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BBA Discussion Forum / Re: DIU Students' Accounting Association
« on: December 20, 2012, 02:47:10 PM »

Current Status of Bangladesh Accounting Standards( BASs ) vis-à-vis IASs/IFRSs
BAS Title

BAS Effective Date
1    Presentation of Financial Statements    Adopted, on or after 1st January 2007    
2    Inventories    Adopted, on or after 1st January 2007    
7    Statement of Cash Flows    Adopted, on or after 1st January 1999    
8    Accounting Policies, Changes in Accounting Estimates and Errors    Adopted, on or after 1st January 2007    
10    Events after the Balance Sheet Date    Adopted, on or after 1st January 2007    
11    Construction Contracts    Adopted, on or after 1st January 1999    
12    Income Taxes    Adopted, on or after 1st January 1999    
16    Property, Plant & Equipment    Adopted, on or after 1st January 2007    
17    Leases    Adopted, on or after 1st January 2007    
18    Revenue    Adopted, on or after 1st January 2007    
19    Employee Benefits    Adopted, on or after 1st January 2004    
20    Accounting of Government Grants and Disclosure of Government Assistance    Adopted, on or after 1st January 1999    
21    The Effects of Changes in Foreign Exchange Rates    Adopted, on or after 1st January 2007    
23    Borrowing Costs    Adopted, on or after 1st January 2010    
24    Related Party Disclosures    Adopted, on or after 1st January 2007    
26    Accounting and Reporting by Retirement Benefit Plans    Adopted, on or after 1st January 2007    
27    Consolidated and Separate Financial Statements    Adopted, on or after 1st January 2010    
28    Investments in Associates    Adopted, on or after 1st January 2007    
29    Financial Reporting in Hyperinflationary Economics       Not yet adopted by ICAB as Impracticable for Bangladeshi context
31    Interest in Joint Ventures    Adopted, on or after 1st January 2007    
32    Financial Instruments: Presentation    Adopted, on or after 1st January 2010    
33    Earnings per Share    Adopted, on or after 1st January 2007    
34    Interim Financial Reporting    Adopted, on or after 1st January 1999    
36    Impairment of Assets    Adopted, on or after 1st January 2005    
37    Provisions, Contingent Liabilities and Contingent Assets    Adopted, on or after 1st January 2007    
38    Intangible Assets    Adopted, on or after 1st January 2005    
39    Financial Instruments: Recognition and Measurement    Adopted, on or after 1st January 2010    
40    Investment Property    Adopted, on or after 1st January 2007    
41    Agriculture    Adopted, on or after 1st January 2007    



Adoption Status of ICAB
IFRS 1    First-time adoption of International financial Reporting Standards    Adopted as BFRS 1, effective on or after 1 January 2009
IFRS 2    Share-based Payment    Adopted as BFRS 2, effective on or after 1 January 2007
IFRS 3    Business Combinations    Adopted as BFRS 3, effective on or after 1 January 2010
IFRS 4    Insurance Contracts    Adopted as BFRS 4, effective on or after 1 January 2010
IFRS 5    Non-current Assets Held for Sale and Discontinued Operations    Adopted as BFRS 5, effective on or after 1 January 2007
IFRS 6    Exploration for and Evaluation of Mineral Resources    Adopted as BFRS 6, effective on or after 1 January 2007
IFRS 7    Financial Instruments: Disclosures    Adopted as BFRS 7, effective on or after 1 January 2010
IFRS 8    Operating Segments    Adopted as BFRS 8, effective on or after 1 January 2010
IFRS 9    Financial Instruments    Not yet adopted by ICAB

BBA Discussion Forum / Re: DIU Students' Accounting Association
« on: December 20, 2012, 02:46:11 PM »
1.   What is IFRS?
International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.
2.   What is the IASB?
The IASB is an independent accounting standard-setting body, based in London. It consists of 15 members, increasing from multiple countries, including the United States. The IASB began operations in 2001 when it succeeded the International Accounting Standards Committee. It is funded by contributions from major accounting firms, private financial institutions and industrial companies, central and development banks, national funding regimes, and other international and professional organizations throughout the world. While the AICPA was a founding member of the International Accounting Standards Committee, the IASB's predecessor organization, it is not affiliated with the IASB. The IASB neither sponsors nor endorses the AICPA's IFRS resources website (
3.   How widespread is the adoption of IFRS around the world?
Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports.1
4.   What is the possibility of the Securities and Exchange Commission substituting IFRS for GAAP?
For many years, the SEC has been expressing its support for a core set of accounting standards that could serve as a framework for financial reporting in cross-border offerings. On February 24, 2010, the SEC issued release Nos. 33-9109 and 34-61578, Commission Statement in Support of Convergence and Global Accounting Standards. In the release, the SEC stated its continued belief that a single set of high-quality globally accepted accounting standards would benefit U.S. investors and its continued encouragement for the convergence of U.S. GAAP and IFRS. The release also called for the development of a work plan (the "Work Plan") to enhance both the understanding of the SEC's purpose and public transparency in this area. Execution of the Work Plan, combined with the completion of previously agreed upon convergence projects between the FASB and IASB, will permit the SEC to make a determination. On July 13, 2012 the SEC staff issued the Final Staff Report on the Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers. The report did not recommend a specific course of action. The final decision regarding whether to incorporate IFRS into the financial reporting system for U.S. issuers now rests with the SEC Commissioners. There is currently no estimated date for when such a decision might be made.

