Mr. Muhammad Ali...from which university are u doing MBA from...?

@ Purab Sahan:

You are partially right here. But the scope of chartred accountants is much wider and not limited to accounts and audits. I am myself a Financial Consultant. CAs are trained and developed to work in every capacity in all walks of corporate world.

You are wrong here. I am myself working in world's 3rd largest accounting firm "outside Pakistan". A chartred accountant definitely has more prospects than an MBA even from an internationally recognised university. I have many of my colleagues who have graduated and done MBAs from UK and US (LSE, University of Massachusetts etc.) but they are working under CAs (either from UK or Pak) in the end and have rarely got strategic positions.

No, I do not agree with you. Pakistani books are following international standards. But it again depends which level of books you are using. Obviously, the books of M Com will not mention accounting standards but the questions are solved and techniques are discussed under accounting standards. Accounting standards are studied specifically and in detail only in accountancy studies. If you need any help on books, I can mention here.

I am only rectifying your misconceptions and my comments are not intended to offend anyone.

Regarding IFRS, you are right. IFRSs have replaced some of the IASs like IFRS 1 -5. But my theme was that they are the same thing in the sense that they are international standards. you cannot say that one treatement is according to an IAS and one is under an IFRS. In fact every country is using its local GAAP and it's optional for the companes to use the international standards or their local country GAAPs. But now the trend has been to adopt IFRS/IAS for consistant reporting.

Kind Regards

__________________
"A man can be as great as he wants to be. If you believe in yourself and have the courage, the determination, the dedication, the competitive drive and if you are willing to sacrifice the little things in life and pay the price for the things that are worthwhile, it can be done."

My question is relate to 2007 Cash budget question, it ask for Cash budget of Month April,2007.

1) Bank Loan Due on April 10, Rs 9000 plus Rs 4,500 Interest: We Include both in Cash outflow?
2) Any Amount due on April, We include it in outflow ?
3) Accrued Taxes for april, payable in june 2007 : We should not include it in for outflow, Right?
4) Accounts Payable march 31, Rs 460,000 : Include in Outflow ?

Please Answer:

__________________
كُلُّ نَفْسٍ ذَآئِقَةُ الْمَوْتِ - Every Soul Must Have The Taste Of Death

Dear if you have any problem in any portion of the syllabus
u can share it with me

@ bunko

1) Bank Loan Due on April 10, Rs 9000 plus Rs 4,500 Interest: We Include both in Cash outflow? Yes, both will represent cash payment made in April and hence will be included in outflow.
2) Any Amount due on April, We include it in outflow ? Any amount due and paid in April will be included unless there are other conditions attached. But the question is not such complex and hence you can take this amount to cash outflow.
3) Accrued Taxes for april, payable in june 2007 : We should not include it in for outflow, Right? yes, they are accrued expenses and hence will be included in the cash oulflow in June only, not in April.
4) Accounts Payable march 31, Rs 460,000 : Include in Outflow? Well, here you will have to look at the corresponding Accounts Payable at April 30. If the amount is reduces (e.g. Rs 400,000) then you will include that difference (Rs 60,000) in the cash outflow.

__________________
"A man can be as great as he wants to be. If you believe in yourself and have the courage, the determination, the dedication, the competitive drive and if you are willing to sacrifice the little things in life and pay the price for the things that are worthwhile, it can be done."

Dear

As regard to Accrued tax we cannot take it in cash budget because there is no inflow nor out flow of cash as a result of this if we prepare have to prepare cash budget of June we would take it as a cash out flow in that month.


While as regard to account payble of March there is no clear statement given in which month payment is to be made that is why this amount would also not be taken in cash budget of April.

@ RAHAT ULLAH HANZALAH

Let me explain the concept. The amount of payable will obviously not included in the April cash budget as it is not a cash outflow. However, If the information about the correspnding balance in April is available, the difference can be included in the cash outflow as a payment is made (if the diference is -ve, as expleined above) and if the corresponding amount inceased, we will have to see if the purchases are made at cash or credit and adjust teh cash accordingly.

But given the as is condition, this head will not go to cash budget of April.

__________________
"A man can be as great as he wants to be. If you believe in yourself and have the courage, the determination, the dedication, the competitive drive and if you are willing to sacrifice the little things in life and pay the price for the things that are worthwhile, it can be done."

But If, the amount of Accounts Payable at March 31 is Rs460,000 And no Accounts Payable given for April, It means Whole amount is paid ?

Thank you So much Omar!
InshAllah ALLAH will bless you for your sincere effort.


Regards,

__________________
كُلُّ نَفْسٍ ذَآئِقَةُ الْمَوْتِ - Every Soul Must Have The Taste Of Death

yes, the value in april is Rs 0 which means that the creditors are paid full. Hence, it will b a cash outflow.

__________________
"A man can be as great as he wants to be. If you believe in yourself and have the courage, the determination, the dedication, the competitive drive and if you are willing to sacrifice the little things in life and pay the price for the things that are worthwhile, it can be done."

do u think IAS matters at this level one needs to appear in css or CA/ACMA