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Business Administration / What is 'Backflush Costing'
« on: April 30, 2018, 02:17:47 PM »
What is 'Backflush Costing'

Backflush costing is a product costing system generally used in a just-in-time inventory environment. Backflush costing delays the costing process until the production of goods is completed. Costs are then "flushed" back at the end of the production run and assigned to the goods. This eliminates the detailed tracking of costs throughout the production process, which is a feature of traditional costing systems.

Shahana kabir
Assistant Professor

Business Administration / amortization schedule definition
« on: April 30, 2018, 02:11:18 PM »
amortization schedule definition

A multi-column listing of the amounts needed to eliminate a balance in a systematic manner over the life of the item. For example, an amortization schedule for a 15-year mortgage loan would show the 180 payments. The first column might be the payment number. The second column would show the amount of the payment. Column 3 would show the amount of interest being paid. Column 4 would show the principal amount being paid (total payment minus the interest payment). Column 5 would show the principal balance remaining after the payment (previous principal balance minus the current principal payment).

An amortization schedule for bond discount would show the amounts needed to be journalized over the life of the bonds in order to systematically move the amount from the balance sheet to interest expense on the income statement.

Shahana Kabir
Assistant professor

Business Administration / activity-based costing (ABC) definition
« on: April 30, 2018, 02:04:40 PM »
activity-based costing (ABC) definition

A technique for allocating costs to a product, service, customer, etc. The premise is that activities cause an organization to incur costs. Once the costs of the activities have been identified and each activity's cost has been determined, the cost of the activities is then allocated to the product, service, customer, etc. that required the activity. This technique is more logical for allocating overhead than simply allocating costs based on machine hours or direct labor hours.

Business Administration / Benapole land port needs more warehouses
« on: April 30, 2018, 02:01:10 PM »
Benapole land port needs more warehouses
Businesses tell seminar on Indo-Bangla trade
Star Business Report

Businesses that trade with India yesterday demanded more warehouses at the Benapole land port by private sector players like in the Chittagong port for proper storage of imported and export consignments.

“It's absolutely a necessity,” said Motiar Rahman, a clearing and forwarding agent, adding that 19 private warehouses were built around the Chittagong port in the last ten years for safer storage of imported and export goods.

The existing 60,000 square feet government-owned warehouse is simply not adequate for the expanded trading relationship between the two neighbouring countries, businesses said at a seminar styled “addressing land port issues for better Indo-Bangla trade”.

The seminar was organised by the India-Bangladesh Chamber of Commerce and Industry (IBCCI) and the High Commission of India in Bangladesh at the capital's Pan Pacific Sonargaon hotel.

Due to congestion on either side of the border, importers and exporters have to wait for as many as 25 days and in that time goods deteriorate in quality or go missing in the absence of adequate storage facilities.

For instance, in the past 15 days, more than 4,000 trucks have been unable to enter Bangladesh from Indian Bangaon-Chakdaha side due to lack of space in Benapole, said Rahman, who is also the chairman of the import-export sub-committee of the IBCCI.

Abdul Matlub Ahmad, the IBCCI president, echoed the same. “It is very difficult for businessmen to wait for up to 25 days for unloading goods.”

“Unless we have enough warehouses, we cannot do business. The private sector is ready to help to build the warehouses at the port and we are ready to help the government.”

Ahmad, who is also the immediate past president of the Federation of Bangladesh Chambers of Commerce and Industry, recommended making all 22 land ports along the India-Bangladesh bordering areas fully operational to further bilateral trade.

Currently, Bangladesh has 23 land ports, 22 of which are located along the Indian border. Only the Teknaf land port is with Myanmar.

Last fiscal year, Bangladesh imported goods worth $6.5 billion from India -- 90 percent of which were brought in through the land ports.

Goods worth $650 million were shipped to India in 2016-17, according to data from the Export Promotion Bureau.