5.   What are the advantages of converting to IFRS?
By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. Furthermore, companies with subsidiaries in countries that require or permit IFRS may be able to use one accounting language company-wide. Companies also may need to convert to IFRS if they are a subsidiary of a foreign company that must use IFRS, or if they have a foreign investor that must use IFRS. Companies may also benefit by using IFRS if they wish to raise capital abroad.   
6.   What could be the disadvantages of converting to IFRS?
Despite a belief by some of the inevitability of the global acceptance of IFRS, others believe that U.S. GAAP is the gold standard, and that a certain level of quality will be lost with full acceptance of IFRS. Further, certain U.S. issuers without significant customers or operations outside the United States may resist IFRS because they may not have a market incentive to prepare IFRS financial statements. They may believe that the significant costs associated with adopting IFRS outweigh the benefits. 
7.   What is the difference between convergence and adoption?
Adoption would mean that the SEC sets a specific timetable when publicly listed companies would be required to use IFRS as issued by the IASB. Convergence means that the U.S. Financial Accounting Standards Board (FASB) and the IASB would continue working together to develop high quality, compatible accounting standards over time. More convergence will make adoption easier and less costly and may even make adoption of IFRS unnecessary. Supporters of adoption, however, believe that convergence alone will never eliminate all of the differences between the two sets of standards. In 2011, SEC staff introduced a possible method of incorporating IFRS into the U.S. financial reporting system that would represent an endorsement and convergence approach for aligning U.S. GAAP with IFRS over a period of time. Ultimately, the expectation is that the SEC will make a determination on whether it will incorporate IFRS into the financial reporting system for U.S. issuers and, if it decides to incorporate IFRS, the method of incorporation.
8.   Who are the key players in the United States regarding the development and adoption of IFRS?
The key players are the Securities and Exchange Commission, which is responsible for the supervision and regulation of the securities industry and has oversight responsibility for the FASB; the Financial Accounting Standards Board, an independent body that establishes and interprets U.S. GAAP; and the IASB, which is working with the FASB on the convergence of U.S. GAAP and IFRS. The AICPA has provided thought leadership to the IASB and the FASB on financial reporting topics.
9.   Have any major U.S. companies begun transitioning to IFRS?
Until the Securities and Exchange Commission issues a rule allowing or requiring U.S. public companies to adopt IFRS, they must continue to prepare their financial statements under U.S. GAAP. Several large multinational corporations, however, have started using IFRS for their foreign subsidiaries where allowed by local law. Also, some U.S. subsidiaries of foreign-owned companies are also using IFRS.
10.   When comparing IFRS and GAAP, what are some overall key differences I should be aware of?
The biggest difference is that IFRS provides fewer detailed rules than U.S. GAAP. IFRS also contains limited industry-specific guidance.
11.   What are examples of specific differences between IFRS and U.S. GAAP?
Because of longstanding convergence projects between the IASB and the FASB, the extent of the specific differences between IFRS and GAAP has been shrinking. Yet significant differences do remain, most any one of which can result in significantly different reported results, depending on a company's industry and individual facts and circumstances. For example:
•   IFRS does not permit Last In, First Out (LIFO).
•   IFRS uses a single-step method for impairment write-downs rather than the two-step method used in U.S. GAAP, making write-downs more likely.
•   IFRS requires capitalization of development costs once certain qualifying criteria are met. U.S. GAAP generally requires development costs to be expensed as incurred, except for costs related to the development of computer software, for which capitalization is required once certain criteria are met.

12.   Is the possible conversion to IFRS from U.S. GAAP solely a financial reporting issue?

Conversion to IFRS is much more than an accounting exercise. It will affect many aspects of a U.S. company's operations, from information technology systems and tax reporting requirements, to internal reporting and key performance metrics and the tracking of stock-based compensation.
13.   What other areas of the profession will IFRS affect?
As IFRS grows in acceptance, most CPAs, financial statement preparers and auditors will have to become knowledgeable about the international standards. Others, such as actuaries and valuation experts who are engaged by management to assist in measuring certain assets and liabilities, are not currently taught IFRS and will have to undertake comprehensive training. Professional associations and industry groups have begun to integrate IFRS into their training materials, publications, testing, and certification programs, and many colleges and universities are including IFRS in their curricula. Some textbooks are already covering IFRS, primarily in a comparative presentation to their instructions on U.S. GAAP.
14.   What actions are being taken that could allow private companies to follow IFRS?
The AICPA's governing Council in May 2008 approved amending Rules 202 and 203 of the Code of Professional Conduct to recognize the IASB as an international accounting standard setter. That removed a potential barrier and gives U.S. private companies and not-for-profit organizations the choice whether to follow IFRS.
15.   What might make some private companies in the United States adopt IFRS?
The eventual adoption of IFRS by small businesses and not-for-profit organizations is likely to be market driven. The IASB has developed a version of IFRS for small and medium-size entities that would minimize complexity and reduce the cost of financial statement preparation, yet allow users of those entities' financial statements to assess financial position, cash flows, and performance. IFRS for Small and Medium-sized Entities (IFRS for SMEs) was released on July 9, 2009.
16.   Will IFRS be incorporated into the Uniform CPA Exam?
Yes. The AICPA Board of Examiners in May 2009 announced that exam content updates had been developed and IFRS became eligible for testing on the Uniform CPA Exam from 2011

