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Topics - Shekh Moniruzzaman

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BBA Discussion Forum / Basic “Elements of Financial Statements”
« on: April 09, 2018, 11:26:06 AM »

Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
   Future economic benefits
   Controlled by a particular entity
   Past transactions or events


Probable future sacrifices of economic benefits that arise from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
   Sacrifices or outflow of economic benefits
   Obligations
   Past transactions or events

Equity is the residual interest in the assets of an entity that remains after deducting its all liabilities. In a business enterprise, the equity is the ownership interest.

Investment by Owners

Increase in net assets of a particular enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interest (or equity) in it. Assets are most commonly received as investments by owners, but that which is received may include services or satisfaction or conversion of liabilities of the enterprise.

Distribution to Owners

Decrease in net assets of a particular enterprise that result from transferring assets, rendering services, or incurring liabilities by the enterprise to the owners. Distributions to owners decrease ownership interest (or equity) in an enterprise.

Comprehensive Income

Change in equity (net assets) of an entity during a period from transactions and other events and circumstances from non owner sources. It includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners.


Inflows or others enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations.


Expenses are decreases in economic benefits during an accounting period, other than distribution to shareholders. It can arises from outflows or other using up of assets or incurrence of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.


Increase in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from revenues or investments by owners.


Decrease in equity (net assets) from peripheral or incidental transactions of an entity from all other transactions and other events and circumstances affecting the entity during a period except those that result from expenses or distributions to owners.

BBA Discussion Forum / Understanding Annual report
« on: April 09, 2018, 11:17:34 AM »
An annual report is a comprehensive annual publication that a public limited company must provide to shareholders to describe their operations and financial conditions throughout the preceding year. Annual reports are intended to give shareholders and other interested people, information about the company’s activities and financial performance. The front part of the report often contains an impressive combination of graphics, photos and an accompanying narrative, all of which chronicle the company’s activities over the past years. The back part of the report contains detailed financial and operational information.

In the case of mutual funds, an annual report is a required document that is made available to fund shareholders on a fiscal year basis. It discloses certain aspects of a fund’s operations and financial condition. In contrast to corporate annual reports, mutual fund annual reports are best described as “plain vanilla” in terms of their presentation.

Typically annual reports will include:

•   Chairman’s Report
•   CEO’S Report
•   Letter to the Shareholders
•   Narrative Text, Graphics and Photos, Listing of the company’s directors and executive officers
•   Summary of Financial Data
•   Corporate Information
•   Auditors report on corporate governance
•   Mission statement
•   Corporate governance statement of compliance
•   Statement of directors’ responsibilities
•   Invitation to the company’s AGM

As well as financial statements including:

•   Auditors report on the financial statements
•   Statement of Financial Position or Balance Sheet
•   Statement of Retained earnings
•   Comprehensive Income Statement or Income Statement
•   Cash Flow Statement
•   Notes to the Financial Statements
•   Accounting Policies

Other information deemed relevant to stakeholders may be included such as a report on operations for manufacturing firms or corporate social responsibility for companies with environmentally- or socially-sensitive operations. In the case of larger companies, it is usually a sleek, colorful, high gloss publication.

The details provided in the report are of use to investors to understand the company’s financial position and future direction. The financial statements are usually compiled in compliance with IFRS and/or the domestic GAAP, as well as domestic legislation (e.g the Company Act-1994 in the Bangladesh).

BBA Discussion Forum / Meaning of Ratio & its objectives
« on: July 15, 2017, 02:23:13 PM »
Ratio: A ratio is one figure expressed in terms of another figure.  It is mathematical yardstick of measuring relationship of two figures or items or group of items, which are related, is each other and mutually inter-dependent.  It is simply the quotient of two numbers.  It can be expressed in fraction or in decimal point or in pure number.
Accounting ratio is an expression relating to two figures or two accounts or two set accounting heads or group of items stated in financial statement.

2. Objectives of Ratios

The accounting ratios are very useful in assessing the performance of business enterprise i.e. financial position and profitability. This  is possible to achiever by comparison of ratios of the year or with the previous year.
The ratios are worked out to analyse the following aspect or areas of business organization.
1.   Solvency: -

a.   Long-term solvency
b.   Short-term solvency
c.   Immediate solvency

2.   Stability
3.   Profitability
4.   Operational efficiency
5.   Credit standing 
6.   Structural analysis.
7.   Utilization of resources and 
8.   Leverage or external financing.

