global enviornmental issues

Environment issues are the most discussed topic in this decade. There is many topic on “environment issues” .Among them environmental pollution is one of the important issue of all.

 By the word “environmental pollution” we mention that the pollution that occurs by the nature. Though it is occurs by the environment but the main culprit is misuse of science by human. It seems like that men are pushing environment to its limit.

 In the Environment issue, the negative impact on our ecosystem should also be discussed. Air, water, soil, energy & all other important elements together make our ecosystem (wiki link).

 All of the elements is essential for balance on environment. If one of the elements is disturbed, the total ecosystem should hamper. As a result we will suffer.

 Now the point is, some movement of our environment is causing pollution. Though human started the consequences but now it is uncontrollable. We are already suffering for it & it just can’t be stop. The result in this environment issue is making us suffer some common problems,

 (I.) Solar pollution
(II.) Pest pollution
(III.) storm pollution
(IV.) Volcanic pollution. & many more

 So we should do something about it. Though it is too late but it is not the end. We still can save the environment from being totally polluted & it is our duty to do it.

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Components of Annual report

The chairman's report and the chief executive officer's report

These reports are often ignored as vital sources of information, yet provide important indicators of opportunities, problems and the intentions of management for the following year.

The auditors' report

The auditors' report is a summary of the findings of an independent company of accountants (auditors). The auditors perform procedures to obtain evidence regarding the figures and disclosures in the reports; and carry out tests on the internal controls to ensure that transactions are properly recorded. The auditors also give an opinion on whether the accounts have been prepared in accordance with international financial reporting standards and in the manner required by the Companies Act of South Africa.

Income Statement report

In this case, you have adequate money available and no matter what happens to interest rates, you opt to pay a specific additional amount every month. An Income Statement is a summary of a company's income and expenses for a specific period and reports the company's final profit or loss for that period - usually 6 months or a year (its heading will specify this). The comparable period for the previous year will also be reflected, so you should be able to see at a glance whether profits are increasing or decreasing.

Balance Sheet basics

Some of the entries in the income statement and balance sheet do not involve actual cash inflow and outflow of funds; for example depreciation. Although depreciation reduces the profit of the company, no money is actually spent.

Cash Flow Statement basics

The purpose of the cash flow is to disclose information about the events that affected cash flow during the period, just as the name suggests.

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Basic elements of accounting

The basics of accounting involve three fundamental elements; assets, liabilities and equity. These elements make up the basis for financial reports such as balance sheets, ledgers, and other means accountants use to maintain financial records for businesses, corporations and individuals. In accounting, it is vital that the equity that makes up the assets and the liabilities all balance mathematically.

Assets :

An asset is a resource that a corporation, organization, or person owns and utilizes to maintain the functionality and operation of a business or lifestyle. Assets, for businesses, can be classified into several categories. Necessities are assets that, without, a business could not function. On a large scale, examples could be factories or heavy equipment, and, on a smaller scale, assets could be paper to run a cash register or shelving to display merchandise. Assets can also be convenience items, such as a water cooler in the break room, or useful items, such as company cars, office furniture, or lighting. Individuals also possess assets, from real estate to vehicles to high-definition televisions. Another way to think of assets is something a business or person owns that can be used as collateral against a loan, such as a house or property.

Liabilities :

In accounting terms, liabilities refer to debts or obligations that a business or an individual owes. A liability is not necessarily considered a negative function, in these terms, since obligations to creditors are a necessary function of business and personal life. Businesses need to pay for inventory, equipment, and real estate, and credit is the life blood for such activities. The same principle can be applied to individuals, who must make auto and home mortgage payments, credit card payments, and payments for medical or school bills. In a healthy business or household ledger, assets will outweigh liabilities, while problems occur when liabilities become too large and owners have difficulty keeping up with payments to creditors.

Owner's Equity :

Owner's equity refers to the difference between what a person or a business owns and what is owed. Totaling the owner's assets and liabilities is another way to measure the total assets. Equity in business increases when the business either generates revenue or investors add cash as an investment in business growth. Individuals can gain equity through adding money through personal savings, gifts, or investment growth. Decrease in equity occurs when a businesses or individual withdraws funds from accounts or makes regular or large purchases. The measure of an owner's equity is constantly changing as assets and/or liabilities rise and fall and, in accounting, it is vital to make sure all balance out properly.

