease from the lessee's perspective. A capital lease exists if ownership transfers to the lessee by the end of the lease term, there is a bargain purchase option, the lease term covers at least 75% of the asset's useful life, or the present value of lease payments equals or exceeds 90% of the asset's fair value. The document provides an example of a capital lease and the corresponding journal entries to record the transaction from the lessee's perspective over the lease term.
Leasing involves the periodic payment of rentals in exchange for the right to use an asset for a fixed period of time. There are advantages to both the lessor and lessee. For the lessor, it provides a stable business and opportunities to sell spare parts or the asset after the lease term. For the lessee, leasing allows for efficient use of funds without capital investment and a potentially cheaper source than outright purchase. Both parties must consider factors like taxes, costs of capital, and break-even rental rates to determine if a lease is financially advantageous.
Finvision impact series 1 - ed leases - lessee accountingFinvision
This document summarizes a revised exposure draft on lease accounting from the IASB and FASB. The draft proposes changes to improve transparency and comparability around lease accounting. For leases over 12 months, entities will recognize assets and liabilities for the rights and obligations conveyed by the lease. It outlines a "right of use" model requiring lessees to recognize assets and liabilities for the right to use leased assets and future lease payments. It also discusses classification of leases, measurement of assets and liabilities, subsequent accounting, disclosure requirements, and the potential impact on businesses.
IND AS 116 establishes new principles for the recognition, measurement, presentation and disclosure of leases. It introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The standard also contains revised requirements for lessor accounting. The key changes introduced by IND AS 116 include bringing most operating leases onto a lessee's statement of financial position in a similar way to finance leases, enhancing the required disclosures to help users better understand the amount, timing and uncertainty of cash flows arising from leases, and aligning lease accounting according to the underlying right of use asset.
The document provides an overview of IAS 17 which prescribes accounting policies and disclosures for leases. Some key points:
- IAS 17 distinguishes between a finance lease and an operating lease based on whether substantially all risks and rewards of ownership are transferred.
- For a finance lease, the lessee recognizes an asset and liability at an amount equal to the lower of fair value or present value of minimum lease payments. The asset is depreciated over its useful life.
- For an operating lease, the lessee recognizes lease payments as an expense on a straight-line basis over the lease term.
- A finance lease results in the recognition of an interest expense, while an operating lease
Leasing involves a lessor providing equipment or property to a lessee in exchange for periodic payments. There are several types of leases, including finance leases where ownership transfers to the lessee, and operating leases which are shorter term. Key elements of any lease include the parties, asset, lease term, and rental payments. The leasing process involves selecting an asset, signing a lease agreement, and the lessor acquiring the asset for the lessee. Leasing provides advantages to both lessors and lessees such as tax benefits and avoiding large upfront costs.
This document provides an overview of leasing and hire purchase. It defines leasing as a contract where the lessor gives the lessee the right to use an asset for an agreed period in exchange for lease rentals. The key advantages of leasing are saving capital, flexibility, cash flow planning and improved liquidity, while disadvantages include commitment to the contract period and higher fixed costs. Hire purchase allows a purchaser to pay for goods in installments over time, with ownership transferring once fully paid. The document also discusses various lease and hire purchase terms, the history of leasing in India, accounting treatment and myths about leasing.
IAS 17 provides guidance on classifying and accounting for leases. It distinguishes between finance and operating leases and sets out the required accounting treatment for each type from the perspectives of lessees and lessors. Key aspects covered include criteria for lease classification, accounting for lease payments and incentives, sale and leaseback transactions, and disclosure requirements.
This document provides an overview of leasing. It discusses the history and meaning of leasing, including definitions from experts. It outlines the steps in a typical leasing process and describes various types of leases. The advantages to lessors include assured regular income, preservation of ownership, tax benefits, and high profitability. Advantages to lessees are use of capital goods, tax benefits, cheaper financing, and technical assistance. Disadvantages are also presented, such as inflation risk for lessors and compulsory payments even if the asset is not needed for lessees. In summary, the document defines leasing, outlines the leasing process, and discusses the pros and cons from the perspectives of both lessors and les
This document provides an overview of equipment leasing basics. It defines what a lease is and describes the main types - capital/finance leases and operating leases. Capital leases are similar to purchases, while operating leases are more like rentals. The document discusses some common myths about leasing and explains the key benefits, such as preserving cash flow, obtaining tax benefits, and allowing for off-balance sheet financing with operating leases.
After watching the video on Earmarks httpswww.khanacademy..docxMARK547399
After watching the video on Earmarks:
https://www.khanacademy.org/humanities/ap-us-government-and-politics/interactions-among-branches-of-government/structures-powers-and-functions-of-congress/v/earmarks-pork-barrel-projects-and-logrolling
Discuss why might the ability of members of Congress to direct monies to projects in their states or districts help representation? How might it be unfair or damaging to the interests of the nation as a whole?
.
After watching City of God (Brazil, 2002) and reading Chapter 8 .docxMARK547399
The document discusses editing techniques used in the film City of God and asks for 4 examples of: a) organizing fragmented action through editing, b) creating meaning by juxtaposing shots, c) establishing spatial relationships between shots, and d) setting pace and rhythm through editing.
After watching the video, Ten Strategies of a World-Class Comp.docxMARK547399
After watching the video,
Ten Strategies of a World-Class Computer Security Incident Response Team
ShmooCon 2013: Ten Strategies of a World-Class Computer Security Incident Response Team (Links to an external site.)
Discuss the ten strategies discussed in the video.
Research and find at least three (3) more recommendations needed to organize, fund and introduce a CSIRT.
Research and recommend a CSIRT strategy for each: 1) Global Business, 2) US-mid sized business, and a 3) Global non-profit business.
What would your recommendations be for Wilmington University?
.
After the recent security breach, Always Fresh decided to form a com.docxMARK547399
After the recent security breach, Always Fresh decided to form a computer security incident response team (CSIRT). As a security administrator, you have been assigned the responsibility of developing a CSIRT policy that addresses incident evidence collection and handling. The goal is to ensure all evidence collected during investigations is valid and admissible in court.
.
After taking this course and learning about various art forms, d.docxMARK547399
After taking this course and learning about various art forms, discuss ways that you would like to see and participate in the fine arts (perhaps more or different ways than before). Has any of the material from the course inspired you? Will your growing knowledge of the fine arts play a role in how you do your job or interact with others?
Short answer reflection of 75-100 words.
.
