In our life we must learn few Important Things which will not be taught in School, so we have to put an effort and learn more by reading habit.
Cars or any other Vehicle, but especially cars, are very expensive these days. For many people, buying a car takes years of hard work and a lot of savings. Therefore, it becomes crucial to ensure the safety of the vehicle through insurance Auto insurance is the best way to protect your car and the large sums of money invested in it Car insurance is basically an agreement between the insurance company and the car owner.
The latter is required to pay premiums for a certain fixed period, while the former undertakes to pay for any damage or loss to the vehicle In many countries, a car insurance policy is mandatory. Because this policy not only provides financial assistance to car owners but also greatly helps in the process of tracking vehicles such as theft.
Once you’ve decided which vehicle to buy, the most important thing you need to do is figure out how much liability coverage you need. For help and more information in this regard, you can consult your local car service. After determining the amount of liability, consider the type of coverage you want There are different types of car insurance policies available, and their coverage varies. For example, comprehensive auto insurance covers all accidents and vehicle theft. While fire and theft liability insurance only covers accidents where the insured’s vehicle collides with someone else’s vehicle. If another vehicle hits the insured, the company will not pay. It is up to you to decide which policy you accept. The cost of a policy varies mainly depending on the coverage
Therefore, the more the policy covers, the higher its cost
Third, research the insurance company with which you want to purchase the policy you want. You can do this by checking the websites of various insurance agencies, getting completely free online quotes, conducting surveys in your social circles, and more. However, you should be aware that companies use statistical history to determine current exchange rates.
These rates depend on the funds needed to cover all claims and business expenses of the company. Auto insurance rates also depend on the insurance company you choose This is because each company offers a different claims experience and the number of people they insure varies. Also, the cost of doing business, the amount that must be paid to sell and service the policy, and the financial goals that must be achieved, vary from company to company.
The company will therefore charge accordingly In addition to this, there are several other factors that directly affect your car insurance rates These include your vehicle’s age, make and model, service usage, driving history, how you maintain your car, and your credit rating.
In most cases, a switch B/L is used in order to edit the shipper information, i.e. replacing the actual factory details with the trading agent’s. That said, there may be various other motives for requesting a switch B/L. Let’s go deeper in Switch Bill of Lading and their types – Supply Chain Management:
Switch B/Ls are only issued against the surrender of the original set and may be required by any of the three parties with direct involvement in the purchase/sale of the cargo: the cargo owner/seller (or an authorized representative), the trading agent, and the end buyer.The reasons for requiring a switch B/L include:
The Switch B/L can only be officially requested by the cargo owner or principal. In other words, since the Bill of Lading represents ownership, only the company holding the full set of documents can request for a switch B/L.Advice: the request should only be made if the company has all three original B/Ls in hand, except in the case of a Telex Release.After the request has been made, the switch bill must be approved by the carrier and the freight forwarder, who needs to very meticulously compare the differences between the original B/L and the new and proposed Switch B/L to make sure everything that needs to match, matches.Note: only the carrier or freight forwarder is allowed to sign a Bill of Lading.Once the switch B/L has been approved for issuance, the carrier and/or freight forwarder must make sure that the original set of B/Ls is taken out of circulation and cancelled before the switch B/L can be released. This is important as it ensures that there is only one set of documents in force to prevent problems.
When requesting for a switch B/L standard procedure must always be followed to ensure a smooth process. Here’s an example of how a switch B/L may be requested and processed.Consider these three parties:
The first and original set of B/L will have been issued with A as the shipper and B as the consignee. The cargo owner may later request for a switch B/L listing B as the shipper and C as the consignee.Other changes to the shipment description may be made, but only under the cargo owner’s written authority and only to certain information such as to the condition of the cargo, payment terms, place and date of loading, Incoterms, etc.Any inconsistencies on the switch bill will result in the carrier and his agent (if the agent has issued the switch bills) facing risks of claims from parties who have suffered a loss as a result of these misrepresentations.Switch bills of Lading do not contain any information that indicates that they are not the initial and original B/Ls. However, the consignee or end buyer is at liberty to ask the shipping line whether the bills were switched. Shipping lines are not legally obliged to divulge this information. But it’s common practice for them to do so without disclosing any further details.
When a switch bill is issued, a new invoice and packing list must also be issued to reflect the new changes accordingly and accurately.As per our example, this means showing company B as the supplier and company C as the buyer/consignee. This not only avoids exposing the supplier’s identity but also maintains consistency with the new set of Bill of Lading.
In recent years, there’ve been multiple cases of fraud under switch bills, which have caught the attention of shipping lines. This highlights increased risks for cargo agents such as:
For further reference, there are various case studies available online showing how different courts arrive at different verdicts based on the misinterpretations and misuse of the Switch Bill of Lading.
Must Read: Letter of Credit Documentation: Key Points Terms and Bank Roles (rohitashvasinghvi.com)
Source: icontainers.com
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Financial statement considerations in adopting new and revised pronouncements
Where new and revised pronouncements are applied for the first time, there can be consequential impacts on annual financial statements, including:
Whilst disclosures associated with changes in accounting policies resulting from the initial application of new and revised pronouncements are less in interim financial reports under IAS 34 Interim Financial Reporting, some disclosures are required, e.g. description of the nature and effect of any change in accounting policies and methods of computation.
IFRS9 Financial Instruments (2014) {Effective for annual periods beginning on or after 1 January 2018}
A finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas:
For more information, read our previous post: Brief Overview of IFRS & How it’s different from US GAAP – Singhvi Online
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Accounting is the systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business or individual.
It serves as the backbone of any financial system, providing a clear picture of an organization’s financial health and guiding decision-making.
Through accounting, businesses can track income and expenses, ensure statutory compliance, and provide investors, management, and regulators with quantitative financial information.
The primary objectives of accounting include:
The Role of Accounting in Business:
Accounting not only records financial transactions but also plays a crucial role in budgeting, forecasting, and strategic planning. It allows businesses to evaluate their performance, understand cash flows, and make informed decisions to optimize profitability.
For example, an organization can use accounting data to identify which products generate the most revenue and which areas are incurring higher expenses, thus enabling the company to adjust its strategy accordingly.Accounting is the systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business or individual.
It serves as the backbone of any financial system, providing a clear picture of an organization’s financial health and guiding decision-making. Through accounting, businesses can track income and expenses, ensure statutory compliance, and provide investors, management, and regulators with quantitative financial information.
Below are the Branches of Accounting:
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