If better land port facilities can be created, Bangladesh can easily grab a good portion of the $30 billion Indian apparel market, Ahmad said.

He also called for an office of the Bangladesh Standards and Testing Institution at the Benapole land port for quick release of certification.

In 2016-17, the Petrapole-Benapole land port alone accounted for 37 percent of the total trade between the two countries, said Adarsh Swaika, deputy high commissioner of India in Bangladesh.

Recognising the importance of the land port, the Indian government will convert Petrapole and Agartala into integrated check posts to facilitate the movement of cargo.

The idea behind the construction of integrated check posts is to bring different agencies and services such as customs, immigration and border security under one integrated complex and facilitate seamless movement of goods and people.

Swaika, currently the acting Indian High Commissioner, said seven more land customs stations on the India-Bangladesh border will be upgraded to integrated check posts.

For instance, work on upgrading the Dawki land customs station on the Meghalaya-Bangladesh border is already underway, he added.

In 2016-17, a total of 155.19 lakh tonnes of goods were imported and exported through the land ports, according to Shipping Minister Shajahan Khan. In 2008-09, it was 34.26 lakh tonnes.

Bangladesh earned Tk 111.47 crore from the land port last fiscal year in contrast to Tk 26.74 crore in 2008-09, he added.

“Twelve more land ports are on way now,” said Tapan Kumar Chakravorty, chairman of the Bangladesh Land Port Authority, which manages six of the land ports.

The trade imbalance with India is a reality for Bangladesh as the country imports a lot of basic goods from its largest neighbouring country, said Tariq Karim, a former Bangladesh ambassador to India.

He suggested speeding up the e-commerce facility at the land port to boost bilateral trade.

Non-tariff, procedural and regulatory barriers are standing in the way of higher bilateral trade between the two countries, said Bipul Chatterjee, executive director of CUTS International, an Indian research body.

Shahana Kabir
Assistant professor

What are the Difference Between Amortization ,Depreciation and depletion?

The cost of business assets can be expensed each year over the life of the asset. The expense amounts are subsequently used as a tax deduction reducing the tax liability for the business.

Because very few assets last forever, a finite number of years is calculated which is called the asset's useful life. In this discussion, we'll review three common methods used by business to spread out the cost of an asset. The key difference between all three methods involves the type of asset being expensed.

Depreciation is the expensing of fixed assets over its useful life. Fixed assets are tangible assets meaning they are physical assets and can be touched. Some examples of fixed or tangible assets that are commonly depreciated include:

Office furniture,
Since tangible assets might have some value at the end of their life, depreciation is calculated by subtracting the asset's salvage value or resale value from its original cost. The difference is depreciated evenly over the years of the expected life of the asset. In other words, the depreciated amount expensed in each year is a tax deduction for the company until the useful life of the asset has expired.

For example, an office building can be used for many years before it becomes run down and is sold. The cost of the building is spread out over the predicted life of the building, with a portion of the cost being expensed in each accounting year.

Depreciation of some fixed assets can be done on an accelerated basis, meaning that a larger portion of the asset's value is expensed in the early years of the assets' life. For example, vehicles are typically depreciated on an accelerated basis.

Amortization is the practice of spreading an intangible asset's cost over that asset's useful life. Intangible assets are not physical assets per se. Examples of intangible assets that are expensed through amortization might include:

Patents and trademarks
Franchise agreements
Proprietary processes like copyrights
Cost of issuing bonds to raise capital
Organizational costs
Unlike depreciation, amortization is typically expensed on a straight-line basis, meaning the same amount is expensed in each period over the asset's useful life. Also, assets that are expensed using the amortization method typically don't have any resale or salvage value, unlike with depreciation.

It's important to note the context when using the term amortization since it carries another meaning. An amortization schedule is often used to calculate a series of loan payments consisting of both principal and interest in each payment as in the case of a mortgage. The term amortization is used in both accounting and in lending with completely different definitions and uses.

