• For example, "Will good name in the business get into the balance sheet?

" Or
"Reputation of a business get into the balance sheet?" In the second module, we will
also look at the various elements of the balance sheet in greater detail. After that, we
will move to the income statement. In the third week, we will look at the income
statement in greater detail, while it is simple to say income statement consists of
revenue minus expense, but we need to understand "What is meant by revenue?"
"When do we measure revenue?" "How do we take it in the income statement?" Or are
there any rules, are there any issues in income statement recognition. We will also look
at the cash flow statement after looking at the income statement. The module 4 and 5
will include analyzing the financial statements, while we have three important
statements: 1. The balance sheet, 2. Income statement and, 3. Cash flow statement We
need to see what sense we can make out of these numbers. Is the business doing well?
Does it have any problems? Is there a cash flow issue? Will the company face any future
cash flow problems or profit related issues and so on? So we need to analyze the balance
sheet, the income statement and cash flow to make some sense of the numbers and that
we will be doing in module 4 and 5.
• rofessor: That's a good observation "Trigger"
• that we do not include human resource
• because they keep moving from company to company.
• Although, human resource is an important asset,
• yet it is not found in the balance sheet.
• Have you ever thought about it?
• As in accounting, we record only transactions that are measurable in monetary terms.
• Even if human resources is measurable in monetary terms sometimes
• it is very important that they are objectively measured.
• There are ways to measure human resource today
• and we can take them as an asset in the balance sheet,
• but these are not objectively measurable
• There are ways to measure human resource today
• and we can take them as an asset in the balance sheet,
• but these are not objectively measurable
• that means if different people use different methods
• they will arrive at different numbers and therefore we don't record
• human resource in the balance sheet.
• Very good. Both formula and brand are very important asset for Coca-Cola.
• Will we find brand name in the balance sheet?
• If yes,
• "Why?"
• Or if no,
• "Why not?"
• The answer to this question is very simple.
• We do not find brand name in the balance sheet
• particularly if the brand is a self-generated asset.
• Although, the brand name is one of the most important economic asset of a company
• we do not enter it in the balance sheet for several reasons.
• The answer to this question is very simple.
• We do not find brand name in the balance sheet
• particularly if the brand is a self-generated asset.
• Although, the brand name is one of the most important economic
asset of a company
• we do not enter it in the balance sheet for several reasons.
• o brand can you identify a particular event,
• which says this event give rise to this brand.
• If not, we cannot record this as an asset.
• More importantly, brands again a self-generated brand,
• in particular,are not objectively measurable
• and therefore we do not include in the balance sheet,
• but all these answers are my answers.
• Equity has several meanings.
• When you talk about financing a business
• the amount of money contributed by an investor is called as equity capital
or equity in short.
• It represents ownership in the business.
• Equity capital is also called as stockholders equity
• or shareholders’ funds in some places.
• Equity represents the capital invested initially by the owners or investors in
a business.
• For example, I know Clever owns 200 shares in CBA Corporation.
1.equity also includes retained earnings and reserves.
2.They are called as reserves and surplus in some
countries.
3.Retained earnings represents profit that are re-invested
in the business.