Financial Statements

Cash Flow Statement

Cash Flow Statement:

Cash flow statement does not include amount of future cash dealings that are on credit. Cash is not same as net income in income statement and balance sheet. There are 3 types of business activities regarding cash dealings. operating , investing and financing activities.

Methods of Cash flow statement:

There are 2 basic methods to make cash flow statements;

1. Direct Method.
2. Indirect Method.

Operating Activities:

Cash inflows and outflows by business operations. Operating activities shows how much cash is generated from products or services of the business. Changes in cash, account receivable, depreciation, account payable etc are shown in cash from operating activities.

---> Cash flow is calculated by adjusting net income by adding or subtracting differences in revenues, expenses and credit dealings resulting from transactions from one period to the next. 

---> These adjustments are made because of non-cash items in net income and total assets and liabilities.All transactions does not include cash, many items have to be revised when calculating cash flow.

---> Depreciation is added back in net sales. When the asset is sold the income is iincluded in the cash inflow.

---> Changes in accounts receivable in balance sheet from one period to the next is also included in cash flow statement. If accounts receivable decreases, this shows that more cash is entered from credit accounts, the amount by which account receivable has decreased is added to net sales.

--->If accounts receivable increase from one period to the next, the amount of the increase is subtracted from net sales because, the amount in accounts receivable is revenue and are not cash.

---> An increase in inventory, shows that a company has purchased more raw materials inventory. If the inventory purchased with cash, the increase in inventory is subtracted from net sales.

---> A decrease in inventory will be added to net sales. If inventory was purchased on credit, an increase in accounts payable will be shown on the balance sheet and amount of the increase from one period to the other will be added to net sales.

---> Expenses, for example taxes payable, salaries payable and prepaid insurance. If paid, then the difference in the value from one year to the next has to be subtracted from net income. 

--->If there is an amount that is still to be paid, then any differences will have to be added to net earnings.

Investing Activities: 

Changes in equipment, assets or investments related to cash flow from investing.

--->Cash changes from investing are due to purchase of new equipment, buildings or other assets that are short term such as marketable securities.

--->When a company sale an asset, the cash inflow occurs.

Financing activities:

Changes in debt, loans or dividends are cash flow from financing activities.

---> Changes in cash from financing activities are when the capital is increased, it is cash inflows.

---> When dividends are paid, this is cash outflows.

--->If a company issues a bond to the public, the company receives cash.

--->When interest is paid to public, the company is reducing its cash.

Introduction to Adjusting Entries

Adjusting Entries:

"Adjusting entries are journal entries made at the end of accounting period to allocate revenue and expenses to the period in which they actually applicable."

·         Adjusting entries are required because normal journl entries are based on actual transactions and the date on which these transactions occur may not be the date required for the matching principle of accrual based accounting.

Prepayments:

Adjusting entries for prepayments are necessary for cash that received before delivery of goods or services.

--> When this cash is paid, firstly it is recorded in a prepaid expense account on asset side, this amount is to be expired with the time e.g. rent, insurance as it is consumed.

--> A company receiving the cash for goods and services yet to be delivered will have to record the amount in an unearned revenue or liability account. An adjusting entry to record the revenue is used as necessary.

Accruals:

Accrued revenues are revenues that have been recorded, that is services have been performed or goods have been delivered, but their cash payment yet not received.

--> When the revenue is recorded, it is recorded as a receivable. Accrued expenses have not yet paid, so they are recorded in a payable account.

--> Expenses for interest, taxes, rent, and salaries are commonly accrued for reporting purposes.

property plant and equipment

IAS 16 Property, Plant and Equipment

This Standard is for the accounting treatment for property, plant and equipment. This principal is used in accounting for property, plant and equipment, their recognition, the determination of their cost amounts and the depreciation charges.

·         Tangible items that;

--> Held for use in the production or supply of goods or services, for rental purposes, or for any other business Purposes.

--> Used for more than one period.

·         Cost of an item;

--> Its purchase price, import duties, non-refundable taxes are included, and trade Discounts and rebates are deducted.

--> Costs in bringing the asset to the location and making it Capable of operating in the manner that is required.

--> Costs of removing the item and restoring the site.

·         Measurement after recognition;

these are measured by 2 methods;
 --> cost model.
--> revaluation model.

·         Cost Model:

After recognition, property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses.

