1.1 An overview about Insurance business in Bangladesh
Insurance is a mechanism of transferring risk. Insurance should be treated as a basic human need in terms of wide range of human activities and situations. The insurance industry of Bangladesh now consists of 44 General Insurance Companies (non-life) including state owned SadharanBima Corporation and 18 Life Insurance Companies including state owned Jiban Bima Corporation. The sector is playing a vital role in the economy of the country.
1.1.2 Information System of Insurance Business
The insurance business accounting information system must not only aid the insurance companies in achieving its basic objective but also incorporate those features necessary to comply with regulatory
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Management Information requirements: Insurance business management needs a variety of reports and information for both external and internal purposes. Financial statements are often required by stockholders, the SEC and other regulatory agencies.
For internal purpose, management needs a variety of reports should include a variety of information reports on marketing activity, underwriting activity, re-insurance activity, claim activity and financial activities.
1.1.2.4. Accounting controls: Many aspects of insurance accounting are unique. Almost every piece of paper utilized by insurance company becomes a sources document for the accounting entry. Such papers include Money Receipts, checks, deposit slips, debit and credit vouchers. Insurance company process hundreds of source documents each day. As consequence, it is imperative that insurance companies make posting their books each day. Assets of insurance companies including cheques, cash.
One of the most important accounting controls is the safeguarding of these assets. Primary objectives of insurance company’s internal control should be to promote dual control over such cash and cash equivalent assets and to fix responsibilities for recording transactions and maintaining
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As a result, insurance information is very much important for the economy. To provide relevant information in time the insurance sector should have a unified accounting information system. Effective AIS is essential for data collection, data management, data maintenance, and data control and information generation of the insurance business. But the information handing units of the insurance business have not been properly organized. Rules and procedures have not been properly developed to guide information handling departments. In this situation this thesis try to find out the original picture of the overall AIS of insurance business of
Life is full of wonder and beauty yet, life is also mysterious and unpredictable as well. With that said, it is best to prepare for the life ahead no matter how long and wild it could be. Insurance companies were created for this reason; preparing for the unexpected. Whether there is a hurricane, earthquake, or fire, there are insurance companies out there that allow people to buy coverage for the unpredictable future. Jackson National Life is such an insurance company that was founded on the principles of helping its customers prepare for the future ahead.
When being placed in the role of a manager, it is important to understand the finances of the organization and how to read and understand the recording of finances. It is also important to understand how all the different parts of the records fit together to give us the knowledge of where the business is financially. Knowing also the different responsibility centers related to financial recording and how they function is important as a manager. Once a manager understands what and where items belong on a balance sheet, they will better understand the state that the business is in. “It provides you with a picture of the financial health of your practice or organization on a certain date.”
The management report is designed to enable customers to understand the conclusions and recommendations quickly without taking much time in reading. On the other hand, components of report includes five major elements below: 1- Prefatory Information, which includes transmittal paper, page title, Authorization report, executive summary and table of contents 2- Introduction, which includes problem statement that is a brief explanation of issues that need to be discussed such as research purposes.
Clients must keep records and books of accounts including cash book, sales ledger, purchases ledger and general ledger. Supporting documents such as invoices, bank statements, pay-in slips, cheque butts, and receipts for payments, payroll records and copies of receipts issued should be retained. A valuation of the stock in trade should be made at the end of the accounting period and the appropriate records maintained. Company should record sufficient to explain each transaction and to enable a true and fair profit & loss account and balance sheet to be prepared. At the end of the accounting period, a physical stock-take should be made to ascertain the quantity and the cost of the stock in hand or the cost of work in progress statements and
For my research task the fast food restaurant I have chosen is Nandos because Nandos originates here in South Africa. The quality of their food has always been good, have never a problem with Nandos in terms of service. I’m going to look at their concept of insurance and how it’s implicated for business. I will be also be looking at crime situation in our country and how it affects businesses and how does insurance related to the situation. Also I will take a look at two different types of insurance, know as compulsory and non compulsory.
Insurance companies are making a huge amount of profit. The profit that these
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
An accounting memo should be a one-stop shop when it comes to forming a conclusion on an accounting issue. A company would reference an accounting memo to gather information regarding the transaction, accounting evaluation, and reason the position was taken on a problem or issue. The five critical components are listed below as a guide to prepare a professional accounting memo. I. Facts & Background • This section of a research memo is used to describe all the relevant background information to fully comprehend the needs of the transaction and the accounting behind it. •
Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. Through their network of more than 70 offices in over 20 countries, they have served more than 40 percent of FORTUNE 1000® and FORTUNE Global 500® companies. They also work with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half. Founded in 1948, Robert Half is a member of the S&P 500 index.
Various users like the management, employees, shareholders, creditors, investors and customers use a strategic report internally and externally.
Also many companies reporting related to the state of the value added or environmental information, these are concentrated in industrial sectors. The financial statements reflect the financial position of company, financial performance and cash flows of the company, it is significant to note that the correct depiction of the impacts of transactions and other events and circumstances according to the explanations and criteria identification of assets, liabilities, income and expenses go in the same outline (Brealey,
This data can be used to preparing the accounting statement and reports. (Fontinelle, 2017).Accounting Information System is used for to produce the external stories related to the financial statement, supported through routine activities, Decision Support and Planning and Control, Implementing internal control. Accounting Information roles are classified into External Auditor, Tax Accountant, Consultant and Internal Auditor, Business Analyst, Budget analysts, Financial Analyst, controller and Accounting Clerk. It is discussing the future, and current role of Accounting Information system is analyzing by accountant responsibility and financial
According to Averkamp (2016), “accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting information in various reports and analyses”. Therefore knowing how to carry out these tasks
While, some of the functions that can be done in accounting are the recording of business transactions, preparing the payrolls, keeping the track of profit or loss, studying the industry trends and so
In my day to day studying times, I can prepare accounts manually with the assistance of some videos on youtube and I am also planning to use a computer package to prepare restaurant accounts in near future. Moreover, I am lucky enough to have some basic knowledge about methods and principles of financial planning, instruments and mechanics of accounting, procedures and documents required for financial reports , methods and techniques of controlling finance, principles and instruments of auditing and methods and techniques of fraud prevention in financial