After watching the documentary Citizenfour and completing the re.docxMARK547399
After watching the documentary
Citizenfour
and completing the reading by Glenn Greenwald (Greenwald, 2014), write a two-page reflection essay (double space, 12-point Times New Roman, 1” margins). Organize your essay by addressing the following questions:
What are the societal implications when personal privacy is forfeited? Is privacy essential for a functioning democracy? Discuss.
What level of surveillance should governments be allowed over their citizens? When is the “protecting against terrorism and security” line crossed and personal privacy infringed upon? Discuss.
Both the documentary and the course reading by Greenwald revealed the U.S. government’s surveillance over foreign regimes and political leaders. In what ways is this related to our lecture on the geopolitics of information? Discuss.
.
After watching the George Méliès film A Trip to the Moon (1.docxMARK547399
After watching the George Méliès' film
A Trip to the Moon
(1902) think about the differences and similarities between how you believed someone would had processed that movie then emotionally, intellectually, and spiritually (among numerous ways) and how you processed the last “big event” or blockbuster movie you saw. Tell us what you think are different and similar.
Going beyond the entertainment value of a non-documentary movie, what other value do you get out of seeing movie?
Reference specific vocabulary and concepts from the Course Content to describe what you observed.
https://www.filmsite.org/pre20sintro2.html
https://www.youtube.com/watch?v=BNLZntSdyKE
.
After reviewing your latest submission, the CIO has found some areas.docxMARK547399
After reviewing your latest submission, the CIO has found some areas of concern and would like you to provide a little clarity on one subject. He is meeting with upper management to persuade them to purchase a new suite of intrusion detection software (IDS) for the network. Currently, the organization has antivirus software and uses firewalls. Provide justification for adding intrusion detection software as well.
Research
various IDS that would benefit the company.
Create
a 2-page table for the CIO to share with upper management. In your table:
Identify reasons why IDS will benefit the company and the larger cyber domain.
Describe the categories and models of intrusion detection and prevention systems.
Summarize the function of antivirus software, firewalls,and IDS.
Identify examples of commercial software that could help the organization.
Format
your citations according to APA guidelines.
.
After watching the video, Euro Doomed Bloomberg QuickTakes, do some.docxMARK547399
After watching the video, Euro Doomed? Bloomberg QuickTakes, do some research on your own from reliable sources and address specific questions: • What was the reasoning behind the creation of such union and the of the Euro currency? • Please explain your perspective with facts from your research. • What are some of the dangers for the global economy associated with the Brexit?
.
After watching Adam Driver’s TED talk about his journey from bei.docxMARK547399
After watching Adam Driver’s TED talk about his journey from being a Marine to becoming an actor and the performance of Marco Ramirez’s “I am not Batman,” write a discussion post reflecting on the lecture and performance.
(Note: Ramirez’s script has explicit language)
In your discussion posts consider the effects of providing artistic outlets to those who are in the Armed Forces (and other service fields- police force, emergency services, etc.). In his lecture Driver talks about the program Arts in the Armed Forces and states, “I can think of no better community to arm with a new means of self-expression than those protecting our country.” He goes on to describe how this program creates exposure to new cultures for both the artists and the military. What are your thoughts on this type of programming? Do you think it is/could be beneficial to those who are serving our nation? Also, share your thoughts on Jesse Perez’s performance of Marco Ramirez’s “I am not Batman.”
Your initial post should be a minimum of 200 words. After posting your initial thoughts, respond to two peers with substantial paragraphs (75 word minimum for each response).
.
After watching all the films in Week Two’s content (with the excepti.docxMARK547399
After watching all the films in Week Two’s content (with the exception of The Birth of a Nation) discuss at least 5 storytelling/narrative/plot devices or editing choices that you have seen in recent films or TV shows. How did these devices or choices help drive the story? Then link those narrative techniques to the films you watched. NOTE: YOU HAVE TO PICK 5 OF THE FILMS LISTED IN WEEK 2, AND THEN COMPARE THEM TO TECHNIQUES/SHOWS/MOVIES DONE TODAY.
.
After time traveling through many periods in some of our oldest .docxMARK547399
After time traveling through many periods in some of our oldest civilizations, I would have to say my favorite experience was experiencing Buddhism during its peak of spreading across China and Asia. I personally am very involved in Buddhism so time traveling back to this time was definitely my most prized time travel experience.
Buddhism was able to acknowledge the difficult era of the Age of Division and the social struggles many went through, providing individuals with comfort and hope for the future. Since Buddhism brought peace and salvation, many who were seeking that took to this new belief system quickly. Buddhism attracted many people, from men to women, from many different religions and cultures.
Since it was rising in popularity and many favored Buddhism, some dynasties like the Tang Dynasty made Buddhism it’s primary religion, (1).
At first Buddhism was met with hostility since the Chinese preferred, “...An active social life, to an ascetic, contemplative one,” (Week 4 Lesson). Once individuals got past this, Buddhism grew favorably and influenced Chinese culture and art in a positive way.
respond to this discussion question in 100 words
.
After studying the course materials located on Module 1., answer.docxMARK547399
After studying the course materials located on Module 1., answer the following:
Explain the following concepts:
Asexual - sexual reproduction.
Mitosis – Meiosis
Diploid - Haploid
Gametes
Fertilization
Zygote
Syngamy
Blastocyst
Implantation
Gastrulation
Embryo - Fetus
Explain fertilization process from cellular level to fetus.
After learning about fertilization process, and according to nature and objectively, and scientifically speaking, when does human life begin? Why?
Read and summarize
Ethical and Religious Directives for Catholic Health Care Services
(ERD) PART FOUR Introduction.
Submission Instructions:
The paper is to be clear and concise and students will lose points for improper grammar, punctuation, and misspelling.
If references are used, please cite properly according to the current APA style. Refer to your syllabus for further detail or contact your instructor.
Complete and submit the assignment by 11:59 PM ET Wednesday.
.
After reviewing your latest submission, the CIO has found some a.docxMARK547399
After reviewing your latest submission, the CIO has found some areas of concern and would like you to provide a little clarity on one subject. He is meeting with upper management to persuade them to purchase a new suite of intrusion detection software for the network. Currently, the organization has antivirus software and uses firewalls. Provide justification for adding intrusion detection software (IDS), as well.
Research
various IDS that would benefit the company.
Create
a 2-page table for the CIO to share with upper management. Include the following:
Reasons why IDS would benefit the company and the larger cyber domain
Descriptions of the categories and models of intrusion detection and prevention systems
A description of the function of antivirus software, firewalls, and IDS
Examples of commercial software that could provide the solution
.
