Академический Документы
Профессиональный Документы
Культура Документы
PROJECT REPORT
ON assets cycle of
BAHRIA UNIVERSITY
Acknowledgement
First of all, we would thank Allah Almighty, the most Beneficent and Merciful for
giving us the opportunity and strength to work on this report.
We would like to thank our course teacher for his help, guidance, support and
cooperation.
We are especially thankful to Commander (Retd) Ashiq Hussain PN, Manager
Accounts (Contact No. 021-99240004 Ext.238) at Bahria University for taking
out time from their busy schedules and addressing our queries.
Letter of Transmittal
MR. SHAHAM AHMED
Sr. Lecturer
Financial Accounting
At PAF K.I.E.T
KARACHI
Dear Sir,
A person is not a perfect in all the contexts of his life, He has a limited mind
and thinking approaches. With prayers of our parents and your support, it
became possible for us to formulate this report. We pay high regards to you
and our parents. We are also thankful to all our friends and class fellows who
provided us support to complete financial accounting course report.
This report has given us insights of Assets Cycle carried out at Bahria
University. We had a comprehensive learning experience with the report
formulation. With our knowledge at this level, we have put all the efforts to
summarize our knowledge and experience in this report, to make it
comprehensive and meet your expectations.
Regards,
Altaf Hussain (59848)
Qambar Ali (59659)
Adeel Ahmed (59574)
Fouzia Ghazal (59532)
Table Of Content
S.NO DESCRIPTION
1.
Introduction of Bahria University
2.
3.
4.
5.
6.
7.
Depreciation Policy
8.
Asset Recognition/Capitalization
Policy
Financial assets and liabilities are recognized when the University becomes a party
to the contractual provisions of the instrument; the particular recognition methods
adopted are disclosed in the individual policy statements associated with each item.
The University derecognizes the financial assets and liabilities when it ceases to be a
party to such contractual provisions of the instruments. The University recognizes
the regular way purchase or sale of financial assets using settlement date accounting.
Property and equipment are stated at cost less accumulated depreciation and
impairment losses, if any. Cost of tangible assets consists of historical cost and other
directly attributable cost of bringing the asset to working condition.
Subsequent costs are included in the asset's carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the University and the cost of the item can be
measured reliably. All other repair and maintenance costs are charged to income and
expenditure account during the year in which they are incurred.
The LPC will comprise of a President and two members. Chairperson of LPC shall
not be below the status of a Deputy Director/equivalent in case of purchase up to Rs.
500,000/-.
In case of purchases over Rs. 500,000 the Chairperson LPC shall not be below the
level of Director/equivalent. Chairperson LPC will ensure timely action for tender
inquiries and preparation of comparative statements on receipt of quotations.
The Chairperson LPC shall ensure that the correct purchase procedure consistent
with the amount involved is followed.
Purchase up to Rs 50,000: Items will be purchased on single quotation/bill basis
after verification of the market rates. Items so purchased will be deposited with the
Store Section of BU/CU. Finance section of the unit concerned will then prepare the
contingent bill for recoupment of funds from which cash has been drawn.
Purchases Between Rs 50,001 & 300,000: Three quotations will be asked from at
least three officially registered firms through a written request for forwarding their
quotations through a sealed envelope in the name of the President LPC. The LPC
will then proceed as follows:
Quotations will be opened in the presence of the members of the LPC who will sign
them for authentication.
A comparative statement shall be prepared duly signed by the Chairperson LPC and
his members and added to the minute sheet of the case for approval of the
rates/comparative statement by the competent authority.
Chairperson LPC will forward the approved comparative statement to finance
section for issuance of delivery note to the firm concerned.
On receipt of stores, members of the LPC along with the representative of the
demanding section will inspect the items/ stores for correctness and final acceptance.
Chairperson LPC will endorse his remarks on the minute sheet that the stores have
been inspected and accepted along with goods received note.
The minute sheet along with the bill and the consignment will be handed over to
finance section for further processing i.e. for arranging payment to the firm and
taking the items on charge and further issue to the concerned section.
Ensuring that the stocks and stores of hazardous nature are subject to appropriate
security checks
Rector shall report non-observance of the above procedures to the Board annually.
Depreciation Policy
ASSET DESCRIPTION
Building
Computers
Furniture & Fixture
Electrical Installation
Office Equipment's
Electronic
Lab/Equipment
Vehicles
Telephone Equipment
Drawing and painting
Library Books
Teaching Aids
Flexible Lab.
Equipment's
Other Equipments
RATE
5%
33%
10%
20%
20%
33%
20%
20%
20%
20%
33%
33%
20%
Impairement of Assets
An assessment is made at each balance sheet date to determine whether there is any
indication of impairment or reversal of previous impairment, including items of
property and equipment. In the event that an asset's carrying amount exceeds its
recoverable amount and impairment loss is recognized in the income and expenditure
account. A previously recognized impairment loss is reversed only if there has been a
change in the estimates used to determine the recoverable amount, however not to an
amount higher than the carrying amount that would have been determined (net of
depreciation), had no impairment losses been recognized for the asset in the prior
years. Reversal of impairment loss is restricted to the original cost of the asset.
Disposal of lands and buildings will take place only with the prior authorization of
BOG on the advice of the Rector.