In The Late 20Th Century, The World Was Shaken With The

In the late 20th century, the world was shaken with the news of two major Islamic revolutions. The first one happened at Iran and the second one happened in Afghanistan. As a result Islamic law and religious oppression ruled both of these countries. Although religious fundamentalism played a big role in these revolutions, both of them had very different cultural, political and economic reasons for happening. One would think that with one of the largest oil reserves and the second largest gas field in the world Iran would be one of the most prosperous countries. After all during Reza Shah’s reign from 1941 to 1979 new modern buildings and massive infrastructure projects were being built, the army was a equipped with the latest military†¦show more content†¦Iran’s culture was also rapidly changing. Iran’s historic culture was being replaced with western culture. As one writer put: â€Å"Iranian magazines feature the latest Hollywood films and Broadway play reviews. Urban women become mere consumers of western cosmetics. News of the world is supplied to Iran through the lens of Reuters or UPI press services.† (Hanson) The cultire of Iran and the west conflicted on every front. The education system of Iran also changed overnight. Suddenly, the Iranian schools started to teach western curriculum and neglect Iran’s own culture and issues. The local c ommunity saw all these events as sign of westoxification. For most Iranians, change was happening too fast with no benefit on the majority. As a result of economic and cultural issues opposition to the shah’s regime immediately began after these changes. First, the protesters were mostly consisted of liberals who were particularly strong in the urban landscape. Instead of listening to the problems of the opposition, shah chose oppression as a solution. In order to quell any unrest, a secret police trained by CIA torture experts formed that was called SAVAK. As time passed the notoriety of SAVAK grew, as they were responsible for making many opposition members disappear overnight. Initially the opposition consisted of Liberals, Marxists andShow MoreRelatedPride And Prejudice V Bride And Prejudice Essay1603 Words   |  7 Pagesthe world in the 18th century, imposed the morals and ethics upon the world as they did their own country, where people were expected to abide by. Jane Austen illustrates the values of this prejudiced society through Pride and Prejudice, which involved the role of women as a major, governing over their marriages for economic sustainability and their lack of authority. Austens controversial novel was adapted into a feature film which presented the real and gritty society as how it truly was duringRead MorePride and Prejudice V Bride and Prejudice1600 Words   |  7 Pagesthe world in the 18th century, imposed the morals and ethics upon the world as they did their own country, where people were expected to abide by. 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Jugaad Concept - 10018 Words

INDIAN INSTITUTE OF MANAGEMENT CALCUTTA WORKING PAPER SERIES WPS No. 677/ August 2011 JUGAAD- Not just â€Å"Making do† but a Low Cost Survival Coping Strategy at the Bottom of the Pyramids. by Ramendra Singh Assistant Professor, Indian Institute of Management Calcutta, Joka, Kolkata 700104 Vaibhav Gupta B.Tech Student, Department of Applied physics, Delhi Technological University, Delhi, India Akash Mondal B.Tech Student, Department of Metallurgical and Materials Engineering, Indian Institute of Technology, Madras, India JUGAAD- Not just â€Å"Making do† but a Low Cost Survival Coping Strategy at the Bottom of the Pyramids. Prof. Ramendra Singh1*, Vaibhav Gupta2#, Akash Mondal3^ï‚ ª Abstract Till the recent times,†¦show more content†¦This word has also been considered as an alternate meaning for the low level, borderline criminal activity in an informal economy2.In social science, the term refers to bribery. However, in business and management, such practices are evolving as innate, grass root level innovations3 aroused due limited access to capital, resources and infrastructure. Till now, the jugaad was mainly considered as way to get some things done quickly, saving time. Using a small rubber piece to stop water from the ceiling instead of getting it repaired permanently, or traveling on the bus roof instead of waiting of a vacant bus. These are a couple of jugaads that are done on a daily basis just to preserve time. Some unethical methods such as selling of milk mixed with w ater or, getting a seat in a college even if the seats are full, are also the part of jugaad. Considering the overall concept, jugaad can be broadly regarded as a low lost innovation, a coping mechanism a quick fix solution and sometimes an unethical way of getting anything done. Mitra, B.S. (1995) India’s Informal Car, Wall Street Journal, p.10 Krishna A. (2003) What Is Happening to Caste? A View from Some North Indian Villages. The Journal of Asian Studies. 62(4), pp. 1171-1193. Available at: http://www.jstor.org/stable/3591763?orgin=crossr 3 Mitra, B.S. (2006) GrassShow MoreRelatedSikhism : Religion Of Self1442 Words   |  6 Pagesnever dies) Ajooni (He is beyond births and deaths) Saibhang ( He is self illuminated) Gurprasaad (He is realized by the kindness of the True Guru) Jap (Repeat His Name) Aad sach (He is True in the beginning, (before the anything (universe) existed) Jugaad sach (He was True when the ages commenced and has ever been True) Hai bhi sach (He is also True now) Nanak hosi bhi sach. ((Satguru) Nanak (says that) he will be certainly True in the future.) Sikhism stresses that God judges all people as to theirRead MoreBusiness Cvommunication Conclusion11663 Words   |  47 PagesSTUDY GUIDE Principles of Management TRUE/FALSE 1. The nature of management is to control and dictate others in an organization. ANS: F PTS: 1 DIF: 2 REF: 6 NAT: AACSB: Analytic | AACSB: Motivation Concepts MSC: F 2. In today’s turbulent and hypercompetitive global environment, managers must help their companies innovate more than ever. ANS: T PTS: 1 DIF: 2 REF: 8 NAT: AACSB: Analytic | AACSB: Creation of Value MSC: F 3. The late famed management theoristRead MoreI Love Reading Essay69689 Words   |  279 PagesIndia occurs in ‘far more encompassing and far reaching ways than in developed countries’, and could therefore be far more complex, ‘for there is so much more that needs to be done’.14 Commentators today celebrate the ubiquitous Indian attitude of ‘Jugaad’ (a Hindi word roughly translated as ‘creative improvisation†¦a tool to somehow ï ¬ nd a solution based on a refusal to accept defeat, and calling on initiative, quick thinking, cunning and resolve†¦to quickly fulï ¬ ll market demands at the lowest possible

The White Mans Religion a Savage Hypocrisy Essay - 897 Words

When people choose to follow a religion they agree to practice the tenets and standards put forth by that religion. If a person is a practicing Christian they would need to follow the teachings of love and kindness that are given forth by Jesus Christ. Frederick Douglass in his work, Narrative of the Life of Frederick Douglass, an American Slave, Written by Himself, and William Apess in his work, An Indians Looking-Glass for the White Man both disagree with the form of Christianity practiced and preached by their white oppressors. Although Douglass and Apess are from different cultural backgrounds, both mens works share the theme of the white mans perversion of the Christian religion. In his work, Frederick Douglass speaks of†¦show more content†¦Auld. When this man found religion, Douglass was sure that he would, at the very least, become more kind and humane towards those kept in his service (2063). But the actual change upon his religious awakening was that he became more cruel and hateful in all his ways (2063). Before he found religion, Mr. Auld had no justification for his treatment of his slaves. He was cruel to them because of his own depravity (Douglass 2063). Mr. Auld tried and failed to intimidate the mannerisms of a successful slave owner and didnt know how to regain control. After his enlightenment he had religious sanctions for his