Calculation of rebate on bills discounted

Recognition and Disclosure of borrowing cost as per Ind AS 24

Recognition
An entity shall capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. An entity shall recognise other borrowing costs as an
expense in the period in which it incurs them.

To the extent that an entity borrows funds specifically for the purpose of
obtaining a qualifying asset, the entity shall determine the amount of
borrowing costs eligible for capitalisation as the actual borrowing costs
incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

To the extent that an entity borrows funds generally and uses them for the
purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the expenditures on that asset. The capitalisation rate shall be the weighted average of the borrowing costs applicable to the borrowings of the entity that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that an entity capitalises during a period shall not exceed the amount of borrowing costs it incurred during that period.

Disclosure
An entity shall disclose:
(a) the amount of borrowing costs capitalised during the period; and
(b) the capitalisation rate used to determine the amount of borrowing costs
eligible for capitalisation.

New Roles of Human Resource Management

Human Resource Management in the “New Millenium” has undergone a great revolution byquestioning the accepted practices and re-inventing the organisations as well as structures. Many traditional practices have been thrown out. As an example, it can be seen that hierarchies are vanishing and there is greater emphasis on flat organisations. It means a great deal of specialisation and skills. It also means upgrading the norms and standards of work as well as performance. The new role of human resource management is much more strategic than before.

Some of the new directions of the role of HRM can be summed up as follows:

1. A Facilitator of Change

To carry people through upheaval requires the true management of human resources.

2. An Integrated Approach to Management

Rather than being an isolated function, human resource is regarded as a core activity, one which shapes a company‘s values. In particular, this can have an impact on customer service.

3. A Mediator

Establishing and balancing the new and emerging aspirations and requirements of the company and the individual.

Features of Soft HRM |Approaches to HRM

Approaches to HRM (soft HRM)

The soft version of HRM traces its roots to the human relations school of thought led by Elton Mayo in the Hawthorne studies from 1927-1932 at the Western Electric Company in Chicago.

• Human Relations emphasized the human dimension of workers through the demonstration of the importance of group pressures, social relations, and attitudes towards supervision as determinants of productivity.

• The organization is a social system as well as a techno – economic system with emphasis on the importance of both the formal and the informal group.

• Similarly soft HRM is premised on the need to treat employees as ‘whole men’, valued assets, and the most important source of competitive advantage as opposed to treating them as objects.

• It emphasizes more on effective communication, training and development, motivation, culture, values and involvement as sources of employee commitment, which is crucial for gaining competitive advantage.

• The thrust of soft HRM is thus based on mutuality of purpose, which renders it unitarist in nature.

(NB: Soft HRM can be said to embrace developmental humanism as opposed to utilitarian instrumentalism in hard HRM)

Characteristics of Hard HRM |Approaches to HRM

APPROACHES TO HRM

John Storey (1989) distinguished two approaches that describe the concept of Human Resources Management.

Hard HRM

• The hard version of HRM traces its roots from the concept of scientific management postulated by Fredrick W Taylor in the early 20 th centuary

• Basically scientific management advocated for the adoption of a set of management techniques that would increase Organizational efficiency and productivity.

• The management techniques mainly involved the scientific measurement of work through time and method studies, standardization of work tools, functional foremanship, differential pay-rate systems, cost containment and instructional cards for workers etc.

• The humane side of scientific management was that it embraced the concept of the worker as a “rational economic man whose individualistic nature required motivation to gain the best out of him.

( NB: The Hard HRM version resembles in many ways the characteristics of scientific management mentioned above.)

• The fundamental point to note is that Hard HRM like scientific management seeks to achieve organizational efficiency through the organization’s human resources.

• This is achieved through utilitarian instrumentalism, which entails that organizations must use their human resources to achieve its desired goals.

• Hard HRM is quantitative in nature as it focuses on the strategic needs of the organization in terms of the amount of human resources it requires and which must be treated with rationality like any other factor of production.

• Hard HRM is purely market driven and it adopts a business-oriented philosophy as it aims to manage people in a way that adds value and one which brings competitive advantage.

• The hard version of HRM is more common in a capitalist set up where people are regarded as human capital, which can bring profit after investing in it.

• Also the worker is regarded as a commodity, which can be exchanged.

Human Resource Planning Definition

Human Resource Planning is concerned with the planning the future manpower requirements are the organisation. Human Resource manager ensures that the company has the right type of people in the right number at the right time and place, who are trained and motivated to do the right kind of work at the right time. Obviously, human resource planning primarily makes appropriate projections for future manpower needs of the organisation envisages plan for developing the manpower to suit the changing needs of the organisation from time to time, and foresees how to monitor and evaluate the future performance. It also includes the replacement plans and managerial succession plans. Human Resource planning is the process by which a management determines how an organisation should move from its current manpower position to its desired manpower position. Through planning a management strives to have the right number and the right kinds of people at the right places, at the right time, to do things which result in both the organisation and the individual receiving the maximum long-range benefit.

