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Javid Iqbal

Javid Iqbal. Assistant Professor Department of Management Sciences COMSATS Institute of Information Technology, Islamabad. Education. M.Sc in Accounting (Pass with Distinctions, August 2007-June 2009) Graduate School, School of Business, Economics and Law,

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Javid Iqbal

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  1. Javid Iqbal Assistant Professor Department of Management Sciences COMSATS Institute of Information Technology, Islamabad

  2. Education • M.Sc in Accounting (Pass with Distinctions, August 2007-June 2009) Graduate School, School of Business, Economics and Law, Gothenburg University, Sweden • Master of Business Administration in Finance (2004-2006) Department of Business Administration University of Sargodha, Pakistan • Master of Commerce in Accounting (2001-2003) Hailey College of Commerce University of the Punjab, Pakistan • Bachelor of Commerce (1999-2001) Hailey College of Commerce University of the Punjab, Pakistan

  3. DISTINCTIONS& AWARDS • Rotary International Student House (RISH) has selected one of the top five internationalstudents from Gothenburg University, Sweden. • Awarded distinction on master project (Thesis) presented to fulfill the requirement of Master of Science in Accounting degree. • Awarded cash prize and certificate on project of European financial crises

  4. EXPERIENCE • Assistant Professor • COMSATS Institute of Information Technology, Islamabad • (2009 to till date) • Research Fellowship • School of Business, Economics and Law, Gothenburg University, Sweden • 2009 • Lecturer • University of Education, Lahore, Pakistan • 2006 to 2007 • Lecturer • Hi-Aims College of Commerce, Jauharabad • 2004 to 2005

  5. RESEARCH INTERESTS • Financial Disclosure, • Financial Regulations, • Financial Statements Analysis, • Accounting Practices, • Management Accounting

  6. End of Profile

  7. Accounting 1 Course Contents MGT 130

  8. Business Organizations • Proprietorships, • partnerships • corporations.

  9. Business types • Manufacturing • Merchandizing • Services business.

  10. Accounting Information for Decision Making • Financial Accounting • Management Accounting, • Objectives with regards to the information

  11. GAAP and Accounting Standards • Generally Accepted Accounting principles, • IAS and • IFRS • Basis for business entities for Preparing Financial Statements for the external users

  12. Economic Transactions • Double entry system • Transactions • Principles of Debit and Credit

  13. Accounting Equation • Rules of Accounting equation • Techniques of calculating • Assets, • Liabilities and • Owner’s equity • Transactions in Accounting Equation

  14. Financial Statements • Financial Accounting • Income Statement, • Balance Sheet, • Cash flow statement and • Statement of changes in Owner`s equity

  15. The Accounting Cycle • Preparing Journals • Preparing Ledgers; the main book of original entries • Preparing Trial Balance, • Adjusting entries and adjusted Trial Balance • Preparing Financial Reports • Closing entries and completion of Accounting cycle

  16. Special Journals • Receivable • Inventories • Control over cash • Bank Reconciliation Statement

  17. End of Course Outline

  18. Recommended Book • Meigs, Williams, Haka and Bettner: Accounting: The Basis for Business Decisions. Ed(11th) • Warren Reeve Fess: Accounting, 21st Edition

  19. Accounting 1 MGT 130 Chapter 1

  20. Objectives 1. Describe the nature of a business. 2. Describe the role of accounting in business. 3. Describe the profession of accounting. 4. Summarize the development of accounting principles 5. State the accounting equation and define each element of the equation.

  21. Objectives 6. Explain how business transactions can be stated in terms of the resulting change in the basic elements of the accounting equation. 7. Describe the financial statements of a proprietorship and explain how they interrelate.

  22. Types of Businesses • Manufacturing • Merchandizing • Services business.

  23. Product Toyota Motors Cars, vans Intel Computer chips Nishat Textile Nike Athletic shoes Coca-Cola Beverages Sony Stereos and television Types of Businesses Manufacturing Business

  24. Types of Businesses Merchandizing Business Product Metro Cash & Carry General merchandise D.Watson Medicine United Mobiles Mobile Phones Amazon.com Internet books, music,

  25. Types of Businesses Services Business Product PIA Transportation Marriott Hotels Hospitality and lodging HBL Financial Services PTCL Telecommunication

  26. There are three types of business organizations • Proprietorship • Partnership • Corporation

  27. A proprietorshipis owned by one individual. • Advantages • Ease in organizing • Low cost of organizing • Disadvantage • Limited source of financial resources • Unlimited liability

  28. A partnership is owned by two or more individuals. • Advantages • More financial resources than a proprietorship. • Additional management skills. • Disadvantage • Unlimited liability.