cruel actions, which absolved him from any feelings of guilt towards the cruel treatment of another man. This religious justification is illustrated in the incident that occurs with the lame slave girl. Mr. Auld would tie up this girl, who had been disfigured by a fire, and beat her until her blood would f low. He backed up this action by quoting Luke 12.47: He that knoweth his masters will, and doeth it not, shall be beaten with many stripes (Douglass 2064). If one was to read the entire passage of scripture this quote came from, they would see the misuse of this justification. This verse is telling man that if he knows the will of God and chooses not to follow it, he will be punished for his actions. It is not saying that slavery and the mistreatment of slaves is acceptable in the eyes of the Lord. For men like Auld, religion is justShow MoreRelatedThe Declaration Of Independence, All Men Are Created Equal1442 Words   |  6 Pagesconcept does not contribute to Fredrick Douglass and Red Jacket, who represent two different cultures with a similar dilemma. Both argue the hypocrisy of the document, that only applies to a certain population of the United States of America. In addition, Douglass and Red Jacket are defending their beliefs among the injustices that they have came across with the â€Å"whites†. 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Financial analysis of coles ltd - Free Essay Example

Sample details Pages: 10 Words: 2857 Downloads: 2 Date added: 2017/06/26 Category Statistics Essay Did you like this example? 1. INTRODUCTION 1.1 Purpose In this report my purpose is to do a financial analysis of Coles Ltd which provides a basis, on which the valuation of company can be done. 1.2 Scope This report conducts a financial analysis for Coles by performing a trend analysis of financial ratios using the data given for past 5 years. It also includes a cash flow analysis which along with financial ratios helps compare coles with its industry counterparts, Woolworths and Metcash; and finally this analysis would help in price valuation to calculate a fair price for coles share. Don’t waste time! Our writers will create an original "Financial analysis of coles ltd" essay for you Create order 1.3 Methodology This report is based on primary data available from Coles website as well as secondary data such as research paper, electronic database and other publications. 1.4 Limitation Although all efforts have been made to use as much available information as possible but there were some constricting factors such as lack of available data of past financial information which restricted this research. Reliability of data and time constraints were also hurdle in performing this analysis. The biggest shortcoming was that current data was based on AIFR and data for years before 2005 was based on AGAAP, which made comparative trend analysis very difficult. 2. FINANCIAL ANALYSIS In this we will be evaluating the firms financial ratios and cash flow measures of the operating, financing, and investing performance of a company in relation to key competitors historical performance. Given the firms strategy and goals, together these tools allow the analyst to investigate and examine a firms performance and its financial condition. Ratio analysis is the tool which involves assessing the firms income statement and balance sheet data. On the other side, the cash flow analysis relies on firms cash flow statement. 2.1 Ratio analysis The ratio analysis deals with evaluation of the performance of Coles in perspective of its mentioned strategies and goals. In order to achieve this objective a combination of cross sectional analysis and time series analysis is performed. Workings of Ratios for 2006 are mentioned in APPENDIX 4. 2.1.1 Profitability analysis If we look at the return on equity (ROE) of Coles, for a period of 5 years, it is being observed that ROE has increased in 2006 as compared to 2002. Although ROE has fallen in 2006 (15. 30%) as compared to 2005 (18.30 %) but it can be seen that on an average Coles ROE has been stable or increased over last 5 years. Return on asset (ROA) has also been stable around 10% during the last 3 years and increasing from 7.17% in 2002 to 9.54% in 2006.The main reason for stable ROE and ROA are better performance delivered by the management and as well as the mature characteristic of the industry, that produces stable return as well as stable growth seeing population demographics in the country. Table 1 Profitability Ratio of Coles Ltd 2006 2005 2004 2003 2002 ROE 15.30% 18.30% 15.69% 12.13% 10.80% ROA 9.54% 11.57% 10.83% 8.42% 7.17% Gross Profit Margin 23.53% 23.36% 25.44% 27.38% 24.40% Net Profit Margin 1.57% 2.08% 1.91% 1.59% 1.38% Financial Leverage 2.54 2.70 2.21 2.23 2.51 Source: Coles financial statement after adjustment Gross profit has been quite stable and good for the last 5 years but the concerned part is the net profit margin. Net profit margin has been very low, it had been increasing from 2002 to 2005 but it again fell in 2002 to 1.57% from 2.08%. Coles need to reduce its operating and interest expenses so as to increase its net profit margin. Table 2 Profitability Ratio Comparison within the industry in 2006 Coles ltd Woolworths Metcash ROE 15.30% 33.80% 7.80% ROA 9.54% 15.57% 1.69% Net Profit Margin 1.57% 2.69% 0.98% Financial leverage 2.54 3.08 3.07 On comparing the performance of Coles with its industry counterparts we can conclude that Coles Ltd is way behind its major competitor, Woolworths, in terms of ROE and ROA which might be attributable to lower net profit margin and lower financial leverage. Coles has higher financial leverage as compared to Woolworths and metcash, which means it, has greater financial risk. But despite of high leverage it has low ROE which confirms the fact that Coles has low net profit margin asset turnover ratio. 2.1.2 Activity Analysis A firms operating activities require investments in both short-term (inventory and accounts receivable) and long term assets. Activity ratios describe the relationship between the firms level of operations and assets needed to sustain operating activities. Asset turnover is important in determining firms ROA; it also formulates reasons of how it will affect firms ROE. Evaluating the effectiveness of asset management is the purpose of asset turnover analysis. 2.1.2.1 Short term activity ratios Working capital is our main concern while evaluating a company. It can clearly be observed that since Coles has high turnover ratios it uses cash basis in its sales. It can be clearly being seen that it took only 4.48 days on an average for Coles to convert its inventory investment back in to cash. From the figures last 5 years we can clearly interpret that Coles has drastically improved its cash conversion cycle from 23 days in 2002 to 4.48 days in 2006. Table 3 Short-term Activity Ratios for Coles Ltd 2006 2005 2004 2003 2002 Inventory Turnover 8.56 8.04 8.20 6.95 6.80 Avg. No. Days Inv. in Stock (A) 42.65 45.39 44.52 52.52 53.69 Receivables Turnover 72.18 54.86 65.01 43.82 32.27 Avg. No. Days Rec. O/S (B) 5.06 6.65 5.61 8.33 11.31 Payable Turnover 8.44 8.75 9.17 8.28 8.72 Avg. No. Days Pay. O/S ( C) 43.22 41.70 39.82 44.10 41.88 Cash Conversion Cycle (A+B-C) 4.48 10.35 10.32 16.75 23.12 Table 4 Short-term activity ratio comparison, 2006 Coles ltd Woolworths Metcash Inventory Turnover 8.56 13.2 16.09 Avg. No. Days Inv. In Stock (A) 42.65 27.65 22.68 Receivables Turnover 72.18 42.24 10.9 Avg. No. Days Rec. O/S (B) 5.06 8.64 33.48 Payable Turnover 8.44 11.18 7.54 Avg. No. Days Pay. O/S ( C) 43.22 32.64 48.23 Cash Conversion Cycle (A+B_C) 4.48 3.65 7.93 Now, if we compare Coles with its competitors we can see that Woolworths has lower cash conversion cycle and metcash has higher cash conversion cycle. Woolworths has lower cash conversion cycle because it keeps inventory in stock for shorter duration and stock is converted in to good sold in less span of time. On the other hand Metcash keeps inventory in stock for lower no. of days but it provides more no. of days to its receivables for payment due to which it has higher cash conversion cycle. Seeing the industry it can be concluded that Coles has good cash conversion cycle but it can improve on it by reducing the Average number of days for which inventory is in stock. 