·         Revaluation Model:

After recognition, property, plant and equipment can be measured at a revalued amount, its book value at the date of the revaluation less accumulated depreciation and accumulated impairment losses. Revaluations shall be made with regularity to ensure that the cost value does not differ materially which would be determined using book value at the end of period.

·    Increase in Value:

      If an asset’s book value is increased as a result of a revaluation, the increase shall be recorded in income and add in equity under the heading of revaluation surplus. However, the increase shall be recorded in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recorded in profit or loss.

·         Decrease in Value:

If an asset’s book value is decreased as a result of a revaluation, the decrease shall be recorded in profit or loss. However, the decrease shall be recorded in income to the extent of any credit balance existing in the revaluation surplus in respect of that asset.

·         Depreciation:

      It  is the systematic allocation of the depreciable amount of an asset over its useful life. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately.  The depreciation charge for each period shall be recorded in profit or loss unless it is included in the book value of another asset.
    
      The depreciation method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity.

·        Residual Value:

      It is the value of an asset as the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Inventories

ACCOUNTING FOR INVENTORIES:

International Accounting Standard (IAS) 2

This standard is established for providing proper guidence for determining the cost of inventories involved in a business. It provides the information for treating inventories basically at two levels.

1. when the inventory is purchased by the business and its treatment and recording when it is entered in the business.
2. when the inventory is recorded and treated as an expense for the business.

Inventories:

The raw material, work in progress goods and finished goods are treated as inventory for a business. As these are ready for sale or will be ready for sale in future and treated as asset of a business.

---> Work in progress which is under construction, biological instruments and shares and bonds are not included in inventory of business entity.

Objectives:

The main objectives of IAS 2 are as follows;

·         guidence for cost evaluation.

·         accounting treatment for the inventories of business.

·         circumstances for written down and net realizable values.

·         cost which is to be recognized

·         how to carry forward cost till the revenues are generated 

Measurement of Inventories:

There are basically two approaches for inventories:

1. Perpetual inventory system.

2. Periodic iunventory system.

-->Both systems were widely used.The use of computerized accounting system has made perpetual inventory system easy and cost-effective.

-->Periodic approach is used primarily by very small businesses with manual accounting systems.

--> When an  inventory is purchased, it is recorded as an asset in the balance sheet. When it is sold to customers, the asset is converted into an expense, that is the cost of goods sold.

PERPETUAL  INVENTORY SYSTEM:

In a perpetual inventory system, transactions involving costs of inventory are recorded immediately as they occur.

--> This system is known as perpetual accounting system because of the fact that the accounting records are kept perpetually up-to-date. 

--> Purchases of inventory are recorded as debit in an asset account named inventory.

-->When merchandize is sold, two entries are recorded:

·         one to recognize the revenue earned.

·         second to recognize the related cost of goods sold.The second entry also reduces the balance of inventory account to show that the sale of some of the inventory.

--> A Perpetual inventory system uses an inventory subsidiary ledger. This ledger provides up-to-date record about every product that the company is  buying and selling, it also ioncludes the per unit cost and the number of units purchased, sold, and on hand.

PERIODIC INVENTORY SYSTEM:

A periodic inventory system is opposite to a perpetual inventory system.

--> In a periodic inventory system, no effort is made to keep up-to-date records of the inventory and the cost of goods sold.

7 C's communication

The 7 Cs of Communication

A Checklist for Clear Communication

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Think of how often you communicate with people during your day. You write emails, facilitate meetings, participate in conference calls, create reports, devise presentations, debate with your colleagues… the list goes on.

We can spend almost our entire day communicating. So, how can we provide a huge boost to our productivity? We can make sure that we communicate in the clearest, most effective way possible.

This is why the 7 Cs of Communication are helpful. The 7 Cs provide a checklist for making sure that your meetings, emails, conference calls, reports, and presentations are well constructed and clear – so your audience gets your message.

According to the 7 Cs, communication needs to be:

Clear.

Concise.

Concrete.

Correct.

Coherent.

Complete.

Courteous.

In this article, we look at each of the 7 Cs of Communication, and we'll illustrate each element with both good and bad examples.

1. Clear

When writing or speaking to someone, be clear about your goal or message. What is your purpose in communicating with this person? If you're not sure, then your audience won't be sure either.

