Pvr Cinemas Essay Example for Free

Pvr Cinemas Essay INTRODUCTION Over the last decade, India has registered the fastest growth among major democracies and is now the fourth largest economy in terms of ‘‘purchasing power parity’’.Over the years, spending power has been steadily increasing in India. On an average, 30-40 million people are joining the middle class every year. The consumption spending is rising due to increasing disposable incomes on account of sustained growth in income levels and reduction in personal income tax over the last decade. The Indian Entertainment Industry is expected to significantly benefit from this fast economic growth, as this cyclically sensitive industry grows faster when the economy is expanding. When incomes rise, proportionately more resources get spent on leisure and entertainment than on necessities. Although over 90 years old, the Indian film industry was only accorded the status of an industry in 2000. Consequently, it is only during the last five years that the Indian film industry has been able to attract financing from banks, financial institutions, private equity investors and corporations. Prior to 2000, the industry was almost solely reliant on private and largely individual financing. Although corporatisation of the film industry has started, the film industry is currently largely unorganized and fragmented. Going to the cinema is one of the most popular entertainment options in India. PVR CINEMAS Priya Exhibitors (p) ltd is a part of the diversified Bijili Group, which has interests in transport, finance and construction sectors all over India. After a downturn in the industry in late 80s when the onslaught of video wars at its peak cinema has now been rejuvenated with the latest international trends in cinema exhibition reaching India’s shores swiftly with the arrival of satellite TV. The capitals cosmopolitan audience is becoming increasingly aware of the advanced cinematic technology that enhances the movie going experience and this has whetted their appetite for watching movies on the â€Å"big screen â€Å".To cater to the increasingly sophisticated tastes of the audience Priya exhibitor Pvt Ltd. totally refurbished the existing cinema in June 1991 including installation of a Dolby stereo sound system. They also gained exclusive rights to screen blockbusters from major distributors mainly Warner brothers, 20th century fox, united international pictures, small wo nder then that the cinema has become the focal point for entertainment in the capital for both the young and old attracting over 30,000 patrons a week. Infact, â€Å"Speed† set a national box office world record of Rs.785000 in its first week of screening at PVR (the highest ever for an English film), which is remarkable considering the relatively low price of a cinema ticket in India.Buoyed by the overwhelming success of the cinema after upgrading, Priya exhibitors ltd have taken he next initial step for setting up the first multiplex in the country in a joint venture with Village Roadshow Ltd, Australia’s entertainment corporation.PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR specializes in developing and operating state-of-the-art Multiplexes.PVR Cinemas are the leading cinemas in the country with an emphasis on design, technology and service. Over the last three years, PVR has established itself as a very strong brand associated with movies, quality exhibition and youth-targeted promotions.The company was conceived as a Joint Venture between the Bijli family,headed by Mr. Ajja y Bijli as Indian Promoters and Village Roadshow Limited of Australia, one of the largest multiplex operators in the world with more than 1500 screens under operation. PVR has been a pioneer in multiplex development by setting up India’s first multiplex PVR Anupam4 at Saket in city of Delhi. The company has since grown to become the largest cinema exhibition player in the country and has 5 theatres with 19 screens in city of Delhi/Gurgaon under its operation.The Cinema can boast of the highest box office collections in India for five consecutive years since its opening. Located around the Cinema in the same complex are a number of up-market restaurants, pubs and fast-food eateries that make it a popular youth hangout place and indeed an entertainment experience for the entire family.PVR Priya, a 25-year-old cinema still considered the best Cineplex in Delhi, was completely renovated and brought into the fold of PVR in January 2000. PVR Priya boasts of the highest box office collections in the city of Delhi after PVR Saket. It also has the distinction of having the widest screen in India. Following the tremendous success in South Delhi, PVR expanded to WestDelhi in 2001 with the launch of two new multiplexes PVR Naraina, and PVR Vikaspuri. PVR Naraina, with four screens and 830 seats, was launched in August 2001. PVR Vikaspuri (3 screens, 921 seats) was launched in November 2001.PVR Group has re-opened one of Delhis oldest and most popular cinema hall, Plaza; now known as PVR Plaza. With a seating capacity 22 of 300 seats, the all new single screen auditorium has been renovated and refurbished to bring back its former glory. The cinema, unique in its nature, combines the look and feel of the 50s with the state-of-the-art cinema viewing technologies of today. The most recent addition to the chain is PVR EDM, this three-screen multiplex, located in the popular East Delhi Mall, is equipped with the stateof- the-art technology and is one of its kind in the vicinity.The three-screen multiplex has a total seating capacity of 723 seats. It is equipped with the latest THX-approved three-way surround sound system with real life sound effects and state-of-the-art projection facility with the latest Xenon-based technology. The stadium seating arrangement ensures unobstructed viewing from anywhere in the auditorium. STP OF PVR CINEMAS SEGMENTATION On the basis of customer preferences, we may classify PVR under the Clustered category. This is owing to the fact, that out of the entire masses they have clearly defined their target audience and aim to cater to them. Also, PVR is a Concentrated Market because they only cater to the premium movie-going audience i.e. SEC A and SEC B.PVR Cinemas has approx. 22 million movie goers per month Consumer Demographic Segmentation Age: 61% between 18 and 49 Gender: 47% Males / 53% Female Income: 61% have income over 50K Education: 55% of adult movie-going audience has attended/graduated college*. Of these adults, 37% have college degrees or higher Consumer Psychographic Segmentation PVR Movie Goers are people with high resources and can be classified as â€Å"Experiencers† who seek variety and entertainment. Spend a comparatively high proportion of income on fashion, entertainment, and socializing. â€Å"PVR Movie Buffs† generally have the following major tendencies:- -Go outside the home for entertainment -Participate in sports and other active lifestyles -Hard to reach through other traditional media -lighter television and radio users, but heavy internet users -Receptive to advertising in movie theatres, consider as part of their movie going experience Consumer Behavioral Segmentation Usage rate: 1/3 of the population attends the movies one or more times per month. WHAT? 1. What benefits that the customer seeks? – Complete movie going Experience. 2. Factors influence PVR’s demand? – Price, movie, day, time of the day, day of the week, month etc. 3. What function can the product perform for the customer? –Entertainment. 4. What are the important buying criteria? – Price, ambience, placement, quality service, premium positioning, status symbol. 5. What risks does the customer perceives – risk of being overcharged, risk of being in an emergency like fire at the theater. HOW? 1. How does customer buy the product? – Online /Telebooking / In person 2. How long does the buying process take? – Simple and prompt 3. How do the various marketing mix elements influence the customer at each stage of buying? 4. How does product fit in to their lifestyle? – Entertainment product for the premium. 