BBA Discussion Forum / Re: DIU Students' Accounting Association
« on: December 17, 2012, 09:31:17 PM »
Some question you need to know while entering into a CA Firm.

Answer: Statutory audit is done by chartered Accountants, to verify the financial statement's fairness and it is done annually. It ensures that, to the best knowledge of the auditors, financial statements are free from any misrepresentations and frauds.
Answer:  An inspection and verification of the financial records of a company or firm by a member of its own staff to determine the accuracy and acceptability of its accounting practices.
Answer periodic examination of the books of account and records of an entity conducted by an independent third party (an auditor) to ensure that they have been properly maintained, are accurate and comply with established concepts, principles, and accounting standards, and give a true and fair view of the financial state of the entity.
4. Explain The Difference Between Internal Audit And External Audit?
Answer: The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.

External audit is the not the part of internal control. The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.
Q: What do you mean by vouching?
Answer: Vouching is the process of checking the authentication of the voucher maintain by the management with the respective supporting document
Q: Definition of audit?
Answer: An examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.
Q: What are Objectives of Internal Audit?
Answer: The purpose of internal audit is to keep proper control over business activities. When there is proper control there is maximum efficiency. The internal auditor determines the degrees of control over work. The purpose of internal audit is to evaluate the accounting system. It is concerned with checking proper authority for transactions like purchase, retirement and disposal of fixed assets. The vouchers can be compared with entries in order to determine that figures are facts.
The purpose of internal audit is to help the management. Internal auditor can point out the weakness. The internal audit can be used as a tool to correct the situation. The management functions can be performed properly. The purpose of internal audit is to review the working of business. The working of current tear can be reviewed in detail just to note the successful area of working. There is a need to locate the weak points. The corrective measures can be taken for proper working.
Q: Explain the difference between internal audit and statutory audit?
Answer: An internal audit is one which is conducted by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the operations of the company. On the other hand statutory audit is very important because it is by the external auditors and it is mandatory for all kinds of companies. Statutory audit is usually conducted for various purposes like tax regulatory requires it for taxation purposes.
Q: What is an audit process?
Answer: The word 'Audit' is a derivative of the word 'Audition' which means 'to hear'. In earlier times, the Kings used to hear their accountants narrate the accounts verbally. However, as the complexity of the accounting function grew, need was felt to thoroughly check the accounts for mistakes misclassification and document the findings in a written form so that it can be used by the Management, stakeholders, investors, Government and various other bodies. This process is known as Auditing or Audit.
Q: Functions of audit?
Answer: The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. The function of internal audit is examining the application of legal requirements.
The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques.
Q: What is annual general meeting (AGM)?
Answer: AGM the statutory meeting of the directors and shareholders of a company or of the members of a society, held once every financial year, at which the annual report is presented

Q: What is extraordinary general meeting (EGM)?
Answer: A meeting other than the annual general meeting between a company's shareholders, executives and any other members. An EGM is
Q: Rules surrounding the AGM
Answer: Most private companies are not required to hold an AGM. Public limited companies (plcs) must hold an AGM within six months of their financial year end.

Companies can still hold an AGM if they choose to. As with other meetings, an AGM must be arranged if any director asks for one with due notice, or if 5 per cent of the members request one. A company may also still need to hold one in certain circumstances. For example, you must hold an AGM if you want to dismiss a director or auditor before the end of their term, or if you are a public company with traded shares.
If the company does hold an AGM:
* You must send written notice to the directors and shareholders 14 days in advance (21 days in advance for public companies with traded shares), unless your company articles state otherwise. An AGM can be held at shorter notice if 90 per cent of members agree (95 per cent for plcs).
* You are no longer required to circulate copies of the company's accounts before an AGM. However, they must be sent to members before they are due to be filed with the registrar of companies.
* Directors and shareholders can vote on the appointment of directors and auditors to the company (if required).
* Ordinary resolutions can now be passed by a simple majority and special resolutions require at least 75 per cent of those eligible to vote in favor.
* You must file at Companies House any special resolutions passed at a meeting usually called on short notice and deals with an urgent matter.
Q: what is Accounting?
Answer: The information system that identifies, records, and communicates the economic events of an organization to interested users
Q: definition of cash basis accounting?
Answer: An accounting method in which income is recorded when cash is received, and expenses are recorded when cash is paid out.