2.1.2.2 Long term activity ratios In the analysis of long term activity ratios, long-term asset turnover and property, plant and equipment turnover have been utilized. Table 5 Long term activity ratios for Coles Ltd 2006 2005 2004 2003 2002 Total Asset Turnover Ratio 372.70% 361.62% 369.45% 323.18% 310.12% PPE Turnover Ratio 1033.42% 959.34% 958.00% 799.00% 746.09% On the whole both ratios moved in the same pattern during these periods. Relatively, this pattern shows that asset utilization has improved uniformly for the period ranging from 2002 (310.12%) to 2006(372.70%). This helps to conclude that company is continuously improving its utilization of assets to increase its production. Table 6 Long term activity ratios comparison, 2006 Coles ltd Woolworths Metcash Total Asset Turnover Ratio 372.70% 341.11% 343.81% PPE Turnover Ratio 1033.42% 993.24% 7359.85% While comparing to its competitors it can be seen that Coles total asset turnover ratio is approximately 30% higher than its competitors. It helps to analyze that Coles is more efficiently utilizing its resources to increase its production as compared to its competitors. Metcashs high PPE turnover ratio can be contributed to the fact that PPE forms a very small part of Metcashs total assets. If compare Coles with its major competitor Woolworth on PPE Turnover Ratio we can conclude that Coles has been utilizing its fixed asset better than Woolworths. 2.1.3 Liquidity Analysis Liquidity is referred to a firms ability to have sufficient funds when needed and convert its non-cash assets in to cash easily. Liquidity Ratios are employed to determine the firms ability to pay its short-term liabilities. Liquidity analysis enables us to determine Coles ability to cover its liquidity risk. Liquidity risk may arise due to shortfall or over liquidity within the firm and this in turn lead to firms disability of fulfilling its liquidity needs. In order to determine firm liquidity level, Current ratio, quick ratio and cash ratio are short- term liquidity ratios which have been employed. Table 7 Coles Short-term Liquidity Ratios 2006 2005 2004 2003 2002 Current ratio 0.98 1.07 1.20 1.35 1.37 Quick ratio 0.26 0.25 0.40 0.42 0.42 Cash ratio 0.16 0.11 0.23 0.31 0.11 On doing the trend analysis for last 5 years it can be observed that Coles current ratio has been consistently falling, which increases the possibility that Coles will not be able to meet up its short term liabilities. Current ratio has fallen from 1.37 in 2002 to 0.98 in 2006 which is of major concern, as a current ratio of less than 1 means that company has negative working capital and is probably facing a liquidity crisis. The more stringent measure of liquidity is quick ratio and cash ratio which have also been falling uniformly in last 5 years. It seems Coles is falling in to liquidity crunch and might need short term funds to meet its current liabilities. There has been lot of volatility in the cash ratio of the firm as they have been rising and again falling, so we can conclude that Coles is not able to maintain stable liquidity. Table 8 Short term liquidity ratios comparisons, 2006 Coles ltd Woolworths Metcash Current ratio 0.98 0.84 1.41 Quick ratio 0.26 0.37 0.99 Cash ratio 0.16 0.13 0.32 As compared to its competitors Coles has better current ratio than Woolworths but has current ratio less than Metcash. Comparing Coles with its major competitor in retail sector, Woolworth, we can clearly see Coles has better current cash ratio but is behind on quick ratio. On comparing with metcash we see that Coles is behind on all the short term liquidity ratios by a very high margin. Metcash has twice the cash ratio as compared to Coles, which makes Coles ability to meet its short term liabilities questionable. 2.1.4 Long term Debt and solvency Analysis The analysis of a firms capital structure is essential to evaluate its long term risk and return prospects. The long term debt and solvency ratios which we are going to use here are debt to equity, debt to capital and interest coverage ratio. Table 9 Coles long term Debt and Solvency ratios 2006 2005 2004 2003 2002 Debt to Equity 1.54 1.70 1.21 1.23 1.51 Debt to Capital 0.61 0.63 0.55 0.55 0.60 Interest Coverage Ratio 7.07 12.54 13.30 8.10 5.77 As indicated by Coles debt and long term solvency ratios, it denotes that firm is not a solvent company and relies heavily on debt financing. The firms debt to equity and debt to capital ratios are consistently above 1.00 which shows that Coles employed more debt than equity as its source of financing. Debt to total capital has also been consistently been around 0.55-0.60 during the 5 year period. This shows that firm has been stable with its financing policy and has not done much change with its debt and equity mix. Since it relies so heavily on debt financing, issues can be raised regarding its ability to pay off the interest arising due to long term debt financing but we see that company has EBIT 7 times more than the interest charges it has to pay, so that should concern much. It can be observed interest coverage ratio has declined in 2006, as compared to 2005 2004, but it is still able to meet industry benchmarks. Table 10 Debt and Solvency ratios Comparison 2006 Coles ltd Woolworths Metcash Debt to Equity 1.54 2.13 2.01 Debt to Capital 0.61 0.68 0.67 Interest Coverage Ratio 7.07 8.5 3.95 Compared to its competitors, long term solvency ratios of Coles seem to be performing optimally. Woolworths has got the highest debt to equity, debt to capital interest coverage ratio. Historically a debt to equity ratio of 2:1 is considered optimal so Coles can still rely on debt to finance its future undertaking rather then issuing new shares. It can be observed that Coles has interest coverage ratio greater than Metcash but less than Woolworths but that can be attributable to its low profit margin as compared to Woolworths. It seems Coles is at par with its competitors in terms of debt and solvency ratios. 2.2 Cash Flow Analysis Cash flow analysis is essential to understand that whether the firms cash flow have the ability to sustain the business, to meet unexpected obligations and to meet its short term liabilities. This also helps to understand whether firm will be requiring additional financing and firm can take advantage of new business opportunities as they arise. In cash flow analysis we will evaluate 3 ratios; Operating cash flow to current liabilities, Interest coverage (cash flow basis) operating cash flow to dividend payment. Methodology for calculation of cash flow ratios is shown in APPENDIX 5 Table 11 Cash flow ratios for Coles Ltd 2006 2005 2004 2003 2002 Op. cash flow to current liabilities 32.82% 29.20% 35.20% 38.74% 38.20% Interest coverage(cash flow basis) 10.50 13.74 18.82 13.56 10.86 Op. cash flow to dividend payment 2.87 2.67 4.35 4.10 3.92 Based on the table above, we can say that Coles has the ability to service its debts which can be seen in firms interest coverage ratio from cash flow basis. Moreover, we observe that Op. cash flow to dividend payment has fallen over the time span from 2002 to 2006 which could be an area of concern. Operating cash flow to current liabilities has also fallen a bit, which means it can be a problem for the firm if certain unexpected obligation come up due to which it might require additional financing. Table 12 Cash flow ratios Comparison, 2006 Coles ltd Woolworths Metcash Op. cash flow to current liabilities 32.82% 34.98% 18.90% Interest coverage(cash flow basis) 10.5 8.45 5.36 Op. cash flow to dividend payment 2.87 4.93 8.75 If we compare Coles to its competitors in the industry which it operates we observe that Coles has got better interest coverage ratio (cash flow basis) as compared to Woolworths Metcash which means that Coles has better ability to service its debts than its counterparts. Coles also has a shortcoming in operating cash flow to dividend payment ratio, as it can be seen it has the lowest operating cash flow to dividend payment ratio. It can be attributable to the fact that it pays more dividends than it should pay. So it can be concluded that Coles needs to reduce dividend payment as it might lead Coles in to financial difficulties if some unexpected obligations turn up. In terms of operating cash flow to current liabilities we see that although it has fallen substantially for Coles in last 5 years but it is at par with its biggest competitor Woolworths greater than Metcash. 