CIMA 'not happy' with financial statements

The Chartered Institute of Management Accountants (CIMA) has expressed a number of concerns over the complexity of financial statements.

Reported in Accountancy Age, Charles Tilley, chief executive of CIMA, claims that companies are not putting 80 per cent of their assets on balance sheets and that there is not enough disclosure on cash flow.

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Regards,

Santosh Puthran

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Learning Curve Theory

Learning Curve Theory is concerned with the idea that when a new job, process or activity commences for the first time it is likely that the workforce involved will not achieve maximum efficiency immediately. Repetition of the task is likely to make the people more confident and knowledgeable and will eventually result in a more efficient and rapid operation. Eventually the learning process will stop after continually repeating the job. As a consequence the time to complete a task will initially decline and then stabilise once efficient working is achieved. The cumulative average time per unit is assumed to decrease by a constant percentage every time that output doubles. Cumulative average time refers to the average time per unit for all units produced so far, from and including the first one made.

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Areas of consequence:
A Standard Costing …

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