After reviewing Zinns and Schweikarts personal assumptions, belief.docxMARK547399
After reviewing Zinn's and Schweikart's personal assumptions, beliefs, and values as well as excerpts from their historical writing, respond to the following questions:
What do you believe to be the major distinctions in their personal assumptions, beliefs, and values?
What do you believe to be the major distinctions in their interpretations of history?
Do you notice any biases? If so, what are they?
To complete this assignment, review the
Learning Block 1-4 Short Response Rubric
document.
.
After reviewing the resources provided, do you believe that we posse.docxMARK547399
After reviewing the resources provided, do you believe that we possess “biological preparedness” for learning? Do you think the human brain is “wired” for observational learning? Why or why not? Give an example of how mirror neurons might be involved in observational learning in your everyday life.
.
After reading The Successful Organization Keeping the Talent .docxMARK547399
After reading
The Successful Organization: Keeping the Talent That Drives Your Results
, select one of the seven success behaviors (shown below) that you identify as your strongest personal strength. Share with the class a personal example that demonstrates you putting this strength into action.
The seven success behaviors include:
Building relationships
Embracing change
Inviting opportunity
Being passionate
Being conscious
Getting focused
Taking responsibility
.
After reviewing the policy brief by the Urban Institute on the pros .docxMARK547399
After reviewing the policy brief by the Urban Institute on the pros and cons of a single-payer system, assess the challenges that would face the U.S. in implementing such a system. Examine the feasibility of a single-payer health care system becoming policy. Be sure to support your comments with reliable sources and do not hesitate to look at comparative examples from other countries.
.
After reflecting on this week’s overview and textbook reading, discu.docxMARK547399
After reflecting on this week’s overview and textbook reading, discuss which of the components of the merchandise management process are the most important. Explain your choice.
Kunz, G. I. (2010).
Merchandising: Theory, principles, and practice
. New York, NY: Fairchild Books.
.
After reading this weeks resources including Ready or Not Protecti.docxMARK547399
Colorado's emergency preparedness was examined based on 10 criteria from a 2012 report. The state has some strengths but also weaknesses in preparedness. Implementing additional public health strategies, like those referenced in the report, could help increase Colorado's overall emergency preparedness level.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
1. Accounting for Leases
Unit-III
Leasing Environment:
A lease is a contractual agreement between a lessor and a
lessee. This arrangement gives the lessee the right to use
specific property, owned by the lessor, for a specified period of
time. Lessee makes the payment to the lessor in return over the
lease term for the use of the property.
The largest group of leased equipment involves Information
technology, Transportation (trucks, motor cars), Construction
and Agriculture.
Who are the Lessors? The lessors that own this property
generally fall into one of following three categories:
1. Banks.
2. Captive leasing companies.
3. Independents.
Advantages of Leasing:
1. 100% financing at Fixed Rates: Leases are often signed
without initial amount from the lessee. In addition, lease
payments often remain fixed which protects the lessee against
inflation and increases in the cost of money.
2. Protection against Obsolescence: Leasing equipmentreduces
risk of obsolescence to the lessee, and in many cases passes the
risk of residual value to the lessor.
3. Flexibility: Lease agreements may contain less restrictive
provisions than other debt agreements. For example, the
duration of the lease may be anything from short period of time
to the entire expected economic life of the asset. The payment
of rent in most cases is set to enable the lessor to recover the
cost of the asset plus a fair return over the life of the lease.
4. Less Costly Financing: Some companies find leasing cheaper
than other forms of financing. This may reduce the tax burden
of the companies. Through leasing, the leasing companies or
financial institutions use these tax benefits. They can pass some
2. of these tax benefits back to the user of the asset in the form of
lower rental payments.
5. Tax Advantages: For financial reporting purposes companies
do not report an asset or a liability for the lease arrangement.
For tax purposes, however, companies can capitalize and
depreciate the leased assets.
6. Off-Balance-Sheet Financing: Some leases do not add debt
on a balance sheet or affect financial ratios. But they may be
added to borrowing capacity.
Accounting by the Lessee: Lessee capitalizes a lease; it records
an asset and a liability generally equal to the present value of
the rental payments. Lessor having transferred substantially all
the benefits and risks of ownership recognizes a sale by
removing the asset from the balance sheet and replacing it with
a receivable.
Capitalization Criteria (Lessee): In order to record a lease as a
capital lease, the lease must be non cancelable. In addition, it
must meet one or more of the following four criteria.
1. Transfers ownership to the lessee.
2. Contains a bargain purchase option.
3. Lease term is equal to or greater than 75 percent of the
estimated economic life of the leased property.
4. The present value of the minimum lease payments (excluding
executor costs) equals or exceeds 90 percent of the fair value of
the leased property.
Accounting Methods of Lease in the books of Lessee:
There are two methods of treating leasein the books of lessee.
1. Capital Lease Method: In this, assets and liabilities are
recorded at the present valueof therental payments. It should
also fulfill at least one of the capitalization criteria.
2. Operating Method: Under this method, rent expense accrues
day by day to the lessee as it uses the property. There is no need
to fulfill any of the capitalization criteria.
Accounting by the Lessor:
A lessor determines the amount of rental on the basis of rate
of return or the implicit rate. In establishing the rate of return,
3. lessor considers the credit standing of the lessee, the length of
the lease, and the status of the residual value.
Advantages of Lessor: Following three benefits are available to
the lessor.
1. Interest Revenue: Leasing is a form of financing. Banks and
independent leasing companies find leasing attractive because it
provides competitive interest margin.
2. Tax Incentives: The lessee cannot use the tax benefit of the
assets but allows such tax benefits to lessor in return for a lower
rental rate on the leased asset.
3. High Residual Value: Return of the property at the end of
the lease term is another advantage to the lessor. Residual
values can produce very large profits
Classification of Leases by the Lessor:
For accounting purposes, the lessor may classify leases as
follows:
1. Direct financing leases
2. Sales type leases
3. Operating leases
Capitalization Criteria for Lessor: If the lessor agrees to a lease
that meets one or more criteria of group-I and both the criteria
of group-II, he will classify and account for the arrangement as
a direct financing lease or as a sales type lease.
Group-I
1. Transfers ownership to the lessee.
2. Contains a bargain purchase option.
3. Lease term is equal to or greater than 75 percent of the
estimated economic life of the leased property.
4. The present value of the minimum lease payments (excluding
executor costs) equals or exceeds 90 percent of the fair value of
the leased property.