3. Classification of Ratios

The ratios are used for different purposes, for different users and for different analysis.
The ratios can be classified as under:
a.   Traditional classification
b.   Functional classification
c.   Classification from user‘s point of view

BBA Discussion Forum / Financial Statement and its sources
« on: June 06, 2017, 12:31:03 PM »
1. Meaning of Financial Statements

Every business concern wants to know the various financial aspects for effective decision making. The preparation of financial statement is required in order to achieve the objectives of the firm as a whole. The term financial statement refers to an organized collection of data on the basis of accounting principles and conventions to disclose its financial information.
A complete set of financial statements includes: [IAS 1.10]
•   a statement of financial position (balance sheet) at the end of the period
•   a statement of profit or loss and other comprehensive income for the period (presented as a single statement, or by presenting the profit or loss section in a separate statement of profit or loss, immediately followed by a statement presenting comprehensive income beginning with profit or loss)
•   a statement of changes in equity for the period
•   a statement of cash flows for the period
•   notes, comprising a summary of significant accounting policies and other explanatory notes
•   comparative information prescribed by the standard.

2. Sources of Financial Information

i.   Income Statement: The term 'Income Statements' is also known as Trading, Profit and Loss Account. This is the first stage of preparation of final accounts in accounting cycle. The purpose of preparing Trading, Profit and Loss Accounts to ascertain the Net Profit or Net Loss of a business concern during the accounting period.

ii.   Balance Sheet: Balance Sheet may be defined as "a statement of financial position of any economic unit disclosing as at a given moment of time its assets, at cost, depreciated cost, or other indicated value, its liabilities and its ownership equities." In other words, it is a statement which indicates the financial position or soundness of a business concern at a specific period of time. Balance Sheet may also be described as a statement of source and application of funds because it represents the source where the funds for the business were obtained and how the funds were utilized in the business.

iii.   Statement of Retained Earnings: This statement is considered to be as the connecting link between the Profit and Loss Account and Balance Sheet. The accumulated excess of earning over losses and dividend is treated as Retained Earnings. The balance of retained earnings shown on the Profit and Loss Accounts and it is transferred to liability side of the balance sheet.

iv.   Statement of Changes in Financial Position: Income Statements and Balance sheet do not disclose the operational efficiency of the concern. In order to measure the operational efficiency of the concern it is essential to identify the movement of working capital or cash inflow or cash outflow of the business concern during the particular period. To highlight the changes of financial position of a particular firm, the statement is prepared may emphasize of the following aspects:

o   Fund Flow Statement is prepared to know the changes in the firm's working capital.
o   Cash Flow Statement is prepared to understand the changes in the firm's cash position.
o   Statement of Changes in Financial Position is used for the changes in the firm's total financial position.

MBA Discussion Forum / List of IFRS
« on: April 29, 2017, 01:24:21 PM »
The following IFRS statements are currently issued:

N                                      Title                                                                         Originally issued                 Effective

IFRS 1       First-time Adoption of International Financial Reporting Standards     2003                         January 1, 2004
IFRS 2       Share-based Payment                                                                            2004                         January 1, 2005
IFRS 3       Business Combinations                                                                          2004                         April 1, 2004
IFRS 4       Insurance Contracts                                                                               2004                         January 1, 2005
IFRS 5       Non-current Assets Held for Sale and Discontinued Operations           2004                         January 1, 2005
IFRS 6       Exploration for and Evaluation of Mineral Resources                           2004                         January 1, 2006
IFRS 7       Financial Instruments: Disclosures                                                           2005                         January 1, 2007
IFRS 8       Operating Segments                                                                           2006                         January 1, 2009
IFRS 9       Financial Instruments                                                                             2009(updated 2014)     January 1, 2018
IFRS 10     Consolidated Financial Statements                                                         2011                         January 1, 2013
IFRS 11     Joint Arrangements                                                                                2011                         January 1, 2013
IFRS 12     Disclosure of Interests in Other Entities                                                   2011                         January 1, 2013
IFRS 13     Fair Value Measurement                                                                          2011                         January 1, 2013
IFRS 14     Regulatory Deferral Accounts                                                                   2014                         January 1, 2016
IFRS 15     Revenue from Contracts with Customers                                               2014                         January 1, 2018
IFRS 16     Leases                                                                                                    2016                         January 1, 2019

MBA Discussion Forum / Financial Reporting vs Corporate Reporting
« on: April 26, 2017, 12:09:54 PM »
Meaning of Financial Reporting:
Financial reporting includes not only financial statements but also other means of communicating information that relates, directly or indirectly, to the information provided by the accounting system-that is, information about the enterprises, obligations, earnings etc.