3. Prospective analysis Prospective analysis enables us to determine future performance of the firm based on historical performance of the company. Here will be determining the mean return for sales and earning before interest taxes (EBIT) . Using those mean returns we will be making a sales forecast and EBIT forecast. 3.1 Sales and EBIT forecast In determining the sales growth, I have considered the following assumptions- Past trend of sales is going to continue in the following years. Firm is not going to bring a major change in its pricing policy. The foundation for sales EBIT growth is historical sales EBIT growth and I have used mean reverting model to determine the future sales growth, in which future sales EBIT growth will be mean return of last 4 years sales growth. I have not taken the 5 year sales EBIT growth because EBIT growth rate is to high in 2002 (73%) which could adversely effect the mean return considering present situation of Coles. Table 13 Sales EBIT Growth Rate for Coles Ltd 2006 2005 2004 2003 Mean Sales growth 3.62% 2.33% 19.43% 5.17% 7.64% EBIT growth -17.07% 11.68% 34.31% 18.56% 11.87% Using the mean reverting model we are able to find out a growth rate of sales for 7.64% EBIT growth rate of 11.87%. Using these growth rates we will be able to make a sales forecast EBIT forecast. This forecast will help in proper valuation of Coles on the basis of its predicted future performance. Figure 1 Line chart for sales EBIT growth Table 14 Sales EBIT Forecast for Coles LTD 2006 2007 2008 2009 2010 Sales Forecast 34212 36825.8 39639.29 42667.73 45927.54 EBIT Forecast 875.9 979.8693 1096.18 1226.296 1371.858 Using the growth rates we can forecast the sales and EBIT for Coles which helps an analyst in a fair valuation of the company. The main reason we use the sales growth as a base for forecasting, is that the majority of firm income is derived from its supermarket business. This forecast suffers from one serious shortcoming that EBIT growth has fallen from 34.31% in 2004 to 11.16% in 2005 and then to -17.07% in 2006 but we are still predicting a growth in EBIT of 11.87% in 2007 and thereafter. 4. Conclusion I have gone through the multi-step process of ratio analysis, cash flow analysis and prospective analysis to present a report on financial analysis of Coles ltd. During the process, I have identified that Coles is operating in a mature industry with small profit margins. I have performed ratio analysis, cash flow analysis prospective analysis which would help a great deal in valuation of Coles based on its current market situation. During the Ratio analysis I was able to conclude that Coles has got good activity liquidity ratios but the major area of concern is profitability ratios. Coles needs to improve its net profitability so as survive in this competitive environment. Cash flow analysis helped us to depict that Coles has cash flow ratios at par with its competitor, Woolworths, but Coles need to reduce its dividend payout as it is too high as compared to industry counterparts. By doing a prospective analysis I am able to forecast the future sales EBIT for Coles for next 4 years. Growth rate for forecast has been calculated using the mean return for past 4 years. This helps us to understand future growth of the company. I would like to conclude by saying that although Coles is competing in a low profit margin industry but it is the 2nd biggest company in the retail industry, therefore if it brings about certain petite changes in its financing and operating activities it can add a great deal to its shareholders value.

The Forbidden Game The Hunter Chapter 1 Free Essays

Jenny glanced back over her shoulder. They were still behind her, on the other side of the street but definitely following. They matched their pace to hers; when she slowed to pretend to look in a store window, they slowed, too. We will write a custom essay sample on The Forbidden Game: The Hunter Chapter 1 or any similar topic only for you Order Now There were two of them, one dressed in a black T-shirt and leather vest, with a black bandanna on his head, the other in a long flannel shirt, black-and-blue plaid, unbuttoned. Also unwashed. They both looked like trouble. The game store was a few blocks ahead. Jenny quickened her pace a little. This wasn’t the best neighborhood in town, and she’d come here specifically because she didn’t want any of her friends to see her. She hadn’t realized, though, that Eastman Avenue had gotten quite so rough. After the last riots the police had cleared things up, but many of the vandalized stores still had boarded windows, which gave Jenny a creeping feeling between her shoulder blades. They were like bandaged eyes turned toward her. Not at all the place to be at dusk-but it wasn’t dusk yet, Jenny told herself fiercely. If only those two guys would turn off onto another street. Her heart was beating unpleasantly hard. Maybe they had turned†¦. She slowed again, her feet in their lace-up canvas Tretons making no sound on the dirty sidewalk. From behind and to the left she heard the flat smack of running shoes and the clack of bootheels. The footsteps slowed. They were still there. Don’t look back, she told herself. Think. You have to cross over at Joshua Street to get to the store-but that means crossing left, to their side of the street. Bad idea, Jenny. While you’re crossing they can catch up to you. All right, then, she’d turn off before that, she’d go right on this next street up here-what was it? Montevideo. She’d go right on Montevideo, and then she’d find a store to duck into, a place to hide until the two guys had passed by. The Tower Records on the corner of Eastman and Montevideo was no longer in business. Too bad. Back straight, stubbornly pretending she was perfectly calm, Jenny walked by the darkened windows. She caught a glimpse of herself in one of them: a slender girl with hair that Michael had once said was the color of honey in sunlight. Her eyebrows were straight, like two decisive brush strokes, and her forest-green eyes were dark as pine needles and even more serious than usual. She looked worried. She turned right at the cross street. As soon as she was out of sight of Eastman Avenue, she stopped and stood as still as a deer, backpack swinging from her hand, eyes desperately scanning Montevideo for cover. Directly opposite her was a vacant lot and beside that a Thai restaurant, closed. Behind her the looming bulk of the record store presented a blank wall to the street all the way down to the park. No cover. Nowhere to hide. Jenny’s neck prickled and her little fingers began to tingle. She turned toward Eastman and hugged the wall, tossing back her hair to listen. Were those footsteps or just the sick thudding of her own heart? She wished that Tom were with her. But of course that was the whole point. Tom couldn’t be with her, since it was his party she was shopping for. It was supposed to have been a pool party. Jenny Thornton was known for her pool parties, and here in southern California late April was a perfectly reasonable time to have one. The temperature often hovered in the mid-seventies at night, and the Thornton pool glowed like a huge blue-green jewel in the backyard, giving off little wisps of steam from its surface. The perfect setting for an outdoor barbecue. Then three days ago the cold snap had come †¦ and Jenny’s plans were ruined. Nobody except polar bears swam in this kind of weather. She’d meant to rethink things, to come up with some other brilliant idea, but it had been one of those weeks. Summer’s fourteen-year-old schnauzer had finally had to be put to sleep, and Summer had needed Jenny for moral support. Dee had taken a kung fu exam, and Jenny had gone to cheer her on. Audrey and Michael had had a fight, and Zach had had the flu†¦. And