Book keeping & accontancy obsarvation
Answers
BOOK KEEPING..
This hold’s special significance when we consider a Scenario where the Accounting Package sends and receives these Financial Transaction Vouchers and also intelligently deciphers / decodes these Financial Transaction Vouchers to be put to meaningful use without manual extraction or re-keying. [See my other post XBRL : GL in International Trade Transactions]
* The Equality yard-stick, may in, certain cases be distorted, by differences on account of RECOGNITION (across different periods, Capital or Revenue) or MEASUREMENT (fair value, historical cost, etc) of Financial Transactions.
Eg. A Sells goods to B for CU X, on cash payment.
Recording of Transaction
In books of A
Sales Cr, Cash A/c Dr, Amt – CU X
In books of B
Cash A/c Cr, Purchase A/c Dr, Amt – CU X
Principal Party (A) Counter-Party (B)
SALE/INCOME PURCHASE/EXPENSE
RECEIPT PAYMENT
XBRL BookKeeping 1
Eg. B pays CU X to A
Recording of Transaction
In books of A
B A/c Cr, Cash A/c Dr, Amt – CU X
In books of B
Cash A/c Cr, A A/c Dr, Amt – CU X
Principal Party (A) Counter-Party (B)
RECEIPT PAYMENT
DEBT DUE TO B(A IS DEBTOR OF B) DEBT DUE FROM A(B IS CREDITOR OF A)
BookKeeping 2
Accountancy
If we managed our economy the way we manage
our environment, we’d still be hunter‐gatherers.
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Some observations
Economic information has:
Basis in macro‐economic theory
Coherent, integrated and comprehensive
measurement framework (System of National
Accounts = SNA)
Accepted indicators (GDP), interpretations (up is
good) and functional relationships (e.g., GDP =
Consumption + Investment + Government spending +
(eXports – iMports))
Sustainable statistical infrastructure for regular
measurement and reporting (classifications, methods,
standards, prices, methodology, surveys, accounts,
indicators)
Economic Data
Accounts
Indicators
More observations
Environmental information has:
Many resource and ecological theories
Data collected for specific purposes (e.g., one policy,
one regulation or one indicator)
Few accepted indicators, interpretations or functional
relationships
Little “sustainable” statistical infrastructure (many
indicators, different classifications & concepts…)
Another example Deputy Minister: “We need an indicator of GHG emissions!”
Staff: “We’ll take fuel sales in $, convert to volume…”
Deputy Minister (2 years later): “Where are the GHGs coming from?”
Staff: “Ummm, energy production, transportation and heating.”
Deputy Minister: “No! For policies to reduce GHGS we need to know
what’s driving it! What industries?
Staff: “Maybe we need to ask the NSO for data.”
NSO (1 year later): “What do you want?”
Staff: “What do you have?”
NSO: “We have fuel expenditures by industry. We can make bridge tables
to link activities with industries. We’ll create an energy account!”
Staff (3 years later): “Thanks, with the energy account, we can allocate GHG
emissions to final consumption (households, exports, government and
inventory. Wow! 42% of GHG emissions go into creating exports!”
Different Deputy Minister: “We need an indicator of water use.”
Staff: “Let’s talk to the NSO.”
I hope my answer will may be help you ..thanks
have a grateful day