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Showing posts from January, 2007

Spanish Cost accounting of governmental services-Fished out from internet resource.

Cost accounting in meteorology: a pressing need?
The experience of the Spanish National Institute of Meteorology
By Benito R. Mallol1 and Francisco Almonte Gregoria2
Consideration of the costs associated with specific activities in the private sector is a routine affair. Activities carried out in the public sector, particularly those relating to services, are quite another matter, though, for in that field cost accounting is still a little-used tool and there is little understanding of its function and potential benefits.
As a general rule, social welfare policies have unleashed substantial public spending increases in most developed countries. Since such spending exceeds income, those countries’ deficits are growing at an alarming rate.
The constant expansion seen in public services in recent decades is the result of consumers’ growing demand for more and better services. Yet the paucity of public resources calls for an increasingly effective rationalization of the manageme…

Full Cost Accounting

What is FCA?

1. Is there a standard definition of FCA?
Yes. FCA is a method of accounting for all monetary costs of resources used or committed for MSW services. FCA goes beyond the limits of cash flow accounting, which is often used by local governments, by considering direct and indirect (overhead) operating costs of MSW services as well as upfront (past) and back-end (future) expenses.

2. How does FCA differ from what local governments already do?
Many cities currently use budget-based, or cash-flow, accounting -- they report their current costs and figure their expenditures in terms of their current budget. The biggest difference between budget-based accounting and FCA is that FCA recognizes costs over the life of a program or service. It also includes up-front, overhead, and future costs, which is rarely considered under budget-based accounting.

Scope of FCA

3. What are the specific types of costs that FCA addresses?
FCA addresses up-front costs, such as public education and outreach, l…

Management accounting standards-Initiative.

Author: Juergen H. Daum
Subject: Draft for a proposal of cooperation between European controlling / management accounting associations
in order to establish “International Controlling / Management Accounting Standards”
Approved by the Managing Committee of the IGC: January 2006
Why Do We Need International Management Accounting
In most European countries, International Financial Accounting Standards (IFRS) have created a
new era of accounting and financial reporting. Many companies that are applying IFRS for the
first time experience a sharp move away from their past accounting traditions - such as from the
traditional continental European principle of protecting creditors or from the caution principle
(value assets at the lowest possible value, value liabilities at the highest possible value) to full
shareholder value orientation and to the principle of “fair value” in accounting.
Fair value accounting, in particular, is confronting accountants and auditors with a major
challenge: they…

A parable for our times

This is a pick from internet....

A parable for our times.....

OLD VERSION..... The ant works hard in the withering heat all summerlong building his house and laying up supplies for the winter. The grasshopper thinks the ant's a fool andlaughs & dances & plays the summer away. Come winter,the ant is warm and well fed. The grasshopper has no food or shelter so he dies out in the cold.
~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~

MODERN VERSION The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter. The grasshopper thinks the ant's a fool andlaughs & dances & plays the summer away. Come winter, the shivering grasshopper calls a press conference and demands to know why the ant should beallowed to be warm and well fed while others are cold and starving.

NDTV, BBC, CNN show up to provide pictures of the shivering grasshopper next to a video of the ant in his comfortable home with a table filled with food.

The World is stunned…

Cost Audit Awareness in India

I came across a discussion topic by Murari Limaye on cma india discussion board with a request to brain storm on it. The topic is very interesting and reproduce the questions below:

The points initialy came in my mind are...

1. We have to prove that the Cost Audit is necessary because it helps to Government, Industries,Stake holders.
2. What are the advantages of Cost Audit to these institutes?
3. Are the reports are used by the Government to control the prices that we do not know as it is kept secret.
4. If required we have to give presentation on how to use the Cost Audit Report para to para.

5. Is the current Cost Audit report is too large and unrequired information is to be removed?
6. Is this report is to be given to shareholders also?
7. Why all the manufacturing industries and service industries are not covered for cost record maintainance as well as cost Audit Report? and so on.....

I have never been a supporter of too much controls on business. But at the same time control should exi…

Steve Jobs Speech in Stanford Ceremony

This is an amazing speech by SteveJobs in Stanford University's graduation ceremony!..

Stay Hungry... Stay Foolish

The speech is inspiring. Must see.


Santosh Puthran

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Interesting Way to do business

Technology has changed the way the business is done. The change in technology, the laws and accounting have to adapt to it.

Law Changes: Applicability of service tax on international in-bound roamers under telephone service – reg. in Indiahttp://

As you read the document, you will find how an international roaming should be considered a service by an Indian service provider and it should be charged for service tax. Fair enough.. Govt. should get it share of tax when the technology changes the way the business is done.

Music Downloads

Leona Lewis, this year's X factor finalist in UK. The first single was released... Yes single... only one song was released the day she won X factor. Within a hour of result was announced 50,000 downloads of the song was made. Click here and see how it works. Unbelievable !!! Within a matter of hour, the sales was £ 1.50 x 50000 downloads £ 75,000. And by Christmas the downloaded exceeded half a millio…

Highest Marks in ACCA Examination June 2006

I was reading Student Accountant magazine of ACCA and they have published highest marks achiever of June 2006 examination. I was amazed that the candidates can achieve such a high marks in examination.

The June 2006 exam session saw nearly 116,400 Professional Scheme candidates write over 210,000 scripts at 337 exam centres in 133 countries. Following each exam session, ACCA marks the achievements of its top scoring students by awarding medals to those who score the highest scores in the three core papers.

Gold medal winner : Rajeev Tatiah, Mauritius, 232 marks out of 300
Silver medal winner : Mladena Markovic Galliver, Serbia, 229 marks out of 300
Bronze medal winner : Diana Mulebwaire, UK, 222 marks out of 300

Winners Paperwise:

Paper 1.1 (Preparing Financial Statements) prize is Rajiv Bahadur Shastri Seewochurn from Mauritius with a score of 97

Joint winners of the Paper 1.2 (Financial Information for Management) prize are Tatyana Chumakova from Kazakhstan and See Phek Hoon from Singa…