Management Accounting

Scaling New Heights for Business Agility through Digital Transformation

noreply@blogger.com (Unknown) — Thu, 12 Aug 2021 05:18:00 +0000

I’m pleased to invite you to our upcoming Scaling New Heights for Business Agility through Digital Transformation webinar series in September. Join this compact 60-minute complimentary session and hear from our industry experts as they exclusively focus on enabling digital transformation of the middle office - which is critical for all businesses because that is where revenue operations reside. In addition, you will discover more on transformational tools, techniques, software and advancements for optimum business agility.

Book your virtual seat and be prepared to take away key practices including:

Why digital transformation is a priority for businesses to thrive?
Planning, building and executing a successful digital roadmap
Dissecting the pros and cons of adapting to digital transformation and its tools
Comprehending the steps, procedures, actions and pitfalls to consider while making decisions on digital transformations strategies

Issues, Challenges and Opportunities in Oncology Production

noreply@blogger.com (Unknown) — Thu, 12 Aug 2021 05:15:00 +0000

We have 4 issues for discussion under this agenda.

Firstly, CEO is looking for costing of Oncology API as finished products so that we can set a price for selling it to other companies and also we can use as raw materials to be used in our Oncology Solid Facility (ROSF) for Oncology FG products. He suggested us yesterday to consider only variable cost. Could you please give us such costing for all available API under Oncology API Facility (ROAF)? Currently we have following 2 products in that facility for which we are interested to know the costing:

Sorafenib Tosylate 3.0 Kg (SOT)
Sorafenib Tosylate INN

Secondly, if we want to use our Oncology API as raw materials for Oncology FG products, do we need to conform any VAT formalities. If so, please take relevant actions in the regard and also please give us necessary training at warehouse end so that the operations get smoothen. Also how to proceed when we would go for selling those API to other companies, please?

Thirdly, we would like to sit with Pfizer Laboratories shortly where we would try to finalize the price for different QA/AC service that they already enjoyed. Please assign someone who can raise relevant financial concerns in that meeting. As soon as we know the meeting schedule we will let you know.

Finally, It is a gentle reminder that we are still looking for a regular source of item-wise cost information for our relevant available inventory. Please let us know when the information is ready so that we can plug in those to generate our monthly report of Inventory.

Responses:

1. As per our records, the total quantity produced during 2020-21 FY, in the said facility is only 19Kg of different APIs as against Tk. 14.69 million as variable expenses. Thus, Variable Overhead Costing around Tk. 7.73 lac per KG as LOH excluding Material Cost is Tk. 0.90 lac per Kg. Both the items will bear almost the same variable cost (Tk. 863000/Kg) with a difference of Tk. 850 packaging cost.

2. No such VAT formalities until we use resources internally through IOT. For external sales, VAT issues will be taken care of by us duly after the Price Declaration of the saleable product. We will just need a copy of Drug Annexure & Approved Price from FDA. You must sell the FG Item Code: 510050008 through a Depot from where Sales Order will be created like other general sales with DIMS in Legacy /Order Management in ERP. VAT Challans will be issues as usual where no additional training is necessary from us.

3. A person will be assigned from our end to join the meetings whenever you organize them with Pfizer.

4. ERP is a good regular source of information you are looking for, as long as our users enter data accurately therein. You can develop a report to pick the cost information from the system upon a discussion with the ERP Consultants

New thoughts on Management Accounting and Strategy

noreply@blogger.com (Unknown) — Sat, 16 May 2020 16:26:00 +0000

The opportunity to write a non-referred article is an added bonus. This allows me to write a more speculative and less technical piece than I normally seek (or am forced) to write. Additionally, my choice of title allows self-quotation without all the usual embarrassment.

Private international law with its international civil procedure

noreply@blogger.com (Unknown) — Thu, 16 Jun 2016 19:05:00 +0000

Private international law with its international civil procedure.

The competence.

- A judge is competent when the jurisdictional power to decide any matter before it.
Definition of competence.

matter of jurisdiction.

Next the value of the litigation.

- The value of the first-instance proceedings will reveal whether the judgment is subject to appeal or if there will be a further appeal possible.
→ For small claims, namely maximum 4000 euros, so the first and last spring not to appeal. In practice, there will be no cessation either.
For all disputes concerning credit rights (personal actions), shared between Amtsgericht and TGI and Judge nearby
→ to 4000: Judge nearby.
→ Up to 10,000: District Court then beyond that is the High Court.

- To determine the amount, if any one claim, take the amount of the claim as expressed in principal in the last writings of the applicant.
- If no amount of demand, are "unspecified demands." Article 40 of the Civil Procedure Code provides that such requests are always subject to appeal. To avoid too much unencrypted requests, courts are severe about it = - An application for a symbolic euro ANY INTEREST & was considered a specified amount.
- If there are more applications, in general, we consider all applications that will be added to determine the level of competence.

Next Nature litigation.

- The types of disputes are contained in the COJ. The principle is that there is a common law jurisdiction normally competent unless a special provision gives the jurisdiction to special court / award.
- Two courts of general jurisdiction: TGI and CA.

TGI created in 58 to replace civilian courts broad jurisdiction. It aims to entertain any dispute unless the particular text excluded (eg personal or transferable shares if amount is less than 10K euros = -. District Court). If it has exclusive competence, it will rule until 4k euro in first and last resort, and call for more than 10k euros (exclusive materials: Article L211-4 and following State Ex people, real personal actions, litigation.. execution ...)

The President of TGI has a skill that is exercised for provisional and protective measures, and referred queries. In addition, skills on the bottom (commercial lease).

