Accounting and Information Systems Of BU

Techniques used in Capital Budgeting (with advantages and limitations) Capital Budgeting : Capital budgeting can be defined as a process of identifying, evaluating, determining & selecting   long term investment proposal where return are expected over the one year. Capital budgeting consists of various techniques used by managers such as : 1. Net present value method: The net present value (NPV) method is a process of calculating the present value of cash flows (inflows and outflows) of an investment proposal, using the cost of capital as the appropriate discounting rate, and finding out the net profit value, by subtracting the present value of cash outflows from the present value of cash inflows. Decision making criteria : NPV greater than 0 = Accept NPV less than 0 = Reject NPV equal 0 = indifferent position Advantages: 1. It recognizes the time value of money 2. It considers all cash flows over the entire life of the project in its calcul...

CONCEPTS OF GOVERNMENT AUDIT Government audit is applicable to Government departments and departmental undertakings. Government of India maintains a separate department known as Accounts and Audit Department. Comptroller and Auditor General of India heads this department. In India the President appoints the Comptroller and Auditor General of India under Article 149 of the Constitution, which gives the powers and rights and fixes his responsibility for the audit of Government departments and institutions. Government audit is divided into several branches like Defense, Railways, Posts and Telegraphs audit. It works only for government offices and departments. This department cannot undertake audit of non-government concerns. Its working is strictly according to government rules and regulations. OBJECTIVES OF GOVERNMENT AUDIT The objectives of government audit are as follows: 1. To make sure that the expenditure is incurred out of the fund, which the competent author...

Cost concept Cost is "a foregoing, measured in monetary terms, incurred or potentially to be incurred to achieve a specific objective" (American Accounting Association). Cost refers the monetary measure of the amount of resources given up or used for some specified purpose. It is the value the goods or services expended to obtain current or future benefits. All types of organizations incurred costs─governmental, not-for-profit, manufacturing, retail and service. Generally the kinds of costs that are incurred and the way in which these cost are classified depend on the type of organization such as─ manufacturing merchandising, and service.              Cost Classifications Costs can be classified in different ways. There are manufacturing costs and non-manufacturing costs, direct and indirect costs, product and period costs, fixed and variable, sunk and opportunity costs, etc. Management accountants need to understand cost...

Scope of Bangladesh value added tax law: Value Added Tax Act, 1991:   The value added tax Act, came into force on 1st July, 1991. It has 73 sections, numerous sub sections & three schedule. 2. Value Added Tax Rule, 1991:  The National Board of Revenue prepared relevant rules under the name "Value Added Tax Rules, 1991". The rules are followed in the administration of the VAT Act. 3. Finance Act:  To give effect to the various proposals in the annual budget covering the areas of direct & indirect taxes, Finace Act is issue. It contains various applicable tax rates & amendments to the Value Added Tax Act, 1991. 4. SRO (Statutory Regulatory Orders):  According to the section 21 of the Value Added Tax Act, 1991; NBR can issue certain circulars as & when necessary. The provisions of these SROs are also to be considered at the time of imposing VAT.                        ...

             AUDIT of BANKING COMPANIES The audit of Banks is a specialized task. It is made compulsory under the enactments governing the banks.   It requires the thorough knowledge of various enactments affecting banks, understanding the operations of banks, their accounting system, and above all appreciation of audit aims of Bank audit. Ø Salient Features of Enactments Affecting Banks : The audit of the Banks should be well-acquainted with the provision of the special enactment that govern different types of Banks, particularly those which affect the various items of financial implications of the business carried on by Banks and the types of the transaction that arise in the day-to-day operations. There are some salient features of enactments that affect the banking operations in Bangladesh-         I.             Restrictions on...