Q: Definition of Accrual Basis accounting?
Answer: The most commonly used accounting method, which reports income when earned and expenses when incurred.
Q: what is capital expenditure?
Answer: Money spent to acquire or upgrade physical assets such as buildings and machinery also called capital spending or capital expense.
Q: what is revenue expenditure?
Answer: All expenses incurred in running a business such as salaries, wages, rent, lighting, stationary etc. are classed as revenue expenditure. Beside expense incurred in putting the fixed assets in proper order by repairs and renewals are also revenue expenditures.
Q: What is Asset?
Answer: Assets are a company’s resources—things the company owns. Examples of assets include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and goodwill. From the accounting equation, we see that the amount of assets must equal the combined amount of liabilities plus owner’s (or stockholders’) equity.
Q: what is Liabilities?
Answer: Liabilities are a company’s obligations—amounts the company owes. Examples of liabilities include notes or loans payable, accounts payable, salaries and wages payable, interest payable, and income taxes payable
Q: what is Owner’s or stockholders’ equity?
Answer: Owner’s or stockholders’ equity also reports the amounts invested into the company by the owners plus the cumulative net income of the company that has not been withdrawn or distributed to the owners.
Q: definition of revenue?
Answer: this is the total amount of money received by the company for goods sold or services provided during a certain time period.
Q: definition of expense?
Answer: Payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document.

Q: What is depreciation?
Answer: A non cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate),
Q: What is income statement?
Answer: A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
Q: what is balance sheet?
Answer: A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time.
Q: what is cash cow?
Answer: any business venture, operation, or product that is a dependable source of income or profit.
Q: definition of tax?
Answer: A fee charged ("levied") by a government on a product, income, or activity of an organization or person.
Q: What is direct tax?
Answer: In the general sense, a direct tax is one paid directly to the government by the persons or organization (juristic or natural) on which it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax.
Q: What is indirect tax?
Answer: A tax, such as a sales tax or value-added tax, that is levied on goods or services rather than individuals and is ultimately paid by consumers in the form of higher prices.
Q: what is Tax holiday?
Answer: A government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment.
Q: what is VAT?
Answer: Value Added Tax. A consumption tax which is levied at each stage of production based on the value added to the product at that stage.
Q: What is income tax?
Answer: a tax levied on incomes, especially an annual government tax on personal incomes.
Q: What is internal rate of return (IRR)
Answer: The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR) or simply the rate of return (ROR)
Q: what is Net present value?
Answer: Net present value is an economic standard method for evaluating competing long-term projects in capital budgeting
Q: What is fair market value?
Answer: The price that an interested but not desperate buyer would be willing to pay and an interested but not desperate seller would be willing to accept on the open market assuming a reasonable period of time for an agreement to arise.
Q: what is hardware?
Answer: Hardware refers to a physical piece of a computer. This could be a hard drive, monitor, memory chip, or CPU. The key idea is that the item is something you can touch. This compares to software which is not tangible in any way. You can't pick it up or weigh it. Yet, without software, hardware is useless.
Typical examples of hardware include the computer you're using to view this page, the hard drive that has this page stored on it, and the mouse you used to click on a link to bring you to this page.
Q: what is software?
Answer: Software is a general term for the various kinds of programs used to operate computers and related devices software is not visible.
Q: What is internet?
Answer: a vast computer network linking smaller computer networks worldwide (usually preceded by the). The Internet includes commercial, educational, governmental, and other networks, all of which use the same set of communications protocols.
Q: What is E-commerce?
Answer: E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangeably. For online retail selling, the term e-tailing is sometimes used.
Q: what is E-mail?
Answer: E-mail (electronic mail) is the exchange of computer-stored messages by telecommunication. (Some publications spell it email; we prefer the currently more established spelling of e-mail.) E-mail messages are usually encoded in ASCII text. However, you can also send non-text files, such as graphic images and sound files, as attachments sent in binary streams.
SOME Elaborate:

ICAB - Institute of Chartered Accountants of Bangladesh.
ICMAB - Institute of Cost and Management Accountants of Bangladesh.
CIMA - Chartered Institute of Management Accountants
ICDDRB - International Centre for Diarrhoeal Disease Research, Bangladesh
NBR - National Board of Revenue
SEC - Securities and Exchange Commission
DSE - Dhaka Stock Exchange
CSE, - Chittagong Stock Exchange
FBCCI - Federation of Bangladesh Chambers of Commerce and Industries
GAAP - Generally Accepted Accounting Principles
RAM - Random-access memory
IASB - International Accounting Standards Board.
FASB - Financial Accounting Standards Board.
ASB - Accounting Standards Board.
GASB - Governmental Accounting Standards Board.
IFIC - International Federation of Accountants
AIA - Association of International Accountants
AAA - American Accounting Association
ICAEW - Institute of Chartered Accountants in England and Wales.
SAFA - South Asian Federation of Accountants
GAAP - Generally Accepted Accounting principles
BAS - Bangladesh Accounting Standards
IFRS - International Financial reporting Standards
FAS - Financial Accounting Standards (USA)
FRS - Financial reporting Standards (Uk)
ISA - international Standards on auditing
IAASB - International Auditing and Assurance Standards Board