-- Court of Appeal. 35 in France. Responsible for all use of the 2nd degree. In very specific cases, the appeal will be filed before another judge of the 1st degree. Eg, certain decisions of the guardianship judge are challenged in the TGI.

The Court of Appeal can also find some new applications, and some geographically concentrated Appeal Court appeals against independent administrative authorities.

Community law has no legal basis to influence internal procedural rights

noreply@blogger.com (Unknown) — Thu, 16 Jun 2016 19:03:00 +0000

Retouching.

- After 1981, many decrees (over thirty) came to change the CODE OF CIVIL PROCEDURE. In addition to these one-off orders, there was the will to bring together committees to reflect the reforms. Today the procedure is not bad and is regularly subject to change. In any case all procedural questions are occupied by the debate on the reform of the judicial map.

Section 2 - Complementary national and international sources.

Jurisprudence.
- Not to be confused with judicial practice. It is abundant. No major turnarounds of Civil Procedure because it is hard to imagine that in a reformed without cease matter.

Practices and usages.
- Local customs, with styles and habits. Ex. Electronically.

Doctrine.
- Important role because it is a technical matter.

International sources.
- Apply to internal or international disputes.

- In terms of the internal procedure, there are provisions of international law under Article 55 have superiority on the internal rules of procedures and who will therefore be applicable. Is basically the European Convention on Human Rights and Community law. Within the Convention, Article 6 gives the right to a fair trial, setting standards of procedure. According to part of the doctrine, the article 6 is the main source of the theory of action (the right of a person to apply to a judge). Community law has no legal basis to influence internal procedural rights, or very little. Here are the rules for disputes between borders.

Enactment of the CODE OF CIVIL PROCEDURE by order of 5 December 75

noreply@blogger.com (Unknown) — Thu, 16 Jun 2016 19:00:00 +0000

Old code of civil procedure.

- One of the 5 major Napoleonic code. Before the code, the general procedure of text dated 1667 (Colbert).

- The code 1806 has not managed to break away from tradition, and therefore appeared as old. In the 20th century, the need is urgent. In 1934, a reform commission CODE OF CIVIL PROCEDURE is created. His work lead to a law decree creating Judge to monitor the process (the ancestor of Justice of the State layout). From 58, the new provisions with the change of constitution. It is a decree of October 13, 65 which amended the proceedings before the High Court and anticipates the work that will lead to the CODE OF CIVIL PROCEDURE. Grand codification begins that will lead to CODE OF CIVIL PROCEDURE. There is a large code because responds to the challenges of the great codes.

- The challenge was to create a completely new code to cover the entire proceeding, without using its predecessors. It will take 18 years to complete.

- To reform the process, setting up a commission in 69 setting up under replay for commissions. Notice of the State Council.

- Enactment of the CODE OF CIVIL PROCEDURE by order of 5 December 75, which establishes the "CODE OF CIVIL PROCEDURE, which brings together previous decrees. "Composed of two books. Book I- Provisions common to all jurisdictions; Book II Provisions specific to each jurisdiction.

Problem, while in 1975 is not prepared, so CODE OF CIVIL PROCEDURE will later be enriched by other books.
- 1979 Book III decree on the appeal and the procedure before the Court of Cassation.
- 1981 Book IV Decree on arbitration and other materials.
- Project Book V- execution. Problem, until now everything is done through regulations. Or to enforcement can not be reformed by regulation, as the Constitution says it is legislative. 1981 left government, so this reform is not too up to date.

- 1991 reform out of the code: law reform in 1992 out of the code: decree on special seizures.

- Very good code, with structure, academically. Little brother of the Civil Code. It is a code that provides definitions, because the material has been radically reformed. Influence in this book the author Henri Motulsky, who is the instigator of the trial guidelines. Also this code also takes the practical requirements of litigants.

Law on Credit - banking - finance - insurance - real estate - rural law - construction - planning

noreply@blogger.com (Unknown) — Wed, 15 Jun 2016 18:25:00 +0000

Banking law is a branch of commercial law that deals with all the rules on banking transactions and those that perform as part of their professional activity. He intended to govern the activities on a regular basis by credit institutions.

The Right Credit is composed of the rules applicable to credit institutions, usually banks, credit operations and management of payment means, for companies and individuals.

Insurance law is the set of rules, laws and regulations governing insurance companies and relationships between insurers and insured. Insurance predict risk, and mitigate financial losses a loss or degradation.

Real estate law is the generic term that includes all legal texts of public law and private law concerning real property, as opposed to furniture.

This is part of the law of property, and relates both to the right of private property as the right heritage of public figures.

Its scope is very wide as it relates in particular the right to construction, planning law, law of mortgages ...

Commercial paper are documents issued by a creditor to a debtor giving order in writing via a third party to pay a debt to a beneficiary due. It is one of the bills of exchange or promissory note, among others. Commercial paper are useful means of payment to companies under business with payment deadlines. This allows secure and formalize the terms of payment.

Rural law is traditionally the set of rules for farming and those who practice it. He oversees and supports the evolution of French agriculture in the European legal framework designed by the common agricultural policy.

The place of civil law in private law - The law of exception.

noreply@blogger.com (Unknown) — Wed, 25 May 2016 19:27:00 +0000

A) The place of civil law in private law

Originally civil law almost overpowered instead of private law, but we shall see, gradually the civil law is going to have some of its branches will detach. But civil law remains what is called common law. The rules of the civil law will apply in priority. New needs, new relationships will appear and we will need to specialize in disciplines. Exception will be called the law law other than the Civil Law.