Group-II
1. Collectability of the payments required from the lessee is
reasonably predictable.
2. No important uncertainties surround the amount of
reimbursable costs yet to be incurred by the lessor under the
4. lease (lessor's performance is substantially complete or future
costs are reasonably predictable.
A sales type lease involves a manufacturer's or dealer's profit,
and a direct financing lease does not. The profit (or loss) to the
lessor is evidenced by the difference between the fair value of
the leased property at the inception of the lease and the lessor's
cost or carrying amount (book value).
Lessors classify and account for all leases that do not qualify as
direct financing or sales type leases as operating leases. In other
words, if lessor does not meet both the capitalization criteria of
group-II the lease will be an operating lease.
Direct Financing Method (Lessor):
In this type of lease, the lessor records a lease receivableinstead
of aleased asset.The lease receivable is the present value of the
minimum lease payments. Minimum lease payments include
rental payments (excluding executor costs), bargain purchase
option, guaranteed residual value, penalty for failure to renew
(if any). Thus, the lessor records the residual value, whether
guaranteed or not. Also, if the lessor pays any executor costs,
then it should reduce the rental payment by that amount in
computing minimum lease payments.
Operating Method (Lessor):
Under this method, the lessor records each rental receipt as
rental revenue. It depreciates the leased asset in the normal
manner. In addition to the depreciation charge, the lessor
expenses maintenance costs and the cost of any other services
rendered under the provisions of the lease that pertain to the
current accounting period. The lessor amortizes over the life of
the lease any costs paid to independent third parties such as
appraisal fees, finder's fees, and costs of credit checks, usually
on a straight line basis.
Workout Problems:
Q.1.On January 1, 2007, Hall crow Corporation signed a 5-year
non-cancelable lease for a machine. The terms of the lease
called for Hall crow to make annual payments of SR8,668 at the
5. beginning of each year, starting January 1, 2007. The machine
has an estimated useful life of 6 years and a SR 5,000
unguaranteed residual value. Hall crow uses the straight-line
method of depreciation for all of its plant assets. Hall crow
incremental borrowing rate is 10%, and the Lessor’s implicit
rate is unknown.The lease meets the criteria for classification as
a capitallease. (Present value of one riyal at 10% for 5 years is
4.16986)
Instructions
(a) Compute the present value of the minimum lease payments.
(b) Calculate Amortization Schedule.
( c ) Prepare journal entries for Burke for two years.
Q2 Caterpillar financial services corporation and sterling
construction corporation sign a lease agreement dated January
1, 2008, that calls for caterpillar to lease a front-end loader to
sterling beginning January1, 2008. The terms and provisions of
the lease agreement are as follows:
a. The term of the lease is five years. The lease agreement is
non-cacheable, requiring equal rental payments of SR25, 981.62
at the beginning of each year (annuity due basis)
b. The loader has a fair value at the inception of the lease of
SR100, 000, an estimated economic life of five years, and no
residual value.
c. Sterling pays all of the executory costs directly to third
parties except for the property taxes of SR2000 per year, which
it includes as part of its annual payment to caterpillar
d. Starlings' incremental borrowing rate is 11% per year
e. Starlings depreciates on straight- line basis, similar
equipment that it owes
P.V.of 1 Riyal at 10% for 5 years is 4.16986. Compute present
value and Amortization schedule and pass journal entries.
25,981.62-2,000=23,981.62x4.16986= SR 100,000
Q3. Based on the question number 2 pass journal entries in the
books of Lesser under capitalization method.
Q4. Assume that the capital lease method adopted in question 2
did not apply. Record the journal entry for the year 2008 under
6. operating lease method.
Q5. Based on the question number 2 pass journal entries in the
books of Lesser under operating lease method.
Q.6. (Computation of Rental)Morgan Leasing Company signs an
agreement on January 1, 2009, to lease equipment to Cole
Company. The following information relates to this agreement.
1. The term of the non-cancelable lease is 6 years with no
renewal option. The equipment has an estimated economic life
of 6 years.
2. The cost of the asset to the lessor is SR 245,000. The fair
value of the asset at January 1, 2007, is SR 245,000.
3. The asset will revert to the lessor at the end of the lease term
at which time the asset is expected to have a residual value of
SR 43,622, none of which is guaranteed.
4. The agreement requires annual rental payments, beg. Jan. 1,
2007.
5. Collectability of the lease payments is reasonably
predictable. There are no important uncertainties surrounding
the amount of costs yet to be incurred by the lessor.
Compute annual rental of the lease.
-------------------------------
Q.1. A-1
Solution
: Compute present value of the minimum lease payments.
Payment SR 8,668
Present value factor (i=10%, n=5) 4.16986
PV of minimum lease payments SR 36,144
Calculation of Amortization Schedule
10. 8,668
8,668
31-12-8
Depreciation Expenses dr
Accumulated Depreciation
6,229
6,229
31-12-8
Interest expenses dr
Interest payable
2,156
2,156
Q.2. Capitalized amount= (SR 25,981.62-$2000)*present value
of an annuity due of 1 for 5 periods at 10%
=SR 23,981.62x4.16986
=SR 100,000
Calculation of Amortization Schedule
16. Journal Entries in the Books of
Caterpillar (Lesser)
Date
Particulars
L.F.
Amounts (dr)
Amounts (cr)
1-1-8
Lease Receivable dr
Lease Equipment
100,000
100,000
1-1-8
Cash dr
Property tax expenses
Lease receivable
25,981.62
2,000
17. 23,981.62
31-12-8
Interest receivable dr
Interest revenue
7,601.84
7,601.84
1-1-9
Cash dr
Property tax expenses
Interest receivable
Lease receivable
25,981.62
2,000
7,601.84
16,379.78
31-12-9
Interest receivable dr
Interest revenue
18. 5,964
5,964
1-1-10
Cash dr
Property tax expenses
Interest receivable
Lease receivable
25,981.62
2,000
5,964
18,017.62
Q.4. Journal Entries in the Books of Sterling
(Lessee) under operating Lease
Date
Particulars
L.F.