CA = chartered Accountant
ACA = Associate of Chartered Accountants
FCA = Fellow of Chartered Accountants
ICAB - Institute of Chartered Accountants of Bangladesh. These kinds of degree provide by Institute of Chartered Accountants of Bangladesh (ICAB)
CPA = Certified Public Accountant
AICPA = American Institute of Certified public Accountant

CMA = Certified Management Accountants
ACMA = Associate of Certified Management Accountants
FCMA =fellow of Certified Management Accountants


CMA = Cost and Management Accountants
ACMA = Associate of Cost and Management Accountants
FCMA = Fellow of Cost and Management Accountants
ICMAB = Institute of Cost and Management Accountants of Bangladesh. Those kinds of degree provided by Institute of Cost and Management Accountants of Bangladesh.
CMA = Chartered Management Accountants
ACMA = Associate of Chartered Management Accountants
FCMA = Fellow of Chartered Management Accountants
CIMA = Chartered institute Management Accountants. Those degree provided by Chartered institute Management Accountants
CAT = Certified Accounting Technician
ACCA = Associate of chartered Certified Accountants
FCCA = fellow of chartered Certified Accountants
ACCA = Association of chartered Certified Accountants. Those degree provided by Association of chartered Certified Accountants

What is Financial Accounting?
Answer: The area of accounting concerned with reporting financial information to interested external parties.
Generally Accepted Accounting Principles (GAAP): Authoritative guidelines that define accounting practice at a particular time.
Internal Revenue Service (IRS): A government agency that prescribes the rules and regulations that govern the collection of tax revenues in the U.S.
Securities and Exchange Commission (SEC)S: The government body responsible for regulating the financial reporting practices of most publicly owned corporations in connection with the buying and selling of stocks and bonds.
Q: what is Intangible Assets?
Answer: Intangible assets include patents, copyrights, trademarks, trade names, franchise licenses, government licenses, goodwill, and other items that lack physical substance but provide long-term benefits to the company. Companies account for intangible assets much as they account for depreciable assets and natural resources. The cost of intangible assets is systematically allocated to expense during the asset's useful life or legal life, whichever is shorter, and this life is never allowed to exceed forty years. The process of allocating the cost of intangible assets to expense Short notes;
Book value -- total assets minus total liabilities. (See also net worth.) Book value also means the value of an asset as recorded on the company's books or financial reports. Book value is often different than true value. It may be more or less.
Breakeven point -- the amount of revenue from sales which exactly equals the amount of expense. Breakeven point is often expressed as the number of units that must be sold to produce revenues exactly equal to expenses. Sales above the breakeven point produce a profit; below produces a loss.

Deferred income -- a liability that arises when a company is paid in advance for goods or services that will be provided later. For example, when a magazine subscription is paid in advance, the magazine publisher is liable to provide magazines for the life of the subscription. The amount in deferred income is reduced as the magazines are delivered is called amortization, and companies almost always use the straight-line method to amortize intangible assets.
Return on investment (ROI)
-- a measure of the effectiveness and efficiency with which managers use the resources available to them, expressed as a percentage. Return on equity is usually net profit after taxes divided by the shareholders' equity. Return on invested capital is usually net profit after taxes plus interest paid on long-term debt divided by the equity plus the long-term debt. Return on assets used is usually the operating profit divided by the assets used to produce the profit. Typically used to evaluate divisions or subsidiaries. ROI is very useful but can only be used to compare consistent entities -- similar companies in the same industry or the same company over a period of time. Different companies and different industries have different ROIs.
Variable cost -- a cost that changes as sales or production change. If a business is producing nothing and selling nothing, the variable cost should be zero. However, there will probably be fixed costs.

Working capital -- current assets minus current liabilities. In most businesses the major components of working capital are cash, accounts receivable, and inventory minus accounts payable. As a business grows it will have larger accounts receivable and more inventory. Thus the need for working capital will increase.
Write-down -- the partial reduction in the value of an asset, recognizing obsolescence or other losses in value.
Write-off -- the total reduction in the value of an asset, recognizing that it no longer has any value. Write-downs and write-offs are non-cash expenses that affect profits
Q: what is entry tax? What are the types of entry tax?
Entry tax is levied on that product which transfer or enter
a product from-one state to another state or one District
to another district, if you sale as such the product not
There is two types of entry tax are available
1) Entry on Motor Vehicles-- Motor
Vehicles purchased in other
state enters to a different State, and then entry tax is
registered under Motor Vehicles Act. The tax paid in other
State can be compensated or set back of taken, if the rate
of tax is higher in the State where the vehicle is entering
2) Entry Tax on goods--this has been recently strucked by
the apex court in the case of Jindal Strips Ltd for the
reason that entry levied should be compostable otherwise
it can be levied

Imposition of Value Added Tax:
Imposition of VAT
(1) Value Added Tax is imposed and payable on
(a) taxable supplies; and
(b) Taxable imports.