Example: in our society, consumption has a key role, then in 2000 the Consumer Code was created ; it is a branch that broke off of civil law. The trunk (civil law), this will be the common law, and branches the exception of Law.

1) The common law.

Civil law (common law) includes all the rules on the privacy of individuals in their personal relationships, these relationships they can have as much on the family level as on the professional level. And in civil law, we will find several types of law: the law of persons, family law, contract law, property law, the law of matrimonial property regimes. The common law does not affect any special rules.

The right of persons: when one is born, it has acquired legal personality which we were allocated a first name and a surname ...

Family law: one is interested in relationships with each other, such as with marriage (age criteria ... of gender differentiation).

2) The law of exception.

Commercial law will determine the status of merchants, business activity, the relationship between traders. In the Civil Code there is a part that deals with contracts between individuals but, in trade, we have other needs (speed, certainty ...) and the civil code does not provide the trader. Gradually, they built their own rules which became detached from the civil law term to form an autonomous code, hence the birth of commercial law. Inside this commercial, other rights have emerged. The changes in society have made the creation of necessary

new branches of law including right here with the air, maritime, and it goes to law firms in difficulties which have also seconded civil law into a law of exception. Rural is a right that includes special rules that derogate from ordinary law, particularly when referring to sharecropping or tenant farming. Employment law is a law of exception, labor relations have developed and with them the need to create special rules which derogate from ordinary law (dismissal, talks). Example: criminal law and private international law.

Gradually the exception of law encroaches on common law and takes more and more space. It must be remembered that the place of civil law is predominant in private law; Indeed, the civil law applies in principle to govern matters of private law.

Board of Governance is resonsible for operations with Essential Business Assets

noreply@blogger.com (Unknown) — Thu, 12 May 2016 13:04:00 +0000

In Spain, the new law is approved. Law 31/2014, of 3 December, approving the Capital Companies Act (LSC) for the improvement of corporate governance changes, indicating that it is for the general meeting deliberate and resolve on the acquisition, disposal or the contribution to society other essential assets. The essential character of the asset is presumed when the amount of the transaction exceeds 25% of the value of the assets listed in the latest approved balance sheet.

The new power of the General Meeting, ie decide on "the acquisition, disposal or contribution to another company of essential assets" requires a distinction in the legal business conducted by the board (usually acquisition / disposal of assets) if it is "essential" assets -Competence of the General- Board or administration-organ -Competence without the legislature required that assessed so it is an "essential asset." Only establishes a presumption, but does not clarify who is competent to decide on the character of "essential" asset, or whether the possible lack of agreement affects third parties.
Operations comprising

What is to be in new Law:

Acquisition of core assets, provided that the transferor is a company,
Disposal of key assets, provided that the purchaser is another company, and
Essential contribution to another company assets.

Presumption of core assets

The Act does not define the essential assets only establishes a presumption about the essential nature of the assets according to their economic value, "the essential character of the asset is presumed when the amount of the transaction exceeds twenty five percent of the value of the assets listed in the last balance sheet approved "

It is a rebuttable presumption (rebutted), so that may have assets exceeding 25% and non-essential, and vice versa, assets value less than 25% and yet are essential.

The presumption means that:

- If the asset sold or acquired exceeds 25%, it will be the test administrator in case of complaint, that there is an essential asset (eg a society that alienates property whose value exceeds 25% of the value of assets, but whose purpose is precisely the sale of the properties that form part of its assets, in the case of an operation so normal course of business, of competence of the governing body).

- However, if the asset disposed does not exceed 25%, but is considered by the shareholders or creditors, which is an essential for society active must be them claiming responsibility the management body who prove the essential character of the asset (eg society that alienates a patent or an administrative concession, whose value does not exceed 25% of assets, but without which it can not develop the social object).

If you have questions about whether a purchase or sale is not "essential", avoid risks and seek authorization from partners to do it. For this purpose, convene a meeting at which he is authorized to do the operation and the conditions of this (price of purchase or sale, term to be done, payment) are established. If it does not and that are essential assets, members can be held accountable (for example, if the operation harms society).

The bankruptcy proceedings are reduced by 22% in the first quarter

noreply@blogger.com (Unknown) — Fri, 06 May 2016 19:40:00 +0000

The number of bankruptcy proceedings fell by 22% between January and April 2016 compared to the same period last year, a development which is attributed to increased preconcursos and court settlements, while business solutions rose 4% .

This follows from the 'Study on Contests and Solutions' by the company Informa D & B, which stands at 1,572 bankruptcy proceedings occurred during the first quarter of this year and 10,004 solutions.

Specifically, companies in bankruptcy add 11,192 workers and billed about 1,900 million euros per year, 31% less than those that were affected by this situation between January and April 2015. Meanwhile, the solutions reverberated in 34,704 people and a turnover of 9,300 million euros, above the 6.600 billion euros last year.

Month of April

Only in April, Informa D & B number in 355 contests creditors, 25% less than in the same month last year and the lowest figure of the whole exercise. According to the Director of Studies of Informa D & B, Nathalie Gianese, this development "can partly be explained by the increase precursors processes and extra-judicial agreements, which are not listed in the bankruptcy statistics." In contrast, the 1,712 solutions represent a 2% more than a year ago.

The study also suggests that micro-enterprises were the most affected by the bankruptcy proceedings in April, representing almost 82% of the total, while small enterprises accounted for about 16% of cases, the median about 2% and large only 0.6%.

By region, Catalonia heads the number of processes both in April (81) as in the first quarter of 2016 (316), although it is also the region that reduces their numbers in absolute value since January, subtracting 117.

