Game of Intellect

IRR = Internal rate of return method considers the time value of money, the initial cash investment, and all cash flows from the investment.

An accounting descripttion of the writing-down of the book value of an asset over time or the systematic repayment of a debt. Amortisation of a debt is the gradual reduction in value of the debt through the payment of regular instalments until the total amount has been discharged. A loan which is not amortised would involve the payment of interest only during the term of the loan and then the repayment of the principal in full. Accountants use the term 'amortisation' to describe what others would call 'depreciation' when writing down the value of intangibles such as patents or capitalised oil exploration expenses.

Intangible Assets:

Something of value that cannot be physically touched, such as a brand name, franchise, trademarks, patents, copywrites. It is the opposite of tangible assets.

Total earnings before provisions are deducted. This measures a company's performance and is often used in preference to net profit as it excludes the effects of borrowings and tax benefits and adjustments. Abbrev. EBIT.

 

Long Term Capital Gains & Transaction Regarded as Transfer.

The Assets which has been held by Assessee(Fixed Assets) for a period of more than 36 months & the gain arising from sale of such asset is known as Long Term Capital Gains.

Similarly, if the asset is in form of shares & securities the period considered shall be more than 12 months & the gains arising thereby from sale of these shares & securities is termed as Long term Capital Gains.

Transaction that are regarded as Transfer is Explained in the following Powerpoint Presentation which is attached for your kind reference.

Thanx

Kapil Sharma

Long Term Capital Gains & Transaction not regarded as Transfer :

The Asset held by assessee for more than 36 months is termed as Long Term Capital Asset & gains arising on the sale of such Asset is termed as Long Term Capital Gains.

But , in case of asset in form of shares & securities the period should be taken as 12 months instead of 36 months as said above.

The attachment is made for the Transaction which are not regarded as Transfer.

Liquidity Ratio

It is a liquidity status measuring ratio. The ratio is claculated between all Cash and Cash equivalents and all current liabilities.

The type of bill of exchange most commonly used in Australian financial markets. The accommodation bill grew out of the trade-related bills of exchange which had been widely used since the last century in financing world trade. At present, accommodation bills are a means of providing finance (lending) without necessarily having an underlying trade transaction (whereas trade bills are based on specific transactions). Accommodation parties are defined under the Bills of Exchange Act 1909 - 1973 thus: 'An accommodation party to a bill is a person who has signed a bill as drawer/acceptor/endorser, without receiving value therefor, and for the purpose of lending his name to some other person.' The idea behind the accommodation bill is to lend the weight of the stronger party's name (through accepting/drawing/endorsing the bill) to another party whose name is less marketable.

Impairment Loss:

Impairment Loss = Carrying amount - Recoverable amount

ECONOMIC VALUE ADDED

IT IS THE MONETARY ASSESSMENT OF CREATING VALUE BY AN ENTERPRISE THROUGH ITS OPERATIONS- i.e.COMPUTATION OF ECONOMIC PROFIT. IT IS DEFINED AS A DIFFERENCE BETWEEN NON-OPERATING PROFIT AFTER TAX AND THE CAPITAL CHARGE.

EVA=NOPAT- WACC (WEIGHTED AVERAGE COST OF CAPITAL) x CAPITAL EMPLOYED

n probability theory the expected value (or mathematical expectation, or mean) of a discrete random variable is the sum of the probability of each possible outcome of the experiment multiplied by the outcome value (or payoff). Thus, it represents the average amount one "expects" as the outcome of the random trial when identical odds are repeated many times. Note that the value itself may not be expected in the general sense - the "expected value" itself may be unlikely or even impossible.

A theory among market analysts that explains movements in share prices as being independent of previous changes. Each new change, according to the theory, is explained by new information.

The estimated volatility of a security's price.

Asset management company:

A company that invests its clients' pooled fund into securities that match its declared financial objectives

EOQ - Economic Order Quantity (EOQ) stands for the most economical quantity of raw material that we should order so that the carrying cost as well as the ordering cost of raw material purchased is minimum.