5. How much would they be willing to spend? – PVR had started with tickets being priced at Rs 125 with special counters available for tickets worth Rs 7. Even when all tickets are now priced at Rs 145, there is no change in the amount of customers that PVR receives, which means that people are willing to pay. 6. How much do they buy in one transaction? – Almost always more than 1 ticket. Depends upon the person, movie playing. TARGETING PVR being the first of its kind has always been a market leader and therefore its offering to the customer is Innovative. PVR has premium pricing and they target mainly SEC A and SEC B. PVR has brought to its customers the experience of Luxury Cinema. PVR uses the concentrated method as they have target a much focused audience out of the entire masses. PVR witnessed tremendous success Europe Lounge in Delhi. PVR Cinemas has also recently introduced the concept of luxury viewing to Bangalore. Gold Class Cinemas have been introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each equipped with plush and fully reclining seats and generous legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent pre cinema experience with scrumptious food and beverages PVR Priya of PVR’s chain use Differentiation method for pricing. It practices different price slabs for different target audience. For instan ce, they have tickets ranging from Rs 45 (for the youth) to Rs 140 (for the upper-class i.e. SEC A). POSITIONING PVR had, and still has a very well planned market position. Its premium positioning affects the customers perceptual positioning. Therefore, they decided on their marketing strategy and pricing, keeping the target market in mind. In case of PVR, they make use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Also, since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the experience. It’s positioning is evident in its mission statement also which says† A commitment to deliver the best quality cinema viewing Everywhere, Every time.† MARKETING MIX – 7 Ps 1. SERVICE PRODUCT/ SERVICE PACKAGE A product (in the marketing context) may be tangible, intangible or both. In case of services, on the contrary, the tangible component is nil or minimal. In services, there is no or very little tangible element because of which they are considered as benefits, which are offered to the target market. First, a service is a bundle of features and secondly, there benefits and features have relevance for a specific target market. Therefore while developing a service product, it is important that the package of benefits in the service offer must have a customers perspective. 5 product levels are as follows:Core Benefit is the MOVIES that the customer comes to a cinema hall for,along with the attendant experience of PVR. The expected product in PVR’s case would be ambience, hygiene, good service, parking, candy bar etc.PVR has augmented its product offerings: * Luxury cinema PVR has brought to its customers the experience of luxury cinema.After the tremendous success of Cinema Europa in Delhi, PVR Cinemas has introduced the concept of luxury viewing to Bangalore as well. Gold Class Cinemas have been introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each equipped with 32 plush and fully reclining seats and generous legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent pre cinema experience with scrumptious food and beverages. * Bulk Bookings There are special arrangements for bulk bookings (of twenty or more tickets) done by corporates. Details can be filled online and PVR executives themselves get in touch with the concerned people. * E-booking and tele-booking PVR also provides the factility of e-booking, which was first started by PVR, it has now been copied by Satyam cineplexes as well. It also offers telebooking * Parties at PVR PVR has also started helping customers in planning birthday/kitty parties at PVR. They have made PVR a wholesome entertainment experience than just a movie watching spree. * Movie newsletter and magazine To keep its customers hooked on to movies and to PVR, it has also come out with an online newsletter called ‘PVRWire’ is directly mailed to the subscribers and can also be downloaded from their website.They have also launched a movie magazine called ‘Movies First’ . * Movie vouchers They have also taken out the unique concept of movie vouchers which people can use as gifts. Many corporates have also started using these as incentives and rewards for their employees.The vouchers are available in denominations of Rs 100 to Rs 350 and a * minimum of 25 coupons needs to be purchased to avail of the offer.The following options are available in Delhi/NCR The Delhi PVR Movie Money Voucher costs Rs 150/- and is valid right through the week across all cinemas (except PVR Gurgaon Cinema Europa)PVR Gurgaon (Cinema Europa) PVR Movie Money Vouchers cost Rs 160/- The following options are available in BangaloreClassic Mon -Thur : Rs 100/-All Week (including Weekends) : Rs 130/-Europa Mon -Thur : Rs 130/-All Week (including Weekends) : Rs 150/-Gold Class All Week (including Weekends) : Rs 350/- + Rs150/- for food and beverages (optional) THE SERVICE PACKAGE The â€Å"package† concept of services product suggests that what you offer to the market is a bundle of different services, tangible and intangible, but there is a main or substantive or ‘core’ service and around it are built the auxiliary/peripheral/facilitator. It is important to note that facilitating services ate mandatory and if these are left out, the entire service would collapse. Yet another type called supporting services, don’t facilitate the consumption of core services but are used to increase the value and thus differentiate from the competition.Quality Assessment through RATER in case of PVR Focused on developing a procedure for quantifying customer’s service quality can be measured in following dimensions: * Reliability – Ability to perform promised service dependably and accurately. PVR is a very well established brand name, and the audience is given excellent experience of the basic product i.e. the movie as well as the other elements involved. Hence, it is very much capable of good delivery of the service it provides. There is no flaw in the quality of the service and is always delivered on time. * Assurance – Knowledge and courtesy of employees and their ability to convey truth and confidence.Since PVR is a high contact organization, the employees are well trained in all areas regarding customer interaction and courtesy. PVR movies being a service, heavily relies on its employees, as they are the only mode of direct communication made with the customers. They are well trained and are definitely able to convey the confidence that the brand name represents. * Tangibility – Appearance of physical facilities, equipment, personnel etc PVR movies have a lot of tangible elements present like the employees (staff), the movie halls, the candy bars, rest rooms etc, all of which are highly maintained and well kept. * Empathy – Caring, individualized attention to the customer.Even though in a service like this customization is not possible, the employees of PVR Cinemas are always very helpful and provide the customers with good assistance whenever needed. From the employees made to sit at the ticket counter to the employee that guides customers to their respective seats in the cinema hall, all employees deliver a very helpful attitude towards the target audience. * Responsiveness – Willingness to help customer with prompt service.The employees of PVR are fast and prompt at delivering their service and are taught to cause as less inconvenience as possible to the customers. If a customer places an order via telebooking / online reservation etc, the delivery of the tickets is made well before the show timing at the customer’s doorstep. The employees are well trained. 2. PRICE To many customers, high price means high quality. Services pricing follows the price and practices of pricing of goods and therefore are either cost based or market based. Within these, categories of price may be profit oriented, government controlled, competition or customer oriented. But the characteristics of services do influence the pricing and therefore different methods of pricing are followed in their case. PVR when started off had a huge advantage of being the only one of its kind in Delhi to begin with. Therefore, they could charge a higher amount to its target audience, as they did not hesitate to pay the sum for the new concept. This high pricing helped them make maximum gains. Also, PVR had, and still has a very well planned market position. Its premium positioning affects the customers perceptual positioning. Therefore, they decided on their marketing strategy and pricing, keeping the target market in mind. Hence,we may say that the pricing as well pays a strategic role in their marketing plans.In case of PVR, they make use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Also, since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the experience. The movie theatres market is a Free Market, even though the government in the past regulated it. This allows PVR as the market leader to set its own prices. Prices that had originally started from Rs 125 (for evening shows) and Rs 90(for morning shows and weekday plans) have increased to a high of Rs 150 and the lowest is Rs 100. The high pricing however has not led to any change in the footfalls that PVR gets. Even in slighter crowded shows, the occupancy rates as low as 35% reaches PVR’s break-even points.PVR Priya has a slightly different pricing system, which varies from Rs 45 to Rs 150 for different slabs of consumers. This has been done to mainly attract the youth and to keep the concept of movie going still affordable at one of its chains.The pricing at PVR Europa is Rs 160 and a Gold Class ticket is charged at Rs. 750. It offers superior