Archives for July 2010

INTERNATIONAL STANDARDS – ACCOUNTING TERMINOLOGY

The terminology for accounting varies across different levels of study. Those of you who have moved on to study accounting at tertiary level would agree – terms like debtors and creditors have a different meaning in ICCI, CAT, ACCA and other accounting diploma/degree programs.

The term Debtors used for O’/N’ Level, for example, becomes Accounts Receiveable at the diploma/degree level. The following table lists the difference between the international usage of accounting terms against that which is used and accepted by The University of Cambridge International Exams (CIE).

Please note: GCE O’/N’ Level candidates will not be penalised for using different terms.

International usage Current CIE/UK usage
Balance sheet Balance sheet
Bank (and other) loans/ Interest bearinq loans and borrowinq Loans repayable after 12 months
Bank overdrafts and loans/ Interest bearinq loans and borrowinq Loans repayable within 12 months
Capital or Equity/

Shareholders’ Equity

Capital
Cash (and cash equivalents) Bank and cash
Cost of Sales Cost of qoods sold
Current assets Current assets
Current liabilities Current liabilities. Creditors: amounts due within 12 months
Finance costs Interest payable
Finance Income/Investment revenues Interest receivable
Financial Statements Final accounts
Gross profit Gross profit
Income statement Tradinq and Profit & Loss account
Intanqible assets Goodwill etc.
Inventory/ Inventories(of raw materials and finished qoods) Stock
Investment property Investments
Non-current assets Fixed assets
Non-current liabilities Long term liabilities. Creditors: amounts falling due after more than one year
pdf
The University of Cambridge International Exams (CIE) released an information brochure on this which is available for download here. [page 19]
A condensed version on the same is available here.

Dump the Monetary Concept – Measure What Makes Life Worthwhile!

“Not everything that can be counted counts, and not everything that counts can be counted.” Albert Einstein, physicist (1879 – 1955)

The principle of monetary concept states that anything which cannot be measured in monetary
terms will not be considered as a part of the accounting data. While accounting captures the numerical performance of a business, many will agree that numbers tell only the part of a business’ story.

Work culture, morale and happiness of workers, teamwork and job satisfaction all play a part in make a business successful.

In this TED Talk, Chip Conley shares on Measuring What Makes Life Worthwhile, some of points Chip covered includes:

– 94% of the business owners believes that the intangible things are important ( things like intellectual property, corporate culture and brand loyalty).

– Only 5% of these leaders have a means to measure these intangibles in the business.

– An alternative definition of success introduced by the King of Bhutan: The Gross Happiness Index. (GHI)

– The science behind the art: the metrics of the GHI.

Enjoy!

[VIDEO LENGTH: 17:40 MINS]

About Chip Conley (from TED.com)

Chip Conley In 1987, at the age of 26 and seeking a little “joy of life,” Chip Conley founded Joie de Vivre Hospitality by transforming a small motel in San Francisco’s seedy Tenderloin district into the now-legendary Phoenix.

Today, Joie de Vivre operates nearly 40 unique hotels across California, each built on an innovative design formula that inspires guests to experience an “identity refreshment” during their visits.

During the dotcom bust in 2001, Conley found himself in the self-help section of the bookstore, where he became reacquainted with one of the most famous theories of human behavior — Maslow’s hierarchy of needs, which separates human desires into five ascending levels, from base needs such as eating to the highest goal of self-actualization, characterized by the full realization and achievement of one’s potential. Influenced by Maslow’s pyramid, Conley revamped his business model to focus on the intangible, higher needs of his company’s three main constituencies — employees, customers and investors. He credits this shift for helping Joie de Vivre triple its annual revenues between 2001 and 2008.

Conley has written three books, including his most recent, PEAK: How Great Companies Get Their Mojo from Maslow, and is at work on two new ones, Emotional Equations and PEAK Leadership. He consults widely on transformative enterprises, corporate social responsibility and creative business development. He traveled to Bhutan last year to study its Gross National Happiness index, the country’s unique method of measuring success and its citizens’ quality of life.

National Accounting Quiz 2010

Ngee Ann LogoThe National Accounting Quiz (NAQ) 2010 is the biggest annual accounting quiz organised in Singapore since 2004! NAQ 2010 promises to be a fun-filled event. Students will be immersed in a series of accounting-related activities to revise their accounting concepts and to stimulate their passion for accounting.

The event will take place on 21 July 2010, from 1.00pm to 5.00pm, at the Ngee Ann Polytechnic Convention Centre. Click on the button below for more information!

National Accounting Quiz 20102

Looking for Trainers and Facilitators!

Jump Grades Education rebels against boring, dry, sleep-inducing accounting coaching offering schools and private education institutions customised coaching/ tutoring services which clients say brings incredible, measurable results.

With an excellent background in training/coaching, the company brings talented and experienced teams of tutors, web technologists, useful publications and industry practitioners to help students learn accounting with amazingly clear understanding.

“Jump Grades” delivers its name and differentiates coaching businesses with clear positioning to stand apart from the crowd.

We are looking for folks who share the same passion to help students understand accounting the way we do. If you are an educator, private tutor, accounting-trained person with interest in teaching, (ex) school teachers, bookkeeper, freelancer, CPAs or business owners – we would like to hear from you!

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