It is followed by Valencia (254 in four months and 54 in April) and the Community of Madrid (226 and 46 respectively). Only four communities increased the number of competitions over last year, highlighting the Canary Islands (+39) and Cantabria (+13).

As for solutions, Madrid, Andalusia and Valencia led the quarterly and monthly statistics, processes 2,413, 1,292 and 1,249 closures solutions, respectively. However, the Madrid region was experienced a greater absolute increase (+298) while Catalonia was the biggest decliners solutions (-148).

By sector

As for the different sectors, construction was the most processes had (433) in the first quarter. Along with Trade (344) and business services (198) account for 62% of all competitions, it concentrates 62% of the solutions, con2.552, 2,056 and 1,566 respectively.

The same three sectors were the hardest hit in April, with 108 and 460 solutions contests construction, trade 78 and 355, 46 and 268 and business services.

However, the construction was also the sector that reduced both contests as solutions, 179 and 132 processes less, respectively. In fact, the contests were increased only in the extraction industries (+ 60%) and healthcare (+ 14%) during the first four months of the year, while solutions grew only in Energy (+ 82%) and Administration ( + 50%).

The Spanish Parliament claims Homemakers to recognized as real workers

noreply@blogger.com (Unknown) — Sun, 01 May 2016 09:53:00 +0000

The full European Parliament has demanded on Thursday that people who perform domestic services and home working as carers be recognized as "real" employees, with the recognition and protection that applies to any worker.

Official status for these employees would ensure access to benefits such as sick leave, vacation, pension contributions, as well as being a weapon against undeclared work and labor exploitation.

This has been declared MEPs in a resolution of the Spanish speakers who are Tania González (We can) and Greek Kostadinka Kuneva (Syriza) and has been adopted by the plenary meeting in Brussels.

The text claims the recognition and protection of domestic work as a profession through both national legislation and European.

Also it advocates that Member States adopt and fully implement the Convention 189 of the International Labour Organization, something they have done so far only 22 countries in the world.

According to data presented by the speakers, 88% of workers in the sector are women and one in three is excluded from the protection afforded by national labor legislation.

Among its recommendations, MEPs raise establish "easy to manage models" to frame the legal relationship between the employer and the worker, the image of systems that already exist in countries like Belgium and France.

How to Make Money in Accounting

noreply@blogger.com (Unknown) — Thu, 28 Apr 2016 19:16:00 +0000

Although the primary motivation of all accounting professionals is not to make money, for some, it is a very important subject. Many ask how to make money in accounting and how to maximize its efforts to be as rich as possible. As in all areas, there are no miracle solutions and every aspect of accounting work contains its own set of qualities and faults. Yet there are some ways if you want to put in the time, which will allow you to grow your income by working in accounting.

Accounting Freelance

It is possible for an accountant, they either engineer or chartered professional accountant, to offer its services to individuals and small businesses. This is the work of an independent accountant. Some call this kind of work on freelancing, the freelancer is the individual accountant. We will use the two terms in the article.

In this situation, it is often the accountant must take steps to find customers, contrary to accounting firms that are often contacted by clients for a specific mandate. Customers are often attracted to the individual accounting since they do not cost very expensive to hire.

so you would think that it is not efficient monetary level for an accountant to offer work as an individual professional. Yet the work demanded by customers are often easy and short for an experienced accountant. It is work that a freelance accountant can often perform outside their normal working hours to make extra money. One can think of bookkeeping bases, general advice on running a business, calculations and ratios or advice to drive. Obviously, a freelance accountant is not able to provide a review engagement or audit mandates.

It is possible to make money in the accounts by providing accounting services to individuals and being a freelance accountant the highest paying sectors in Accounting

This is a subject that we have already discussed in a previous article (see salary of a chartered accountant) and we develop here.

Typically, accountants who make more money working in cities and working for large private corporations such as firms owned Big Fours. These firms typically offer the best wages, trying to attract the best employees in their business.

The cost of living around the location of the cabinet much account in the determination of wages. Indeed, the annual salary of a trainee region will be significantly lower than the salary of a trainee like in a metropolis. The cost of living and travel is generally more expensive in big cities, the pay increases accordingly.

Academic Level and Professional Titles

Salary accounting is often influenced by the academic level of the employee. Thus, an accountant holding his CPA title and having completed his BA in accounting will significantly more money than an accounting technician who has just graduated college. The difference is true for an accountant holding an MBA (Master of Business Administration) and working in business. Currently hold a degree or MBA is no big differences on the salary of an accountant firm. However, collective agreements and present in business unions take into account the MBA salary scale. If you aim to work in business, having an MBA or a comparable security can be very interesting.

The Accountants holding professional titles, such as CPA, CA, CPA, CMA, CPA, CGA and other additional securities are generally better paid than those who do not hold title and only a university education. Among the various titles, it is often the CA (CPA Auditors) that make the most money, graduation requiring more skill to acquire. CMAs are never far behind the loins CA. CGAs are sometimes paid more than the CMA, there is no clear trend for. The accounting people in their twenties holding a CPA title are paid on average $ 20,000 more than their peers who do not hold professional. Hold a professional designation is a direct means to make money in accounting.

Categories Jobs in Accounting

The variety of accounting jobs is very large and certain types of jobs have average salaries significantly higher than the other. At the top of the salary pyramid, we find the partners and managers of companies, financial analysts and financial managers. On the other side, bookkeepers, government auditors averages of the lowest wage in the area. The rest of occupations, such as budget analysts and financial advisers, are in the middle of the spectrum.

We can therefore conclude that the money earned in accounting tracks the number of responsibility that has the employee. A professional having to make critical business decisions will be much better paid than bookrunner which only the bookkeeping. Obviously, there are always exceptions.