ambience, environment, seating, viewing etc in the sum. 3. PLACE / DISTRIBUTION Services are generally created and delivered to the buyer at the same time,therefore creation of time and place utilities is a vital function in services marketing. Irrespective of middlemen or direct sales channel, the factor of location keeping in view the potential markets is the most significant in channel selection and distribution.The issue of location here plays a very important role, as all PVR Cinema Halls are stationed at good locations in the city, which gathers a large number of footfalls for them every day. PVRs usually open at an eventful yet untapped location, followed by which (as we saw in case of Anupam PVR Saket) other retail chains get opened around it as well. Their places are always well situated and are well linked. PVR does not have any other channel of distribution, as their service is sold solely at their chains. They do follow any franchisee outlets, even though they indulge in ticket sales online and via telebooking. The only intermediary involved for proc uring movies are Indian as well as international movie distributors, by way of whom they acquire the movies. * Distribution of Movies The Company has also recently forayed into the Distribution of Hollywood film titles in the country through its 100% subsidiary, PVR Pictures. By virtue of its strong brand equity and partnerships with major independent Hollywood studios like Miramax, Newline Cinemas etc. that are not represented in India through their own offices, PVR has managed to procure and distribute titles in the country. With the advent of the multiplex revolution across the country, the company sees a great opportunity to fill up these upcoming multiplex screens with Hollywood titles. The has successfully distributed major Hollywood titles like Rush Hour 2 , Wedding Planner Chicago , Choclat ,Spy Kids 2 , Makdee etc. 4. PROMOTION Promotion is a very vital part of the marketing mix especially in the case of services. The customer needs to trust or have belief in the service, as he has to pay for it pre-experience. Therefore, it is very important to sell the service in the best possible way. Usually the objective of promoting a service may be to create a brand image, establish a personal relationship with the client and to create an impression of competence, honesty and sincerity to win the buyers’ confidence in sellers’ abilities to deliver the service efficiently. To promote these, the marketer generally employs indirect selling techniques, as it is usually not possible to use the conventional promotion tools like advertising. Promotion activities like community relations, event management, media blitz, corporate identity programs have relevance. 3rd parties like government, unions and interest groups are important, as they are capable of influencing market access. PVR as a brand indulges into print advertisements on every Friday giving out the latest movie schedules. Any new developments are communicated to the audience via press releases. Hence there is a strong element of PR involved. Apart from that, they usually have contests pertaining to latest festivals like Valentines Day, New Years Eve, Oscar Movies Week etc. PVR also has a host of online promotional contests associated with movies The latest one relates to the film King Kong.They are also in collaboration with cellular services like Airtel have SMSand-win contests and give out free tickets to the winners. Also, PVR attracts a lot of commercial shooting / media coverage via programmes etc which promotes it as a brand in a big way. Organizing Star Events on Premiers of movies like ‘Kuch Kuch Hota Hai’ helps PVR relate better with its target audience i.e. the youth. The whole PVR banner and its exterior environment including movie hoardings, banners etc help promote the concept of movie viewing as well as PVR as a strong and successful brand. PVR also hosts premiere shows with leading movie stars visiting the various PVR cinemas. They also host numerous fun events for children while screening animations etc.

The Law Of Civil Forfeiture

The Law Of Civil Forfeiture

Lord of the Rings - The Two Towers :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  The second movie report I chose to do was The Lord of the Rings – The Two Towers. This movie is a sequel of the first and is the second of three. It continues the long and interesting story about two young men who set out to safe their country of Middle Earth. Everything relies in their hands and the Ring of Sauron must be destroyed. The second movie left off right where the first ended and it was even better than the first I thought.   Ã‚  Ã‚  Ã‚  Ã‚  Frodo and Sam find themselves lost in the rocky hills west of the river and know that Gollum, the creature wanting the Ring, is following them closely. They manage to capture the corrupt creature and keep him with them for a while. Since Frodo is carrying the Ring as Gollum once did, he pities and feels sorry for the ugly creature. Frodo agrees to let Gollum go and Gollum agrees to guide Frodo and Sam to the Black Gate, the entrance to Mordor. It is in these gates and up in the mountain where the Ring must be destroyed. Gollum swears by the Ring to obey its master which is Frodo and Frodo accepts the promise. Sam by the way is worried and remains suspicious. Frodo begins to call Gollum by his true name which is Smà ©agol. Smà ©agol seems very eager and willing to please Frodo.   Ã‚  Ã‚  Ã‚  Ã‚  Gollum leads them through hills and swamps that were all haunted and not safe for them, especially for Frodo who possesses the Ring. During some time, Sam overhears Gollum talking to himself saying how he was going to kill the Hobbits and take the Ring from Frodo. As the viewer, you begin to see two sides of Gollum. One side he wants to obey Frodo while the other side he wants the Ring for himself and that is where he is pure evil.   Ã‚  Ã‚  Ã‚  Ã‚  Once Sam and Frodo reach the Black Gate as Gollum promised to take them to, they begin to realize that it is hopeless to go through the gate and continue their quest. There is no way to approach unseen and it is too dangerous for Frodo with Orcs and Sauron being so close. Gollum begs them not to enter and reveals that there is a better way to get into Mordor safely. Even though it is difficult and dangerous, it is much safer keeping away from the enemy.

Modernist Movement in Fords Good Soldier and Woolfs Mrs. Dalloway Ess

Ford Madox Ford and Virginia Woolf were major contributors to the modernist movement. They, as well as others (such as James Joyce), were trying something new, by breaking down the boundaries of traditional writing. Ford's Good Soldier and Woolf's Mrs. Dalloway are two particular examples of the genre. These novels were not well-received in their own time. As time went on, however, the attitudes of the literary world changed and were able to finally see these works for what they really are – exemplary pieces of fiction, certainly worth merit. The Good Soldier was first published in 1915. Rebecca West penned a promising review for the year, ending with â€Å"Indeed, this is a much, much better book than any of us deserve† (40). Theodore Dreiser, in his review published in the New Republic in June of the same year, is not as kind. He disdains John Dowell as narrator, particularly his unreliable and meandering style, calling it a â€Å"bad method† (Dreiser 41). Dreiser goes on to explain that he finds no fault with the plot, just with the way Ford went about telling it. It is interesting to note that Dreiser states that a story must proceed in a linear fashion, bemoaning the fact that The Good Soldier does not follow this form, but yet winds up his article by calling the book â€Å"fairly representative of that encrusting formalism which, barnacle-wise, is apparently overtaking and destroying all that is best in English life† (43). In the early 1950s, there was a resurgence in interest (and criticism) of The Good Soldier. Mark Schorer, in his introduction to the 1951 reprint of the novel, called it a â€Å"great work of comic irony† (44). Where Dreiser denigrated the form of the novel as if it were sloppy and slapdash, Schore... ...so did literature, and eventually, critics began to come around and focus on particular aspects of these works, rather than dislike for them. Works Cited Author Unknown. â€Å"Book Notices.† The English Journal 14 (1925): 738-744. 4 Nov. 2014. Bullett, Gerald. â€Å"Virginia Woolf.† The English Journal 17 (1928): 793-800. 4 Nov. 2014. Cassell, Richard A., ed. Critical Essays on Ford Madox Ford. Boston: G.K. Hall and Co., 1987. Cheng, Vincent J. "Religious Differences in `The Good Soldier': The `Protest' Scene." Renascence 37 (1985): 238-247. Literature Resource Center. Infotrac. U of South Florida, Tampa. 18 Nov 2014. . Hoffman, Charles G. Ford Madox Ford. Boston: G.K. Hall and Co., 1990. Wright, Nathalia. â€Å"Mrs. Dalloway: A Study in Composition.† College English 5 (1944): 351-358. 3 Nov. 2014.