Amounts (dr)
Amounts (cr)
1-1-8
Rent Expenses dr
21. 31-12-9
Depreciation expenses dr
Accumulated Depreciation
20,000
20,000
Ans-6 Residual Value SR 43,622
P.V. of single sum (i=10%, N=6) x
0.56447 , 43,622 x0.56445 = SR 24,623
P.V. of residual value = SR 24,623
Fair Market Value of Leased Equipment SR 245,
000
Less Present Value of Residual Value
24,623 = 220,377
Amount to be recovered through lease payment SR 220,377
/4.79079
PV factor of Annuity due (i=10%, n=6)
4.79079
Annual Payment Required SR
46,000
245,000 – 43,622 = 201,378 / 6= 33,563 (Depreciation
expenses)
22. -------------------
Chapter - 2
Calculation andClassification of Cost
Cost classification is the process of grouping costs according to
their common characteristics. They are to be classified suitably
to identify with cost Centre or cost unit. Following are some of
the costs:
Direct and Indirect cost: Direct costs are those which can be
identified with the cost Centre or cost unit, and can
conveniently be wholly connected with any cost unit whereas
expenses incurred on those items which are not directly
chargeable to production are known as indirect costs. Salaries
of timekeeper, storekeeper, and foreman are paid; expenses for
running the administration are incurred. They are called indirect
cost.
Historical and budgeted: Budgeted cost is determined and
recorded before actual performance while historical cost is
recorded after the actual performance. Budgeted cost is pre-
determined cost related to future while historical cost is related
to the past. Budgeted cost serves as a measure of evaluation of
efficiency. Historical cost does not provide any such technique;
it only indicates the total cost of product or service. Budgeted
cost is more important for cost control. Historical cost fails to
provide any yardstick for comparison and not point out the
23. individual responsible for rise.
Standard and Budgeted: The technique of determining both
standard and budgeted cost is the same and accounting
procedures are also equally the same. But these two differ in
many respects. Standard cost is ascertained on the assumption
that free movement in cost will not be allowed and to the extent
possible, cost will be controlled to confirm to standards set. On
the other hand, budgeted cost is upon the assumption of free
movement of cost and best estimate is being made taking into
account cost situations in the future. Standard cost is used only
when complete cost data are available but, budgeted cost can be
used in every situation.
Relevant and sunk cost: The term relevant means pertinent to
decision at hand. Costs are relevant if they guide the executive
towards the decision that harmonizes with top management’s
objectives. On the other hand, a cost which was incurred in the
past and is not relevant to the particular decision making is a
sunk cost. It may be variable or fixed or both. It is only
historical cost and as such irrelevant for decision making.
Imputed (hypothetical) and opportunity cost: These types of
costs are not actually incurred but are to be considered in
making decision. But in costing, they are charged while
ascertaining the cost of a product. Opportunity cost means the
expected return or benefit foregone in rejecting one course of
action for another. When rejecting one course of action, the
24. rejected alternative becomes the opportunity cost for the
alternative accepted.
Overheads Cost Allocation: Overheads cost are allocated under
various heads as follows:
Prime Cost: The prime cost of any product comprises of all
direct costs. It includes direct material, direct labor and direct
expenses. Prime cost is also known as direct cost.
Works Cost: Works cost represent the total of all items of
expenses incurred in the manufacturing of an article. It is
described as prime cost works on cost. It is also known as
factory cost or cost of manufacture.
Cost of Production: Cost of production means prime cost plus
works cost plus administrative expenses. It is also known as
office cost.
Total Cost: Total cot means the sum of all items of expenditure
incurred in producing, manufacturing and selling & distribution
expenses. It comprises of cost of production plus selling and
distribution expenses.
Selling Price: It is the price which includes cost of sales plus a
margin of profit or minus loss if any.
Performa of Cost
Sheet
Particulars
Total Cost
25. Cost per unit
Opening stock of material
Add Purchases of material
Less Closing stock of material
Material Consumed
---
----
Direct Labor
---
----
Direct expenses
----
----
Prime Cost
---
----
Add Works overhead
-----
----
26. Add Opening Work in Progress
Less Closing work in Progress
Works cost or Factory cost
---
---
Add General or Administrative expenses
----
----
Cost of Production
Add Opening Finished Goods
----
----
Less Closing Finished Goods
---
---
Cost of Goods Sold
Add Selling & distribution expenses
27. Total Cost or Cost of sale
---
----
Selling Price
---
----
Profit or Loss
----
-----
Problems:
Q.1. Calculate Prime Cost, Factory Cost, Cost of Production,
Cost of sales and Profit from the following details:
Direct Material
SR 10,000
Direct Labor
SR 4,000
Direct Expenses
SR 500
Factory Expenses
SR 1,500
Administrative Expenses
SR 1,000
28. Selling Expenses
SR 300
Sales
SR 20,000
Q.2. A factory produces 100 units of a commodity. The cost of
production is as follows;
Direct Material
SR 10,000
Direct wages
SR 5,000
Direct Expenses
SR 1,000
Factory Overheads
SR 6,500
Opening work in progress
SR 7,000
Closing work in progress
SR 5,500
Administrative Overheads
SR 3,400
Distribution Expenses
SR 1,500
Profit
25% of sales
29. Calculate Sales Price and sales price per unit.
Q.3. From the following information calculate profit and sales:
Material Consumed
SR 16,000
Direct Labor
SR 9,000
Carriage Inward
SR 4,000
Opening Finished Goods
SR 9,500
Depreciation of Factory Plant
SR 8,000
Factory Insurance
SR 6,500
Closing Finished Goods
SR 5,000
Office Insurance
SR 5,500
Telephone Charges
SR 2,000
Sales Promotion Expenses
SR 7,000
Profit
20% of Cost of Sale
Q.4. From the following information calculate profit and sales:
30. Material Purchased
SR 18,000
Direct Wages
SR 9,000
Opening Stock of Raw Material
SR 7,400
Freight Charges
SR 4,000
Closing Stock of Material
SR 6,000
Opening Finished Goods
SR 9,500
Depreciation of Factory Plant
SR 8,000
Opening Stock of Work in Process
SR 10,000
Factory Insurance
SR 6,500
Closing Stock of Work in Process
SR 8,600
Closing Finished Goods
SR 5,000
Office Expenses
SR 4,500
Telephone Charges
31. SR 2,000
Selling & Distribution Expenses
SR 5,200
Profit
25% of Cost of Sale
Chapter – 1
Management Accounting (ACCT-202)
Introduction:
Any accounting, which renders valuable information to help
management, may be called Management Accounting. It is that
form of accounting, which enables a business to be conducted
more efficiently. A team of British Industrial Accountants and
Managers submitted their report and defined Management
Accounting, " as the presentation of accounting information in
such a way as to assist Management in the creation of policy
and day to day operation of an undertaking."
