What Does Annual Report Mean?

1. An annual publication that public corporations must provide to shareholders to describe their operations and financial conditions. The front part of the report often contains an impressive combination of graphics, photos and an accompanying narrative, all of which chronicle the company's activities over the past year. The back part of the report contains detailed financial and operational information.

2. In the case of mutual funds, an annual report is a required document that is made available to fund shareholders on a fiscal year basis. It discloses certain aspects of a fund's  operations and financial condition. In contrast to corporate annual reports, mutual fund annual reports are best described as "plain vanilla" in terms of their presentation. 

Investopedia explains Annual Report
1. It was not until legislation was enacted after the stock market crash in 1929 that the annual report became a regular component of corporate financial reporting. Typically, an annual report will contain  the following sections:

                                                  -Financial Highlights
                                                  -Letter to the Shareholders
                                                  -Narrative Text, Graphics and Photos
                                                  -Management's Discussion and Analysis
                                                  -Financial Statements
                                                  -Notes to Financial Statements
                                                  -Auditor's Report
                                                  -Summary Financial Data
                                                  -Corporate Information

2. A mutual fund annual report, along with a fund's prospectus and statement of additional information, is a source of multi-year fund data and performance, which is made available to fund shareholders as well as to prospective fund investors. Unfortunately, most of the information is quantitative rather than qualitative, which addresses the mandatory accounting disclosures required of mutual funds.                       

Read more: http://www.investopedia.com/terms/a/annualreport.asp#ixzz1aum49GdZ

Full disclosure: Definition from Answers.com

Full disclosure: Definition from Answers.com

Accounting Information System

Accounting Information System

Section (A), Uzzal Kumar Acharjee

www.asyed375.blogspot.com

Chapter-1: (Accounting Information Systems: An Overview)

–        What is the meaning of system, data, and information?

–        What is an accounting information system (AIS)?

–        Why is the AIS an important topic to study?

–        What is the role of the AIS in the value chain?

–        How does the AIS provide information for decision making?

–        What are the basic strategies and strategic positions an organization can pursue?

Chapter-2: (Overview of Business Processes):

–        What are the basic business activities in which an organization engages?

•          What decisions must be made to undertake these activities?

•          What information is required to make those decisions?

–        What role does the data processing cycle play in organizing business activities and providing information to users?

–        What is the role of the information system and enterprise resource planning in modern organizations?

Chapter-3: (Systems Development and Documentation Techniques)

–        What is the purpose of documentation?

–        Why do accountants need to understand documentation?

–        What documentation techniques are used in accounting systems?

–        What are data flow diagrams and flowcharts?

•          How are they alike and different?

•          How are they prepared?

Chapter-6: (Relational Databases):

–        How are databases different than file-based legacy systems?

–        Why are databases important and what is their advantage?

–        What is the difference between logical and physical views of a database?

–        What are the fundamental concepts of database systems such as DBMS, schemas, the data dictionary, and DBMS languages?

–        What is a relational database, and how does it organize data?

–        How are tables structured to properly store data in a relational database?

Chapter-9: (Introduction to Systems Development and Systems Analysis)

–        What are the phases in the systems development life cycle?

–        Who are the individuals involved in systems development?

–        What techniques are used to plan the development of a system?

–        How do you determine whether a particular system is feasible?

–        How do people respond to systems changes, and how can dysfunctional behavior be minimized?

Accounting Information System

Important Topics to Cover

Course Name: Accounting Information System

Anup Kumar Saha

Lecturer,

Department of Accounting and Information Systems

Jagannath University

www.anupsaha.co.cc

Chapter 01:

1. Explain what an accounting information system (AIS) is and describe the basic functions it performs.
2. Discuss why studying the design and management of an AIS is important.
3. Explain the role played by the AIS in a company’s value chain and discuss ways that the AIS can add value to a business.
4. Describe and contrast the basic strategies and strategic positions that a business can adopt.

Chapter 02:

1        Explain the three basic functions performed by an accounting information system (AIS).

2        Describe the documents and procedures used in an AIS to collect and process transaction data.

3        Discuss the types of information that can be provided by an AIS.

4        Describe the basic internal control objectives of an AIS and explain how they are accomplished.

Chapter 03:

1. Explain what e-business is and how it affects organizations.
2. Discuss methods for increasing the likelihood of success and for minimizing the potential risks associated with e-business.
3. Describe the networking and communications technologies that enable e-business.

Chapter 04:

1.    Explain the difference between database and file-based legacy systems.

2.    Describe what a relational database is and how it organizes data.

3.    Explain the difference between logical and physical views of a database.

4.    Create a set of well-structured tables to properly store data in a relational database.

Chapter 06:

1.    Prepare and use data flow diagrams to understand, evaluate and design information systems.

2.    Draw flowcharts to understand, evaluate and design information systems.

3.    Explain DFD, flowcharts, document flowchart, system flowchart and program flowchart.

Chapter 07:

1. Describe the threats to an AIS and discuss why these threats are growing.
2. Explain the basic concepts of control as applied to business organizations.
3. Describe the major elements in the control environment of a business organization.
4. Describe control policies and procedures commonly used in business organizations.
5. Evaluate a system of internal accounting control, identify its deficiencies, and prescribe modifications to remedy those deficiencies.
6. Conduct a cost-benefit analysis for particular threats, exposures, risks, and controls.

