Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Kaizen – Understanding the Japanese Business Philosophy of Continuous Improvement

Operations Management

Role of Leaders in Shaping Organizational Culture

Management Principles

Organizational Culture – Development and Importance

Management Principles

Five Important Organizational Cultural Models

Management Principles

Translation Exposure Management in International Finance

Translation (accounting) exposure arises from the need to, for purposes of reporting and consolidation, to convert the financial statements of foreign operations from the local currency (LC) involved to the home currency (HC). If exchange rates have changed since the previous reporting period, this translation, or restatement, of those assets, liabilities, revenues, expenses, gains and losses that are denominated in foreign currencies will result in foreign exchange gains or losses. The most common means of protecting against translation exposure is balance sheet hedging. This involves attempting equalize exposed assets and liabilities. For example, a company may try to reduce its foreign currency denominated assets if it fears a devaluation of the overseas currency, by running down cash balances, chasing debtors and reducing stock levels. At the same time it might increase its liabilities by borrowing in the local currency and slowing down payment to creditors. If it can equate its Continue reading

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Critical Evaluation of IAS 37

The International Accounting Standards Committee (IASC) issued IAS37 Provisions, Contingent Liabilities and Contingent Assets in September 1998. It replaced parts of IAS10 Contingencies and became operative for annual financial statements covering periods beginning on or after 1 July 1999. The objective of this standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount. The key principle of IAS37 is that a provision should be recognized only when a liability exists. Planned future expenditures are not recognized as provisions or contingencies, even if the board of directors has authorized them. IAS37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, except those resulting from executory contracts, except where the contract is onerous. Executory contracts are contracts under which Continue reading

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SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats

SWOT which stands for an abbreviation of Strengths, Weaknesses, Opportunities and Threats; is an analysis that defined as method to examine organization’s internal factors dealing with strengths and weaknesses, and its environmental opportunities and also the threats. SWOT analysis usually use in the preliminary phase of decision making as a general tool which it designed for being antecedent to strategic planning in different case and applications. SWOT Analysis can be used as a model, process, technique or framework to provide information about those factors strengths, of an organization by having many applications with possibility of being used in all the levels of the organization. SWOT analysis is a part of the strategic planning process. Companies have some internal and external forces in the business environment. As a first step of a strategic planning system, the strategic factors that are related with the potential of the company, should be identified and Continue reading

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Different Types of Stakeholders in Business

Stakeholder is a person who has something to gain or lose through the outcomes of a planning process, program or project. Stakeholder Analysis is a technique used to identify and assess the influence and importance of key people, groups of people, or organizations that may significantly impact the success of your activity or project. Stakeholder Management is essentially stakeholder relationship management as it is the relationship and not the actual stakeholder groups that are managed. Stakeholders can be divided into inside stakeholders and outside stakeholders. Inside stakeholders are people who are nearby to an organization and have the strongest or most direct claim on organizational resources: shareholders, executive employees, and non executive employees. Shareholders are the owners of the organization, and, as such, their claim on organizational resources is often careful to the claims of other inside stakeholders. The shareholders’ donation to the organization is to spend money in it Continue reading

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An Introduction to Blue Ocean Strategy

Blue Ocean Strategy Blue ocean strategy was coined by professors  W. Chan Kim and Renee Mauborgne  in their book “Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant” (2005).  Based on 15 years of research, the authors used 150 successful strategic moves spanning 120 years of business history and across 30 industries to bring the Blue Ocean Strategy theory to life.  This strategy gives a new approach to the formation of new business strategies for all businesses.  Blue  ocean  strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. Blue ocean strategy is to defined, in red oceans, existing industries and businesses, an unknown market space that has never been tapped by any player in the current industry. In Red oceans, competition is severe; existing players try to outperform their rivals by using Continue reading

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Income exempt from Income Tax

Under Sec10 of income tax act the following incomes are exempt from tax 1. Agricultural Income [Sec 10(1)]                               Income from agricultural land situated within India is exempted from tax. 2. Share income of HUF [Sec 10(2)]                               Any sum received by an individual as a member of a Hindu Undivided Family either out of income of the family or out of income of estate belonging to family is exempt from tax. 3. Share of profit from partnership firm [Sec10 (2A)]                               Share of profit received by partners from a firm in which they are partners is not taxable in the hands of partners. 4. Gratuity [Sec 10(10)] Continue reading

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