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@[364443:abhimukh19]


I support Mr abhimukh, Finance is very much vital subject which you have to counter analytically, even if you are just an auditor still its a great responsibility of work few of our students working in Maruti Suzuki, initially they have taken the job very lightly but now they have understood the importance of a finance manager.
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Hi Guys,


I am sure that I will come across a lot of Finance champs here. I am facing some problem with Financial Accounting basics (MBA I Trimester). I have never done Journal, Ledger, Balance Sheet before and I am facing a lot of trouble in solving problems. Can you guys kindly suggest some books which will help me understand the basics very well?

Currently I've been given the following book - ACCOUNTING. Text and Cases. By Robert N Anthony, David F Hawkins, Kenneth A Merchant.

Thanks!
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@[321331:hani_salaam] XI/XII commerce accounting books might help u


and thr is also one book mangerial accounting by satish inamdar for basics
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@[536725:abilash001] .. Well - best example in today' case could be Kingfisher Airlines, given its business is such a bad shape and the industry is reeling under fuel price pressure.. it might decide to sell itself... So, when management of a company is in need of cash - it might decide to hive of one of its assets/comapnies.

Then, in case there is too much competition but there is growth left in the industry, that time companies might decide to consolidate - merge with each other.. one example is E-commerce industry, where letsbuy.com was taken over by flipkart.com.

There are many more would let others comment on it..

Cheers

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@[321331:hani_salaam] For accounting - would agree 11th and 12th books.. they are the best would allow you to understand basics in the least time possible as they are most simple...

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@fin-guru said: @abilash001 .. Well - best example in today' case could be Kingfisher Airlines, given its business is such a bad shape and the industry is reeling under fuel price pressure.. it might decide to sell itself... So, when management of a company is in need of cash - it might decide to hive of one of its assets/comapnies. Then, in case there is too much competition but there is growth left in the industry, that time companies might decide to consolidate - merge with each other.. one example is E-commerce industry, where letsbuy.com was taken over by flipkart.com. There are many more would let others comment on it.. Cheers
lets take the case of instagram or axon buyouts.. they hardly touched red.. their investors were not too excited but happy with the things going then.. suddenly the big gun arrives with a truckload of cash and stock options and they say 'yes' in reply. In that case what happens to the deal proceedings? is it like taking a partial stake or total buyout of their market value.?
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@abilash001 said: lets take the case of instagram or axon buyouts.. they hardly touched red.. their investors were not too excited but happy with the things going then.. suddenly the big gun arrives with a truckload of cash and stock options and they say 'yes' in reply. In that case what happens to the deal proceedings? is it like taking a partial stake or total buyout of their market value.?
Ill give u two words "Synergy" & "Diversification" & 95% of the M & A deals are covered in them.
Why will u merge unless u r too concentrated in any one line of business which is a risk so u DIVERSIFY or u find "SYNERGIES" in merging with another enterprise....
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http://www.thehindubusinessline.com/todays-paper/tp-opinion/article1646129.ece

Some gyan on India's monetary policy
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@[536725:abilash001] Well, in Instagram' case - what would have happened was all the cash would go into the pockets of the investors/management of Instagram... But, remember they were not given cash in this deal - but FB stock.. so in effect, Instagram investors/management became FB shareholders..

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So it apparently lies in the hands of board members right? RIM is sinking but their executives are so adamant that they not gonna sell it simply to show the world 'RIM cannot bust'.. on the other hand.. billionaires like ellison shell out more money on acquisitions than anyone else// small companies who are on the rise has no other choice but to sell it considering the money that is thrown at them.

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Hey
Someone thtow lighjt on chnage in balancesheet proforma in 2011 by ICAI

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The presentation of financial statements is an integral component in luring and educating the outside parties regarding the financial health of a concern, we present those information through the classification of various things such as assets, liabilities and capital components through balance sheet.

With the increase in the exposure of Indian corporates world wide and various Indian companies getting global it was felt that the presentation of financial statement should be in line with the internationally accepted IFRS system though fundamentally presentation prescribed by the Indian accounting standard board and the IFRS are the same but still a presentation format was required that was investor friendly (that is to give even a non finance guy fair bit of idea about the health of a concern. consequently,

the ministry of corporate affairs proposed a new format of balance sheet in line with the IFRS , existing and amended(with standing commitee) companies act 1956.

This was further adopted by ICAI and recommended for accounting use, remember its not for other formats of concern i.e it is only for “companies” and it has not been made compulsory (except large organizations)

Key changes and observations :the new format distinguishes the asset side into two major heads only 1.fixed assets 2.non fixed assets only(earlier it was more) fixed assets work in progress is a new item for example if u had a building that was under construction it was difficult to present its value in the old format as there was always a confusion about the presentation of capital work in progress but know it's a separate heading

On the liability side there is a change for items related to deffered taxation expenditures and also the liabilities have been classified as cuurent and non current liabilities only,an intresting change comes into the share capital part where u have know the aggregate value of shareholders funds ,the liability side also gives a separate heading for long term fixed obligations of organizations such as provident funds and gratuity liabilities .

It has been designed to improve the transperancy and also to facilitate the preparation of consolidated balance sheet (for ex-tata and its subsidiaries ,where tata can make a single balance sheet) the exact format can be googled ,hope it helps

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Jaiswal sir can u provide more differences

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guys lets discuss some corporate scams becoz it wud give us sme insight in the upcming future finance related laws and past laws.....lets start with 'tobashi effect'

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@iwantgovtjob said: Jaiswal sir can u provide more differences
sure




1. fixed assets :to be furthur classified as tangible and intangible(goodwill,patent etc)

2. 'ASSET side to be know named as “application of funds'

3. cash and bank balance to be know called as 'cash and cash equivalents'

4. goods in transit to be disclosed separately under the sub head inventory of head current assets

5. new disclosures regarding proposed dividend(by directors) and E.P.S(earning per share)

6. 'LIABILITY' side changed as 'SOURCES OF FUNDS'

7. new entry of shareholders fund in the capital and liability side

8. removal of P&L; deficit from

9. company will have to disclose the shareholding of more than 5%

10. fictitious assets has been a matter of concern but according to a circular by ICAI ,assets which are to be written off with in 1 year remember the words “are to be” should be shown in the heading of current assets and remaining portion in the head of other current assets

11. removal of “miscellaneous expenditure” from the asset side.

12. provisions are again classified as short term(bad debts, revaluation) and long term(gratuity and provident fund)

13.

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any one has Ferrero rochers assignment ???

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Hi
is there any software which can make projected balancesheets?
i want to download it

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@iwantgovtjob said:

Hiis there any software which can make projected balancesheets?i want to download it

Many accounting softwares do that. Are you looking for something in particular?
Or are you looking for a pre-designed excel sheet?
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No i just want to make projected balacesheet of people who come to my father for loan

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@iwantgovtjob said:

No i just want to make projected balacesheet of people who come to my father for loan

Does he do it for a bank/NBFC? or self?
Suggest you design something in excel that can easily be modified as per the businesses that come in.
Start something and if you need help, I / someone will pitch in.