Chapter 11:

1. Describe the basic business activities and related data processing operations performed in the revenue cycle.
2. Discuss the key decisions that need to be made in the revenue cycle and identify the information needed to make those decisions.
3. Document your understanding of the revenue cycle.
4. Identify major threats in the revenue cycle and evaluate the adequacy of various control procedures for dealing with those threats.

Chapter 12:

1. Describe the basic business activities and related data processing operations performed in the expenditure cycle.
2. Discuss the key decisions to be made in the expenditure cycle, and identify the information needed to make those decisions.
3. Document an understanding of the expenditure cycle activities.
4. Identify major threats in the expenditure cycle, and evaluate the adequacy of various control procedures for dealing with those threats.

Chapter 15:

1. Describe the information processing operations required to update the general ledger and to produce other reports for internal and external users.
2. Identify the major threats in general ledger and reporting activities, and evaluate the adequacy of various internal control procedures for dealing with them.
3. Discuss and design a balanced scorecard for an organization.
4. Explain the relationship between online transaction processing systems and data warehouses used to support business intelligence.

Chapter 16:

1. Explain the five phases of the systems development life cycle.
2. Discuss the people involved in systems development and the roles they play. 
3. Explain the importance of systems development planning and describe planning techniques.
4. Discuss the various types of feasibility analysis, and calculate economic feasibility.
5. Explain why systems change triggers behavioral reactions, what form this resistance to change takes, and how to avoid or minimize the resulting problems.
6. Discuss the key issues and steps in systems analysis.

Anywhere UK - New UK number

Anywhere UK - New UK number

EID MUBARAK to ALL...........................

EID MUBARAK to ALL...........................

LENDING CRITERIA

Case Study: 1 (Chicki Chick Poultry Farm)

Chicki Chick is a medium sized poultry farm based in Gazipur. They have suffered badly during the last avian influenza outbreak. They have failed to repay their past three loan installments, but the management is confident they can make a come back but they need fresh loans.

Recently the Bangladesh Government is thinking about the need for efficient waste management in poultry farms. The thinking is that no waste should leave the farm without proper treatment. The local people have complained many times to the relevant authority about the small problem Chicki Chick is causing.

Chicki Chick has an existing credit line with SME Bank Ltd. (SBL). SBL is an SME-focused bank. Until recently, Chicki Chick has always been a premier client of SBL. Chicki Chick is now approaching the bank for fresh loans.

Discuss and answer the following:

1.       Why should SBL finance Chicki Chick?

2.       What are the issues SBL needs to consider in order to make sure Chicki Chick is not going to be a defaulter?

3.       In the long run what sort of environmental and social benefit can Chicki Chick ensure for Bangladesh?

Study Result:

Positive Findings:

1. Premier client of SME Bank Ltd. (SBL).
2. Previous transaction with SBL is good.
3. A growing concern productive poultry firm.
4. Chicki Chick use modern technology in its poultry firm.
5. Poultry is high demanded product in the market.
6. The firm has strong management.
7. IRR is over 20%.

Negative Findings:

1.     Failed to repay their past three loan installments.

2.     There is no security offered by Chicki Chick as a guarantee to the SBL.

3.     There is no collateral security provided for the loan by Chicki Chick.

4.      Has no efficient waste management treatment plant.

5.     The local people have complained many times to the relevant authority.

6.     Their product is poultry and they have suffered badly during the last avian influenza outbreak.

7.     Chicki Chick has an existing credit with SME Bank Ltd.

Comment:

Requirement:-1

Chicki Chick is a promising poultry firm. It is a growing up productive poultry firm.  Previous transaction with SBL is good and always been a premier client.  Its IRR is good. According to the banking low and practice a bank can provide loan to their trusty client with out any security in high rate of interest.  Now in Bangladesh this practice started. So if SBL provide loan to Chicki Chick without security, SBL earn a high rate of interest. Because the bank is more at risk with an unsecured loan, the interest rates tend to be higher than with a secured loan.

Still Chicki Chick does not pay fully its previous loan. If SBL does not provide new fresh loan the firm can not run its organizational activity. If the firm does not run its organizational activity it will be insolvent and not be able to pay previous loan. For recover previous loan SBL should rescheduled the previous loan amount and provide new fresh loan to Chicki Chick.

Unsecured advance are granted with caution and within certain limits only because in case of defaults by the borrower bank will fall in a difficulty to recover the loan amount. For that the credit must negotiate credit amount with Chicki Chick at 50% to 60% or below on total demand of Chicki Chick’s authority to reduce the bank’s credit risk.