  29. A corporation is organized under state or federal statutes as a separate legal entity. • Advantage • The ability to obtain large amounts of resources by issuing stocks. • Limited liability • Disadvantage • Double taxation. • Difficult process to establish

  30. Business Strategies Abusiness strategy is an integrated set of plans and actions designed to enable the business to gain an advantage over its competitors, and in doing so, to maximize its profits.

  31. Business Strategies Under alow-cost strategy, a business designs and produces products or services of acceptable quality at a cost lower than that of its competitors.

  32. Business Strategies Under adifferential strategy, a business designs and produces products or services that possess unique attributes or characteristics which customers are willing to pay a premium price.

  33. Business Stakeholders A business stakeholder is a person or entity having an interest in the economic performance of the business.

  34. Business Stakeholders • Owners • Banks • Customers • Government Agencies etc

  35. Common Things • Organizational Goals • Need Information

  36. Organizational Goals • Profit Making • Welfare Work

  37. STAKEHOLDERS External: Customers, creditors, government Internal: Owners, managers, employees Identify stake-holders. 1 Assess stakeholders’ informational needs. 2 The Process of Providing Information

  38. Design the accounting information system to meet stakeholders’ needs. Record economic data about business activities and events. 3 4 The Process of Providing Information Accounting Information System

  39. STAKEHOLDERS External: Customers, creditors, government Internal: Owners, managers, employees Prepare accounting reports for stakeholders. 5 The Process of Providing Information Accounting Information System

  40. Purpose of Information • Investors want to know if a company is a good investment. • Creditors want to know if they should extend credit, how much to extend, and for how long. • Managers want to know if a new product will be profitable. • Owners want to know which employees are productive. • Government regulators want to know if financial statements conform to requirements.

  41. The Purpose of Accounting The basic purpose of Accounting is to provide information to decision makers that is useful in making economic decisions.

  42. Accounting System • The accounting system is a series of steps performed to • Analyze, • Record, • Quantify, • Accumulate, • Summarize, • Classify, • Interpret • Reporteconomic events and their effects on an organization and to prepare the financial statements.

  43. Accounting • Accounting is a process of • Identifying, • Recording, • Summarizing, and • Reporting economic information to decision makers

  44. Accounting SystemAccumulates data for use in both financial and managerial accounting Accounting System Accumulates cost information Financial Accounting Managerial Accounting

  45. Financial Accounting • Financial accounting - focuses on the specific needs of decision makers external to the organization, such as stockholders, suppliers, banks, and government agencies i.e. annual reports, quarterly reports, semi annual reports.

  46. Financial Statements • Balance Sheet • Income Statement • Cash Flow Statement • Statement of Changes in Owner’s Equity • Notes

  47. Financial Statements • Balance Sheet • Shows financial position of the company for a specific point in time/date i.e. 31st December 2010, 30th June 2010 etc. • Income Statement • Shows net results of business operations for a specific period of time i.e. a week, month, semi-annual, Annual • Cash Flow Statement • Shows inflow-outflow of funds for a specific period of time. • Statement of Changes in Owner’s Equity • Shows changes incurred in the total equity for a specific period of time

  48. The Balance Sheet Sections of the balance sheet: • Assets - resources of the firm that are expected to increase or cause future cash flows (everything the firm owns) • Liabilities - obligations of the firm to outsiders or claims against its assets by outsiders (debts of the firm) • Owners’ Equity - the residual interest in, or remaining claims against, the firm’s assets after deducting liabilities (rights of the owners)

  49. Income Statement Sales Revenue xxxx - Less Expenses xxxx = Gross profit xxxx - Operating Cost: Selling General Administration Expenses xxxx = Net Income xxxx

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