It is observed from the above definition that Management
Accounting is concerned with the presentation of accounting
information and not with its preparations. Thus, emphasis is laid
32. down on the two aspects in Management Accounting:
a. To present the accounting information in proper way before
the management.
b. Such accounting information being placed in a way as to
assist management in its operations and functions.
Distinction between Management Accounting and Financial
Accounting:
Management accounting and Financial accounting are
complementary to each other. They are, however, distinguished
in terms of relative importance of the problems and techniques
involved. Such distinctions between two sets of accounting are
discussed below:
1. Process: The functions of financial accounting are recording
of financial transactions, collection of data and bringing them in
concise form. Management Accounting picks up significant data
out of collected data and presents for the use of management.
2. Flexibility: Under financial accounting attempts are being
made to prepare accounts in accordance with the generally
accepted principles, rules and conventions of accounting.
However, the accounting principles are not binding on
Management accounting. Management may fix its own rules and
standards according to its convenience and needs.
3. Data Used: Financial accounting records only those
transactions which have taken place in the past while
Management accounting does also take into account the past
33. events but only to the extent they affect the future positions.
4. Users of Report: In financial accounting, reports are used by
external parties such as creditors, investors regulators, etc. On
the other hand, reports are used by internal-officers and
managers in managerial accounting.
5. Audit: Financial accounts are prepared on the basis of certain
generally accepted principles and rules and therefore, it
becomes compulsory to get them audited. But statements
prepared under Management accounting are not required to be
audited at all.
6. Publication: The publication and circulation of accounts and
statements prepared under Financial accounting are compulsory
because these are meant for external parties. Statements
prepared under Management accounting convey information
only to various levels of management.
Concept of Cost:
Cost represents the amount of expenditure incurred on a given
thing. This implies some sort of sacrifices in consideration of
receiving something. In other words, cost indicates a foregoing
or release of somethings of value in consideration of obtaining
some sort of benefit. Although, the term cost cannot be exactly
defined. Its interpretation depends upon:
a. the purpose for which cost has to be determined.
b. the nature of the business in which the enterprise is engaged.
c. the element of business risks which may be insured or
34. measured.
d. the measures which are used to ascertained the value of
releases.
Concept of cost Centre:
A cost Centre is a location, person, or item of equipment or
group of these for which cost may be ascertained and used for
the purpose of cost control. The cost may be a department or a
machine or a plant or a salesman, or a particular work etc. In
certain cases, the cost unit and cost Centre may be the same.
Each cost Centre is given charge to personnel for controlling
the cost, accumulation of cost and its allocation. The sub
divisions of cost Centre are:
a. The Personal Cost Centre
b. Impersonal cost Centre
c. Operation Cost Centre
d. Process Cost Centre
Profit Centre:
Profit Centre is a segment of a business that is responsible for
all activities involved in the production and sales of products,
systems, and services. It is thus a segment of the organization
which has been assigned control over both revenues and costs.
It encompasses both costs that it incurs and revenue that it
generates. A profit Centre is created by the top management for
evaluating performance of a division. It enjoys autonomy in
decision making.
35. Productivity Centre: In productivity Centre, cost may be a
department or a machine or a plant, or a particular work. One
person in the department is given charge for controlling the
cost, accumulation of cost and its allocation.
Investment Centre: It is a Centre in which head of the Centre is
held responsible for the use of the assets as well as for revenues
and expenses. On the other hand, he is expected to earn a
satisfactory return on the assets employed in his responsibility
Centre. Investment centers are generally used only for relatively
large units which have independent divisions, both
manufacturing and marketing, for their individual products.
---------------------
---------
Unit - 2
Financial Instruments as Long-term Liabilities
Financial Instruments are obligations that are expected to be
36. paid more than one year in the future. Bond Payable, long-term
notes payable, mortgages payable, pension liabilities, and lease
liabilities are the examples of long term liabilities. A
corporation usually requires approval by the board of directors
and the stockholders before bonds or notes can be issued.
Bond Characteristics: A bond represents a security issued in
connection with a borrowing arrangement. A bond obligates the
issuer to make specified payments (interest and principal) to the
bondholder. A bond may be described in terms of par value,
coupon rate, and maturity date. The par value is the value
stated on the face of the bond. It represents the amount the
issuer promises to pay at the time of maturity. The coupon rate
is the interest rate payable to the bondholder. Thematurity date
is the date when the principal amount is payable to the
bondholder. The bond indenture isthe contract between the
issuer and the bondholder specifies the par value, coupon rate,
and maturity date.
Types of Bonds: There are different types of bonds which are
given below:
1. Secured and Unsecured Bonds: Secured bonds have specific
assets of the issuer pledged as collateral for the bonds. A bond
secured by real estate is called a mortgage bond. A bond
secured by specific assets set aside to redeem the bonds is
called a sinking fund bond. Unsecured bonds are debenture
bonds. They are issued against the general credit of the
37. borrower. Companies with good credit ratings use these bonds
extensively.
2.Term and Serial Bonds: Bonds that mature at a single
specified future date are term bonds. On the other hand, bonds
that mature in installments are serial bonds.
3. Registered and Bearer Bonds: Bonds issued in the name of
the owner are registered bonds. Interest payments on registered
bonds are made after checking the bondholders’ record. Bonds
not registered are bearer or coupon bonds. Holders of bearer
bonds must send in coupons to receive interest payments. Most
bonds issued today are registered bonds.
4. Convertible Bonds: Convertible bonds give the bond holder
the right (option) to convert them into equity shares on certain
terms.
5. Callable Bonds: Callable bonds give the issuer the right
(option) to redeem them prematurely on certain terms.
6. Commodity backed bonds: Commodity backed bonds are
repayable in measures of a commodity such as oil, coal etc.
7. Deep discount or Zero-interest debenture bonds: The deep
discount bonds, also known as zero interest bonds, are sold at a
discount.
Accounting for Bond issues: A corporation records bond
transactions when it issues or redeems bonds and when
bondholders convert bonds into common stock. Bonds may be
issued at face value (par), at discount and at premium. Bond
38. prices for both new issues and existing bonds are quoted as a
percentage of the face value of the bond.
Journal Entries for Issuing Bond: Following entries will be
passed in the books of issuing company at the time issuing
bonds at par, discount and premium.
Issue of Bonds at par:
Cash
debited
Bonds Payable
credited
Payment of Interest on Bonds in cash within accounting period:
Bond Interest Expenses debited
Cash
credited
If bond interest expense is payable at the end of the accounting
period.
