• 5 months ago
Transcript
00:00If a child is born and he is 9 months old,
00:02we will tell him that his performance is less than his previous performance.
00:06So, this is the requirement.
00:08Compare.
00:10If you look at a very good business,
00:12you may have seen two factories down.
00:14So, what should be the information?
00:16It should be comparable.
00:18This is an enhancing product.
00:20If you get this year's data,
00:22you should get the previous year's data.
00:24If you are doing ratio analysis,
00:26you should get the previous year's data.
00:28Next, verifiability.
00:34What is verifiability?
00:36Information should be verifiable.
00:38What?
00:40Verifiable.
00:42If any person claims
00:44that this is what is written in the religion,
00:46then what should we have?
00:48The source should be verifiable.
00:50The person who is claiming.
00:52But we don't have everything.
00:54You must have read the Kalwa.
00:56Most of you must have read the Kalwa.
00:58Those who are non-Muslims, they may not have read it.
01:00It can be in class.
01:02Non-Muslims used to be there.
01:04They used to be in Lahore.
01:06Some non-Muslims are enrolled online.
01:08They are in Sindh.
01:10But, if a person says to you
01:12that show me this.
01:14La ilaha illallah Muhammadur Rasulullah.
01:16Where should I write it?
01:18Does anyone know where to write it?
01:20Did everyone read it?
01:22The Muslims in the mosque,
01:24if they have read it,
01:26where should they write it?
01:28Why are you wearing a pen?
01:30Speak with your mouth.
01:32Come on,
01:34you should have told me the day before yesterday.
01:36You should have told me the day before yesterday.
01:38The Muslims were sitting there.
01:40They told me, La ilaha illallah Muhammadur Rasulullah.
01:42Where should I write it?
01:44Where should I write it?
01:46There is no Quran or Hadith.
01:48Where should I write it?
01:50You can write it in your book.
01:52You can write it in your accounting.
01:54If you write it in your book,
01:56La ilaha illallah Muhammadur Rasulullah.
01:58Where should I write it?
02:00You can write it in your book.
02:02Anyone can write it in such a book.
02:04You can write it anywhere.
02:14I have written it in the Quran.
02:16You have written it in the Quran.
02:18You have written it in the Quran.
02:20La ilaha illallah Muhammadur Rasulullah.
02:22I have written it in the Quran.
02:24You have written it in the Quran.
02:26You read the Quran.
02:28You read the Kalima.
02:30Where is the second Kalima?
02:32I have found it.
02:34You have found the first Kalima.
02:36There are many things,
02:38we don't have the direct source of it.
02:40But sometimes,
02:42we are trying to find it.
02:46We have heard it from our elders.
02:48We have heard it from our father.
02:50Someone has said,
02:52my Kalima ends there.
02:54Someone has said,
02:56my Kalima goes ahead.
02:58He has heard it from his father.
03:00He is not surprised.
03:02He is not surprised.
03:04He listens and acts.
03:06You only read half of the namaz.
03:08You have not written it anywhere.
03:10Bring it for me.
03:12Which namaz?
03:14Where do you read it?
03:16One is the book of Namaz.
03:18The other is the Quran and Hadith.
03:20Find it from the Hadith.
03:22Where is it written?
03:24Bring it from the Hadith.
03:30You are saying wrong things.
03:32Find it.
03:34When it comes to religion,
03:36we are blindly following our parents
03:38and our Ulema.
03:40But we don't spend money there.
03:42We don't spend money there.
03:44Because we will be caught there after death.
03:46We will be caught again.
03:48What was the origin of it?
03:50If you understand it right,
03:52everyone will find it wrong.
03:56That is why,
03:58if you are angry,
04:00you should be unbiased.
04:02You should be very proactive.
04:04Just like you audit.
04:06When you take a sale,
04:08you went into financial trading
04:10and I went into an audit.
04:12And when I give an opinion in an audit,
04:16When I give an opinion in an audit,
04:18what happens if I have an opinion?
04:20Financial statements are giving true and fair view
04:22in accordance with the applicable
04:24financial reporting framework.