Depletion refers to the allocation of the cost of natural resources over time. For example, an oil well has a finite life before all of the oil is pumped out. Therefore, the oil well's setup costs are spread out over the predicted life of the well.

With depreciation, amortization, and depletion all three methods are noncash expenses with no cash spent in the years they are expensed. Also, it's important to note that in some countries, such as Canada, the terms amortization and depreciation are often used interchangeably to refer to both tangible and intangible assets.

Shahana Kabir
Assistant Professor

Business Administration / Accelerated Depreciation
« on: April 30, 2018, 01:49:54 PM »
What is 'Accelerated Depreciation'

Accelerated depreciation is any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. While the straight-line depreciation method spreads the cost evenly over the life of an asset, an accelerated depreciation method allows the deduction of higher expenses in the first years after purchase and lower expenses as the depreciated item ages.

Shahana Kabir
Assistant Professor

BBA Discussion Forum / Accelerated depreciation
« on: April 30, 2018, 01:47:56 PM »
What is 'Accelerated Depreciation'

Accelerated depreciation is any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. While the straight-line depreciation method spreads the cost evenly over the life of an asset, an accelerated depreciation method allows the deduction of higher expenses in the first years after purchase and lower expenses as the depreciated item ages.

BBA Discussion Forum / Seafood: Benefits and cooking essentials
« on: January 08, 2015, 04:31:48 PM »
Seafood: Benefits and cooking essentials

With the rise in the consumption of seafood, it is good to know some basics of cooking fish to ensure the best taste. Not only is seafood a tasty treat but due to high levels of Omega-3 and low levels of saturated fat, it also protects the heart from disease. It also lowers the amount of cholesterol in the blood.
Renowned Sydney chef Giovanni Pilu advises to wait for the fish to come to room temperature before cooking. In this way the fish is cooked evenly. For those who love clams, removing the sand from the shells can be easy. Just add some flour to the water and the clams will spit sand out more quickly.
Seafood contains many essential nutrients including iodine, selenium, zinc and potassium. Iodine is important for the thyroid gland, and selenium makes enzymes, which can help to protect us from cancer. Fish is also an excellent source of many vitamins, including vitamins A and D.

We all know seasoning can make or break a dish, so to ensure the proper flavour is achieved continually taste the dish while cooking it. Overcooking or undercooking can ruin an otherwise perfect dish. Pierce the fish in the middle with a small metal skewer. Take the skewer out and check the temperature by gently tapping it against the lower lip. The dish is done if the metal is hot.
Eating oil-rich fish regularly can help to keep the eyes bright and healthy and can help to protect the eyesight of those suffering from age-related macular degeneration. The retinol in fish and shellfish, a form of vitamin A boosts night vision.
Eating fish should be a regular part of a balanced diet. The symptoms of rheumatoid arthritis, a condition, which causes the joins to swell up, are eased due to this.
Recent research has also found a link between Omega-3 fats and osteoarthritis, suggesting that eating more seafood could help to prevent the disease.

BBA Discussion Forum / Forex reserves hit new high
« on: January 08, 2015, 03:16:23 PM »

Forex reserves hit new high

Foreign currency reserves reached a new high yesterday, hitting $22.46 billion on the back of resurgence in exports in the past couple of months.

Last month, exports raked in $2.84 billion, up 4.41 percent year-on-year, according to an official from the commerce ministry, whose sub-division Export Promotion Bureau logs in export data. Exports raked in $2.42 billion in November last year.

December's figure takes the total export earnings in the first half of fiscal 2014-15 to $14.91 billion, a slight improvement of 1.56 percent over the previous year, the official added.

Meanwhile, the surging reserves will take a hit today: some $900 million will be paid to Asian Clearing Union as import liabilities, as per a Bangladesh Bank official.

There was a rush of imports last month, particularly for Padma bridge construction, he said.