Amount of VAT payable
(2) The amount of VAT payable is calculated by multiplying the value of the taxable supply or import by the VAT rate.
Example: If the value is taka 100 and the VAT rate is 15%, the VAT payable is 100 x 15% = taka 15.
VAT rate
(3) The VAT rate for a taxable supply or import is
(a) If the supply or import is zero-rated, zero per cent;
(b) In any other case, 15 (fifteen) per cent.

Change of rate

(4) Where there is a change in the VAT rate, the rate to be applied is,—

(a) for an import of goods: the rate applicable at the time the VAT becomes payable under section 24; or
(b) for a supply of goods, services, or immoveable property: the rate applicable at the time of supply.
Q: What is input tax?
Answer: Indirect tax (such as value added tax or VAT) levied on capital goods, raw materials, spare parts, services etc., which a business consumes or uses in its operations.
Q: What is output tax?
Answer: Tax that a seller adds to a buyer's bill when they sell particular goods or services. At regular periods of time, the total tax they have paid when buying goods and services themselves is taken away from the total output taxes they have paid to arrive at a value-added tax figure that they must pay to the government
Q: what is tax deduction at source (TDS)
Answer: Tax deducted at source is one of the modes of collecting Income-tax from the assesses. Such collection of tax is effected at the source when income arises or accrues. Hence where any specified type of income arises or accrues to any one, the Income-tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income-tax and pay only the balance amount to the recipient of such income. The tax so deducted at source by the payer has to be deposited in the Government treasury to the credit of Central Govt. within the specified time. The tax so deducted from the income of the recipient is deemed to be payment of Income-tax by the recipient at the time of his assessment. Income from several sources is subjected to tax deduction at source. Presently this concept of T.D.S. is also used as an instrument in enlarging the tax base. Some of such incomes subjected to T.D.S. are salary, interest, dividend, interest on securities, winnings from lottery, horse races, commission and brokerage, rent, fees for professional and technical services, payments to non-residents etc.
Q: What is bank reconciliation?
Answer: Analysis and adjustment of differences between the cash balance shown on a bank statement, and the amount shown in the account holder's records. This matching process involves making allowances for checks issued but not yet presented, and for checks deposited but not yet cleared or credited. And, if discrepancies persist, finding the cause and bringing the records into agreement.
Q: what is Ratio Analysis?
Answer: A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.
Q: what is trade discount?
Answer: a sum or percentage deducted from the list price of a commodity allowed by a manufacturer, distributor, or wholesaler to a retailer or by one enterprise to another in the same trade
Q: what is cost accounting?
Answer: a branch of accounting dealing with the classification, recording, allocation, summarization and reporting of current and prospective costs and analyzing their behaviors. Cost accounting is frequently used to facilitate internal decision making and provides tools with which management can appraise performance and control costs of doing business.
Carriage inward: Occurs when a business has to pay for purchased goods to be delivered to its Premises.
Carriage Outward: Occurs when a business PAYS for sold goods to be delivered to it's customers premises.
Q: What are irrecoverable debts?
Answer: A debt which is not expected to be paid.
Q: what is residual value?
Answer: The amount a company expects to be able to sell a fixed asset for at the end of its useful life.
Q: what is Share?
Answer: A unit of ownership that represents an equal proportion of a company's capital. It entitles its holder (the shareholder) to an equal claim on the company's profits and an equal obligation for the company's debts and losses.
###Two major types of shares are
(1) ordinary shares (common stock): which entitle the shareholder to share in the earnings of the company as and when they occur, and to vote at the company's annual general meetings and other official meetings, and
(2) Preference shares (preferred stock): It entitles the shareholder to a fixed periodic income (interest) but generally do not give him or her voting rights.
Q: definition of trial balance.
Answer: The act of totaling debit balances and credit balances to confirm that total debits equal total credits.
Q: Definition of ledger.
Answer: A ledger contains summarized financial information that is classified by assignment to a specific account number using a Chart of Accounts.
Q: definition of adjustment
1. Answer: increase or decrease to an account resulting from an adjusting journal entry. For example, the accrual of wages at year-end will cause an increase in both salary expense and salary payable.
2. Answer: changing an account balance because of some happening or event. For example, a customer who returns merchandise ill receives a credit adjustment to the account.
Q: definition of appreciation?
1. Answer: Increase in the value of an asset through a rise in market price, appraised value, or income earned, as compared to an earlier period. The opposite is Depreciation.