To be clear, try to minimize the number of ideas in each sentence. Make sure that it's easy for your reader to understand your meaning. People shouldn't have to "read between the lines" and make assumptions on their own to understand what you're trying to say.

This second message is much clearer, because the reader has the information he needs to take action.

2. Concise

When you're concise in your communication, you stick to the point and keep it brief. Your audience doesn't want to read six sentences when you could communicate your message in three.

Are there any adjectives or "filler words" that you can delete? You can often eliminate words like "for instance," "you see," "definitely," "kind of," "literally," "basically," or "I mean."

Are there any unnecessary sentences?

Have you repeated the point several times, in different ways?

3. Concrete

When your message is concrete, then your audience has a clear picture of what you're telling them. There are details (but not too many!) and vivid facts, and there's laser like focus. Your message is solid.

4. Correct

When your communication is correct, it fits your audience. And correct communication is also error-free communication.

Do the technical terms you use fit your audience's level of education or knowledge?

Have you checked your writing for grammatical errors? Remember, spell checkers won't catch everything.

Are all names and titles spelled correctly?

5. Coherent

When your communication is coherent, it's logical. All points are connected and relevant to the main topic, and the tone and flow of the text is consistent.

6. Complete

In a complete message, the audience has everything they need to be informed and, if applicable, take action.

Does your message include a "call to action", so that your audience clearly knows what you want them to do?

Have you included all relevant information – contact names, dates, times, locations, and so on?

7. Courteous

Courteous communication is friendly, open, and honest. There are no hidden insults or passive-aggressive tones. You keep your reader's viewpoint in mind, and you're empathetic to their needs.

Kash·mir  (kshmîr, ksh-mîr)

                                      Cash·mere (kshmîr, ksh-mîr) A historical region of northwest India and northeast Pakistan. Conquered by the Mogul emperor Akbar 1586, it later came under the control of Afghanistan (1757) and a Sikh empire (1819). After 1846 it was part of the princely state of Jammu and Kashmir.

 

 

Leepa Valley

Leepa Valley – A Dream Land

Location:

Deep in the heart of the valley lies Leepa village at 1921m above sea level. This is the most fascinating & loveliest valley. A metalled road branches off for Leepa from Naily, 45 kms from Muzaffarabad, climbs over the Reshian Gali (3,200 m) and then descends to 1,677 m on the other side into the Leepa Valley.

About 60 kilometers from Naily and 38 kilometers from Reshian, Leepa is a small village about at an altitude of 1921 meters. Its lush green rice fields in summer and typical wooden Kashmiri houses present a wonderful view to the people visiting the area. Walnut, Apple, Cherry and honey of Leepa are very popular.

Climate:

As autumn sets in the vale of Leepa, leaves fall off the trees, snowfall begins, the time is ripe to visit the vale for in winters the vale offers one of the most fascinating scenery in Azad Kashmir.

Its lush green river fields in summer and typical wooden Kashmiri houses present a wonderful view. Walnut, apples, cherries and honey of Leepa are very popular.

Appreciating the allure of autumn trees in narrow alleys is the best pastime in this vale of wonders – wonders that this picturesque valley showcases to the outside world.

Each year, on start of autumn in Kashmir, Leepa, which lies at a distance of about 90 KM from capital Muzaffarabad, starts to dress up in a new and richly colored attire-a mix of red, orange and yellow shades. It’s the time when apple picking season in the valley comes to an end.

Down hills, every year with coming of winter in the valley, when previous year’s snow melted on top of the mountains, soon fresh snow will be falling to interlace them all. It’s the time also when residents of this far flung vale have to brace the chilling winter which brings heavy snow and thus brings increased hardships for its 75000 residents. Due to lack of infrastructure, the valley is disconnected from the rest of Pakistan and Azad Kashmir.

Description:

Most fascinating & loveliest valley in Azad Kashmir, Leepa spell bounds everyone who visits this valley. Leepa Valley offers an unending variety of scenic spectacular beauty, an everlasting memory of sights and sounds & the unforgettable hospitality of its people

Water in the valley is crystal clear and swiftly flowing streams like Nullah Qazi Nag are a major source. The scene around the Nullah is stunningly beautiful. The Nullah emerges from Indian occupied Kashmir and runs trough the whole of Leepa Valey. On other side of the LoC, lies Kupwara district of Occupied Kashmir. Singing waterfalls, lush green pastures, thick woods, the snow clad majestic Shamsa Bari, the highest mountain of the valley are an inexhaustible source of delight for any visitor who comes to this paradise like valley. The paradise like mini Kashmir in Leepa has numerous water driven flour mills, the only kind of industry in the valley.