Bond interest expenses
debited
Bond Interest Payable
credited
Issue of Bonds at discount:
Cash debited
Discount on Bonds Payable
debited
39. Bond Payable
credited
Payment of interest and Amortization of Discount to interest
expenses each year:
Bond Interest Expenses debited
Discount on Bonds Payable
credited
Cash
credited
Issue of Bonds at Premium:
Cash debited
Premium on Bonds Payable
credited
Bonds Payable
credited
Payment of Interest and Amortization of Premium to interest
expenses each year:
Bond Interest Expenses debited
Premium on Bonds Payable debited
Cash
credited
Debt Extinguishments gains and losses: In some cases, a
company extinguishes debt before its maturity date. The amount
paid on extinguishment or redemption before maturity,
including any call premium and expense of reacquisition, is
40. called the reacquisition price. On any specific date, the net
carrying amount of the bonds is the amount payable at maturity,
adjusted for unamortized premium or discount, and cost of
issuance. Any excess of the net carrying amount over the
reacquisition price is a gain from extinguishment. The excess
of the reacquisition price over the net carrying amount is a loss
from extinguishment.
Off- Balance Sheet financing: Off- balance sheet financing is
an attempt to borrow monies in such a way to prevent recording
the obligations. It has become an issue of extreme importance.
Many allege that Enron, is one of the largest corporate failures
on record, hid a considerable amount of its debt off the balance
sheet. As a result, any company that uses off-balance sheet
financing today risks investors dumping their stocks.
Different forms of off- balance sheet financing: Following are
the many forms of Off-balance sheet financing.
1.Non-consolidated Subsidiary: Under GAAP, a parent
company does not have to consolidate a subsidiary company
that is less than 50 percent owned. In such cases, the parent
therefore does not report the assets and liabilities of the
subsidiary. As a result, users of the financial statements may
not understand that the subsidiary has considerable debt for
which the parent may ultimately be liable if the subsidiary runs
into financial difficulty.
2. Special Purpose Entity (SPE): A company creates a special
41. purpose entity to perform a special project. For example,
Clarke Company decides to build a new factory. However,
management does not want to report the plant or the borrowing
used to fund the construction on its balance sheet. It therefore
creates an SPE, the purpose of which is to build the plant. This
arrangement is called a project financing arrangement. In return
Clark guarantees that it or some outside party will purchase all
the products produced by the plant. As a result, Clark might not
report the asset or liability on its books.
3. Operating Leases: Another way that companies keep debt
off the balance sheet is by leasing. Instead of owning the assets,
companies lease them. Again, by meeting certain conditions,
the company has to report only rent expense each period and to
provide note disclosure of the transaction. Special purpose
entity (SPE) often uses leases to accomplish off-balance sheet
treatment.
Rationale behind the off-balance sheet financing is that many
believe that removing debt enhances the quality of the balance
sheet and permits credit to obtained more readily and at less
cost. Second, the loan covenants often limit the amount of debt
a company may have. As a result, the company uses off-balance
sheet financing, because these types of commitments might not
be considered in computing the debt limitation.
Workout Problems:
Q.1 Three year bonds are issued at face value of SR100,000 on
42. Jan. 1, 2007, a stated interest rate of 8%, and market rate of 8%.
Q.2 STC Company issues at par 10 years' term bonds with a par
value of SR 800,000, dated January 1, 2007, and bearing
interest at an annual rate of 10% payable semi-annually on
January 1 and July1.
Pass necessary entries for one year in the books of STC.
Q.3 Three year bonds are issued at face value of SR 100, 000 on
Jan. 1, 2007, at a stated interest rate of 8%. Calculate the issue
price of the bonds assuming a market interest rate of 10%. The
present value of SR 1 is .75132 at 10% after 3 years and the
present value of an ordinary annuity of SR 1 is 2.48685 at 10%
after 3 years. Prepare discount amortization table and journal
entries for three years.
Q.4 SAPTCO issues SR 600, 000 bonds at the rate of 7% on
January 1, 2008, at 97% for 3 years. Pass the necessary entries
for one year.
Q.5 SAPTCO issues SR 400, 000 bonds at the rate of 9% on
January 1, 2008, at 106% for 3 years. Pass the necessary entries
for one year.
Q.6 Three year bonds are issued at face value of SR 100,000 on
Jan. 1, 2007, and a stated interest rate of 8%. Calculate the
issue price of the bonds assuming a market interest rate of 6%.
The present value of SR 1 is .83962 at 6% after 3 years and the
present value of an ordinary annuity of SR 1 is 2.67301 at 6%
43. after 3 years.
Q.7. Three year 8% bonds of SR 100,000 issued on Jan. 1, 2007,
are recalled at 105 on Dec. 31, 2008. Expenses of recall are SR
10,000. Market interest on issue date was 8%.
Q8. On Jan. 1, 2010, General Bell Corporation issued at 97%,
bonds with a par value of SR 800,000 due in 20 years. It
incurred bond issue cost totaling SR 16,000. Eight years after
the issue date, General Bells calls the entire issue at 101% and
cancels it. Compute the loss or gain on redemption
(extinguishment).
Q.9. On Jan. 1, 2011, STC retired SR 500,000 of bonds at 99%.
At the time of retirement, the unamortized premium was SR
15,000 and unamortized bond issue costs were SR 5,250.
Prepare journal entries of reacquisition of bonds in the books of
STC.
Accounting for Current Liabilities and Contingencies
Unit – I
Meaning of current Liabilities:
Current liabilities are “obligations whose liquidation is
reasonably expected to require use of existing resources
properly classified as current assets, or the creation of other
current liabilities.”
44. On the other hand, we can say that current liabilities are
those liabilities which can be paid out of current assets or by
creating current liabilities within the normal operating cycle of
the business which is generally one year. Following are example
of some current liabilities.
1. Accounts payable 6. Short term
obligations expected to be refinanced
2. Notes Payable 7. Current
maturities of long-term debt
3. Customer advances and deposits 8. Employee-
related liabilities
4. Unearned revenues 9. Income taxes
payable
5. Dividend payable 10. Sales taxes
payable
Accounts Payable:
Accounts payable or trade accounts payable are balances owed
to others for goods, supplies, or services purchased on open
account. Accounts payable arise because of the time lag
between the receipt of services or acquisition of title to assets
and the payment for them. Most companies record liabilities for
purchases of goods upon receipt of the goods. If title has passed
to the purchaser before receipt of the goods, the company
should record the transaction at the time of title passage. It is
also necessary that the record of goods received must agree with
45. the liability (accounts payable).