“Even then, the reserves were at satisfactory level. The forex market is very liquid now. There is no supply side problem,” the official said, quashing fears of a greenback shortage. On December 30, reserves hit $22.30 billion, a record until now.

If the trend continues, seeing the steady inflow of remittance, BB might soon have to resume its purchase of greenbacks in the interbank market, he added.

Inward remittance grew at double-digit rates in the first half of fiscal year to $7.47 billion. Some $1.26 billion was sent in last month by migrant workers, according to BB's latest data.

Source:Daily Star

BBA Discussion Forum / Robi postpones IPO plan
« on: January 08, 2015, 03:11:34 PM »

Robi postpones IPO plan
Sarwar A Chowdhury

Mobile operator Robi Axiata said it might not go for an initial public offering before July next year, as business circumstances are not favourable.

Robi has backtracked on the IPO for uncertainty over acquiring spectrum this year, an unsettled issue of SIM replacement tax and insufficient incentive for listing, according to a recent letter sent to Bangladesh Securities and Exchange Commission. “It appears that the conditions are not conducive to public offering at this point in time,” Robi said in the letter, signed by its Chief Financial Officer Yap Wai Yip.

Of the six mobile phone operators in Bangladesh, only Grameenphone is listed on the stockmarket.

Robi said it is doubtful that the factors and fundamental parameters will remain favourable for it to acquire further spectrum in 2015, as Bangladesh Telecommunication Regulatory Commission is in the process to call an auction for selling spectrum this year.

Robi, majority owned by Malaysia-based Axiata Group, rolled out its 3G services last year.

“Further uncertainties are intertwined due to the fact that SIM replacement claim by the National Board of Revenue is yet to be settled, which may affect the business as a whole and consequently our own business plans,” it said.

“Even if business circumstances become favourable, our shareholders are of the view that there is insufficient incentive to proceed for IPO, in light of the existing corporate income tax regime,” it said, in response to a regulatory letter that was sent to the operator in August last year.


Referring to the 45 percent corporate tax, Robi said the mobile phone operators are currently facing the highest rate of corporate tax in Bangladesh, which is a deterrent to business.

The same tax rate is also applicable to the tobacco industry, which produces cigarettes and other tobacco products detrimental to public health and general wellbeing. But the mobile telecom industry is continuously contributing to the development of the nation, the letter added.

“In this respect, we have written to the finance ministry, decision of which would be paramount to our shareholder's decision to offer shares to public,” Robi said in the letter.

Arif Khan, a commissioner of the stockmarket regulator, said listing is mandatory for a company that has a paid-up capital of more than Tk 50 crore. “And listing of such companies always brings good results for both the market and investors.”

Robi has a subscriber base of 2.5 crore as of September last year, with a 21 percent market share. Revenue in the January-September period of 2014 was Tk 3,601 crore, 5.8 percent lower than that in the same period of the previous year.

Source: Daily Star

Star Business Report

New entrepreneurs can take up to Tk 10 lakh as collateral-free loans at maximum 10 percent interest rate under a new initiative by the central bank.

The opportunity for young entrepreneurs came yesterday after Bangladesh Bank signed a deal at its office in the city with 32 banks and financial institutions to disburse money from its Tk 100 crore refinancing fund.

The fund will be used to lend up to Tk 10 lakh against only personal guarantee and on easy terms to entrepreneurs trained and selected through programmes launched by public or private organisations like Dhaka Chamber of Commerce and Industry (DCCI).

However, with collateral an entrepreneur can avail up to Tk 25 lakh as loan from banks under the fund.

The fund will extend loans to entrepreneurs who have not taken any loan from a financial institution in the past.

Under the deal, banks and other financial institutions will get refinancing loans from the central bank at an interest rate of 5 percent.

However, the banks and financial institutions must have their default loans below 10 percent to be eligible for the refinancing facility.

“Under the current banking system, adequate collateral is an important part of availing financing. But the lack of adequate collateral poses challenges to the entrepreneurs at the beginning of business," Bangladesh Bank Governor Atiur Rahman said at the event.

