 I was behind the shaitan ir-rajeem. Bismillahir Rahmanir Rahim measurement means how to value and and any any transaction Whatever business is performing We want to value it. We have to value in monetary terms There are four measurements basis one is Historical cost and that is usual and that is the most important one which we are using currently all over the world Historical means that the day the transaction incurred and The money or commitment you made on that particular day The rate should be on that date rate historical rate But then let's say you are using this light So how much units you have used today? And what is the cost of those units of today if you want to prepare your accounts on daily basis? You have Make use of that. Let's let me give you another example You bought a car and You made a bargain purchase of let's say 20 lakh rupees But it was a nice car a friend meet you With you and say the way you've got a very good car. Can you sell it to me for 22? like So you might you cannot say that this car is not 22 like rupees because somebody offered me to Is costing you 20 like you need to record it at 20 like historical cost current cost Reliable cost and present value You know these are the third one is a current cost means You might buy it and assets Let's say two years ago, but due to inflation The cost of 100,000 may be again hundred and twenty thousand now So sometime we do so that we uplift the cost and that is the current cost In fact, we need to prepare accounts under historical cost accounts but there was a time when Current cost accounts are being prepared in UK But they were rejected because historical cost accounts now and turn in under the international financial reporting standards They allowed to some extent That you can use current cost accounts also not all over but in certain cases for example You've got a land and building so they split land and building The building is depreciated, but so far land is concerned. It appreciated. So they said appreciate the land value and Decrease the building value So this is what called current cost that you uplift your assets value also Reliable value means you sometime you want to you have is the sale sale value basically Reliable means sales value now while we are talking about the sales value Let's say if you are selling something on foot ten thousand piece, but you are incurring a cost of Let's say one thousand piece. So the net price will value is nine thousand. So you need to measure at nine thousand Present value. This is again a concept that what we are going to receive in future We want to see what is its current value current way I mean keeping in mind that future the money today is worth more than the money tomorrow So what you are getting tomorrow is going to work less than what you have so what we are trying? We are working back We call it is basically we call it in accounting use value value in use and What we do normally what we expect in future we discount it and bring it to the present value So in certain cases we use this and we work out the present values also. So we bring the Incoming inflows into present value Accounting policies and specific principle basis convention rules and practices now we must use these accounting policies or specific principle basis or conventions rules and practices in Recording the assets evaluation for example, as I said, we have number of method of depreciating the other side So which method we should follow? Again is can be a straight line method or it can be reducing values method or it can be unit of cost Unit of output method their number of methods. So which method we should follow? We must make sure we we should follow the same method year to year Now management must develop policies and provide the most useful information to the users of Entity financial statement. You need to declare Where you have a different methods of doing something which method you are you should declare in the notes to the account Normally, it's important that you should make it very clear that this is the methods We are following valuation the stock or valuation of the Non-current assets and so on we should mention clearly in the notes to the account now a cruel As I earlier explained is an acrylic is the portion of given resources or expense item that is recorded in a particular time span Allocations are apportionment of cost to different departments or activities within the company Sometimes we want to see the performance of different departments. So what we do? Common cost we going to share we allocate it. We need to use some basis how to allocate it in case in in a university We have been running so many courses So what we do normally that how much each course cost us People says we got number of students, but the question is How much we cost to run that program to then run that course? So we need to allocate not only the direct cost but the indirect cost would also be allocated and there should again be certain basis reasonable base Then depreciation methods of recording depreciation and amortization amortization is also Depreciation is used basically for tangible assets tangible assets means like plant and machinery then building Vehicles office equipment, etc But amortization is for intangible assets Intangible assets are like Goodwill like brand names like licenses They also be with time reduces now The depreciation method Again, it's a bit difficult job. For example, if you got an aeroplane, let's say such a huge machine aeroplane how to Depreciate it which method we should use there's a problem So what we do normally We have three parts of that aeroplane. One is the body One is the interior and one is the engine For body there can be a different rate for engine. There can be a different rate and so for Inside interior is concerned. It's gonna be a different rate then how to value the Company buys are injected in numbers. That is again an unfortunate thing Then when we value the business, we add some Binance by SNES it seems reasonable that your financial intelligence should include an understanding and how these numbers Are calculated one should have some inside knowledge too Thank you very much