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Classification of Asset

In a balance sheet the assets are classified as current assets, investments, property plant and equipment, intangible assets, and others.

Current Assets:

Current assets are the one that is expected to convert to cash within the current operating time period of the company. These include cash, temporary investments, and accounts receivable, inventory, receivables etc.

Investments:

Long term investments that are not going to be sold in near future are considered as an investment. These include investments in bonds, stocks, land that is not used by the company, pension funs, even some insurance are also considered as investments.

Property, plant and Equipment:

This type of assets are also known as Fixed assets. Fixed assets are purchased with aim of using it on a long term to increase the profit of a company. These include the fixtures, buildings, machines, land that is used by the company, tools, and automobiles. Depreciation is also calculated for these assets that are negated from the profit of the company.

Intangible assets:

Intangible assets are those whose value cannot be calculated physically. But, they are very important to the very existence of a business. These include copyrights, brand name, patents, trademarks etc

Tangible assets

Tangible assets are those that have a physical substance, such as currencies, buildings, real estate, vehicles, inventories, equipment, and precious metals. The assets that cannot be classified in any of the above category can be added to the balance sheet under "other assets".

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characteristics of Asset

Other than software companies and the like - employees are not considered as assets, like machinery is, even though they are capable of producing value.

• The probable present benefit involves a capacity, singly or in combination with other assets, in the case of profit oriented enterprises, to contribute directly or indirectly to future net cash flows, and, in the case of not-for-profit organizations, to provide services;

• The entity can control access to the benefit;

 • The transaction or event giving rise to the entity's right to, or control of, the benefit has already occurred.

In the financial accounting sense of the term, it is not necessary to be able to legally enforce the asset's benefit for qualifying a resource as being an asset, provided the entity can control its use by other means.
 The accounting equation relates assets, liabilities, and owner's equity:
 Assets = Liabilities + Stockholder's Equity (Owner's Equity) 

That is, the total value of a firms Assets are always equal to the combined value of its "equity" and "liabilities."
 The accounting equation is the mathematical structure of the balance sheet.
 Assets are listed on the balance sheet. Similarly, in economics an asset is any form in which wealth can be held.
Probably the most accepted accounting definition of asset is the one used by the International Accounting Standards Board. The following is a quotation from the IFRS Framework: "An asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise."
 Assets are formally controlled and managed within larger organizations via the use of asset tracking tools. These monitor the purchasing, upgrading, servicing, licensing, disposal etc., of both physical and non-physical assets.
 In a company's balance sheet certain divisions are required by generally accepted accounting principles (GAAP), which vary from country to country.[

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Characteristics of Accounting Information

There are many vital characteristics of Accounting Information that are given bellow:-


• Unaderstandabilty: An essential quality of the information provided in financial statements is that it is readily understandable by users. For this purpose, users are assumed to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence

 • Relevance:To be useful, information must be relevant to the decision-making needs of users.Information has the quality of relevance when it influences the economic decisions of users by helping them evaluate past, present or future events or confirming, or correcting, their pastevaluation.

• Reliability: This implies that the accounting information that is presented is truthful, accurate, complete (nothing significant missed out) and capable of being verified by a potential investor

• Consistency: This implies consistent treatment of similar items and application of accounting policies.

• Comparability: This implies the ability for users to be able to compare similar companies in the same industry group and to make comparisons of performance over time. Much of the work that goes into setting accounting standards is based around the need for comparability.

• Neutrality:The information contained in financial statements must be neutral, that is, free from bias.Financial statements are not neutral if, by the selection or presentation of information, theyinfluence the making of a decision or judgment in order to achieve a predetermined result or outcome.

• Prudence (Conservation):Is the inclusion of a degree of caution in the exercise of the judgments needed in makingthe estimates required under conditions of uncertainty., such that assets or income are notoverstated and liabilities or expenses are not understated.

• Completeness:The information in financial statements must be complete within the bounds of materiality and cost. An omission can cause information to be false or misleading and thusunreliable and deficient in terms of its relevance

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Defination of Accounting

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