Rahman said every year about 20 lakh new faces enter the workforce, with only half of them finding jobs at home and abroad.


“The initiative from the central bank has been taken as part of the policy efforts to create additional employment opportunities."

Rahman said banks cannot limit themselves to signing the participatory agreement only; they will have to be active in finding out new entrepreneurs.

"Bankers have to lose sleep over realising money from large borrowers. But that is not normally seen in case of small entrepreneurs. So, I hope banks will be interested to invest in this segment of clientele even if the profit margin is a bit low."

The governor also praised DCCI whose initiative to create 2,000 new entrepreneurs has acted as a catalyst behind the central bank initiative.

He said more initiatives would be taken if this one succeeds.

Abul Kashem, a deputy governor of Bangladesh Bank, said DCCI would make a list of small entrepreneurs after providing them training.

"Banks and other financial institutions will lend as per the list. However, the lenders will still follow their due diligence in lending money to the entrepreneurs."

Ali Reza Iftekhar, chairman of the Association of Bankers, Bangladesh; Helal Ahmed Chowdhury, vice chairman of ABBD; Selim RF Hussain, vice chairman of Bangladesh Leasing and Finance Companies Association; and Shahjahan Khan, president of DCCI, were also present.

BBA Discussion Forum / 2,500 industrial polluters to face green tax
« on: August 16, 2014, 04:19:54 PM »
By Sohel Parvez

The National Board of Revenue is set to impose green tax on about 2,500 polluting industrial units in a bid to compel them to cut back on their pollution.

The industrial units will have to deposit 1.0 percent of the receipts from their products to the state exchequer, a senior NBR official said yesterday.

“We will soon issue a notice with the names of these polluting units to collect the surcharge,” he said, adding that the revenue authority has already gathered the list of polluting industrial units from the Department of Environment.

The surcharge, introduced this fiscal year, comes as part of the government's move to encourage industries to set up effluent treatment plants and make them aware of the harmful effects of their activities on the environment.

The Buriganga and other rivers around Dhaka, including the Turag, the Bangshi, Tongi Khal, the Balu and the Shitalakkhya, have become highly polluted due to dumping of wastes from tanneries, dyeing factories and other industries as well as households.

Among them, the Buriganga, the lifeline of Dhaka, is the most polluted, having zero oxygen level in its waters for nine months in a year, thanks to the tipping of toxic tannery wastes from Hazaribagh.

Insiders said brick kilns and industries in various sectors such as leather, dyeing, battery, ceramic, steel and re-rolling, rubber, sweater, food processing, rice, sugar, pesticides, fertiliser, printing, poultry, beverage, hospital and  diagnostic centres are likely to face environment protection surcharge or green tax.

The DoE though has not given any breakdown of how many industries in a specific sector pollute the environment.

The number of polluting units is not final though, and the DoE will continue to forward names as and when reports from field inspections come. On the other hand, it will request the tax authority to exclude names if the industries stop pollution and comply with the environmental law.

So far, the DoE has found more than 1,200 polluting units in the Dhaka region including the capital city. Khulna and Chittagong have the second and the third highest numbers of polluting units, followed by Barisal, Rajshahi and Sylhet.

Non-payment of green tax will be treated as an offence and punitive measures will be taken, according to the rules on environment protection surcharge issued on June 30.

BBA Discussion Forum / NBR misses collection target by 3.6pc
« on: August 16, 2014, 04:18:57 PM »
Star Business Report

The National Board of Revenue fell short of its tax collection target for fiscal 2013-14 by 3.59 percent, or Tk 4,488 crore, due to lower receipts from income tax and VAT from domestic sources.

Overall collections though rose 10.41 percent year-on-year to Tk 120,512 crore, according to data from the revenue authority which released its annual collection figures yesterday.

