Banking

Accrual

Accrual or accumulation of something is, in financial terms, the adding together of interest or different investment sources over a period of time.

It holds specific meanings in accounting, where it can refer to accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These types of accounts include, among others, accounts payable, accounts receivable, goodwill, deferred tax liability and future interest expense.

For example, a company delivers a product to a customer who will pay for it 30 days later in the next fiscal year, which starts a week after the delivery.
The company recognizes the proceeds as a revenue in its current income statement still for the fiscal year of the delivery, even though it will get paid in cash during the following accounting period. The proceeds are also an accrued income (asset) on the balance sheet for the delivery fiscal year, but not for the next fiscal year when cash is received.

Similarly, a salesperson, who sold the product, earned a commission at the moment of sale (or delivery). The company will recognize the commission as an expense in its current income statement, even though the salesperson will actually get paid at the end of the following week in the next accounting period. The commission is also an accrued expense (liability) on thebalance sheet for the delivery period, but not for the next period when the commission (cash) is paid out to the salesperson.

Limits Nor Morality

David Ricardo’s insight into the price of land is nevertheless interesting: the “scarcity principle” on which he relied meant that certain prices might rise to very high level over many decades.

This could well be enough to destabilize entire societies. The price system plays a key role in coordinating the activities of millions of individuals –indeed, today, billions of individuals in the the global economy.

The problem is that the price system knows neither limits nor morality.

It would be a serious mistake to neglect the importance of the scarcity principle for understanding the global distribution of wealth in the twenty-first century.

To convince oneself of this, it is enough to replace the price of farmlands in Ricardo’s model to the price of urban real estate in major world capitals, or, alternatively, by the price of oil.

In both cases, if the trend over the period 1970-2010 is extrapolated to the period 2010-2050 or 2010-2100, the result is economic, social, and political disequilibria of considerable magnitude, not only between but  within countries– desequilibria that inevitably call to mind the Ricardian apocalypse.”

Thomas Piketti, Capital in the 21st century

capital

The life cycle of a technology

I Precursor

II Invention

III Development

IV Maturity

V Pretenders

VI Obsolescence

VII Antiquity

One Size Doesn’t Fit All

The new consumer and its choice alternatives

 

{Infinite Loop} Begin;

“As we get deeper into filters and how they work, it helps to get an overview of their many types.

Let’s start with music.

Here are some of the many different filter types a typical user on Rhapsody might encounter in a single session as she or he looks for new music.

From the front page, a user might start with category, wich is a form of a multi-level taxonomy.

Let’s say you begin in Alternative/Punk and then choose the subgenre Punk Funk. In that category, there’s a best-seller list, wich is led by Bloc Party… If you click on Block Party, you’ll find that pattern matching has created a list of related artists, wich includes the Gang of Four. A click on that produces the list of “followers”, wich is a form of editor recommendation (you may also be pesuaded by the editorial review).

Among those…

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Bank 2.0

Although the Internet has become an essential part of banking and commerce for most consumers in developed economies, the channel itself is still often limited in terms of potential because it is seen primarily as a cost saving mechanism by most retail institutions.

There appears to be a widely held belief by many banking execs that while the Internet as a channel may supplement revenue, it is never going to be a serious sales or revenue channel.

However, there are various facts that absolutely contradict that assertion, if not now, in the medium term.

So the question is why do some make this assumption?

Brett King, Bank 2.0

Ants with Megaphones

“For a generation of cutomers used to do their buying research via search engine, a company’s brand is not what the company says it is, but what Google says it is.

The new tastemakers are us.

Word of mouth is now a public conversation, carried in blog comments and customer reviews, exhaustively collated and measured.

The ants have megaphones.

The Long Tail, pg 99

http://www.longtail.com/about