Kazi Nag Nullah basin also hosts hundreds of poplar trees with ready to fall yellow foliage. Yellow chinar trees acquire a crimson hue as if on a fire, a unique view along the mountains, tracks and the valleys in Leepa.

The joyous chirping of birds, orchards heavy with fruits, alpine meadows dotted with grazing herds, and shepherds lilting with their music, a vivid mosaic of this place – takes shape before your wandering eye. It presents a picture of an unforgettable tapestry which is one of the most charming places in the continent.

Allover the valley, high walnut trees likewise put on attire in yellow, red and orange, which adds extra sparkle to our stay in Leepa. We also come across yellow herbs and shrubs tucked nicely into green vegetation comprising of large conifer trees, adding variety to this miracle of changing colors during autumn in the valley.

Walkways amidst jungle are filled with compost leaves signaling a momentous magnitude of autumn in the valley. The foliage from deciduous trees stays on the ground leaving a damp and decayed trail. The skyline in the whole vale transcends from ardent green to russet red, gold, orange, dark yellow and brown. Strong winds and mild storms also wreack further havoc with the delicate branches, turning them yellow and this too adds to the already damp compost like soil. A walk on these fallen decayed leaves reminds of the harsh winter ahead. Birds are also going nomadic ready to move on an arduous and long journey bracing the chilling winds on the way, to safe havens in down country areas where they can feed and breed.

Leepa is also famous for its typical Kashmiri style of architecture, mostly in the form of 3 storied wooden houses. A look at the houses here makes one believe, Leepa as a true extension of Indian occupied Kashmir into Pakistan.

Leepa Valley offers an unending variety of scenic spectacular beauty and one gains an everlasting memory of sights and sounds as well as the unforgettable hospitality of its people. The valley remains open for domestic tourists from May to November.

Culture:

The people in Leepa are highly religious and speak Kashmiri as well as Hindkoh. Urdu is nevertheless widely spoken and understood. The valley has a population of about 75000 inhabitants who generally indulge in farming, cattle rearing and tourism related services. Unemployment and poverty are rampant. Power shortages are a daily routine (there is only one power generation unit at Channian) and malnutrition is common as in rest of the country.

Murree tour

New Murree is about 15 kilometer away from main Murree hills on the Lower Topa side. It is a well developed hill station with great high rised trees, beautiful hills.

This is famous due to chair lift, which worth a ride. A world class chair lift & cable car system takes you from New Murree to Patriata. Total ride is about 7 km long. New Murree is on ground level between the hills. Here you have to buy the ticket for Chair Lift + Cable Car which is Rs. 200/- then a chair lift ride takes you to a middle hill. You can watch Kashmir mountains from middle Hill where Chair Lift takes you. You may stay here for some time & enjoy Tea/Coffee or just walk around. From there Cable car takes you to Patriata Hill. where you have much stuff to do. Walk freely everywhere. Just walk in the direction where most of the tourists are going. Straight road takes you to the highest point of the hill. Where scenary is panoramic. On one side you can watch Murree Hills & on the other side snow covered Kashmir Hills.

The Chair Lift & Cable Car journey is memorable of life time. You can witness lots of great scenaries of near & far hills. In winter all hills are covered with snow while in summer lush green scenaris could be seen.

You may ride a horse but ASK/FIX CHARGES before leaving otherwise they will charge you too much. Similarly don’t hire a guide within patriata. People will come around you like they are helping you in taking pictures but then they ask huge amount for those services.

Private car from Murree charges about Rs. 800/- for return journey. Driver will leave you at the gate of TDCP PATRIATA RESORT at New Murree & then take you back to Murree when you’ve finished.

You can’t stay there for long. Last cable car is at 5 pm which take every visitor back. At that time a person goes all the way whistling to check if there is any one left and then take last cable car.

Tatta pani in Azad kashmir.............!
very nice amazing place.......!
because warm water naturaly . . . . . .!