Do you want to increase Capital against reserves or profits of the enterprise

noreply@blogger.com (Unknown) — Thu, 21 Apr 2016 19:00:00 +0000

Do you have to increase the share capital of the company from reserves ?. Note that for this, a General Meeting must have passed a balance within the six months prior to the agreement of capital increase and that it must be verified by the auditor of the company or by an auditor appointed by the Company Register at the request of administrators, if society were not required to be audited.

As you know if you want to increase the share capital of the company, it can be achieved by creating new shares or issuing new shares or by increasing the nominal value of the existing ones. In both cases, the capital may be increased by means of new cash contributions in kind or social heritage, including the provision of credits against the company or against profits or reserves already incorporated into it last approved balance sheet.

A capital is a form of business financing is to increase the equity of a company increasing its capital.

This funding can be obtained with the existing shareholders of the company with the contribution of new capital, or sacrificing the remuneration of shareholders, so that the expansion is done against reserves or undistributed earnings allocated to reserves.

As it regards the initiative of the enlargement, the Board of Directors who normally corresponds propose to the shareholders' meeting, though, by law, any shareholder holding more than 5% property may request that a meeting be convened and propose their own project alternatives, including increase capital.

Capital increase against reserves or profits

It is to use available reserves as share premium, legal reserve and undistributed earnings allocated to reserves. The realization of a capital increase of this type involves making an accounting entry consisting of a transfer of the reserve account or benefit to social capital.

With the capital increase against reserves, the amount of capital and reserves remains the same, therefore any quantitative financial change does not occur. Instead, it means a qualitative change because society happens to have availability of their reservations to not be available for having transferred to the capital account.

To capitalize reserves the requirement that they are freely available must also be met. The law sets limits freely available, stating that:

The general meeting resolved on the implementation of the profit according to the approved balance sheet.Once as are provided by law or statute, they may only be distributed dividends against profit for the year or unrestricted reserves if the value of equity is not or, as a result of the distribution, will not be less than capital stock. For this purpose, the benefits recognized directly in equity will not be subject to distribution, directly or indirectly.

If there are losses from previous years that cause the value of the net assets of the company is less than the amount of share capital, the proceeds will be used to offset these losses.

Any distribution of benefits is also prohibited unless the amount of available reserves is at least equal to the amount of research and development expenditures appearing on the balance sheet.

When the capital increase is made against reserves, may be used for this purpose available reserves, reserves for premium of shares or share issue and the legal reserve in full, if society were limited liability or in the amount exceeding 10% of the increased share capital, if society was anonymous.
Balance and auditing.

Accounting for Googwill as per IFRS and GAAP

noreply@blogger.com (Unknown) — Wed, 20 Apr 2016 19:16:00 +0000

In consolidated financial statements goodwill represents a particular position which reflects the acquisitions carried out by a group. It represents in some groups a very significant asset item which sometimes amounts to almost all equity. Of course, it is important to understand how it is calculated and how it evolves in the basis of accounting.

Significant differences between IFRS (International Financial Reporting Standards) and French Accounting Standards

As summarized in the table below, the differences between French GAAP and IFRS (International Financial Reporting Standards) remain significant. This shows how the concept of goodwill remains debated and debatable, consider the main differences.

Accounting for acquisition costs

Focus on three aspects of the calculation of goodwill treated differently between IFRS (International Financial Reporting Standards) and French Accounting Standards

The costs attributable to the acquisition are either integrated in the cost of securities or expended according to GAAP which obviously affects the amount of goodwill. The accounting for these expenses as assets is justified in our view by a simple comparison with what is practiced on other asset classes which are incurred for the acquisition are always included in the cost of the asset. Moreover, when asked about the cost of an acquisition, the investment will always enjoyed incorporating the acquisition costs.

Ultimately, the acquisition costs are always loads, they will be recognized either immediately or through depreciation or lower bound on the gain on the sale.

Differences arising on the valuation of assets and liabilities in business combinations

noreply@blogger.com (Unknown) — Tue, 19 Apr 2016 19:37:00 +0000

In these times we are engaged with year-end 2015. This fiscal closing of 2015 is the first carried out with the new criteria contained in the Law 27/2014, of November 27, corporation tax (LIS) and Royal Decree 634/2015, of July 10, approving the Corporation Tax Regulation (RIS) is approved, so it seems appropriate to present a case in which the problem of this closure is described.

From the standpoint of accounting, both the NRV 13th General Accounting Plan as the NRV 15th General Accounting Plan for SMEs, are consistent in applying for the accounting of income tax method of debt based on the balance sheet and this same sense pronounces the Draft Resolution of the Institute of Accounting and Auditing setting standards for registration, evaluation and preparation of the annual accounts for the accounting for income tax dictate.

Thus, you must register the tax effect of temporary differences whenever they have an impact on the future taxation of the company, and the application of prudence in recognition of deferred tax assets.

The concept of temporary difference is the difference in the balance sheet value of assets and liabilities according to accounting and tax regulations. But from a practical standpoint, we know that the temporary differences consist of:

- The old temporary differences (differences in income and expenses from an accounting point of view and prosecution, and are compensated in the future)

- Expenses and income recognized directly in equity, such as subsidies and adjustments for changes in value.

- Differences arising on the valuation of assets and liabilities in business combinations.

- Other differences that from the beginning the assets and liabilities have a different assessment from the point of view accounting and tax, such as non-commercial exchanges.

The first conclusion we arrived with the implementation of the new LIS is that on one hand the increase in permanent and temporary differences between accounting and taxation occurs primarily by positive adjustments, and secondly the emergence of new minoraciones (deductions) of the tax base and a reduction of the nominal tax rate.

