Accounting Reports

Management Information System (MIS) reports are prepared for the management to take key managerial decisions. It may vary from company to company and industry to industry.

Committed cost is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a short run basis. They arise from the possession of production facilities, equipment, an organization setup, etc.

Some examples of committed costs are: plant and equipment depreciation, taxes, insurance premium and rent charges.

A parent company, acquired 80% of B company, which in turn has already acquired 40% of C company. How will you account profit of C company in consolidated accounts? How will you account B company investment in C company in consolidated accounts?

Periodic statemets showing financial position of a firm/company for a specific period, resulted from its business tranasctions and operations

Gross Profit Margin = Gross Profit/Sales or Revenue

Gross Profit = Sales or Revenue - Cost of Goods Sold

Budget is the cost involved for the project right from start all tha cost regarding materials, men power, place, time to complete the the project with in a time frame and the cost involved it.

In budgeting, a detail study will be done from laying a plan, study the number of methods to do the task, the technology to be use, the alternative way or process, manpower required and their skill level and the time duration from raw material to finished goods convertion and the work in progress must be taken to account and life time of project and return from the project are calculated in black and white based on which decision are taken whether to do the project are not.

Money set aside (as by a legislature) for a specific purpose generally for aquisitions by a firm

Forecosting is done based on the past experiences of the persons in the particular field and predict the cost involved for the particular action or for the data collected about the a project in the past it is done on based of past data.

Depreciation is charged only on fixed assets because we are allocating the total expense of Fixed asset for many years.

Stock is a current asset generally used to sell with in a year only.

More importantly we show consumption of stock in Trading A/c through Cost of goods sold.

(i.e.,Opening stock + Purchase - Closing Stock)

That means Stock consumption expenses is already booked in Trading A/c hence we do not show again as expense by treating as deprecation.

When any foreign exchange (currency) comes to your bank account Bank wants confirmation from your side as per RBI rule i.e.-what is the purpose of this remittance means how and why got this money? Then You have to submit the purpose/amount/ bank account etc. to the bank.This is the procedure of giving disposal instruciton of remittance after this document you can ask to get FIRC.

Finalization of accounts is preparing financial reports in comparison with briefing of companys financial reports. Which include Income ,Cash flows, Balance Sheet, Policies, disclosures, and Equity.

A Budget is a plan that outlines an organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans.

Forecast: Due to some operational reasons or managment decision plan maynot be followed as it was done in the begining of the year. So this is changed accordingly to comply with the organisations objects. This change in plan is called forecast.

Suppose the Bank has granted the loan for specific project for example to invest in the additional capacity production of the company by investing in new equipment.Now the Compliance towards the corporation is to follow the procedure and make the budget plan,Financial Reporting,Accounting and Management Plan,Operational plan accordingly.Prior to Investment it has to take due consideration from the Municipality for Space Requirement for additional equipment,Lease Rent,Development fees,Permission fees and other charges.In case of Provincial Treasury budget for Increase in Treasury due to new Project according to compliance.

Under cash system of accounting, transactions are recorded in books on the basis of their actual payment or receipt made.

Under the accrual basis of accounting, the transaction are record on their occurrence in the business regardless of actual payment or receipt is made, and recognizes the assets and liabilities accordingly. provisions are made for all known losses and obligations are recorded for the period to which it relates to in the books.

Aging Report is called Vendor wise & Customer Wise Outstanding - Report

Example : 30 days , 30 to 60 days and crossed 180 days... - Balance Report

Contingent Liability is the liability which may / may not occour in future... So, it is shown as notes rather then in balance sheet... Once, the liability become's real then it will recorded in books.

MIS report means Management Information System. MIS is prepared to know the day to day transactions of a company. Simply to know the position of the company ( profitability or loss).

Income(sales-export,domestic,job work)- Expenditure(manufacturing, administration,S & D,Financial expenses).

(A)asset side items are

1 cash in hand

2.cash at bank

3.debtor

4.land ,building

5.prepaid expenses

6. bills receivable

(B)liability side

1.capital

2.bank over draft

3.creditor

4.outstanding expenses

5.bills payable

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