Definitions of Human Resource Planning:

According to Wikstrom, Human Resource Planning consists of a series of activities, viz.,

(a) Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and developments in industry, or in terms of judgemental estimates based upon the specific future plans of a company;

(b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally;

(c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and

(d) Planning the necessary programmes of requirements, selection, training, development, utilisation, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

•Coleman has defined Human Resource Planning as “the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organisation”.

•Human resource planning is a double-edged weapon. If used properly, it leads to the maximum utilisation of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches for the management personnel. Therefore, for the success of an enterprise, human resource planning is a very important function, which can be neglected only at its own peril.

Scope and Objectives of Ind AS 23 Borrowing Costs

Overview

IAS 23 Borrowing Costs requires that borrowing costs directly attributable to the acquisition, construction or production of a ‘qualifying asset’ (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset. Other borrowing costs are recognised as an expense.

IAS 23 was reissued in March 2007 and applies to annual periods beginning on or after 1 January 2009.

Borrowing cost may include: [IAS 23.6]

• interest expense calculated by the effective interest method under IAS 39,
• finance charges in respect of finance leases recognised in accordance with IAS 17 Leases, and
• exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs

This standard does not deal with the actual or imputed cost of equity, including any preferred capital not classified as a liability pursuant to IAS 32. [IAS 23.3]

Objective of IAS 23

The objective of IAS 23 is to prescribe the accounting treatment for borrowing costs. Borrowing costs include interest on bank overdrafts and borrowings, finance charges on finance leases and exchange differences on foreign currency borrowings where they are regarded as an adjustment to interest costs.

Scope of IAS 23

Two types of assets that would otherwise be qualifying assets are excluded from the scope of IAS 23:

• qualifying assets measured at fair value, such as biological assets accounted for under IAS 41 Agriculture
• inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis and that take a substantial period to get ready for sale (for example, maturing whisky)

Purpose Of MIS(Management Information System)

MIS is used for the following purposes.

• Manage effectively

MIS is very useful for efficient and effective planning and control functions of the management. Management is the art of getting thing done through others. MIS will be instrumental in getting the things done by providing quick and timely information to the management.

• Produce reports

reports give an idea about the performance of men, materials, machinery , money and management . reports show light on the utilizing of resources in the organization.

• Controlling costs

MIS is helpful in controlling costs by giving information about idle time , labor turnover, wastage and losses and surplus capacity.

• Provide statistic

MIS reports on production statistics regarding rejection , defective and spoilage and their effect on costs and quality of the products.

• Provide information for decision making

The objective of MIS is to provide information for decision making on planning, initiating, organizing, and controlling the operations of the subsystems of the firm and to provide a synergistic organization in the process.

• Improve decision making

MIS helps management by providing background information on a variety of issues and helps to improve the decision making quality of management.

• Improve efficiency and productivity

MIS helps managers to conduct their tasks with greater ease and with better efficiency. This will reflects in better productivity for the company.

• Regularity compliance

The only way an organization can be reasonably sure that it is in full compliance with laws and regulations is by operating a good management information system which takes responsibility for regulatory compliance , while working closely with local authority.

Elementary terminologies of RDBMS

The various terms used in EDBMS is explained below:

• Relation

Relational database have several interrelated tables. Each table called a “relation” contains one or more data categories in columns.

• Domain

Domain is defined as the set of all unique values permitted for a column.

• Attributes

The columns of tables are called attributes. It is a single data item related to a database object.

• Tuple

The rows of tables are called tuple. Tuple refers to a collection of one or more attributes.

• Cardinality

It refers to the number of members in the set. When specifically applied to database theory, the cardinality of a table refers to the number of rows (tuples)  contained in a table.

• Degree

The number of attributes in a relation is called the degree of the relation.

• Keys

This are used to establish and identify relationships between tables and also to uniquely identify and record or row of data inside a table. Following are the important keys:

• foreign key
• candidate key
• alternative key
• super key
• primary key

Features of RDBMS

• All data stored in the tables are provided by an RDBMS.
• Ensures that all data stored are in the form of rows and column.
• It facilitates primary key, which helps in unique identification of the rows.
• Facilitates a common column to be shared amid two or more tables.
• All data stored in a structured format.
• Index creation for retrieving data at a higher speed   .
• Multi user accessibility is facilitated to be controlled by individual users.
• A virtual table creation is enabled to store sensitive data and simplify queries.