Well, we will discuss some differences between accounting and taxation for closing 2015 with a complete case study, as well as new reductions for the tax base established by the new Corporate Tax Act 2015.

In the case study, we will see the application of new reductions for the Taxable Base Capital Reserve and Reserve Equalization.

Dividend policy of a Company | Dividends and dividend yield

noreply@blogger.com (Unknown) — Sat, 16 Apr 2016 19:15:00 +0000

The decision of dividends that will be given to shareholders is one of three major corporate finance decisions: investment selection - choice of funding - dividend decision. Dividends resulting from a decision of the Annual General Meeting of Shareholders (AGM). Therefore, they are not responsible but declining reserves in the balance sheet.

Dividends and dividend yield

The following formula indicates that shareholder return is based on two sources of enrichment: the payment of a dividend and the increase in share value:
Annual rate of return = [( Price 1 - Price 0) Dividends +] / Price 1

The payment of a dividend logically results in an immediate decline by the same amount and the value of the action. The value of a share is indeed the value of equity equal to the reduced enterprise value of net liabilities. However, debt was increased dividends paid. Accordingly, the dividend payment is not compensation, it does not increase the wealth of shareholders but only changes the distribution.

Values of yield and growth in dividend:

The dividend yield is calculated differently depending on the types of actions:
Yield stocks paying high dividends because they are usually on a mature sector with a stable amount of investment. The preponderance performance thus comes from dividends. A high dividend reduces the variation in the performance of the action in the event of sharp fluctuations in stock prices.

Growth stocks are as their name implies a growth sector, they pay no or low dividends to devote most of their profits to finance high investment. The yield was mainly due to the increase in share price.

The listed company must display a dividend policy vis-à-vis its shareholders to enable them to select the profile action that matches their expectations. This policy is expressed essentially based on the following indicators:

 The distribution rate (payout ratio) Dividends paid in year N / earnings year N-1.

In practice, business leaders often define the dividend amount from a percentage applied to future results. A dividend payout ratio below 20% is considered low, a rate higher than 60% is considered high, knowing that certain groups do not pay dividends as has been the case for the US group Apple until the death of its previous leader .

 The rate of dividend growth in absolute terms. Business leaders on a cyclical industry prefer some stability in the dividend amount by integrating a wide margin of maneuver in the distribution rate is therefore volatile.

Of course, the payout rate is not fixed, it does not fluctuate based solely on past performance, it is also a "signal" for the future:

The dividend cut may be due to the anticipation of a decline in results or the need to finance future investment. In this second case, the group must communicate clearly to shareholders because of the dividend reduction or risk seeing its stock price decline.

Thus, before being acquired by SAP, the Business Intelligence software company convinced its shareholders not to pay dividends despite high profits and a substantial surplus cash position. It was to accumulate resources to finance the buyout firms on a concentration stage business.

Conversely, an increase in the dividend reveals an anticipation of higher earnings and lower future investment.

There several years, the financial director of a large listed group was speaking pure justify a special dividend and redemption of action: "There are some years, our group had asked shareholders to finance development projects important. Today, these projects generate significant cash flows, our debt has decreased and we have no major investments planned. We are therefore able to return cash to shareholders. When we needed money, we ask them. They entrust us to create value and not for a performance bond. This does not exclude that if we have new investment projects, we return to them. "

What are the prerequisites and conditions for integrating DCG?

noreply@blogger.com (Unknown) — Sun, 03 Apr 2016 19:47:00 +0000

Perhaps you are one of thousands of 12th grade students of French, which will this year choose their post-graduate orientation. For some of you, the decision is already made: it will be an accounting. Some nourish the dream of becoming an accountant and so have naturally opted for training in preparation for DCG, the Accounting and Management Diploma so popular with recruiters. But the admission requirements are certainly a bit blurry. One point is required.

First, rest assured, there are no specific prerequisites to prepare the DCG. We tend to say that the holders of Bac STG (Sciences and Technologies Management) are better equipped than others to tackle these studies. Certainly, they already have knowledge in accounting and management, but the Bac S and ES are also able to integrate training in DCG. Finally, the only requirement needed is a great interest in the figures, the finances and running a business mechanisms.

Admission conditions,vary from one training institution to another. There is hardly a condition on which they do not deal: you have a baccalaureate. This rule applies to everyone, even to career transition in assets that have chosen to follow the correspondence accounting course. Schools and other organizations then watch the first notes and final year high school students, sometimes require a cover letter, and in some cases organize an interview.

Generally, we start training at DCG in the first year of study. But it is possible, under certain conditions, direct access to the second year. This is the case of a DUT GEA (Business and Management), a BTS CGO (Accounting and Management Organizations) or a BA in Economics and Management 2.

Importance of Financial Management for the Enterprise

noreply@blogger.com (Unknown) — Wed, 30 Mar 2016 10:06:00 +0000

Financial management and treasury is able to analyze and support business decision making in the areas of investment, financing and profitability. with ability to perform in the areas of accounting, costs, budgets, planning, treasury and portfolio charges, coordinator, analyst and financial adviser assistant.

Importance of Financial Management for the Enterprise

Financial management is closely related to decisions regarding the size and composition of assets, the level and structure of the financing and dividend policy focusing on two primary factors such as profit maximization and maximization of wealth for achieve these goals one of the most used tools for financial management is to be truly effective management control, which guarantees a high degree achieving the goals set by the creators, managers and implementer of the financial plan.