then suddenly it had been Friday afternoon, with just hours to go before the party and everyone expecting something special-and nothing set up. Fortunately an idea had come to her in the middle of computer applications class. A game. People gave murder mystery parties and Pictionary parties and things like that. Why not a game tonight? It would have to be a very special game, of course. Something chic enough for Audrey, sexy enough for Tom, and even scary, if possible, to keep Dee’s interest. Something seven people could play at once. Vague notions had run through Jenny’s head of the only really exciting games she’d ever played as a child. Not the ones the adults arranged, but the kind you devised on your own once they were safely out of the house. Truth or dare and spin the bottle. Some combination of those two-only more sophisticated, of course, more suited to juniors in high school-would be ideal. That was what had brought her to Eastman Avenue. She’d known perfectly well it wasn’t the best neighborhood, but she’d figured that at least none of her friends would see her and find out about this last-minute scramble for entertainment. Jenny had gotten herself into this mess; she would get herself out of it. Only now the mess was getting bigger than she’d bargained for. She could definitely hear footsteps now. They sounded very close and were approaching quickly. Jenny looked down Montevideo again, her mind taking in irrelevant details with obsessive precision. The record store wall was not truly blank after all. There was a mural on it, a mural of a street that looked much like Eastman Avenue before the riots. Strange-parts of the mural looked real. Like that storefront painted in the middle, the one with the sign Jenny couldn’t quite make out. It had a door that looked real: The handle seemed three dimensional. In fact†¦ Startled, Jenny took a step toward it. The knob appeared to change shape as she moved, like any three-dimensional object. She looked more closely and found she could see the difference in texture between the wooden door and the painted concrete wall. The door was real. It couldn’t be-but it was. There was a door stuck in the middle of the mural. Why, Jenny didn’t know. There wasn’t time to wonder about it. Jenny needed to get off the street, and if this door was unlocked †¦ Impulsively she took hold of the knob. It was cool as china and it turned in her hand. The door swung inward. Jenny could see a dimly lit room. One instant of hesitation, then she stepped inside. Just as she did, she consciously took in the sign above the door. It read: â€Å"More Games.† I here was a push-button lock on the inside doorknob, and Jenny depressed it. There were no windows looking out on Montevideo, of course, so she couldn’t see whether the two guys had followed her. Still, she had a tremendous feeling of relief. No one was going to find her in here. Then she thought, More Games? She had often seen signs reading â€Å"More Books† in the arty, shabby used bookstores around here, signs with an arrow pointing up a narrow staircase to another floor. But how could there be More Games when there hadn’t been any games at all yet? Just the fact that it happened to be a game store she’d stumbled onto was strange, but very convenient. She could do her shopping while she waited for the tough guys to go away. The owner would probably be glad to have her; with that mural camouflaging the door they couldn’t do much business here. As she looked around she saw just how strange the store really was. Even stranger than the usual odd shops around Eastman Avenue. The room was lit by one small window and several old-fashioned lamps with stained-glass shades. There were shelves and tables and racks like any other store, but the objects on them were so exotic that Jenny felt as if she’d stepped into another world. Were they all games? They couldn’t be. Jenny’s mind filled suddenly with wild images from The Arabian Nights, images of foreign bazaars where anything-anything-might be sold. She stared around at the shelves in amazement. God, what a weird chessboard. Triangular. Could anybody really play on a board like that? And there was another one, with strange, squat chessmen carved of rock crystal. It looked more than antique -it looked positively ancient. So did a metalwork box covered with arabesques and inscriptions. It was made of brass or maybe bronze, decorated with gold and silver and Arabic writing. Whatever was in that box, Jenny knew she couldn’t afford it. Some of the games she could identify, like the mahogany mah-jongg table with ivory tiles spilled carelessly on the green felt top. Others, like a narrow enameled case crawling with hieroglyphics, and a red box embossed with a gold Star of David in a circle, she had never seen before. There were dice of every size and description: some twelve-sided, some shaped like pyramids, and some ordinary cubical ones made of odd materials. There were card decks fantastically colored like illuminated manuscripts. Strangest of all, the weird antique things were intermixed with weird ultramodern things. A cork bulletin board on the back wall sported signs reading: â€Å"Flame.† â€Å"Rant.† â€Å"Rave.† â€Å"Surf the Edge.† â€Å"Cheap Thrills.† Cyberpunk, Jenny thought, vaguely recognizing the terms. Maybe they sold computer games here, too. From a boom box on the counter came 120-beat-a-minute acid house music. This, thought Jenny, is a very peculiar place. It felt so-cut off-from everything outside. As if time didn’t exist here, or ran differently somehow. Even the dusty sunlight slanting in that one window seemed wrong. Jenny would have sworn the light should have been coming from the other direction. A chill went through her. You’re mixed up, she told herself. Disoriented. And no wonder, after the day you’ve had-after the week you’ve had. Just concentrate on finding a game, if there’s anything here that you can actually play. There was another sign on the board, a sort of square: W E L C O M E T O M Y W O R L D Jenny tilted her head, examining it. What did the letters say? Oh, of course, she had it now. Welcome†¦ â€Å"Can I help you?† The voice spoke from right behind her. Jenny turned-and lost her breath. Eyes. Blue eyes. Except that they weren’t just blue, they were a shade Jenny couldn’t describe. The only place she’d seen a blue like that was once when she’d happened to wake up at the precise instant of dawn. Then, between the window curtains, she’d glimpsed an unbelievable, luminous color, which had lasted only a second before fading to the ordinary blue of the sky. No boy should have eyes as blue as that, and especially not surrounded by lashes so heavy they seemed to weigh his eyelids down. This boy had the most startling coloring she’d ever seen. His eyelashes were black, but his hair was white-true white, the color of frost or tendrils of mist. He was †¦ well, beautiful. But in the most exotic, uncanny way imaginable, as if he’d just stepped in from another world. Jenny’s reaction was instant, total, and absolutely terrifying. She forgot Tom’s existence. I didn’t know people could look like that. Real people, I mean. Maybe he’s not real. God, I’ve got to stop staring – But she couldn’t. She couldn’t help herself. Those eyes were like the blue at the core of a flame. No-like a mile-deep lake set in a glacier. No †¦ The guy turned and went to the counter. The boom box clicked off. Silence roared in Jenny’s ears. â€Å"Can I help you?† he repeated, politely and indifferently. Heat rose to Jenny’s cheeks. Ohmigod, what he must think of me. The moment those eyes had turned away from her, she had come out of it, and now that he was farther away, she could look at him objectively. Not something from another world. Just a guy about her own age: lean, elegant, and with an unmistakable air of danger about him. His hair was white-blond, cropped close at the sides, long in back and so long over the forehead that it fell into his eyes. He was dressed all in black in a weird combination of cyberpunk and Byronic poet. And he’s still gorgeous, Jenny thought, but who cares? Honestly, you’d think I’d never seen a guy before. On Tom’s birthday, too – A flash of shame went through her. She’d better start her shopping or get out of here. The two alternatives seemed equally attractive-except that the tough guys might still be outside. â€Å"I want to buy a game,† she said, too loudly. â€Å"For a party-for my boyfriend.