Requirement:-2

SME Bank Ltd. (SBL) is an SME-focused bank. From positive and negative findings and judgments SBL interested to provide loan to Chicki Chick poultry firm. For that some issues SBL needs to consider in order to make sure Chicki Chick Poultry Firm is not going to be a defaulter. The issues are classified into two categories.

1. Before the loan disbursement
2. After the loan disbursement.

Before the loan disbursement:

Client: Chicki Chick poultry firm is a good client and has an existing credit line with SME Bank Ltd (SBL). It has always been a premier client of SBL.

Business: Chicki Chick poultry firm is an egg and poultry producing firm. The firm supplies eggs and poultry to the local market. Their product is in high demand due to the local customers. As a result there is huge possibility to earn more profit.

Product Demand:  SME Bank Ltd (SBL) need to be ensure that  Chicki Chick’s product is highly demanded to the market. Because if the product is not demanded in the market Chicki Chick will not make profit and fall in a difficulty to pay the loan’s installment.

Security: Chicki Chick poultry firm offered no security as a guarantee to the SBL for their present loan. But  in their previous loan they provide necessary security which is existing now.

Act as contract: SME Bank Ltd. (SBL) knows that the Chicki Chick poultry firm is capable to act as contact i.e. timely pay installment because Chicki Chick already proved them self as premier client. As a result bank can make sure in the matter of returning loan.

Previous credit: Chicki Chick poultry firm has a previous credit with SME Bank Ltd (SBL). On the other hand crisis situations are passing by them. But the management body trust if they get fresh loan they overcome this crisis period. As a result they will be able to pay previous and present loan.

Vaccine: Chicki Chick poultry firm’s management must ensure that they must use vaccine for the chicken to prevent next avian influenza.

Effluent Treatment Plant (ETP): Chicki Chick poultry firm must ensure the SBL that they will use Effluent Treatment Plant (ETP) to manage their poultry waste after getting the loan.

Management System: SME Bank Ltd (SBL) need to ensure that Chicki Chick poultry firm will take necessary spate to make strong their management body.

After the loan disbursement:

a)    Follow-up:

A bank must aware about the unsecured disbursed loan because in case of default by the borrower the bank will fall in a difficulty to recover the advance. SBL’s credit officer must take necessary steps to follow up the loan from the next day of the disbursement.

b)    Supervision:

There are two types of supervision. On side supervision and off side supervision. When Chicki Chick’s owner or responsible representative comes to the bank physically credit officer talk with him/her about the present condition of the mill and loan amount and encourage him/her to pay the loan timely. When firm’s owner or responsible representative does not come to the bank, credit officer remained them about the loan and time of payment sending mail or formal letter.

c)     Monitoring:

To avoid the Chicki Chick poultry firm are as defaulter the SBL must send a credit officer to Chicki Chick poultry firm who visit and monitor Chicki Chick’s activities and remained the authority on the time and amount of loan.

From this above discussion it is said that SME Bank Ltd (SBL) needs to consider the above mentioned issues to make sure Chicki Chick poultry firm is not going to be a defaulter.

Requirement:-3

Chicki Chick is poultry firm. It product is poultry. It supplies eggs and poultry to the market. This firm can obtain some environmental and social benefits for Bangladesh. Discussions are given below:

Environmental benefits will be obtained by Chicki Chick:

Environment make free from pollution: Poultry wastes is a thing which is bad for environment. It makes land infertile. Chicki Chick is poultry firm aids to mitigate the pollution by using scrap metal as a row material.

Reduce water pollution: By using Effluent Treatment Plant (ETP) Chicki Chick is poultry firm can manage their poultry wastes which is harmful to the pure water.

Social benefits will be obtained by Chicki Chick:

Create new job opportunity:  Chicki Chick poultry firm can create new job opportunity for many people.

Supply product according demand:  Chicki Chick poultry firm can supplies eggs and poultry to the local retailer.

Helps bank to run its business: Chicki Chick poultry firm borrows money for its business from the bank. As a result it directly helps bank to run its business.

Provide quality product: Chicki Chick poultry firm produce quality full product. People of Bangladesh can enhance their living standard by using this quality product.

Earn foreign revenue: Chicki Chick poultry firm can earn foreign revenue indirectly by supplies eggs and poultry to the local buyers whose has an agreement with foreign buyers.

Help related business: Chicki Chick poultry firm helps related business to buying poultry foods from them and selling eggs and poultry to another dealer and retailer.

Support restaurant sector: Chicki Chick poultry firm can support local restructure to supply their eggs and poultry.

From the above discussion, it can say that Chicki Chick poultry firm can ensure environmental and social benefits for Bangladesh by taking such kinds of steps.

Limitations:

1.     Previous loan amount and due part of the loan have not given.

2.     Present demand of the loan has not given.

3.     SME Bank Ltd. (SBL) banking credit policy has not given.

4.     Rate of interest of SME Bank Ltd. (SBL) has not given.

5.     Assuming here there is no security and collateral security offered by Chicki Chick as a guarantee to the SBL.

6.     A credit officer can only recommend for sanctioning the loan but he/she has no ability to sanction and disbursement the loan.