Its importance lies in the sense of control of all operations, decision-making, in the pursuit of new sources of funding to maintain the effectiveness and operational efficiency, reliability of financial reporting and compliance with laws and regulations.

Formal requirements documentfor Bill of Exchange

noreply@blogger.com (Unknown) — Wed, 30 Mar 2016 09:57:00 +0000

1. The Bank letter has to be extended in the corresponding amount, which can be purchased at any tobacconist letterheads.

2. The title has to carry the name inserted therein bill of exchange, expressed in the language used in the rest of the document.

3. The title must be dated and indicate the place where the bill is drawn. In the event that no place is expressly designated warrant shall apply such stating beside the name of the drawer.

4. Must necessarily contain the name of who has to pay the bill, person against whom the payment order, which will appear as "freed" is directed. In the case of individual person the designation shall be by name and in the case concerned a legal person, by its corporate name.

5. Also has to include the signature of the pound, that is, issues the document, which appear as "drawer".

6. The name of the person to whom payment must be made or to whose order will have to make, which may be the same drawer or a third party, and will appear as "taker". The appointment will be made, as in the case of the drawer, by his full name or its name if it is a legal person.

7. necessarily must include the unconditional order to pay a certain sum of money, not subject to any conditions. The currency in which the value of the letter may be domestic or foreign is expressed.

8. the time of "maturity" shall be indicated, ie the day when the letter should be paid. If you have not done this mention specifically, it is understood that the bill is payable at sight.

9. It is necessary that it is indicated the place where payment is to be made, ie, the place where the holder must present the bill to pay. In the event that this data remains unspecified means as payment instead of stating next to the name of the drawee, which in turn is deemed as a place of the same address.

In the event that missing any of these requirements document will not be considered bills of exchange and thus lose its enforceability which is basically the possibility that, before a default, can demand their collection quickly through the courts ( currency judgment). In this case the document will only have validity arising out of their circumstances as documentary evidence of the existence of an obligation.

A different question is that of the so-called blank letter, which carried the signature of the drawer or the acceptor, omits some of the formal requirement or all. In this case the letter is valid if completed properly before maturity

Accurate financial accounting and reporting can save a company a lot!

noreply@blogger.com (Unknown) — Sat, 26 Mar 2016 19:44:00 +0000

Independent accounting firms offer control and management consultancy. The economic success of a company should not be left to chance. A business consulting and ongoing controlling are appropriate ways to better position their own companies on the market. Essential for the success of such measures is a proper financial accounting, which provides the necessary data that serve as the basis for the work of external controller and business consultant. Independent accounting firms not only guarantee that the legal requirements for a proper financial accounting are met, but also know how to prepare the data so that they are as meaningful as possible. For small and medium-sized enterprises it is sometimes worth hardly an accounting expert to make, because the accounting is more easily organized and not incur many bookings during the year.

Therefore, it is worthwhile for most small and medium-sized enterprises to entrust the accounting wholly or partly to external trustees, who are specialists in this field. The advantages for small and medium sized companies in the outsourcing of the total accounting are obvious. Trustees already have a professional accounting software, so can be dispensed with expensive purchases. In addition, trustees are legally stay up to date and available to its customers continuously as advisers. The accounts are organized and booked by specialists, therefore, the management can concentrate on core business, since the accounts are well managed.

An independent accounting office is always in a position to discuss suitable rapidly responding to unsatisfactory operating results with the company's owners. If desired, you can draw up financing plans, with which one can secure the company's future. Even large companies often find that it is easier to dispense the financial accounting at various accounting firms. Accounting firms specialize in the competent handling of all tasks in financial accounting. They have the know-how, which often lack many employees in factories. If you decide to use the services of an accounting office in claim, it's going many worries at a stroke. The work is done by someone else.

ERP Data Master Preparation and SOP for End Users

noreply@blogger.com (Unknown) — Tue, 23 Feb 2016 10:25:00 +0000

1. I have sent my part of Data Masters earlier. The pending part (ERP Code Mapping with Legacy Code) is not related to me (Costing) and I don't know who will do it.

2. Rates and Data Masters given to you were based on December 31, 2013 and these you can upload in the month of December 2013. But if we actualize costing data/ info once again as on Cut-Off date, before Go Live; I am not sure whether I have to update these Masters based on that date or not. If yes, then New Updated Masters may be uploaded in Cut-Off month.

3. Highlighted matters on:

Page 11 in Training Manual, I recommended to Guide users as to when and how a period may be opened, closed, frozen and impact of never opened status of the period

Page 14 in Training Manual, I recommended to Guide users about the impact if he does not select range To & From

Page 16, if you please add EAM [Engineering Assts Management],SCM [Supply Chain Management],LCM [Landed Cost Management],OM [Order Management] in addition to mentioned sub-ledgers.

Page 17 you said "Keep blank" but blank can not be kept

Page 19 you have added a screenshot which looks Resource Cost view and not a part of Resource Cost Update Program

We can add how common costs as mentioned in Page 46, are/will be allocated ETC.

4. PB3 Accounts will be all natural expense/revenue accounts mentioned in COA (Chart of Accounts finalization will be done by Finance in association with KPMG)

5. Active/Direct Mfg Cost Centers are given and I hope all these Cost Centers will cover KGF-2 also, Center Codes will be available from Finance ; I could not update for Oncology,API Process Plant as Data Masters are not available yet.