† He didn’t even blink at the word boyfriend; in fact, he looked more laconic than ever. â€Å"Be my guest,† he said. Then he seemed to rouse himself to make a sale. â€Å"Anything in particular?† â€Å"Well†¦Ã¢â‚¬  â€Å"How about Senet, the Egyptian Game of the Dead?† he said, nodding at the enameled case with the hieroglyphics. â€Å"Or the I-ching? Or maybe you’d like to cast the runes.† He picked up a leather cup and shook it suggestively. There was a sound like rattling bones. â€Å"No, nothing like that.† Jenny was feeling distinctly unnerved. She couldn’t put her finger on it, but something about this guy sent whispers of alarm through her blood. Maybe it was time to go. â€Å"Well-there’s always the ancient Tibetan game of goats and tigers.† He gestured at a curiously carved bronze board with tiny figurines on it. â€Å"The fierce tigers, see, stalk the innocent little goats, and the innocent little goats try to run from the tigers. For two players.† â€Å"I-no.† Was he making fun of her? There was something to the twist of his mouth that made Jenny think yes. With dignity she said, â€Å"I was looking for-just a game that a lot of people can play at once. Like Pictionary or Outburst,† she added defiantly. â€Å"But since you don’t seem to have anything like that in the store-â€Å" â€Å"I see,† he said. â€Å"That kind of game.† Suddenly, looking at her sideways, he smiled. The smile unnerved Jenny more than anything yet. Definitely time to go, she thought. She didn’t care whether the tough guys were still outside. â€Å"Thank you,† she said with automatic politeness, and she turned to the door. â€Å"Mystery,† he said. His voice caught Jenny halfway across the room. She hesitated in spite of herself. What on earth did he mean? â€Å"Danger. Seduction. Fear.† Jenny turned back to face him, staring. There was something almost mesmerizing about his voice-it was full of elemental music, like water running over rock. â€Å"Secrets revealed. Desires unveiled.† He smiled at her and pronounced the last word distinctly: â€Å"Temptation.† â€Å"What are you talking about?† she said, tensed to hit him or run if he took one step toward her. He didn’t. His eyes were as innocently blue as Nordic fjords. â€Å"The Game, of course. That’s what you want, isn’t it? Something †¦ very special.† Something very special. Exactly what she’d thought herself. â€Å"I think,† she said slowly, â€Å"that I’d better-â€Å" â€Å"We do have something like that in stock,† he said. Now’s your chance, she told herself when he disappeared through a door into the back room. You can just walk out of here. And she was going to leave, she was just about to go, when he appeared again. â€Å"I think,† he said, â€Å"that this is what you’ve been looking for.† She looked at what he was holding, then up at his face. â€Å"You’ve got to be joking,† she said. The box was about the size and shape of a Monopoly game. It was white and glossy and there wasn’t a single word, line, or figure printed on it. A blank white box. Jenny waited for the punch line. There was something about it, though. The more she looked at that box, the more she felt†¦ â€Å"Could I see it?† she said. Touch it, was what she meant. For some reason she wanted to feel the weight of it in her hands, the sharpness of its corners in her palms. It was silly, but she did want to. She really wanted to. The guy leaned back, tilting the box between his own hands, gazing at its glossy top. Jenny noticed that there wasn’t a single fingerprint on the shiny finish, not so much as a smudge. She also noticed that his fingers were long and slender. And that he had a snake tattooed on his right wrist. â€Å"Well†¦Ã¢â‚¬  he said. â€Å"I don’t know. On second thought, I’m not sure I can sell it to you after all.† â€Å"Why not?† â€Å"Because it really is special. Un-mundane. I can’t let it go to just anybody, or for just any reason. Maybe if you explained what it was for†¦ .† Why, he’s a tease, Jenny thought. Without in the least stopping being scared, or disturbed, or any of the other things she’d been since she’d come into this store, she started being amused as well. Wildly, inexplicably amused. Maybe if I looked like him, was that gorgeous, I’d be a tease, too, she thought. She said seriously, â€Å"It’s for a party tonight, for my boyfriend, Tom. He’s seventeen today. Tomorrow night we’ll have the big party-you know, with everybody invited, but tonight it’s just our group. Our crowd.† He tilted his head to one side. Light flashed off the earring he was wearing-a dagger or a snake, Jenny couldn’t tell which. â€Å"So?† â€Å"So I need something for us to do. You can’t just get seven people in a room, throw Doritos at them, and expect them to have a good time. I’ve screwed up massively by not getting organized until now-no real food, no decorations. And Tom-â€Å" The guy tilted the box again. Jenny watched its surface turn milky, then bright, then milky again. It was almost hypnotic. â€Å"And Tom will care?† he said, as if not believing it. Jenny felt defensive. â€Å"I don’t know-he might be disappointed. He deserves better, you see,† she added quickly. â€Å"He’s-† Oh, how to explain Tom Locke? â€Å"He’s-well, he’s incredibly handsome, and by the end of this year he’ll have lettered in three sports-â€Å" â€Å"I get it.† â€Å"No, you don’t,† Jenny said, horrified. â€Å"He’s not like that at all. Tom is wonderful. He’s just-so wonderful that sometimes it takes a little keeping up with him. And we’ve been together forever, and I love him, and I have since second grade. Okay?† Anger gave her courage, and she advanced a step toward the guy. â€Å"He is absolutely the best boyfriend in the world, and anybody who says he isn’t-† How to cite The Forbidden Game: The Hunter Chapter 1, Essay examples

Accounting Information System 5 Free Essays

string(195) " its complexity mixture of people, plant, materials, locations, technology, knowledge of the law as well as the design and valuation of work done, which are much subjectivity \(Capon, 1990: 1\)\." American Journal of Scientific Research ISSN 1450-223X Issue 4 (2009), pp36-44  © EuroJournals Publishing, Inc. 2009 http://www. eurojournals. We will write a custom essay sample on Accounting Information System 5 or any similar topic only for you Order Now com/ajsr. htm Accounting Information Systems (AIS) and Knowledge Management: A Case Study Zulkarnain Muhamad Sori Department of Accounting and Finance, Faculty of Economics and Management Universiti Putra Malaysia Abstract This study seeks to examine the use of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd. , and it’s contribution to the knowledge management and strategic role of the organisation. ZBMS is a company that registered in Kuala Lumpur and operate in construction industry. The company used automated AIS known as ‘Contract Plus – Financial Project Accounting’ package commercially developed by a private company (ZYXW). Wide variety of people that involve in the company’s operation within and outside the organisation uses accounting information generated by this system for decisionmaking. Based on input provided by operational level managers, the Contract Plus software produces monthly projects’ income statements, balance sheets and statement of changes in financial position for the strategic and tactical managers to plan, control and make decision on the resources allocation. The role-played by AIS enhanced the organisations’ accounting functions, and add information value. The automated AIS speed up the process to generate financial statements and overcome human weaknesses in data processing. The system enhances management of resources and the process of monitoring, control and prediction of ZBMS business for better future. With the advent of AIS, the growth of tacit and explicit knowledge could be seen from the intensive training of personnel at the early stage of system implementation to the development and use of company’s own manual in training of new staff and assisting the job