Article Mangla Dam

Mangla Dam

Mangla Dam
Country	Pakistan
Location	Mangla, Azad Kashmir
Coordinates	33.142083°N 73.645015°E  Coordinates: 33.142083°N 73.645015°E
Status	Operational
Construction began	1961
Opening date	1967
Dam and spillways
Type of dam	Embankment dam
Height	138 m (453 ft)
Length	3,140 m (10,302 ft)
Impounds	Jhelum River
Reservoir
Creates	Mangla reservoir
Capacity	7.25 km3(5,880,000 acre·ft)
Surface area	97 sq mi (251 km2)
Power station
Turbines	10 x 100 MW
Installed capacity	1,000 MW
Maximum capacity	1,150 MW

The Mangla Dam is located on the Jhelum River in the Mirpur District ofAzad Kashmir, Pakistan. It is the 16th largest dam in the world. It was built from 1961 to 1967 with funding from the World Bank. The project was designed and supervised by Binnie & Partners of London, and it was built by Mangla Dam Contractors, a consortium of 8 U.S. construction firms, sponsored by Guy F. Atkinson Company of South San Francisco. Mangla Dam Contractors employed Pakistanis, Americans, British, Canadians, Germans, and Irish.

Historic development

As part of the Indus Waters Treaty signed in 1960, India gained rights to the waters of theRavi, Sutlej and Beas rivers, while Pakistan, in addition to waters of the above three rivers within Pakistan and some monetary compensation, received the rights to develop theJhelum, Chenab and Indus river basins through construction of the Indus Basin Project. Until 1967, the entire irrigation system of Pakistan was fully dependent on unregulated flows of the Indus and its major tributaries. The agricultural yield was very low for a number of reasons, the most important being a lack of water during critical growing periods. This problem stemmed from the seasonal variations in the river flow due to monsoons and the absence of storage reservoirs to conserve the vast amounts of surplus water during those periods of high river discharge.

The Mangla Dam was the first development project undertaken to reduce this shortcoming and strengthen the irrigation system. The dam was damaged due to an Indian Air Force raid during the Indo-Pakistani War of 1971. As a consequence, the hydro project was temporarily out of service from the country.

The Mangla Dam project

Mangla Dam is the sixteenth largest dam in the world. It was constructed from 1961 to 1967 across the Jhelum River, about 67 miles (108 km) south-east of the Pakistani capital, Islamabad in Mirpur District of Azad Kashmir, Pakistan. The main structures of the dam include 4 embankment dams, 2 spillways, 5 power-cum-irrigation tunnels and a 1,000 MW power station.

A view of Turbine Outflow Streams at Mangla Power House

The main dam is 10,300 feet (3,100 m) long and 454 feet (138 m) high (above core trench) with a reservoir of 97 square miles (250 km²). Since its first impounding in 1967, sedimentation has occurred to the extent of 1,130,000 acre feet (1.39 km³), and the present gross storage capacity has declined to 4,750,000 acre feet (5.86 km³) from the actual design of 5,880,000 acre feet (7.25 km³). The live capacity has declined to 4,580,000 acre feet (5.65 km³) from 5,340,000 acre feet (6.59 km³). Butt, M. J., Mahmood, R., and Waqas, A. 2011, "Sediments Deposition due to Soil Erosion in the Watershed Region of Mangla Dam.

The power station of Mangla dam consists of 10 units each having capacity of 100 MW.

In order to remedy the storage capacity decreases, the Pakistani government has decided to raise the dam by 40 feet (12 m), to 494 feet (151 m) high. This will increase the reservoir capacity by 18% and provide an additional 120 MW(644 GWh) of power, but will displace 40,000 people currently living near the reservoir.

The project was designed primarily to increase the amount of water that could be used for irrigation from the flow of the Jhelum and its tributaries. Its secondary function was to generate electrical power from the irrigation releases at the artificial head of the reservoir. The project was not designed as a flood control structure, although some benefit in this respect also arises from its use for irrigation and water supply. The Government of Pakistan had agreed to pay royalties to the Government of AJK (Azad Jammu and Kashmir) for the use of the water and electricity generated by the dam. Over 280 villages and the towns of Mirpur and Dadyal were submerged and over 110,000 people were displaced from the area as a result of the dam being built. Some of those affected by the dam were given work permits for Britain by the Government of Pakistan, and as a result, in many cities in the UK the majority of the 'Pakistani' community actually originated from the Dadyal-Mirpur area of the disputed region of Jammu & Kashmir.