04:26When the auditor says that
04:28financial statements are giving true and fair view,
04:30what happens according to the auditor?
04:32What is the information?
04:34Is it free from error?
04:36Is it unbiased?
04:38To what extent does it work?
04:40Auditor cannot check everything.
04:42How will it check the sales
04:44that have been written?
04:46If it is verifiable, it will check.
04:48If there is no source of something,
04:50it is not verifiable.
04:52Whatever information is presented
04:54in a financial statement, it must be verifiable.
04:56Where is the source?
04:58Where is the customer order?
05:00Show the customer order.
05:02Show your quotation.
05:04Then show the customer order.
05:06Then you send the quotation.
05:08Then you send the invoice.
05:10Then the sales are written.
05:12What is this?
05:14Verifiable.
05:20There are two things written here.
05:22One is direct verification
05:24and the other is indirect verification.
05:32OK, brother?
05:34So, if you want to know how much cash you have in your account, you can check it yourself.
05:44Another thing is indirect verification.
05:46For example, in an inventory, let's say there is a balance of 5.5%.
05:51You can calculate the balance, minus the savings and add the purchases.
05:55If you calculate it in your office, what will you get?
05:59Indirect verification.
06:01But, where is the information?
06:04Variable verification.
06:06Whatever information is presented in the financial statement,
06:09there must be some event, some transaction, some evidence,
06:12which can prove that this is an event.
06:14Do you understand?
06:16Okay.
06:17We have read two.
06:18Enhancing characteristics.
06:19Which is the first one?
06:20Second one?
06:22Third information.
06:24Timeliness.
06:28Where is the information?
06:29Timeliness.
06:33ICAP announced that the last date of admission is 8th July.
06:38If you don't have an internet source and you are sitting at home,
06:43studying online, living in a foreign city,
06:45or you live in a hostel and you don't know about this date,
06:49then your friend, if he gives you information before 8th July,
06:53then it is better, I will send the admission.
06:56But, if there is a deadline of 8th July,
06:58and then it cannot be joined,
07:00and then I tell you, then what is the use?
07:04If the last deadline of admission is 8th July,
07:07then when should I tell him?
07:09Before 8th July?
07:11Or after 8th July?
07:13So, if you get some information later,
07:15for my benefit,
07:16if not, then what information should I get?
07:18It should be timely, so that you can make timely decisions.
07:22So, any information about any company,
07:25shareholders, and other stakeholders,
07:27what should they get?
07:28It should be timely.
07:29So, timeliness is very important.
07:31These are the three characteristics.
07:33What are the others?
07:34Compatibility,
07:36Verifiability,
07:38Timeliness.
07:39And the last one is,
07:41Understandability.
07:46I tell you,
07:49the profit of the company is this.
07:56Tell me, how much is it?
07:58How much is it?
07:598000.
08:00How much is this?
08:02What?
08:04What is the profit?
08:08What?
08:09I can understand if you have given.
08:11If you are in a financial statement,
08:13Yes?
08:14Tell me, tell me.
08:16Tell me, son, you are stuck in a bad thing.
08:21This is the thing.
08:22People study in financial statements.
08:24So, whatever you write,
08:25others can also understand.
08:27If anyone has a slight understanding of a business,
08:31then he can read the financial statement and guess,
08:34whether the company is doing well or not.
08:36The information should be understandable.
08:39Technical jargons should not be used.
08:42So, where should the information be?
08:44It should be according to that country.
08:46Like we said,
08:47the language of business is accounting,
08:49but the language of communication is English.
08:52Now, in Pakistan's stock exchange,
08:54the investors are not only Pakistanis.
08:57People from outside the world can also buy shares here
09:00and invest in the company.
09:02So, if you write only in Urdu,
09:04what will the foreign investors think?
09:07So, choose such a language
09:09and use such words.
09:11Do not use technical jargons,
09:13which will make it difficult for people
09:15to understand the financial statement.
09:17Understand it.
09:18So, what should the information be?
09:20It should be understandable.
09:22What will the paper do?
09:24It will pick up three things from here.
09:26It will pick up a fundamental
09:28and tell which of these is not enhancing.
