ITA Lecture 07 Part D
Transcript
00:00How much assets does a company have?
00:05A company which has more land, more buildings, more plant and machinery,
00:11who does the production?
00:13Plant and machinery.
00:14If a company has a big plant and machinery,
00:18if it has a financial status, it means it has production capacity
00:22and it can produce it and earn revenue.
00:27About the assets of a company, about its liabilities,
00:32and who has the money in the assets of this company?
00:36Do the lenders have money? Do the shareholders have money?
00:39Do the owners have money?
00:41What is the capital of the owner's money?
00:43What is the money of the non-owners?
00:44Liability.
00:46What is the income of this company?
00:49What are the expenses of this company?
00:51Property.
00:52And if we minus the expenses in the income,
00:54where will the profit go?
00:56How is the cash flow?
01:00Where did the cash come from? Where did it go?
01:03All these details are stated in the cash flow statement.
01:06For example, you have three things in the statement of financial position.
01:13We will discuss this in detail later.
01:15Assets are there in this.
01:17Which asset do we have?
01:19Who is it?
01:23Is it a girl or a boy?
01:25Is it a boy?
01:27If it is a boy, then you have to take care that it is not a boy.
01:34I called myself a boy and made myself happy.
01:38We too are sometimes a boy.
01:41Now we have become old.
01:44Oh, youth!
01:49Let's move on, friends.
01:52If you want to see others from home, then let me see.
01:55Or do you want to see someone else?
01:57Let me see.
01:59Let me see.
02:00Let me see the moustache Mohanji.
02:02I was going on the motorcycle.
02:04He was a very humble Mohanji.
02:06This white beard, this clean moustache,
02:08a moustache on the head.
02:09He was a very pious man.
02:11Now I have also become old.
02:12He has also become old.
02:13I said, you should pray.
02:15He said, no.
02:16Today we will pray with a moustache Mohanji.
02:20So he moved me forward.
02:22I have known him since then.
02:24Moustache Mohanji.
02:26I had just gone.
02:28My head was bare.
02:30I got back on the motorcycle.
02:32Those people were praying.
02:34I said, whoever comes, I will invite him to the Jamaat.
02:38Let's pray with the Jamaat.
02:40There were two persons.
02:42The first person who came,
02:44he had an officer on the motorcycle.
02:46He was wearing a badge.
02:48I said, should I invite him to the Jamaat?
02:50He said, yes.
02:52In a few minutes, a proper Mualvi came.
02:54He had a moustache, beard, moustache on his head.
02:56He was a very pious man.
02:58I told him to come.
03:00He said, are you the officer?
03:02I said, no, you are the Mualvi.
03:04I said, okay.
03:08Whenever you go,
03:10even if there are two people,
03:12even if you are in a hostel,
03:14it is not necessary to be a Mualvi.
03:16Do you go to the Mualvi class?
03:18Once, in a village,
03:20a lot of people were waiting for the Mualvi to come.
03:22If the Mualvi comes,
03:24we will invite him to the Jamaat.
03:26A Mualvi was passing by.
03:28It was Mualvi time.
03:30He was offering Fajr prayer.
03:32He said, you are offering Fajr prayer.
03:34I said, yes, I do.
03:36He started recitation of Fajr.
03:38He recited Khulwala.
03:40He recited Allahu Akbar.
03:42He recited Khulwala in the second one as well.
03:44Everyone was worried.
03:46What kind of a Mualvi was he?
03:48He recited one Surah and left.
03:50In Fajr, our Mualvi recited so many Surahs.
03:52This Namaz,
03:54when he will go to the city,
03:56he will say something.
03:58When he went to the biggest
04:00Madrasa in the city,
04:02where Fatwa is given,
04:04when they locked him inside,
04:06the same Mualvi was sitting inside.
04:08He was a great Mualvi of his time.
04:10He was a great Mualvi of his time.
04:12He is around 100-120 years old.
04:14He is around 100-120 years old.
04:16When he went inside,
04:18he said, Mualvi sahib,
04:20you made us sit on Khulwala.
04:22He recited Quran to us.
04:24He said, I gave you a message.
04:26You are a great Mualvi.
04:28You don't need to recite big Surahs.
04:30You can recite Surah Ikhlas.
04:32You don't need to shave your beard.
04:34You have two friends.
04:36One in the front and one in the back.
04:38You can shave your beard.
04:40I don't know.
04:42It doesn't happen.