With the receipts falling below last year's target of Tk 125,000 crore, taxmen will now have to log in a 24 percent growth in its collections to attain the target of Tk 149,720 crore for the current fiscal year.

Taxmen blamed the slowdown in investment and the sluggish domestic demand for the less-than-target collection figure for fiscal 2013-14.

While economic activities picked up in recent months, the recovery was not enough to help the NBR hit the target despite increased monitoring and efforts to collect VAT at source and realise dues, and initiative to expedite settlement of court cases. Only collection of tax from import stage, mainly customs and VAT, exceeded the target last fiscal year: the NBR logged in Tk 33,230 crore, up 3.18 percent year-on-year.

Collections from VAT and supplementary duty from domestic sources grew 11.75 percent to Tk 43,726 crore. Despite the growth, the receipts fell short of target by Tk 3,124 crore. Income tax collection, which increased 15.51 percent year-on-year to Tk 42,915 crore, was short by Tk 445 crore from the target of Tk 43,360 crore.

BBA Discussion Forum / Stocks continue to gain on growing confidence
« on: August 16, 2014, 04:17:54 PM »
Star Business Report

Stocks gained for the sixth day yesterday, as investors went on a buying spree amid growing confidence.

DSEX, the key market gauge of the Dhaka bourse, gained 34.29 points or 0.77 percent to close at 4,565.

DSES, the shariah index of the DSE, gained 13.45 points or 1.28 percent to close at 1,060.

Spikes in large-cap stocks created optimism among investors, said IDLC Investments, an investment banker.

Among them, Lafarge Surma gained 3.67 percent, Square Pharma 1.93 percent and Grameenphone 1.83 percent.

Stocks gained as large-cap manufacturing stocks have continued to lead the market riding on investors buying interest, stated LankaBangla Securities.

Turnover advanced 3.44 percent to Tk 790 crore from the previous day—the highest in the last six months—indicating that the market is showing sign of life, the stockbroker said.

In response to growing market share of large steel manufacturers, engineering gained 3.66 percent, cement 2.63 percent while non-life insurance fell 0.62 percent.

A total of 1.53 lakh trades were executed with 16.48 crore shares and mutual fund units changing hands on the Dhaka bourse.

Losers took a modest lead over the gainers by 141 to 135, while 25 issues remaining unchanged on the DSE floor.

Square Pharma featured in the most traded stocks chart with 18.44 lakh shares worth Tk 52 crore changing hands followed by MJL Bangladesh and Grameenphone.

Apex Tannery was the highest gainer of the day, as it posted a 12.19 percent gain, while Exim Bank First Mutual Fund was the worst loser, plunging by 10 percent.

Chittagong Stock Exchange also gained with its selective categories index, CSCX, gaining 54 points to close at 8,629.

Losers beat the gainers with 115 to 94 with 23 issues remaining unchanged at the port city bourse that traded 1.29 crore shares and mutual fund units with Tk 54 crore in turnover.

Star Business Desk

Euromoney, a leading magazine on global financial markets, has awarded Citi Bangladesh as the Best Trade Bank in the country at its annual Trade Finance Awards for Excellence 2014, the bank said in a statement yesterday.
“This award is excellent recognition for our team in Asia and I would like to thank our clients who place their trust in Citi,” said Sanjay Tandon, managing director and head of trade for Asia, treasury and trade solutions.
“In a highly competitive market, this recognition is greatly appreciated by all of us at Citi. This win demonstrates Citi's commitment to providing the best solutions to its' clients in this region,” said Rashed Maqsood, Citi country officer for Bangladesh.
In the global category, the bank also won the Best Overall Global Trade Finance Bank award, the Best Short-Term Trade Finance Bank award, and the Best Energy Finance Bank award at the ceremony, according to the statement.
Citi also picked up Best Bank and Best Investment Bank in India and Best Bank in Taiwan.
Euromoney Awards for Excellence have been recognised as among the most prestigious in the financial services industry for two decades.

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