09:30So, the fundamental is not enhancing.
09:32If we remember the language,
09:34I have also studied with you.
09:36I have also said something wrong.
09:38We say that we have two qualitative characteristics.
09:41Which are they?
09:45The brain.
09:47The brain.
09:49Let's focus on this.
09:51We have two fundamental characteristics.
09:53Four of them.
09:55The first fundamental is relevance.
09:57The information is relevant to your decision.
09:59And the second?
10:01Health representation.
10:03Health representation has two ends.
10:05Fair and true means free from error.
10:07And fair means one.
10:09And there are four enhancing characteristics.
10:11The first?
10:13The information should be comparable.
10:15The second?
10:17There should be a source.
10:19In a financial statement,
10:21you write a profit of 10 lakhs.
10:23It should be as verifiable as possible.
10:25That is why people get audits done.
10:27Directors have millions of rupees in their hands.
10:31The auditor may take a few lakhs from us.
10:33It will be very big.
10:35The auditor will take 50 lakhs.
10:37So, why do they get audits done?
10:39So that we know that the information
10:41they have given in the financial statement,
10:43whether the assets are verifiable or not.
10:45That is why the auditor gets audits done.
10:47They get audits done for verifiability.
10:49To verify it.
10:51The information should be verifiable.
10:53And then?
10:55Timeliness information should be there.
10:57Am I right, friends?
10:59Nowadays,
11:01a friend of mine
11:03runs a mobile business.
11:05Just like in the last few days,
11:07there were 15 lakh jobs in cars.
11:09There were two or three,
11:11there was a famous car,
11:13which had a profit of 18 lakhs.
11:15Which one was it?
11:17Yes, Stonic.
11:19One day before,
11:21the one who bought the car,
11:23he lost 18 lakhs.
11:25At midnight, the decision was made.
11:27The one who bought it a day before,
11:29he lost 18 lakhs.
11:31However, dealers know what is going to happen next.
11:33They have inside information.
11:35A friend of mine runs a mobile business.
11:37He keeps getting updates.
11:39His updates are called
11:41Price Alert.
11:43He tells them,
11:45this mobile is going to be cheap,
11:47send it to me.
11:49These people know
11:51the direction of the market.
11:53There are meetings going on in offices.
11:55There are meetings,
11:57there is a director's discussion,
11:59there is a market feedback,
12:01there is a demand for something,
12:03then the price is reduced.
12:05When a person buys a car,
12:07and if he finds out
12:09that the price has gone down,
12:11then what is the use of it?
12:13You should get the information before your decision.
12:15For example,
12:17you do a business.
12:19You need technology to make clothes.
12:21You are looking for a machine.
12:23You know which machine I am looking for.
12:25But you also know that
12:27the best machinery is found in the US and UK.
12:29You can get the latest technology
12:31by investing a few lakhs extra.
12:33When I bought the machinery,
12:35I bought it.
12:37And we do the same.
12:39When we buy something,
12:41we keep it in doubt all the time.
12:43First, there is no relationship.
12:45And when there is a relationship,
12:47we keep putting it in doubt.
12:49His mother is like this,
12:51his father is like this,
12:53he is like this.
12:55I will tell you first
12:57if there is any option.
12:59What can we do with
13:01one objective or three or four numbers?
13:03You should know one or two sentences
13:05about each characteristic.
13:07Next, we have
13:09Measurement Basis
13:11Measurement of
13:13Elements of Finance Statement.
13:19This is written on page number 467.
13:21The rest of the people
13:23are on page number 467.
13:25And this book
13:27is on page number 96.
13:29This paper is missing
13:31from page number 96.
13:33But it can come again.
13:37What was written here?
13:39Measurement of
13:41Elements of
13:43Financial Statement.
13:45This is also called Measurement Basis.
13:47Measurement Basis
13:57See, how many Measurement Basis
13:59are there?
14:01Historical Cost,
14:03Current Cost,
14:05Realizable Value,
14:07and Present Value.
14:09These are the main ones.
14:13Next, we have
14:15Measurement of Equity.
14:19First,
14:21you have