of existing staff. Given the benefit of AIS to ZBMS, this paper recommended that the source of data should be fully automated, and the existing system should be upgraded through computerise the pre-tendering and post-tendering of projects to enable AIS integration. Keywords: Accounting Information Systems, Knowledge Management, Accounting Functions, Information Value, Financial Statements 1. Introduction Accounting Information System (AIS) is vital to all organisations (Borthick and Clark, 1990; Curtis, 1995; Rahman et al. , 1988; Wilkinson, 1993; Wilkinson et al. 2000) and perhaps, every organisations either profit or non profit-oriented need to maintain the AISs (Wilkinson, 2000: 3-4). To better understand the term ‘Accounting Information System’, the three words constitute AIS would be elaborate separately. Firstly, literature documented that accounting could be identified into three components, namely information system, â€Å"language of business† and source of financial inform ation (Wilkinson, 1993: 6-7). Secondly, information is a valuable data processing that provides a basis for making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity, Accounting Information Systems (AIS) and Knowledge Management: A Case Study 37 where the framework is focused on a set of objectives. The combination of the three words Accounting Information System indicate an integrated framework within an entity (such as a business firm) that employs physical resources (i. e. , materials, supplies, personnel, equipment, funds) to transform economic data into financial information for; (1) conducting the firm’s operations and activities, and (2) providing information concerning the entity to a variety of interested users. Indeed, the combination or interaction between human, technology and techniques would permit an organisation to administer its knowledge effectively (Bhatt, 2001; Thomas and Kleiner, 1995). Currently, the world and human life has been transformed from information age to a knowledge age (Syed-Ikhsan and Rowland, 2004: 238; Thomas and Kleiner, 1995: 22), and knowledge has been recognised as the most valuable asset. In fact, knowledge is not impersonal like money and does not reside in a book, a data bank or a software program (Drucker, 1993). Drucker believed that knowledge is always embodied in a person, taught and learned by a person, used or misused by a person. As the world moving into knowledge era, this paper will examine how ZBMS Sdn. Bhd. manages its knowledge in order to remain competitive amongst the construction industry. Probst, Raub Romhardt (1999, p. 1) stressed that companies must learn to manage their intellectual assets (i. e. knowledge) in order to survive and compete in the ‘knowledge society’. Indeed, knowledge management is concerned with the exploitation and development of the knowledge assets (Davenport et al. , 1998). This paper seeks to examine the Accounting Information Systems (AIS) used by a Malaysian company named ZBMS Sdn. Bhd. The paper will highlight the users of the system and the way information adds value to the organisation. Also, the paper will investigate the way knowledge is managed through the process of creating, storing, disseminating and applying and how information system plays an important role throughout the process and the AIS contribution in the organisation’s strategic role. The remainder of the paper is organised as follows. The following section describes the background of ZBMS and the use of accounting information systems. The third section provides research findings on accounting information systems employed by ZBMS. The fourth section offer suggestions for future research. The final section concludes the paper and outlines the limitations of the study. 2. The Use of Accounting Information Systems in ZBMS ZBMS is a private limited company registered in Kuala Lumpur, Malaysia that operate in construction industry, where the main activities ranging from construction of infrastructure, building, power, waste water to property development as well as engineering, procurement, construction and commissioning (EPCC) in the oil gas sector. The company used automated AIS known as ‘Contract Plus – Financial Project Accounting’ package in their Finance Department, which was commercially developed by a private company (ZYXW). Contract Plus is a fully integrated business solution designed specifically for companies in the engineering and construction industry. The software will generate financial data to be analysed by the accountants and subsequently used by top level of management for strategic decision making, thus, these managers could identify future opportunities and limitations face by the company and industry (McCarthy, Minichiello and Curran, 1987: 243-244). . Findings As mentioned earlier in section 2, ZBMS is a company that operate in construction industry. The industry was identified as one of the most difficult to understand due to its complexity mixture of people, plant, materials, locations, technology, knowledge of the law as well as the design and valuation of work done, which are much subjectivity (Capon, 1990: 1). You read "Accounting Information System 5" in category "Papers" However, these challenges are under control with the advent of technology such as software development that allows systematic data 38 Zulkarnain Muhamad Sori processing. Therefore, it is important to understand the information flow in ZBMS in order to appreciate the usage of information within the organisation as shown in Figure 1-1 below. 3. 1. Users of AIS As shown in Figure 1-1, the finance personnel that reside at site project office (or called Project Accountants) and head office such as the Financial Accountants, Management Accountants and Finance Manager are the internal users of the system. Also, the management team that consists of Finance General Manager, Chief Operating Officer, Managing Director and Board of Directors are among the internal users of the system. On the other hand, the external users consist of government agency (i. e. Inland Revenue), external auditors and creditors. Indeed, wide variety of people within and outside the organisation uses accounting information for decision-making (Rahman and Halladay, 1988, Renau and Grabski, 1987). Figure 1. 1: Information Flow of ZBMS ZBMS HEAD OFFICE Management Team Inland Revenue ZBMS HEAD OFFICE External Auditors Finance Department Bankers Suppliers Site Office Design Team SubContractors Client 3. 2. Function of AIS The main function of AIS is to assign quantitative value of the past, present and future economics events. At ZBMS, AIS through its computerised accounting system (i. e. ZYXW-Contract Plus) produces the financial statements namely income statements, balance sheets and cash flow statement. The system will process the data and transform them into accounting information during input, processing and output stages that will be used by a wide variety of users such as internal and external users (see for example Wilkinson, 2000: 10-11). Wilkinson noted that an effective AIS performs several key functions throughout these three stages such as data collection, data maintenance, data Accounting Information Systems (AIS) and Knowledge Management: A Case Study 39 management; data control (including security) and information generation. Figure 1-2 summarised the transformation process of AIS. Figure 1. 2: Data Processing in Finance Department at ZBMS Input – Progress Billing Certificate, Subcontractors Progress Certificate, Suppliers’ Invoices Processor – ZYXW Accounting System Output – Financial Statement Human Element – Finance Personnel 3. 