Meaning of Corporate Reporting:
Corporate reports aim to provide information about the resources and performance of the reporting entity to users of such reports.

It includes-
•   Historical financial information regarding their performance
•   Chairman’s reports on the performance and strategy of the company
•   Non-financial information (not mandatory in IFRS) such as environment, employees and society

Usefulness of Corporate Reporting:
•   To satisfy statutory requirements-taxing authority
•   To compare financial information from different entities
•   To be more transparent in their reporting-by providing disclosures in financial statements
•   To make commentary on the performance of the business-disclose the nature of the business as well as the objectives, strategies,
         results, prospects etc.
•   To give the accessibility of the company information to the users
•   To increased disclosure of non-financial information

MBA Discussion Forum / Basic Questions in Disclosure
« on: April 26, 2017, 10:51:52 AM »
1. Who are the users of information, i.e., for whom is the information to be disclosed?
Investors and creditors are the common users of accounting information in all the countries, but other users are employees, customers, society, government etc.

2. How much information should be disclosed?
All possible information relating to an entity cannot be disclosed in financial statements. That would make financial statements unwieldy, large, costly and perhaps more confusing. The information which is material (i.e., which is capable of affecting judgment) to external decision makers, must be disclosed. Hendrickson says that, the “Three concepts of disclosure generally proposed are”:

Adequate: Adequate disclosure means a minimum amount of disclosure so that the financial statements are not misleading.
Fair: Fair disclosure would imply that the accounting and other information is unbiased and impartial. The ethical objective requires that there is equal treatment for all potential readers.
Full disclosure: The presentation of all relevant information.

3. What should be disclosed?

What should be disclosed depends again, upon the basic objectives of financial accounting and reporting. This is also related to the class of users. The following information will be useful to all categories of users in all countries:
•   Chairman's report
•   CEO's/ Managing Directors report
•   Letter to the Shareholders
•   Narrative Text, Graphics and Photos, Listing of the company's directors and executive officers
•   Summary Financial Data
•   Corporate Information
•   Auditor's report on corporate governance
•   Mission statement
•   Corporate governance statement of compliance
•   Statement of directors' responsibilities
•   Invitation to the company's AGM

As well as financial statements including:
•   Auditor's report on the financial statements
•   Balance sheet
•   Statement of retained earnings
•   Income statement
•   Cash flow statement
•   Notes to the financial statements

Innovative Teaching Learning Cell (ITLC) / Research
« on: March 19, 2016, 12:36:55 PM »

Innovative Teaching Learning Cell (ITLC) / Development
« on: March 19, 2016, 12:33:28 PM »

As each course/subject has its own unique methods of teaching and learning, we would need to look at how individually innovative methods can be developed for each subject.

Innovative Teaching Learning Cell (ITLC) / Workshops
« on: March 19, 2016, 12:29:58 PM »

We can hold workshops internally and for other institutions outside DIU. Ideas?

Innovative Teaching Learning Cell (ITLC) / Invite others
« on: March 19, 2016, 12:28:35 PM »

"Invite Others" can potentially cover three areas. 1.Invite other teachers to your class to allow them observe and give you feedback. 2. Invite others to try out innovative techniques in their class, with your support, 3. Invite friends/colleagues outside DIU.

Innovative Teaching Learning Cell (ITLC) / Fine Tune
« on: March 19, 2016, 12:27:03 PM »

As new techniques are practiced, we need to get feedback from the students on their learning and confidence building. This would allow find tuning of the material developed for each course.

Innovative Teaching Learning Cell (ITLC) / Sharing
« on: March 19, 2016, 12:25:55 PM »

This is why we have come together - to share experiences and support development effort!

BRMC / Self Discipline
« on: March 09, 2016, 12:15:14 PM »

BRMC / Learning Process
« on: March 09, 2016, 12:14:05 PM »

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