Fwd: Questions regarding LectureSeries 1

[Anuj Joshi]

---------- Forwarded message ----------
From: Rameshore Khanal <rames...@gmail.com>
Date: Thu, Aug 16, 2012 at 8:32 PM
Subject: Re: Questions regarding LectureSeries 1
To: Anuj Joshi <josh...@gmail.com>


We shall make it up in the next lecture or so. It will keep on coming in the future discourse, as well.

Many thanks for your keen interest!

Sincerely,

Rameshore Prasad Khanal
Balkot 2, Bhaktapur, Nepal
Tel 977-1-6635473, Cellphone 977-9840051295

[Anuj Joshi]

---------- Forwarded message ----------
From: Anuj Joshi <josh...@gmail.com>
Date: Thu, Aug 16, 2012 at 7:24 PM
Subject: Re: Questions regarding LectureSeries 1

To: Rameshore Khanal <rames...@gmail.com>


Dear sir,

Thank you for a quick reply. I understood all the points. One more thing is that, regarding "consistency" what i meant to tell was the assumption was missing wholly in your notes.

On Thu, Aug 16, 2012 at 6:54 PM, Rameshore Khanal <rames...@gmail.com> wrote:

• Depreciation does not ever come as any of the activities. It is a reduction in the value of investing activity. Therefore, it naturally belongs to what it is--investing activity. 
• If there is a discount on trading activities, then it is a reduction in the value of purchases. If the discount is on the purchase of assets, then certainly, it is a reduction in the value of assets. Now, you should be able to define where it belongs. 

• You pay taxes on the profit, therefore, it is an operating activities. 
• Capital losses, certainly happen on disinvestment or disposal. therefore, investing activity.

Consistency is about the the consistency of the accounting policies. Just as you are consistent in you belief in your personal life, accountants need to be consistent in following the accounting policies they follow in treating the value of inventories or method of depreciation or recognition of any other item. 

Rameshore Prasad Khanal

[Anuj Joshi]

[Anuj Joshi]

---------- Forwarded message ----------
From: Anuj Joshi <josh...@gmail.com>
Date: Thu, Aug 16, 2012 at 6:22 PM
Subject: Questions regarding LectureSeries 1
To: Rameshore Khanal <rames...@gmail.com>


Dear sir,

I have the following doubts.

Page 4 - Nature of business activities

Where can we classify the followings items:

• Depreciation
• Discount
• Taxes
• Capital Losses

Page 5 - Fundamental Accounting Assumptions

What about "Consistency"?