ICT and You :: ICT Essays

For this work, I am going to write about how I use ICT in my everyday life. I will be looking at how I use ICT at Home and at School. I will also identify how I use ICT for: - > My own personal use (this is when I use it just for me) > Social use (this is when I use the ICT with other people) PC Technology ------------- I use Microsoft Excel a lot, which helps me to do graphs in science for coursework and I also use it at home for sorting my pocket money and spending so I am organized with my money and don’t overspend. It is very easy to use and your work is always very neat and presentable which is important for my coursework. I also use Microsoft Word for many things in school, these include: writing out coursework, completing homework and English essays. Microsoft word offers a great easy program, which is easy to use and also you can put text, pictures and photographs onto a word document. I like using MS FrontPage to design and make web pages and websites this can be done personally for me or socially for a group of people. Designing website can be relaxing and stress free or can be frustrating and stressing, all depending on what type of web site it is. Internet The internet is very helpful to me in school because I can search up useful and useless information an instant using search engines like â€Å"google† the downsides to sites like these is, you have to be specific otherwise you could end up having thousands of pages of junk for example if your searching for the official Manchester United site and only type in â€Å"Manchester United† you will get any pages appearing containing the words â€Å"Manchester† and â€Å"United† you can get around about 3,460,000 results, when the words â€Å"Official Manchester United Football Club Website† only pages containing them words are found, there are around about 69,400 results just by being a bit more specific. I use this at home, personally to keep up-to-date with breaking news of my favorite football club and in school personally for my business coursework. At home I enjoy being on MSN messenger to talk to friends and Family worldwide, msn is good because it’s faster than email and cheaper than phone calls, the disadvantage is that my internet connection depending where I am and what time of the day it is could be slow I have a 576k ADSL modem so there’s no worries for me but slower internet connections like a 23.3k modem could have a delay or even a bad

John leo Essay

In John Leo’s article, â€Å"No books, please; we’re students’’, Leo discusses the issues with current college students and their lack of drive and ambition. Leo provides his readers with a multitude of statics and example why he feels college students have become lazy and disengaged. Leo introduces his readers using a survey from UCLA’s Higher Education Research Institute stating, â€Å"Only 35 percent of students said they spent six or more hours a week studying or doing homework during their senior year in high school; down from 43.7 percent 1987.’’ John Leo’s article claims that college students are losing an interest and enthusiasm for college. John Leo fills his article with statics and quotes from professors and teachers complaining about the lack of will power student have. â€Å" The real problem is students who won’t study,’’ wrote a Penn rSate Professor in the article. Leo also stated† disengaged rudeness† was the common attitude.† Leo’s article slams today’s college students on many levels. Leo’s article uses terms such as, disengaged, ignorant, and â€Å"inarticulate† to describe college students in today’s society. Leo clearly support his arguments and options with actual quotes from professors but I do not agree with his approach nor his arguments. Being a college students is not only about reading books and is definitely not only about students. There are plenty of professors that clearly don’t care or don’t like their jobs. Students can tell if a professor is passionate about a subject just like a professor can tell if a student is truly lazy or just struggling with the subject. Assumptions are being made on college students through Leo’s arguments. Leo did not thoroughly look into his students because his arguments are one sided. Leo does not provide his readers with the pros and cons, only the negative light is shed on how students learn or lack there of. John Leo’s article, â€Å"No books, Please; we’re students’’ targets today’s college students and negativity shows one side of a student’s life. Leo uses statistics and quotes from an array of professors to show the lack of interest college students show in today’s society but his approach is  extremely one sided and not thoroughly executed. More research and quotes from multiple views should have been provided.

Accounting Standard in Bangladesh

A REPORT ON APPLICATION OF BANGLADESH ACCOUNTING STANDARDS IN BUSINESS [pic] DEPARTMENT OF FINANCE UNIVERSITY OF DHAKA REPORT ON APPLICATION OF BANGLADESH ACCOUNTING STANDARDS IN BUSINESS FINANCIAL ACCOUNTING –I F-103 Submitted To Dr. H. M. Mosarof Hossain Associate Professor Department of Finance Faculty of Business Administration University of Dhaka Submitted By Members of Group-3 Section-B 14th Batch Department of Finance Names |Roll No | |Upoma Antara Husain |14-052 | |Zubairia Khan |14-050 | |Nazmul Ehsan Omiya |14-054 | |Monowar Hossain |14-008 | |Md. Rubel Ahmed |14-030 | DATE OF SUBMISSION 1 May 2008 TABLE OF CONTENTS CHAPTER I: ? INTRODUCTION ? OBJECTIVES OF APPLYING BAS IN BUSINESS ? IAS ADDOPTED AS BAS ? SHORT DESCRIPTION OF BASs CHAPTER II: ? ABOUT PRIME BANK LIMITED ? BAS USED IN PBL ? APPLICATION OF BASs IN PBL ? IMPORTANCE OF APPLYING BAS IN PBL ? CONCLUSION CHAPTER III: ? ANNEXURE ? BIBLIOGRAPHY CHAPTER I INTRODUCTION The rules and guidelines adopted and im plimented worldwide in accounting record keeping and statement preparation ror maintaining uniformity are known as International Accounting Standared (IAS). IAS were issued between 1973 and 2001 by the board of the International Accounting Standards Committee (IASC). Bangladesh Accounting Standards (BAS) are adopted From IAS by Institute of Chartered Accountants of Bangladesh (ICAB) for preferred accounting practices in all kinds of business in bangladesh. To standardize the accounting system with the level of IAS, the ICAB (Institute of Chartered Accountants of Bangladesh) has been adopting BAS since 1984. The Institute of Chartered Accountants of Bangladesh is a professional accountancy body in the Bangladesh. It is the sole organisation in the Bangladesh with the right to award the Chartered Accountant designation. The ICAB updated and adapted many important and the time demanding standards in several time BAS is a set of standards which controls the system of accounting in Bangladesh. In our country Companies listed with Dhaka & Chittagong Stock exchange are to prepare their accounts according to the Securities and Exchange Rules 1987 and the International Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh known as Bangladesh Accounting Standards (BAS). At present the (TRC) Technical research Committee of ICAB screens and evaluates IFRSs and recommends particular IFRS to the council of the ICAB for adoption. Prime Bank Limited is one of the promising banks in our banking sector. It is listed with Dhaka and Chittagong Stock Exchange. The financial statements of the Bank are prepared under the historical cost convention except investments and in accordance with the Bank Companies Act, 1991, Bangladesh Bank Circulars, International Accounting Standards and International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Bangladesh as BAS, Companies act 1994, SEC Rules 1987 and other laws and rules applicable in Bangladesh. IAS ADOPTED AS BAS BAS are developed by the ICAB and are based on older IASs – generally those developed by the IASC rather than the improved IASs and new IFRSs developed by the IASB. The Technical and Research Committee of the ICAB develops the standards. Adoption requires approval of the ICAB Council. A list of IASs Adopted as BASs is shown below. IAS |Version of IAS |BAS Number |Remarks | | |Adopted in Bangladesh| | | |IAS 1: Presentation of Financial |1987 |BAS 1 |2003 revisions not yet considered | |Statements | | |by ICAB | |IAS 2 : Inventories |1992 |BAS 2 |2003 revisions not yet considered | | | | |by ICAB | |IAS 7 : Cash Flow Statements |1992 |BAS 7 |— | |IAS 8 :Accounting Policies, Changes in |1993 |BAS 8 |2003 revisions not yet considered | |Accounting Estimates, and Errors | | |by ICAB | |IAS 10: Events After the Balance Sheet |1999 |BAS 10 |— | |Date | | | | |IAS 11: Construction Contracts |1993 |BAS 11 |— | |IAS 12: Income Taxes |2000 |BAS 12 |— | |IAS 14: Segment Reporting |1997 |BAS 14 |— | |IAS 16: Property, Plant and Equipment |1997 |BAS 16 |2003 revisions not yet considered | | | | |by ICAB |IAS 17: Leases |1998 |BAS 17 |2003 revisions not yet considered | | | | |by ICAB | |IAS 18: Revenue |1993 |BAS 18 |— | |IAS 19; Employee Benefits |2002 |BAS 19 |2003 and later revisions not yet | | | | |considered by ICAB | |IAS 20; Accounting for Government Grants |1983 |BAS 20 |— | |and Disclosure of Government Assistance | | | | |IAS 21: The Effects of Changes in Foreign |1993 |BAS 21 |2003 and later revisions not yet | |Exchange Rates | | |considered by ICAB | |IAS 22: Business Combinations |1998 |BAS 22 |IAS 22 has been superseded by IFRS | | | | |3, which has not yet been | | | | |considered by ICAB | |IAS 23: Borrowing Costs |1993 |BAS 23 |— | |IAS 24: Related Party Disclosures |1994 |BAS 24 |2003 revisions not yet considered | | | | |by ICAB | |IAS 25: Accounting for Investments |1987 |BAS 25 |IAS 25 has been superseded by IAS | | | | |39, which has not yet been | | | | |considered by ICAB | |IAS 26: Accounting and Reporting by |1987 |BAS 26 |— | |Retirement Benefit Plans | | | | |IAS 27: Consolidated and Separate |1998 |BAS 27 |2003 revisions not yet considered | |Financial Statements | | |by ICAB | |IAS 28: Investments in Associates |1998 |BAS 28 |2003 revisions not yet considered | | | | |by ICAB | |IAS 29:Financial Reporting in |Not yet Adopted |— |— | |Hyperinflationary Economies | | | | |IAS 30 :Disclosures in the Financial |1990 |BAS 30 |IAS 30 has been superseded by IFRS | |Statements of Banks and Similar Financial | | |7 (effective 2007), which has not | |Institutions | | |yet been considered by ICAB | |IAS 31: Interests In Joint Ventures |1999 |BAS 31 |2003 revisions not yet considered | | | | |by ICAB | |IAS 32 :Financial Instruments: Disclosure |Not yet adopted |— |— | |and Presentation | | | | |IAS 33: Earnings Per Share |1999; |BAS 33 |2003 revisions not yet considered | | | | |by ICAB | |IAS 34: Interim Financial Reporting |1998 |BAS 34 |— | |IAS 35: Discontinuing Operations |1998 |BAS 35 |IAS 35 has been superseded by IFRS | | | | |5, which has not yet been | | | | |considered by ICAB | |IAS 36: Impairment of Assets |1998 |BAS 36 |2004 re visions not yet considered | | | | |by ICAB | |IAS 37: Provisions, Contingent Liabilities|1998 |BAS 37 |1998 | |and Contingent Assets | | | | |IAS 38: Intangible Assets |1998 |BAS 38 |2004 revisions not yet considered | | | |by ICAB | |IAS 39: Financial Instruments: Recognition|Not yet adopted |— |— | |and Measurement | | | | |IAS 40: Investment Property |2000 |BAS 40 |2003 revisions not yet considered | | | | |by ICAB | |IAS 41: Agriculture |Not yet adopted |— |— | SHORT DESCRIPTION ON BAS †¢ BAS 1: Presentation of Financial Statements This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. A complete set of financial statements comprises: (a) a statement of financial position as at the end of the period; (b) a statement of comprehensive income for the period; (c) a statement of changes in equity for the period; (d) a statement of cash flows for the period; e) notes, comprising a summary of significant accounting policies and other explanatory information; and (f) a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements. †¢ BAS 2: Inventories The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognized as an asset and carried forward until the related revenues are recognized. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories. Inventories shall be measured at the lower of cost and net realisable value. †¢ BAS 7: Cash Flow Statements The objective of this Standard is to require the provision of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows which classifies cash flows during the period from operating, investing and financing activities. †¢ BAS 8: Accounting Policies, Changes in Accounting Estimates, and Errors The objective of this Standard is to prescribe the criteria for selecting and changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and corrections of errors. The Standard is intended to enhance the relevance and reliability of an entity’s financial statements and the comparability of those financial statements over time and with the financial statements of other entities. †¢ BAS 10: Events After the Balance Sheet Date The objective of this Standard is to prescribe: a) When an entity should adjust its financial statements for events after the reporting period; and (b) The disclosures that an entity should give about the date when the financial statements were authorized for issue and about events after the reporting period. The Standard also requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting period indicate that the going concern assumption is not appropriate. †¢ BAS 11: Construction Contracts The objective of this Standard is to prescribe the accounting treatment of revenue and costs associated with construction contracts. Because of the nature of the activity undertaken in construction contracts, the date at which the contract activity is entered into and the date when the activity is completed usually fall into different accounting periods. Therefore, the primary issue in accounting for construction contracts is the allocation of contract revenue and contract costs to the accounting periods in which construction work is performed. This Standard shall be applied in accounting for construction contracts in the financial statements of contractors. †¢ BAS 12: Income Taxes The objective of this Standard is to prescribe the accounting treatment for income taxes. For the purposes of this Standard, income taxes include all domestic and foreign taxes which are based on taxable profits. Income taxes also include taxes, such as withholding taxes, which are payable by a subsidiary, associate or joint venture on distributions to the reporting entity. The principal issue in accounting for income taxes is how to account for the current and future tax consequences of: (a) the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in an entity’s balance sheet; and (b) Transactions and other events of the current period that are recognized in an entity’s financial statements. †¢ BAS 16: Property, Plant and Equipment The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognized in relation to them. †¢ BAS 17: Leases The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation to leases. The classification of leases adopted in this Standard is based on the extent to which risks and rewards incidental to ownership of a leased asset lie with the lessor or the lessee. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. †¢ BAS 18: Revenue The primary issue in accounting for revenue is determining when to recognize revenue. Revenue is recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. This Standard identifies the circumstances in which these criteria will be met and, therefore, revenue will be recognized. It also provides practical guidance on the application of these criteria. Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants. This Standard shall be applied in accounting for revenue arising from the following transactions and events: (a) the sale of goods; (b) the rendering of services; and c) the use by others of entity assets yielding interest, royalties and dividends. †¢ BAS 19: Employee Benefits Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees. The object ive of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognize: (a) a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and (b) An expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits. †¢ BAS 20: Accounting for Government Grants and Disclosure of Government Assistance This Standard shall be applied in accounting for, and in the disclosure of, government grants and in the disclosure of other forms of government assistance. Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Government assistance for the purpose of this Standard does not include benefits provided only indirectly through action affecting general trading conditions, such as the provision of infrastructure in development areas or the imposition of trading constraints on competitors. †¢ BAS 21: The Effects of Changes in Foreign Exchange Rates An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of this Standard is to prescribe how to include foreign currency transactions and foreign operations in the financial tatements of an entity and how to translate financial statements into a presentation currency. The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. †¢ BAS 22: Business Combinations The objective of this standa rd is to prescribe the accounting treatment for business combinations (both acquisitions and, in exceptional instances in which the acquirer cannot be identified uniting of interests). It provides guidance on the classification of a business combination, which includes whether an acquirer can be identified, and whether shareholders of the combining entities share mutually in the risks and benefits of the combined entity. BAS 23: Borrowing Costs Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognized as an expense †¢ BAS 24: Related Party Disclosures The objective of this Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances with such parties. †¢ BAS 26: Accounting and Reporting by Retirement Benefit Plans This Standard shall be applied in the financial statements of retirement benefit plans where such financial statements are prepared. Retirement benefit plans are arrangements whereby an entity provides benefits for employees on or after termination of service (either in the form of an annual income or as a lump sum) when such benefits, or the contributions towards them, can be determined or estimated in advance of retirement from the provisions of a document or from the entity's practices. The financial statements of a defined contribution plan shall contain a statement of net assets available for benefits and a description of the funding policy. †¢ BAS 27: Consolidated and Separate Financial Statements The objective of BAS 27 is to enhance the relevance, reliability and comparability of the information that a parent entity provides in its separate financial statements and in its consolidated financial statements for a group of entities under its control. The Standard specifies: (a) the circumstances in which an entity must consolidate the financial statements of another entity (being a subsidiary); (b) the accounting for changes in the level of ownership interest in a subsidiary; (c) the accounting for the loss of control of a subsidiary; and (d) the information that an entity must disclose to enable users of the financial statements to evaluate the nature of the relationship between the entity and its subsidiaries. †¢ BAS 28: Investments in Associates This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates held by: (a) venture capital organizations, or (b) Mutual funds, unit trusts and similar entities including investment-linked insurance funds. †¢ BAS 30: Disclosures in the Financial Statements of Banks and Similar Financial Institutions The objective of BAS30 is to prescribe appropriate presentation and disclosure standards for banks and similar financial institutions as a supplement of the requirements of other standards. It provides the Requirement for classification of items in the income statement and balance sheet by their nature, and for the balance sheet in order of relative liquidity. Identifies the income statement and balance sheet line items requiring disclosure. ? Additional disclosure requirements, including concentration of assets, liabilities and off-balance items, losses on loans and advances, and general banking risks. †¢ BAS 31: Interests in Joint Venture: This Standard shall be applied in accounting for interests in joint ventures and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of ventures and investors, regardless of the structures or forms under which the joint venture activities take place. However, it does not apply to ventures’ interests in jointly controlled entities held by: 1. (a) venture capital organizations, or 2. b) Mutual funds, unit trusts and similar entities including investment-linked insurance funds. †¢ BAS 33: Earnings Per Share The objective of this Standard is to prescribe principles for the determination and presentation of earnings per share, so as to improve performance comparisons between different entities in the same reporting period and between different reporting periods for the same entity. The focus of this Standard is on the denominator of the earnings per share calculation. This Standard shall be applied by entities whose ordinary shares or potential ordinary shares are publicl y traded and by entities that are in the process of issuing ordinary shares or potential ordinary shares in public markets. An entity that discloses earnings per share shall calculate and disclose earnings per share in accordance with this Standard. †¢ Bas 34: Interim Financial Reporting The objective of this Standard is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in complete or condensed financial statements for an interim period. Timely and reliable interim financial reporting improves the ability of investors, creditors, and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition and liquidity. This Standard applies if an entity is required or elects to publish an interim financial report in accordance with International Financial Reporting Standards. Interim financial report means a financial report containing either a complete set of financial statements (as described in IAS 1 Presentation of Financial Statements (as revised in 2007)) or a set of condensed financial statements (as described in this Standard) for an interim period. Interim period is a financial reporting period shorter than a full financial year. †¢ BAS 35: Discontinuing Operations The objective of this standard is to enhance the ability to make financial projections by segregating information about discontinuing operations from information about continuing operations. BAS 35 does not establish any recognition or measurement principles in relation to discontinuing operations-these are dealt with under other BAS. In particular, BAS 35 provides guidance on how to apply BAS 36, Impairment of Assets, and BAS 37, Provisions Contingent Liabilities and Contingent Assets, to discontinuing operations. †¢ BAS 36: Impairment of Assets The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires the entity to recognize an impairment loss. The Standard also specifies when an entity should reverse an impairment loss and prescribes disclosures. †¢ BAS 37: Provisions, Contingent Liabilities and Contingent Assets The objective of this Standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount. IAS 37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, except: (a) Those resulting from executory contracts, except where the contract is onerous. Executory contracts are contracts under which neither party has performed any of its obligations or both parties have partially performed their obligations to an equal extent; (b) Those covered by another Standard. †¢ BAS 38: Intangible Assets The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in another Standard. This Standard requires an entity to recognize an intangible asset if, and only if, specified criteria are met. The Standard also specifies how to measure the carrying amount of intangible assets and requires specified disclosures about intangible assets. An intangible asset is an identifiable non-monetary asset without physical substance. †¢ BAS 40: Investment Property The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements. Investment property is property (land or a building—or part of a building—or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) Sale in the ordinary course of business. OBECTIVES OF USING BAS IN BUSINESS †¢ Standardized Accountings : The objective of applying BAS in business is to standardize the accounting issues and preparation of financial statements. †¢ International Recognition: To keep consistency with International Business the use of International Accounting Standards adopted as BAS is important. It helps the businesses to gain international recognition. †¢ Maintaining Uniformity: Accounting standards are maintained in order to ensure uniformity in recording accounts and preparing financial statements within the businesses both in country and abroad. †¢ Ensuring Transparency: An important objective of applying BAS is to ensure proper disclosure of necessary information in the financial statements. It provides transparency in the statements. †¢ Providing Reliability: The application of BAS provides reliability and consistency in the accounting record keeping and financial statements to the outside parties. CHAPTER II [pic] ABOUT PRIME BANK LIMITED The Prime Bank Limited (â€Å"the Bank†) was incorporated as the public limited company in Bangladesh under companies Act, 1994. It commenced its banking business with one branch from April17, 1995 under the license issued bi Bangladesh Bank. Presently the Bank has 61 branches all over Bangladesh and a booth located at Dhaka Club, Dhaka. The Bank had no overseas branches as at 31 December 2007. The Bank went for Initial Public Offerings in 1999 and its share is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company for its general class of shares. VISION The vision of the Bank is to be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. MISSION The mission of the Bank is to build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in the business policies, procedure and