Arranging Fixed Assets Cost Center-wise

noreply@blogger.com (Unknown) — Tue, 16 Feb 2016 02:55:00 +0000

OPM Development team has shown Machines [with a unique PEq No-163 for an example] as Resources in the Product Routing. By resource, the ERP means a Coded (PEq-163) Equipment that has been directly/indirectly used in operations. The team did not recognized other assets to be Resources, those are giving services but not used in Routing. But we, the Finance, who have to consider those assets also as Resources/Assets and tag them to the cost centers in which they are used in. So far I have seen the file, many assets do not have their PEq No and many might be placed in wrong cost centers. We must decide where these un-coded Equipment be shown. In that case, Management may be in doubt of Actual Cost of products.

Plants' Fixed Assets are very likely to be disagreed by the Plant Management with respect to their Location, Life, Cost Center if proper information of transfer details are not conveyed to Assets Manager. Even-though, Asset Manager and Engineering Staff from Project Engineering, primarily have listed & finalized the Assets after huge efforts, I think it should be agreed or validated by both Finance and Plant Management in all respects to avoid any future disparity. I think since these basic data will be uploaded into the System, let us take the views/comments/recommendations, once again from Engineering, Project, Production and finally from Head Of Manufacturing. No corner will allow loading misleading data into this integrated system. Let us sit with Engineering Staff on Saturday first.

Good afternoon.As per today's discussion here I am sending the fixed assets register of all plants ( for your review. Please ensure the cost center & PEq number from your end as well as the check with manufacturing & engineering department.

As decided with you we are sitting on Saturday together I think that day we can come in a consensus about the mentioned issue. I think you have forgotten to tag the OPM Development Team with the issue. I will also request to Plant Engineering please share the Fixed Assets register.xls with all required persons where necessary.

How much is Depreciation per unit of product?

noreply@blogger.com (Unknown) — Mon, 08 Feb 2016 03:19:00 +0000

For example, if legacy system is off, how I will answer to these questions in ERP Environment! I can not answer now...............

1. Why cost per unit of a Product has changed (increased or decreased)? --> How this analysis could be done in ERP?

2. How much is Depreciation per unit of product is charged? ---> How to analyze?

3. Why a batch cost increased or decreased compared to another?-->Cause Analysis

4. What are the batches lost/rejected during the period?-->Batch No & Cause

5. Which batch consumed more/less materials than FO/FLP by batch? I can not say now

6. Which batch consumed more/less resource Hrs than Std. Routing Hrs set by batch? I can not say now

7. What is the Accounting/Code/Head for rejected WIP/Materials/FG/Abnormal loss?-->How to analyze?

8. How to check as to whether an under or over absorption of overhead happened during the period?

9. How to analyze budget related variances every month? Spending, Volume, Labor & machine idle capacity?--> As the things are deferred to Post Go-Live!

10. How the Management Accountant will do Plant-wise, AC Head-wise expense analysis? Night, Shift, Overstay in Chart of Accounts available?

11. How location-wise MDR-able Items included the MDR list? I mean, why these items were rejected to be MDR? A reason code-->MDR report in insufficient to analyze

12. How to analyze for Labor Hour & Machine Hour+/- ; operation -wise & batch-wise product? No such report I have!

13. How to check as to which batches were produced through Re-work? Is there any AC Head in Chart of Accounts? Will Re-work account be needed to Map with Crushing & De-foiling Department to see total re-work cost?

User friendly List of Values (LOV) in ERP System

noreply@blogger.com (Unknown) — Tue, 19 Jan 2016 04:14:00 +0000

Thank you for the data provided.

Ø Just to confirm that this needs to be uploaded in the APR-14 period.

Ø ERP codes are required to configure the same in the system, which is currently missing in all the templates.

Could you please discuss with HR Super Users regarding my confusions marked in the attached file.

Based on my discussion with Costing, it has some queries regd. the HR orgs. Request you to please review the attached sheet.

Attached herewith is the feedback we had given to KPMG HR Consultant, regarding the queries you had.

Please let me know if you are aware of them, and let me know if any further clarification is required or any changes is required about the Plant Section.

Yes! I got this reply from KPMG HR Consultant too. Actually, my intention was not to get clarified on this issue but to make the ERP system sufficient and user friendly. I feel, Nomenclature of List of Values, Labels of the COA (Chart of Accounts), Inventory Org, LOB (Line of Business)etc. should be user friendly upto the possible extent so that the End-user can readily and easily understand even before entering into the system console. I prescribed KPMG HR Consultant to re-think of this.

Who will understand locations for these 1,2,3,4,5 etc. before entering into the system!

For Example, you have splitted Engineering Department on Plant Level.

Will we be able to segregate all engineering maintenance resources plant-wise?

Was it prescribed by the Head of Engineering?

Where is Head Office engineering and how we will book a cost if Dept is missing?

For Example, I did not see Washing Plant anywhere!

Costing Training Manual and “Costing Process

noreply@blogger.com (Unknown) — Sat, 26 Dec 2015 11:25:00 +0000

As discussed please find attach “Costing Training Manual” and “Costing Process”.

Since you are sole member of the costing team, please review the manual sent by Pooja and revert back to us with any observations/ suggestions at the earliest. Thanks.

I have seen the manual lightly since the manual, I hope, will be updated once again when Integrated Test will be completed or Pre/Post GoLive. However, I have given some recommendations for Training Manual in RED, please see and advise. Thanks.

Thanks a lot for your prompt response. As for the integrated testing, we shall see how it progresses on due time along with possible modifications to the existing manuals with the current feedback. Good day.

Please see the mail from Costing and update the manual as per his recommendations in the file.

I have found one Product in Costing Module in MIS where all ingredients were shown twice the Formulation Qty. I don't know how many products there may exist in MIS which will have severe impact like this, on the product cost. For your reference Product Code 848 is given. Could you please see the issue on an urgent basis! Thank you in advance.