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Showing posts from December, 2006

Car Satellite Navigation

If you drive in Europe, then the first question that comes to mind... Will you reach in time ? Can I navigate through the roads like the one below:








You need a Satellite Navigation system ( for autos Automative Navigation System)

What is Automative Navigation System ?

An automotive navigation system is a satellite navigation system designed for use in automobiles. Unlike other GPS systems, these use position data to locate the user on a road in the unit's map database. Using the road database, the unit can give directions to other locations along roads also in its database.

How does Satellite Navigation System work ?

GPS : GPS is the world’s first satellite navigation system. It was developed by the U.S. Government’s Department of Defense, who gave GPS its official name: the NAVSTAR system (Navigation Satellite Timing and Ranging).

GPS consists of 3 key elements:

• Satellites in space
• Monitoring Stations on Earth
• And last but not least, you and your GPS receiver.

GPS signals

Your GPS re…

Transfer Pricing

Source: www.proteusadvisors.com

Transfer pricing refers to the pricing of goods and services within a multi-divisional organization, particularly in regard to cross-border transactions. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary, with the choice of the transfer price affecting the division of the total profit among the parts of the company. This has led to the rise of transfer pricing regulations as governments seek to stem the flow of taxation revenue overseas, making the issue one of great importance for multinational corporations.

A case of PAYING SOME TAX

The subsidiary company buys goods at £100 each. They repack them and then export them from their country to our country, selling them to us at a price of £200 each. They are transferring them to us for a transfer price of £200.



So they have made a profit of £200-£100=£100 and we are getting them at a price of £200. This ca…

Illogical Thinking...

Many years ago in a small Indian village, a farmer had the misfortune of owing a large sum of money to a village moneylender.

The moneylender, who was old and ugly, fancied the farmer's beautiful daughter. So he proposed a bargain. He said he would forgo the farmer's debt if he could marry his daughter.
Both the farmer and his daughter were horrified by the proposal. So the cunning money-lender suggested that they let providence decide the matter. He told them that he would put a black pebble and a white pebble into an empty money bag. Then the girl would have to pick one pebble from the bag.

1) If she picked the black pebble, she would become his wife and her father's debt would be forgiven.
2) If she picked the white pebble she need not marry him and her father's debt would still be forgiven.
3) But if she refused to pick a pebble, her father would be thrown into jail.

They were standing on a pebble strewn path in the farmer's field. As they talked, the moneylender …

Consignment Stocks - How it is treated as per Indian Accounting Standards

This is one of the questions, I picked up from professional exams in UK.

Atkins plc’s operations involve selling cars to the public through a chain of retail car showrooms. It buys most of its new vehicles directly from the manufacturer on the following terms:

Atkins plc will pay the manufacturer for the cars on the date they are sold to a customer or six months after they are delivered to its showrooms whichever is the sooner.The price paid will be 80% of the retail list price as set by the manufacturer at the date that the goods are delivered.Atkins plc will pay the manufacturer 1·5% per month (of the cost price to Atkins plc) as a ‘display charge’ until the goods are paid for.Atkins plc may return the cars to the manufacturer any time up until the date the cars are due to be paid for. Atkins plc will incur the freight cost of any such returns. Atkins plc has never taken advantage of this right of return.The manufacturer can recall the cars or request them to be transferred to another…

Throughput Accounting

Throughput accounting (TA) is an alternative to cost accounting proposed by Eliyahu M. Goldratt. It is not based on Standard Costing or Activity Based Costing (ABC). Throughput Accounting is not costing and it does not allocate costs to products and services. It can be viewed as business intelligence for profit maximization. Conceptually throughput accounting seeks to increase the velocity at which products move through an organization by eliminiating bottlenecks within the organization.


Cost (or Management) accounting is an organization's internal method used to measure efficiency. Since no one outside the organization uses such internal accounts for investment or other decisions, any methods that an organization finds helpful can be used.


Throughput accounting improves profit performance with better management decisions by using measurements that more closely reflect the effect of decisions on three critical monetary variables (throughput, inventory, and operating expense — defin…

Identity Theft

What is Identity theft?

Your identity and personal information are valuable. Criminals can find out your personal details and use them to open bank accounts and get credit cards, loans, state benefits and documents such as passports and driving licenses in your name.

How Can Your Identity Be Stolen?

Bin raiding– Fraudsters pay people to go through the rubbish you throw out, looking for bank and credit card statements, pre-approved credit offers, and tax information.

Card skimming – This usually occurs when a shop assistant or waiter, for example, gets your information by ‘skimming’ or copying your credit card information when you make a purchase. They often then sell the information to professional criminal gangs.

Internet Sites– Anybody that uses the internet will regularly be asked to share personal information to gain access to websites and buy goods. Fraudsters can combine the personal information you provide to…

The magic mantra of Warren Buffet

THE MAGIC MANTRA FOR ALL: - Warren Buffet

Email sent in cma_india yahoogroup by Nayana Savala

There was a one hour interview on CNBC with Warren Buffet, the second richest man in the world, and who has donated $31 billion to charity.

Here are some very interesting aspects of his life:

1) He bought his first share at age 11 and he now regrets that he started too late!

2) He bought a small farm at age 14 with savings from delivering newspapers.

3) He still lives in the same small 3 bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

4) He drives his own car everywhere and does not have a driver or security people around him.

5) He never travels by private jet, although he owns the world's largest private jet company.

6) His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the y…

Wheeled Coach Job Costing

I was looking for some instructor material on costing on Internet and I found one for Job Costing. This video is an informative video on Job Costing... If you get know something else, please post on this blog.



The word Chartered hot debate in India

The word "Chartered" we debate on everytime as in word "Chartered Accountant", I thought of finding the origin of this word. Some interesting facts that I came to know when I searching wikipedia and its related links.

http://www.reference.com/browse/wiki/Charter

A charter is a legally binding document incorporating an organization or institution and specifying its purpose, remit or bylaws. Organisations such as the Institution of Civil Engineers in the UK is chartered to maintain and advance the science and practice of civil engineering in the UK, and by this charter has the right to regulate the business of civil engineering in the UK; this gives rise to a status of a chartered engineer - one who satisfies the requirements of the charter holding organisation.

http://www.reference.com/browse/wiki/Royal_Charter

The BBC operates under a Royal Charter which lasts for a limited period of ten years, after which it is renewed.

Most Royal Charters are now granted to profession…

Useful PPTs posted by CMA.Siva Rama Krishna Srirangam

Source: This mail was posted by CMA.Siva Rama Krishna Srirangam in http://groups.yahoo.com/group/cma_india

The contents and links posted by CMA. SSRK are very useful for Management Accountant.

Dear Friends,

Many more Files are added in almost all the Subjects. Seprate Exclusive Sub-File is created for" ABC / ABM "due to its importance in the file" Management Accounting" and kept lot of material.

Professional friends are requested to visit the links given below and have professional discussions for a healthy knowledge sharing & gaining among the professional members.

Managment Accountant Repository


Thanks & Regards

CMA.Siva Rama Krishna Srirangam

Cost & Management Accounting Books... Click here to read more



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