Measuring the amount of an account payable poses no
particular difficulty. The invoice received from the creditor
specifies the due date and the exact outlay in money that is
necessary to settle the account. The only calculation that may be
necessary concerns the amount of cash discount.
Notes Payable:
Notes payable or trade notes payable are written promises to
pay a certain sum of money on a specified future date. They
may arise from purchases, financing, or other transactions.
Some industries require notes as part of the sales/purchase
transactions in lieu of the normal extension of open account
credit. Notes payable to bank or loan companies arise from cash
loan. Generally, notes payable within one year come in the
category of short-term obligation. Notes may also be interest-
bearing or zero-interest bearing.
Interest-bearing Notes Issued:
A company can issue interest bearing note. The rate of interest
clearly states on the face of the note. The borrower must pay
back the amount with interest at the time of maturity. The
company will pass thefollowing entries for issuing interest
bearing notes in its books.
1. At the time of issuing interest bearing notes:
Cash
46. debited ---
Notes Payable
credited ---
2. When interest is due
Interest expenses
debited ---
Interest Payable
credited ---
3. At the time of maturity of notes.
Notes Payable
debited ---
Interest Payable
debited ---
Cash
credited ---
Zero Interest-bearing Notes Issued:
A company may issue a zero-interest bearing note instead of an
interest-bearing note. A zero-interest-bearing note does not
explicitly state an interest rate on the face of the note. However,
interest is still charged. At maturity the borrower must pay back
an amount greater than the cash received at the issuance date.
Following entries will be passed at the time of issuing zero-
interest bearing note.
1. At the time of issuing zero interest bearing notes:
Cash debited ---
47. Discount on notes payable debited ---
Notes payable credited ---
2. At the time of adjusting discount on notes payable:
Interest expenses debited ---
Discount on notes payable credited ---
3. At the time of maturity of notes
Notes payable debited ---
Cash credited ---
Short term obligations expected to be refinanced:
Short term obligations are debts scheduled to mature within one
year after the date of a company’s balance sheet or within its
operating cycle, whichever is longer. Some short term
obligations are expected to be refinanced as a long term basis.
These short term obligations will not require the use of working
capital during the next year.
Refinancing Criteria:
A company is required to exclude a short-term obligation from
current liabilities if both of the following conditions are met:
1.It must intend to refinance the obligation on a long-term
basis.
2.It must demonstrate an ability to refinance by:
· Actual refinancing
· Enter into a financing agreement
Customer Advances and Deposits:
Current liabilities may include returnable cash deposits received
48. from customer and employees. Companies may receive deposits
from customers to guarantee performance of a contract or
service or a guarantees to cover payment of expected future
obligations. The classification of these items as current or
noncurrent liabilities depends on the time between the date of
the deposits and the termination of the relationship that required
the deposit.
Contingencies:
Definition: A contingency is, “an existing condition,
situation, or set of circumstances involving uncertainty as to
possible gain (gain contingency) or loss (loss contingency) to an
enterprise that will ultimately be resolved when one or more
future events occur or fail to occur.”
Company often are involved in situations where uncertainty
exists about whether an obligation to transfer cash or the
amount that will be required to settle the obligation. Any
payment is contingent upon the outcome of a settle or an
administrative or court proceeding.
Gain contingencies:
Gain contingencies are claims or rights to receive assets or have
a liability reduced. The typical gain contingencies are:
1. Possible receipts of monies from gifts, donations, and
bonuses.
2. Possible refunds from the government in tax disputes.
3. Pending court cases with a probable favorable outcome.
49. 4. Tax losses carry forwards.
A company discloses gain contingencies in the notes only when
a high probability exists for realizing them.
Loss Contingencies: Loss contingencies involve possible
losses. Contingent liabilities depend on the occurrence of one or
more future events to confirm. The likelihood that the future
event will confirm the incurrence of a liability can range from
probable to remote.
The Financial Accounting Standard Board uses the terms
probable, reasonably possible, and remote to identify three
areas within that range.
Workout Problems:
Q1- Castle National bank agrees to lend SR 100,000 on march1,
2017, to landscape company. If landscape signs a SR 100,000,
6%, four- month note. On the due date payment made with
interest. Pass journal entries.
Q2 – Al Rajhi bank agrees to lend SR 200,000 in March 1,
2017, to Aramco Company. If Aramco signs a SR 200,000 6%,
for semi-annual note. Pass the journal entries on interest and
note.
Q3- Al Rajhi bank agrees to lend SR 150,000 on March1, 2017,
to Aramco Company. If Armco signs a SR 150,000 6%, for
monthly note. Pass journal entries.
Q4- Hindalco issues a SR 102000, four- month, Zero-interest
bearing note to Arab National Bank on January1, 2017. The
50. present value of the note is SR 100,000. On the due date
payment is made on notes.
Q5- A Company Borrowed SR 50,000 from the Shore Bank by
signing a 12-month, zero-interest-bearing note of SR 54,000 on
January1, 2018. Pass the journal entries of note issue and
adjusting of interest with discount.
Q.1. Journal Entries in the
Books of Landscape Co.
Date
Name of Accounts
L.F.
Amounts-dr.
Amounts-cr.
March 1, 2017
Cash dr
Notes Payable
100,000
100,000
July1, 2017
Interest expenses dr
Interest payable
51. 2,000
2,000
July 1, 2017
Notes Payable dr
Interest payable dr
Cash
100,000
2,000
102,000
Q.2. Journal Entries in the books of
Aramco Company
Date
Name of Accounts
L.F.
Amounts-dr.
Amounts-cr.
March 1, 2017
Cash dr
53. Q.3. Journal Entries in the books of
Aramco Company
Date
Name of Accounts
L.F.
Amounts-dr.
Amounts-cr.
March 1, 2017
Cash dr
Notes Payable
150,000
150,000
April 1, 2017
Interest expenses dr
Interest payable
750
750
April 1, 2017
54. Notes Payable dr
Interest payable dr
Cash
150,000
750
150,750
Q.4. Journal Entries in the books of
Hindalco Company
Date
Name of Accounts
L.F.
Amounts-dr.
Amounts-cr.
January1,2017
Cash dr
Discount on Notes payable
Notes Payable
100,000
2,000
55. 102,000
May 1,2017
Interest expenses dr
Discount on Notes payable
2,000
2,000
May1,2017
Notes Payable dr
Cash
102,000
102,000
Q.5. Journal Entries in the books of
a Company
Date