efficiency through integration of technology at all levels. STRATEGIC PRIORITY The strategic priority of the Bank is to have sustained growth, broaden and improved range of products and services in all areas of banking activities with the aim to add increased value to share holders’ investments and offer highest possible benefits to the customers. CORE VALUE †¢ For customers It refers to become most caring Bank by providing the most courteous and efficient services in every area of our business. For employees It promotes well-being of the employees. †¢ For shareholders It ensures fare return on the investments of the shareholders through generating stable profit. †¢ For the community As a socially responsible corporate entity the Bank maintain s close adherence to national policies and objectives. [pic]BAS FOLLOWED IN PRIME BANK The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). While preparing the financial statements, Prime Bank allied most of IAS and IFRS as adopted by ICAB. Details are given below: Name of the BAS | BAS no | Status | |Presentation of Financial Statements | 1 | Applied | |Stationeries | 2 | Applied | |Cash Flow Statements | 7 | Applied | |Accounting Policies, Changes in Accounting Estimates and Errors | 8 | Applied | |Events after the Balance Sheet Date | 10 | Applied | |Construction Contracts | 11 | N/A | |Income Taxes | 12 | Applied | |Segment Reporting | 14 | Applied | |Property, Plant and Equipment | 16 | Applied | |Leases | 17 | Applied | |Revenue | 18 | Applied | |Employee Benefits | 19 | Applied | |Accounting for Government Grants and Disclosure of Government Assistance | 20 | N/A | |The Effects of Changes in Foreign Exchange Rates | 21 | Applied | |Borrowing Costs | 23 | Applied | |Related Party Disclosures | 24 | Applied | |Accounting for Investments | 25 | Applied | |Accounting and Reporting by Retirement Benefit Plans | 26 | Applied | |Consolidated and Separate Financial Statements | 27 | Applied | |Investments in Associates | 28 | N/A | |Disclosures in the Financial Statements of Banks and similar Financial Institutions | 30 | Applied | |Interests in Joint Ventures | 31 | N/A | |Earnings per share | 33 | Applied | |Interim Financial Reporting | 34 | Applied | |Impairment of Assets | 36 | Applied | |Provisions, Contingent Liabilities and Contingent Assets | 7 | Ap plied | |Intangible Assets | 38 | N/A | |Investment Property | 40 | Applied | |Agriculture | 41 | N/A | | Name of the BFRS | BAS no | Status | |Share Based Payment | 2 | N/A | |Business Combinations | 3 | N/A | |Non-current Assets Held for Sale and Discontinued Operations | 5 | N/A | |Exploration for and Evaluation of Mineral Resources | 6 | N/A | *N/A=not applicable [pic] APPLICATION OF BAS IN PRIME BANK LIMITED For the convenience of discussion we are showing the effect of some important BASs in record keeping and accounting of Prime Bank Limited. †¢ BAS No. 1: Preparation of Financial Statements: The financial statements of the bank are prepared in accordance with BAS-1 to give a fair view of the state of the Bank’s affairs and of the results of the operations and cash flows. The financial reports for the year ended in 31 December 2007 are given as annexure for viewing. †¢ BAS No. 7: Cash Flow Statement Cash flow statement has been prepared in accordance with the BAS-7 â€Å"Cash Flow Statement† under direct method as recommended in BRPD Circular No. 14, dated June 25 2003 issued by the Banking Regulation and Policy Department of Bangladesh Bank. †¢ BAS No. 12: Income Taxes Provision for current income tax has been made @ 45% as prescribed in the Finance Act, 2007 on the accounting profit made by the Bank after considering some of the add backs to the income and disallowances as expenditure as per income tax laws in compliance with BAS-12 â€Å"Income Taxes†. †¢ BAS No. 16: Property, Plant and Equipment All fixed assets are stated at cost less accumulated depreciation as per BAS-16 â€Å"Property, Plant and Equipment†. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes. †¢ BAS No. 17: Leases Leases are classified as finance leases whenever the ‘terms of the lease’ transfers substantially all the risks and rewards of ownership to the lessee as per BAS-17 â€Å"Leases†. ? The Bank as lessor Amount due from lessees under finance leases are recorded as receivables at the amount of the Bank’s net investment in the leases. The Bank as lessee Assets held under finance lease s are recognized as assets of the Bank at the date of acquisition or if lower, at the present value of the minimum lease payments. †¢ BAS No. 18: Revenue ? Interest income In terms of the provisions of the BAS-18 â€Å"Revenue†, the interest income is recognized on accrual basis. ? Investment income Interest income on investments is recognized on accrual basis. ? Fees and commission income Fees and commission income arises on services provided by the Bank are recognized on a cash receipt basis. ? Dividend income on share Dividend income on share is recognized during the period in which declared and ascertained. Interest paid and other expenses in Conventional Banking In terms of the provision of the BAS-1 â€Å"Presentation of Financial Statements† interest and other expenses are recognized on accrual basis. ? Profit paid on deposits in Islamic Banking Profit paid to mudaraba depositors is recognized on accrual basis as per provisional rate. †¢ BAS No. 19: Employee benefits The retirement benefits accrued for the employees of the Bank as on reporting date have been accounted for in accordance with the provisions of BAS-19, â€Å"Employee Benefit†. Bases of enumerating the retirement benefit schemes operated by the Bank are outlined below: ? Provident fund Provident fund benefits are given to the permanent employees f the Bank in accordance with Bank’s service rules. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription to the fund. The Bank also contributes equal amount of the employees’ contribution. ? Gratuity fund Actuarial valuation of gratuity scheme had been made to assess the adequacy of the liabilities provide for the scheme as per BAS-19, â€Å"Employee Benefits†. ? Welfare fund Prime Bank’s employees’ welfare fund is subscribed by monthly contribution of the employees. The Bank also contributes to the Fund from time to time. Disbursement from the fund is done as per rules for employees’ welfare fund. ? Incentive bonus Prime Bank started an incentive bonus scheme for its employees. 10% of net profit after tax is given to the employees in every year as incentive bonus. This bonus amount is being distributed among the employees based on their performance. †¢ BAS No. 21: The Effects of Changes in Foreign Exchange Rates Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per BAS-21, â€Å"The Effects of Changes in Foreign Exchange Rates†. Foreign currency balances held in US Dollar are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the priviou7s day and converted into Taka equivalent. †¢ BAS No. 33: Earnings per Share Basic earnings per share have been calculated in accordance with BAS-33, â€Å"Earnings per Share† which has been shown on the face of the profit and loss account. This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares are standing during the year. The bonus shares issued during the year 2007 were treated as if they had been in issue in previous year also (declared for 2006 result). Hence, in computing the basic earning per share of 2006, the total number of shares including the said bonus shares has been considered as weighted average no. f shares outstanding during the year 2006 as per BAS-33, â€Å"Earning per Share†. †¢ BAS No. 37: Provisions, Contingent Liabilities and Contingent Asset s A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37, â€Å"Provisions contingent Liabilities and Contingent Assets†. [pic] IMPORTANCE OF APPLYING BAS IN PBL †¢ Abiding By The Rules: Adopted BASs are enforceable for listed companies by SEC rules. So proper application of BAS in PBL is maintained to abide by the regulations of the nation. Guideline For Accounting Issues: BAS provides guidelines on different accounting issues to contribute to a common strategy and framework of reference for accountancy development and ensures transparent financial reporting, in accordance with sound corporate governance. †¢ Presenting Relevant & Reliable Information: Applying BAS in the record keepings and preparation of financial statements makes the accounting information relevant and reliable to all involved parties. †¢ Assistance in International Business: Application of BAS is important for keeping up to the International Standards which is important for International business. †¢ Co-operation Between Different Parties: The use of BAS helps promote co-operation between governments, the accountancy and other