2. Answer: Increase in the value of one currency vs another, without any change in official value occurring. It results from growth in market demand under floating exchange rates rather than official action such as a currency revaluation.
Q: Difference between depreciation appreciations?
Answer: Appreciation and depreciation both deal with asset value over time. Some assets, such as real estate, bonds, and homes gain value as time goes on. These assets are said to appreciate. Other assets, such as vehicles, manufacturing plants, and office equipment lose value over time (depreciate). Appreciation/depreciation as a verb is the process of increasing value. For instance, a piece of real estate might appreciate at 5% per year and a car might depreciate 10% a year. De/Appreciation does NOT have to be linear. For instance, the moment you drive a new car off the lot, it depreciates a considerable amount (say 10% of its value). The next year, though, the car might only depreciate 5%. How one determines the rate of de/appreciation depends on your accounting rules. For tax reasons, many companies have to abide by strict depreciation laws (For instance, it would be unreasonable to depreciate a factory at 90% of it's value in one year because it would effects the company's profits and thus the taxes that company pays).
For most consumers, de/appreciation is based on the market value of the asset. Back to the car example: the moment a new car is driven off the lot, it loses a lot of its value because it is then consider a "used" car, so people won't pay as much for it.
Q: what is fiscal year?
Answer: A 12-month period over which a company budgets its spending. A fiscal year does not always begin in January and end in December; it may run over any period of 12 months. The fiscal year is referred to by the date in which it ends.
Q: difference between fixed and variable costs?
Answer: Fixed costs are expenses whose total does not change in proportion to the activity of a business, within the relevant time period. For example, a retailer must pay rent and utility bills irrespective of sales
Variable costs by contrast change in relation to the activity of a business such as sales or production volume. In the example of the retailer, variable costs may primarily be composed of inventory (goods purchased for sale), and the cost of goods is therefore almost entirely variable. In manufacturing, direct material costs are an example of a variable cost.

Along with variable costs, fixed costs make up one of the two components of total cost. In the most simple production function, total cost is equal to fixed costs plus variable costs.
Answer: The memorandum of association of a company, often simply called the memorandum (and then often capitalized as an abbreviation for the official name, which is a proper noun and usually includes other words), is the document that governs the relationship between the company and the outside. It is one of the documents required to incorporate a company in the United Kingdom, Ireland, India, Bangladesh, Pakistan and Sri Lanka, and is also used in many of the common law jurisdictions of the Commonwealth.
Answer: A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders. The MOA is accessible to the public and describes the company's name, physical address of registered office, names of shareholders and the distribution of shares. The MOA and the Articles of Association serve as the constitution of the company. The MOA is not applied in the U.S. but is a legal requirement for limited liability companies in European countries including the United Kingdom, France and Netherlands, as well as some Commonwealth nations.
Q: definition of Articles of Association?
Answer: A document describing the purpose, place of business, and details of a non-profit organization.

Answer: A document that specifies the regulations for a company's operations. The articles of association define the company's purpose and lays out how tasks are to be accomplished within the organization, including the process for appointing directors and how financial records will be handled.
Q: what kinds of terms included in Articles of Association?
The Articles can cover a medley of topics, not all of which is required in a country's law. Although all terms are not discussed, they may cover:
* The issuing of shares (also called stock), different voting rights attached to different classes of shares
* Valuation of intellectual rights, say, the valuations of the IPR of one partner and, in a similar way as how we value real estate of another partner
* The appointments of directors - which shows whether a shareholder dominates or shares equality with all contributors
* Directors meetings - the quorum and percentage of vote
* Management decisions - whether the board manages or a founder
* Transferability of shares - assignment rights of the founders or other members of the company do
* Special voting rights of a Chairman, and his/her mode of election
* The dividend policy - a percentage of profits to be declared when there is profit or otherwise
* Winding up - the conditions, notice to members
* Confidentiality of know-how and the founders' agreement and penalties for disclosure
* First right of refusal - purchase rights and counter-bid by a founder.

Q: definition of memorandum of agreement?
Answer: A memorandum of agreement (MOA) or cooperative agreement is a document written between parties to cooperatively work together on an agreed upon project or meet an agreed objective. The purpose of an MOA is to have a written understanding of the agreement between parties.

An MOA is a good tool to use for many heritage projects. It can be used between agencies, the public and the federal or state governments, communities, and individuals. An MOA lays out the ground rules of a positive cooperative effort.
Q: definition of resident company?
Answer: Entity treated by the jurisdiction, in which it is registered or incorporated or conducts its business, as resident for exchange control and/or tax purposes.

Q: definition of nonresident company?
Answer: That is incorporated in a jurisdiction as non-resident for tax purposes. A company treated by the jurisdiction in which it is incorporated as non-resident for tax purposes or exchange control purposes or both.
Q: definition of sales tax?
 Answer :A sales tax is a consumption tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale
Q:  definition of purchase tax?
Answer: A tax that is added to the price of goods sold in shops, but not on basic goods that people need to buy, that the owner of the shop must pay to the government a tax levied on nonessential consumer goods and added to selling prices by retailers
Q: definition of excise tax?
Answer: An indirect tax charged on the sale of a particular good. An excise tax is a tax on use or consumption of certain products. Excise taxes are sometimes included in the price of a product, such as motor fuels, cigarettes, and alcohol. Excise taxes may also be imposed on some activities, like gambling. Excise taxes may be imposed by the federal government or by a state.
Q: definition of use tax?
Answer: Use tax is levied when the products are purchased from a different state paying the sales tax to that state. This tax compensates the state where the goods are finally put to use, the loss it has suffered because of the purchase from a different state.

