Asad's Business and Technology Articles

Globalization of business, revolution of Information and Communication Technology (ICT), changing in Govt. regulations, impact of prices and fluctuation in foreign currencies rates, requirement of funding for business expansion, all these factors compelling the corporate world to change and reconstruct their capital structure. Companies often change capital structure by issuing new shares through Initial Public Offer (IPO) usually with Bank's joint venture. Shares sometime issue on discount, means below face value, or by purchasing of its own shares from stock market. Amalgamation is one of the common technique for alteration of capital structure. It is a process in which two companies combines together and form new company with new funding, new resources for expansion of business. Both companies (Amalgamating and Amalgamated) assets and liabilities are revalued and restated in order to represent true financial position. The reason for amalgamation may be to expand business...

Most of the students are confused with the difference between Accounting and Finance… Accounting is majorly concerned with the recording, classifying and reporting of the data relevant to Assets, Liabilities, Expense, Income and Capital of the business, whereas, Finance is the management of Cash/Money/Funds. The purpose of the Finance is to control the financial resources of business and making long term decision for business future.

Institute of Cost and and Management Accountant of London defines Cost Accountancy, “ The application of costing and cost accounting principles, method and techniques to the science, art and practice of cost control and the ascertainment of profitability, It includes the presentation of information derived there from for the purpose of managerial decision making”. Cost accounting is generally considered to be applied in manufacturing concern. But this opinion is not true in this modern age. Every business struggle for high profit by controlling ‘Cost’ where this technique is being used its mean Cost accounting is used. Manufacturing firms, Wholesale, Retail business, Banks and other financial institution, Insurance companies, Transportation companies, Railway, Airlines, and Shipping companies and non profit organization like School, Universities means each and every business is applying Cost Accounting. To control or to keep record of each entry that is directly or indirectly associa...