professions, the international financial institutions, regulators, standard setters, capital providers and issuers. CONCLUSION In the world of globalization it is essential for businesses around the world to standardize the accounting record keepings and preparation of financial statements. The government of Bangladesh has made the International Accounting Standards adopted by Institute of Chartered Accountants of Bangladesh as Bangladesh Accounting Standards enforceable for all listed companies in order to ensure transparency and standard in accounting issues. Like other listed companies of our country Prime Bank Limited record their accounts and prepare their financial statements in compliance with these standards. The effects of these standards provide guidance and reliability in the accounting information. CHAPTER III ANNEXURE [pic] Balance Sheet As at 31 December 2007 2007 2006 PROPERTY AND ASSETS Taka Taka Cash In hand (including foreign currencies) 663,028,189 452,560,474 Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies) 4,755,788,872 3,662,426,602 5,418,817,061 4,114,987,076 Balance with other banks and financial institutions In Bangladesh 1,625,581,391 627,964,960 Outside Bangladesh 791,887,088 485,749,435 2,417,468,479 1,113,714,395 Money at call and short notice – 1,490,000,000 Investments Government 12,090,285,095 7,673,700,299 Others 607,735,533 170,682,648 12,698,020,628 7,844,382,947 Loans and advances/investments Loans, cash credits, overdrafts, etc 53,814,967,656 41,307,504,065 Bills purchased and discounted ,868,053,856 3,702,713,983 57,683,021,512 45,010,218,048 Fixed assets including premises, furniture 660,490,066 412,107,309 Other assets 710,613,052 914,107,309 Non-banking assets – – Total assets 79,588,430,798 60,899,475,793 2007 2006 LIABILITIES AND CAPITAL Taka Taka Liabilities Borrowing from other banks, financial institutions 390,869,490 345,944,757 Deposits and other accounts Current/ al-wadeeah current deposits 10,590,463,357 8,261,264,165 Bills payable 1,144,540,968 528,231,748 Savings bank 6,027,260,878 4,125,622,204 Term deposits 52,750,109,722 41,808,962,467 Bearer certificate of deposit – – Other deposits – – 70,512,374,925 54,724,080,584 Other liabilities 3,411,909,021 1,969,561,728 Total liabilities 74,315,153,436 57,039,587,069 Capital/ Shareholders’ equity Paid-up capital 2,275,000,000 1,750,000,000 Statutory reserve 1,873,543,597 1,404,170,652 Revaluation gain 2,723,913 – Other reserve – – Retained earnings 1,112,009,852 705,718,072 Total Shareholders’ equity 5,273,277,362 3,859,888,724 Total liabilities and Shareholders’ equity 79,588,430,798 60,899,475,793 Balance Sheet as at 31 December 2007 [pic] 2007 2006 Taka Taka OFF-BALANCE SHEET ITEMS Contingent liabilities Acceptances and endorsements – – Letters of guarantee 10,480,381,241 9,476,314,713 Irrevocable letters of credit 21,193,628,862 17,392,748,116 Bills for collection 1,414,716,406 1,060,486,687 Other contingent liabilities – – 33,088,726,509 27,929,549,516 Other commitments Documentary credits – – Forward assets purchased – – Undrawn ote issuance – – Undrawn formal standby facilities – – Liabilities against forward purchase and sale – – Others – – 33,088,726,509 27,929,549,516 Other memorandum items Value of travellers’cheques in hand 141,383,952 14,284,764 Value of Bangladesh Patras in hand 1,348,897,500 346,193,975 1,490,281,452 360,478,739 Total 34,579,007,961 28,290,028,255 Profit and Loss Account For the year ended 31 December 2007 [pic] 2007 2006 Taka Taka Interest income 7,170,099,616 5,198,790,368 Interest paid on deposits (5,226,592,564) (3,698,441,036) Net interest 1,903,507,052 1,500,349,332 Investment income 1,294,205,056 419,496,059 Commission, exchange 1,198,942,404 998,117,247 Other operating income 419,555,862 314,073,525 Total operating income (A) 4,816,210,375 3,232,036,163 Salaries and allowances 725,285,435 561,930,122 Rent, taxes and insurances 159,529,399 113,987,335 Legal expenses 24,728,362 4,951,307 Postage, stamp 60,999,650 47,690,052 Stationery 121,691,050 63,382,686 Managing Directors’ salary 9,131,448 6,400,000 Directors’ fees 2,224,444 2,734,300 Auditors’ fees 791,725 570,990 Charges on loan losses – – Depreciation and repair of Bank’s assets 102,185,026 71,657,509 Other expenses 352,779,110 227,768,616 Total operating expenses (B) 1,559,345,650 1,101,072,827 Profit/ (Loss) before provision(c=A-B) 3,256,864,725 2,130,963,336 Provision for loans/investments Specific provision (350,000,000) (210,000,000 General provision (350,000,000) (180,000,000) Provision for off-balance sheet items (210,000,000) – (910,000,000) (390,000,000) Provision for diminution – – Other provision – – Total provision (D) (910,000,000) (390,000,000) Total profit / (loss) before taxes(C-D) 2,346,864,725 1,740,963,336 Provision for taxation Current tax (1,015,000,000) (592,362,815) Deferred tax 68,800,000 96,709,995 Net profit after taxation 1,400,664,725 1,051,890,526 Retained earnings (previous) 180,718,073 2,020,213 1,581,382,073 1,053,910,739 Appropriations Statutory reserve 469,372,945 348,192,667 General reserve – – 469,372,945 348,192,667 Retained surplus 1,112,009,852 705,718,072 Earnings per share (EPS) 61. 57 46. 24 Cash Flow Statement For the year ended 31 December 2007 [pic] 2007 2006 Taka Taka A) Cash flows from operating activities Interest receipts in cash 7,076,601,586 5,616,509,362 Interest payments (5,266,592,564) (3,698,441,036) Dividends receipts 7,976,958 1,777,066 Fees and commission receipts in cash 1,198,942,404 998,117,247 Recoveries of loans 415,867 – Cash payments to employees (729,416,883) (596,830,122) Cash payments to suppliers (286,567,522) (175,315,699) Income taxes paid (476,148,788) (590,139,079) Receipts from other operating activities 419,555,862 314,067,381 Payments for other operating activities (470,041,003) (296,680,802) Cash generated from operating activities 1,474,725,917 1,573,064,318 Increase/ (decrease) in operating assets and liabilities Statutory deposits – – Purchase of trading securities (1,197,259,262) (1,161,365,969) Loans and advances to other banks – – Loans and advances to customers (12,672,803,463) (13,094,105,540) Other assets (3,796,358,897) 2,494,489,750) Deposits from other banks /borrowings 62,890,500 (490,439,000) Deposits from customers 15,171,985,121 18,833,626,261 Others liabilities accounts of customers 616,309,220 (140,262,287) Trading liabilities – – Other liabilities 1,437,147,293 (177,440,778) (378,089,488) 1,275,522,937 Net cash from operating activities 1,096,636,429 2,848,587,255 B) Cash flows from operating activities Debentures 4,932,282 5,000,000 Proceeds from sale of securities – – Payments for purchase of securities (430,320,723) (58,856,689) Purchase of property (333,719,898) (98,473,598) Payment against lease obligation (2,785,500) (1,995,468) Proceeds from sale of property 277,045 325,900 Net cash used in investing activities (761,616,794) (153,999,855) C) Cash flows from financing activities Dividend paid – – Net cash from financing activities – – D) Net increase/(decrease) in cash and cash equivalents 335,019,635 2,694,587,400 E) Effects of exchange rate – – F) Cash and cash equivalents at beginning of the year 7,468,239,215 4,773,651,851 G) Cash and cash equivalents at the end of the year 7,803,258,850 7,468,239,215 Cash and cash equivalents at the end of the year Cash in hand 663,028,189 452,560,474 Balance with Bangladesh Bank 4,755,788,872 3,662,426,602 Balance with other banks 2,382,784,489 1,061,064,639 Money at call and short notice – 1,490,000,000 Reverse repo – 800,000,000 Prize bonds 1,657,300 2,187,500 7,803,258,850 7,468,293,215 Statement of Changes in Equity Particulars |Paid up capital |Statutory reserve |Revaluation |Retained earnings |Total | | |(Taka) |(Taka) |gain/loss |(Taka) |(Taka) | | | | |(Taka) | | | |Balance as at 1 January 2007 |1,750,000,000 |1,404,170,652 | – |705,718,072 |3,859,888,724 | | | | | | | | |Changes in accounting policy | | | | | | | | | | | | | | | | | | | | |- |- |- |- |- | |Restated Balance |1,750,000,000 |1,404,170,652 | – |705,718,072 |3,859,888,724 | | | | | | | | |Surplus on revaluation of |- |- |- |- |- | |properties | | | | | | | | | | | | | |Surplus of investments |- |- |12,723, |- |12,723,913 | | | | |913 | | | |Currency translation differences | | | | | | | |- |- |- |- |- | |Net gains and | | | | | | |losses(Unrecognized) |- |- |12,723, |- |- | | | | |913 | | | |Net profit for the year | | | | | | | |- |- | |1,400,664, |1,400,664,725 | |Dividends | | |- |725 | | | | | | | | | |Issue of share capital |525,000,000 – | |(525,000, |- | | | | |- |000) | | |Appropriation | | | | | | | |- |- | |- |- | | | | |- | | | | |- |469,372,945 | |(469,372, |- | | | | |- |945) | | |Balance as at 31 December 2007 | | | | | | | |2,275,000,000 |1,873,543,597 |12,723,