BBA Discussion Forum / Re: DIU Students' Accounting Association
« on: December 17, 2012, 07:45:10 PM »
List of International Accounting Standards

IAS 1  – Presentation of Financial Statements
IAS 2  – Inventories
IAS 3  -  Consolidated Financial Statements
IAS 4 -   Depreciation Accounting
IAS 5 -   Information to Be Disclosed in Financial Statements
IAS 6 -   Accounting Responses to Changing Prices
IAS 7  – Cash Flow Statements
IAS 8  – Accounting Policies, Changes in Accounting Estimates and Errors
IAS 9  -  Accounting for Research and Development Activities
IAS 10-  Events after the Balance Sheet Date
IAS 11-  Construction Contracts
IAS 12-  Income Taxes
IAS 13 - Presentation of Current Assets and Current Liabilities
IAS 14-  Segment Reporting
IAS 15 - Information Reflecting the Effects of Changing Prices
IAS 16-  Property, Plant and Equipment
IAS 17-  Leases
IAS 18-  Revenue
IAS 19-  Employee Benefits
IAS 20-  Accounting for Government Grants and Disclosure of Government Assistance
IAS 21-  Effects in changes in Foreign Exchange Rates
IAS 22 - Business Combinations
IAS 23-  Borrowing Costs
IAS 24-  Related Party Disclosure
IAS 25-  Accounting for Investments
IAS 26-  Accounting and Reporting by Retirement Benefit Plans
IAS 27-  Consolidate and Seperate Financial Statements
IAS 28-  Investment in Associates
IAS 29-  Financial Reporting in hyperinflationery economies
IAS 30 - Disclosures in the Financial Statements of Banks and Similar Financial Institutions
IAS 31-  Interests in Joint Ventures
IAS 32-  Financial Instruments : Presentation
IAS 33-  Earning Per Share
IAS 34-  Interim Financial Reporting
IAS 35-  Discontinuing Operations
IAS 36-  Impairment of Assets
IAS 37-  Provisions, Contingent Liabilites and Contingent Assets
IAS 38-  Intangible Assets
IAS 39-  Financial Instruments: Recognition and Measurements
IAS 40-  Investment Property
IAS 41-  Agriculture

BBA Discussion Forum / Re: DIU Students' Accounting Association
« on: December 17, 2012, 07:38:18 PM »
International Financial Reporting Standards:

IFRS 1    First-time Adoption of International Financial Standards    
IFRS 2    Share-based Payment    
IFRS 3    Business Combinations    
IFRS 4    Insurance Contracts    
IFRS 5    Non-current Assets Held for Sale and Discontinued Operations    
IFRS 6    Exploration for and Evaluation of Mineral Assets    
IFRS 7    Financial Instruments: Disclosures    
IFRS 8    Operating Segments    
IFRS 9    Financial Instruments    
IFRS 10    Consolidated Financial Statements    
IFRS 11    Joint Arrangements    
IFRS 12    Disclosure of Interests in Other Entities    
IFRS 13    Fair Value Measurement    

Use of PC / Re: Microsoft Excel: Learning Tutorial
« on: November 14, 2010, 02:08:22 PM »
I am regular viewer of this post. Thank you Mr. Ashiq. Keep it up.

Use of PC / Re: PC problem solution center....PC problem solution center
« on: November 14, 2010, 02:06:39 PM »
I have bought a DVD from the market but when I use it, each three month later, I have to format my PC otherwise. It takes to restart after one hour.

Use of PC / Re: PC problem solution center....PC problem solution center
« on: November 14, 2010, 01:59:58 PM »
Thank you for starting this topic. Basically, I don't have any computer related problem but I want to use win-7 genuine version. Would you please help me?

Mr. Mamun please don't take it seriously, take it positively !!!  You said " every reputed university wear formal dress" very well, you are saying.... we know reputed university of BD are DU (IBA) ,NSU, EWU, IUB, AIUB, BRAC, UIU, DIU & etc...........Please Mr. Mamun visit those university & observe those university's student who wear formal dress or casual dress???? I think without presentation & special case  no student  wear formal dress.......Please take it positively.........   

I am completely agree with you. To wear formal dress is not bound on us. & it should not be. We should wear, what is suitable for us. But every student should have an ID card. In presentation we should have formal dress. If anyone likes to wear formal dress then that is his/her own choice.
Thank you Mr. Samiul Islam Lincon

Now this action is working in DIU. All the students are carrying ID cards with them but they do not hang it on their neck. I think DIU authority should think about this. Every students should have a ID cards hanging on their neck so that we can stop outsider.

Dear, Mr. Ashiq.
As you know this software takes much speed to process. It makes your PC slow so that it can create problems to log in your PC. I am agree its a great software for privacy but not good at all for your PC. if you get password then it would be nice for everything.

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