COVER STORY
Global Competitiveness and Contemporary
Cost Accounting Techniques
-- Manoj Pillai
The contemporary business environment is passing through a dynamic phase of global competitiveness. In this
globally competitive environment, evolving from the rapid technological advancements, innovative logistics management
and strategic costing methodologies, concepts relating to cost management have become the new mantra for
attaining sustainable competitive advantage and enhancing companies' profits. The increased emphasis on the overall
quality aspect has forced organizations to give high prominence to the process, as well as to the quality of the product. The
cost of quality has become an important concept in contemporary cost accounting practices. This article attempts at
gaining a deeper insight into the various cost management techniques practiced by organizations, operating in the
contemporary cutthroat business environment.
© 2009 IUP. All Rights Reserved.
BUSINESS ENVIRONMENT
Payment Systems in India Evolution and Current Trends
-- Rakesh Kumar
This article gives the readers an introduction to the Indian payment system. Beginning with money as a medium
of exchange, the article goes on to discuss paper-based clearing house, the advent of Electronic Clearing House
(ECH), Cheque Truncation System (CTS), National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement
Systems (RTGS). The article also discusses the introduction of Structured Financial Messaging Service (SFMS) as a
messaging infrastructure and the introduction of internet and mobile banking in the Indian payment scenario.
© 2009 IUP. All Rights Reserved.
FINANCIAL REPORTING
Managing with Zero Working Capital
-- Lingisetti Venu
Due to the ongoing global economic recession, the concept of zero working capital and the various ways to achieve
it, are being revisited. This article examines the various companies practicing zero working capital and the way they
use strategic tools for achieving the same.
© 2009 IUP. All Rights Reserved.
COSTING
Target Costing
Delighting Your Customers
While Making a Profit
-- Hank Bird and Bob Albano
This article focuses on target costing as a method of ensuring profitability. Target costing is effective, simple, logical
and easy to implement. This article gives a brief overview of target costing, emphasizing on the process as well as on
the tools and techniques used for the same.
© 2002 This article was first published in
Focused Management (www.focusedmanagement.com). Reprinted with permission.
BUSINESS ENVIRONMENT
Bankruptcy of
Lehman Brothers: A Pointer of Subprime Crisis
-- Pankaj Madhani
The US subprime crisis intensified after the housing bubble burst, which ultimately resulted in high default rates
on higher risk borrowers, such as subprime and other Adjustable Rate Mortgages (ARM). Once the housing prices started
to drop sharply, home loan refinancing became more and more difficult. Defaults and foreclosure activity
increased steeply as ARM interest rates reset higher, making it even more difficult for borrowers to repay. One of the major
causes of the Lehman Brothers' default was its exposure to the subprime market. The aftershocks from the subprime
crisis caused widespread panic in the global financial and capital markets, encouraging investors to abandon risky
mortgage bonds and volatile equities.
© 2009 IUP. All Rights Reserved.
IFRS
Something to Talk About
-- Chris Hicks
IFRS for publicly accountable enterprises is going to be replaced with Canadian GAAP from 2011 onwards,
adding Canada to the 100 and more countries who have adopted IFRS. In many respects, both Canadian GAAP and IFRS
are same, except in their recognition, measurement and disclosure of financial statements. The changeover plan
addresses the methodology and timing for the conversion, dealing not only with the decisions about accounting policies and
their implementation, but also with the changes to manual and automated systems and controls.
© 2009. This article was first published in January-February, 2009 issue of
CA Magazine (www.camagazine.com). Reprinted with permission.
BUSINESS ENVIRONMENT
Ethical Perspectives in Accounting
-- Susanta Mitra
Accounting provides information service, apart from referencing, generating and communicating information to
the legitimate stakeholders. Attempts have been made to establish that accounting inquiries should aim at
understanding the environment, where business operates by the twin arguments of the engineering and the ethical approach in
modern organizations. This article discusses the ethical considerations that can shape individual and social judgments
towards societal progress.
© 2009 IUP. All Rights Reserved.
WINDOW DRESSING
Window Dressing
-- Vikas Shrotriya
Stakeholders rely on the information disclosed in the financial statements of the corporate units. Financial
statements are deemed as the ultimate documents pertaining to the performance and financial position of any corporate unit.
Most of the time, it is not possible for all the stakeholders to verify the information disclosed in the financial statements
of the company. Stakeholders treat these statements as accurate and reliable. Some companies manipulate the
financial statements in order to project a financially healthy image of the company. It is definitely done with a clear objective
of cheating the stakeholders by projecting a false image regarding profitability and financial standing of the company.
This article discusses some aspects of window dressing.
© 2009 IUP. All Rights Reserved.
SPEECH
Speech by SEC Chairman: The Future of International Standards and Cooperation in Light of the Credit Crisis
-- Christopher Cox, Chairman, US Securities and
Exchange Commission, New York.
Chairman Christopher Cox focuses on the role of international standards and cooperation in the light of credit crisis.
He also talks about financial reporting practices and recent events for global meltdown as well as their impact on the
rest of the world. The coordination required for international standards has also been discussed upon.
© 2008 US Securities Exchange Commission (www.sec.gov). Speech by Christopher Cox, Chairman, Conference
Co-sponsored by Financial Executives International (FEI), New York, November 18, 2008. Reprinted with Permission.
|