04:44It's your chill program.
04:46Okay, let's move ahead.
04:48The next question is,
04:50if a person wants to see
04:52the assets of a company or a business,
04:54what are the liabilities?
04:56What is the equity?
04:58The assets in a business,
05:00like land, building, plant, machining,
05:02all these are assets.
05:04What do you need to buy these assets?
05:06Money.
05:08In Faisalabad, money is called Peha.
05:12What do you call it?
05:14Peha.
05:16What is the Jamaal?
05:18Peha.
05:20Peha.
05:22What do you call it?
05:24Peha.
05:26So, he said,
05:28you need money to run a business.
05:30Your money, capital.
05:32No.
05:34So, you need money to run a business.
05:36So, in this business,
05:38the person who is going to invest,
05:40what are the assets?
05:42What is the level of debt on them?
05:44What is the liability?
05:46If there is a lot of debt already,
05:48then what will I get
05:50in the interest payment?
05:52So, there are a lot of things about the company.
05:54You can read it.
05:56If I want to see
05:58what is its income?
06:00And what are its expenses?
06:02So, where will I get it from?
06:04SubhanAllah.
06:06Where will I get income and expenses from?
06:08Statehood of?
06:10Comprehensive income.
06:12This is also called Profited Loss.
06:14What do you call it?
06:16Profited Loss.
06:18Then I will tell you later
06:20what is Profited Loss and
06:22Statehood of Comprehensive Income.
06:24In Statehood of Cash Flows,
06:26there is only cash.
06:28Where did the cash come from?
06:30I will tell you.
06:32Statehood of Financial Position.
06:34The details of this will be here.
06:38Further details will be here.
06:40And
06:42as you wrote income,
06:44you wrote sales,
06:4610 billion,
06:48Nestle's sales.
06:50How many Nestle products will be there?
06:52Can anyone guess?
06:54Sir, you said 500 million.
06:56No, you said Coca-Cola.
06:58Nestle will have more than 1000 brands.
07:02But that sale is written in one line.
07:08Now how do we know how many
07:10toothpaste are sold?
07:12How many face are sold?
07:14How many shampoos are sold?
07:16How many soaps are sold?
07:18So many products.
07:20So about those sales,
07:22detailed.
07:24Statehood of Comprehensive Income
07:26will be of one page.
07:28Sales will be written,
07:30in one line.
07:32Now this sale is written in one line.
07:34But whose sale is this?
07:36How much is the sale?
07:38Okay, brother.
07:40So what will happen?
07:42The things above,
07:44whose amounts are written in statehood,
07:46where are the details about them?
07:48Notes to the accounts were detailed.
07:50How detailed was he?
07:52Notes to the accounts were detailed.
07:56So friends,
07:58how do we say accounts?
08:00Things have an explanation.
08:02Things are detailed.
08:04For example,
08:06plant and machinery
08:08as an asset.
08:101 billion.
08:12Now how much is the life of this plant and machinery?
08:14What is the depreciation rate?
08:16Okay, brother.
08:18On what value is it written?
08:20On historical cost?
08:22On what value is it written?
08:24So where will all the information about it be?
08:26So in notes to the accounts,
08:28the amounts in the above
08:30four statements,
08:32where is the explanation about them?
08:34Notes to the accounts.
08:36Any objections?
08:38Sir, this is a new company.
08:40Nothing will happen to it.
08:42Usually, in a new company,
08:44only those people invest
08:46who want to make the company.
08:48No, as it is.
08:50As it is.
08:52Usually, if a new company is being
08:54made, then who is making it?
08:56So only those people
08:58who are making it will be interested.
09:00How will a new person invest in a new company?
09:02You don't know if it is a new company or not.
09:04Sir, how can we do it
09:06if the business owners
09:08have a good reputation?
09:10If they want
09:12to start a new business
09:14and we are making this company for it,
09:16then if the rest of the people are interested,
09:18they can do it.
09:20On what basis should they invest?
09:22They have some information.
09:24No one invests
09:26without any reason.
09:28So, about any company,
09:30the information this company has
09:32over the years,
09:34what is it?
09:36Financial statements.
09:38Note the assignment.
09:52What is the objective of
10:02financial accounting
10:08and financial statements?
10:10Why do we study financial accounting?
10:12What is the objective of
10:14financial accounting?
10:16And what else?
10:18What is the second one?
10:20What is the objective of
10:22financial statements?