3. Usage of Information Within AIS The construction projects undertaken by the company are divided according to the type of construction activities that comprised of five divisions, namely infrastructure, building, power, wastewater and oil and gas, where each project is treated as a separate company. The number of projects undertaken by each division depends on the contracts being awarded to the company. As indicated by Figure 1-2, the sources of data originated from external parties such as client, subcontractors and suppliers. The Project Accountants will work closely with the Quantity Surveyors to come out with the appropriate information as illustrated below: Client – The client’s Quantity Surveyors (QSs) will evaluate work in progress (WIP) and come out with percentage of WIP to be agreed by both parties. Once agreed, Progress Billing Certificates (PBC) will be issued by Client’s QSs, which a copy of it will be sent to head office for data processing. Subcontractors – The ZBMS’s QSs will evaluate subcontractor’s WIP at site and come out with percentage of WIP to be agreed by both parties. Once agreed, Subcontractor Progress Certificate (SPC) will be issued by ZBMS’s QSs and verified by ZBMS’s Project Manager, which a copy of it will be sent to head office for data processing. Suppliers – QSs and Project Accountants will ensure that the materials and machineries are delivered in good condition at construction site before delivery orders are accepted. The delivery orders will be attached to supplier’s invoice and sent to Head Office for processing. 40 Figure 1. 3: Simplifies the AIS within ZBMS: Zulkarnain Muhamad Sori CLIENT SUBCONTRACTORS SUPPLIERS Site Valuation by Client Site Valuation by ZBMS Materials machineries delivered Certified by Client Certified by ZBMS Materials machineries delivered PBC SPC Invoices Verified KeyPunched by Project Accountants Projects’ Accounts Receivables HQ Database (ZYXW) Head Office Maintenance Projects’ Accounts Payable Projects’ Fixed Assets Projects’ Cash Book Project Ledger Projects’ Trial Balance Projects’ Financial Statement Consolidated Consolidated General Ledger Consolidated Trial Balance Consolidated Financial Statements These documents will be verified and input into the system by Project Accountants. The projects’ data will be stored at Projects’ Account Receivables, Account Payables, Fixed Assets accordingly. Projects’ cashbook will be updated automatically after the data being entered to the projects’ Account Receivables and Account Payables. Any expenses incurred at head office will be stored at HQ Maintenance master file by Financial Accountant. The Contract Plus Accounting System software will process the data and produce financial statements of individual company’s projects on Accounting Information Systems (AIS) and Knowledge Management: A Case Study 41 monthly basis, which subsequently consolidated at group level. The process flow is shown in Figure 13 above. The automated AIS play an important role in the ZBMS’s operational level. As indicated by Rahman and Halladay (1988: 20), most modern organisation’s operational control of financial resources depends largely on automated support. This is due to the financial statements are generated by the Contract Plus. As shown in Figure 1-4, projects financial statements are generated by the Project Accountants, while the Financial Accountant generates the consolidated financial statements. The Management Accountant uses the consolidated financial statements to prepare company’s Performance Report such as cash-flow forecasts and ratio analysis. Once the Finance Manager (operational level) approve the report, it will then be submitted to the Finance General Manager and Chief Operating Officer (tactical level) to assist them for planning, control and decision making. The Performance Report will provide the information regarding work in progress relevant information. Therefore, AIS plays very important role at operational and tactical level as the activities at these level depend heavily on the information generated by the AIS. Figure 1. 4: Type of Information in ZBMS Strategic Board of Director, Managing Director Tactical Chief Operating Officer, General Manager (Finance) Finance Manager, Management Accountant, Financial Accountant, Project Accountant Operational Transaction Processing ZYXW Accounting System . 4. Value Added of AIS The role played by accounting functions has been enhanced with the development of AIS, which in turn contribute to the profession’s value added to organisation. In fact automated AIS employed by ZBMS expedite the process to generate financial statement and reduce the human errors compared to non-automated AIS, which add the existing value of accountants. AIS also provide information on both actual and budget dat a of the organisation that helps company’s management to plan and control business operation. Good management of resources and better control of cost, budgeting and forecasting enhance the well being of ZBMS to continually generated profits. The AIS also played a crucial role that contributes to ZBMS’s value added by providing internally generated inputs from financial statements. Rahman and Halladay (1988: 19) believed that viable strategic plan must have inputs based on history of organisation, the current assets and capabilities of the organisation, and the trends in operations of the organisation. 42 3. 5. Role of Knowledge Zulkarnain Muhamad Sori At ZBMS, both tacit and explicit knowledge are used as shown by the extensive used of accounting information system to assist business decision-making. The ZBMS begins its computerised accounting system in 1997. During the transformation process from manual to computerised accounting system, all finance personnel were sent for comprehensive computer training. Table 1: Relationship of AIS at ZBMS and Knowledge Management System Knowledge Management System Creation of knowledge Creation of Knowledge Storing of Knowledge Disseminating of Knowledge Knowledge Conversion Explicit to Tacit Explicit to Tacit Tacit to Explicit Tacit to Explicit Development of Automated AIS Training by hands-on experience ZYXW implemented, staffs learned from vendor’s manual Staffs gaining experience; Problems and solution being recorded on paper Improvement on system; Internal manual that suits the ZBMS needs being produced; Widely used in the department; Assists learning process of new staffs Explicit to Tacit System constantly use in Finance Department to generate monthly financial statements Applying of Knowledge Explicit to Explicit As shown in Table 1, the staffs were given hands on experience on the ZYXW System. During the early stage of system implementation, finance personnel were given flexibility to explore the system due to limited experience on the software at that time, and most of the staffs depend largely on the manual provided by the vendor for trouble-shooting. At initial stage, two-way communications with the vendor were developed to solve problems arised. As the time going on, the personnel were encouraged to record the problems aroused. Problems that have been solved were recorded for future reference. Currently, the ZBMS Finance Department has its own ZYXW manual that suits with the department needs. The manual provides valuable information to new employees as well as to the existing personnel at Finance Department. Indeed, AIS provide the systematic recording, processing and generating of accounting information, and in the absence of AIS, information would be scattered, random and hard to access, which would become a barrier to the growth of knowledge. 3. 6. Strategic Role and AIS To analyse the AIS strategy in ZBMS, McFarlan Strategic Grid will be utilised. The McFarlan’s strategic grid would locate ZBMS to the appropriate category with respect to its information system strategy (Curtis, 1995: 61). Automated AIS is fundamental part of the strategic plan of ZBMS in 1997. It has been improved over the years of implementation and generates accurate and timely accounting information that contributes to a good decision-making. Realising the benefit brought by the AIS, the sour ce of data must be fully automated. The existing system should be upgraded through computerise the pre-tendering and post-tendering of projects in the primary stages of the construction activities. When the system is upgraded, the ZYXW Contract Plus will integrate the two modules of pre- and post-tendering with the currently automated Financial and Project Accounting. Therefore, the most suitable position to locate AIS at ZBMS on the McFarlan Grid is on Factory Grid as shown in Figure 1-5 below. Accounting Information Systems (AIS) and Knowledge Management: A Case Study Figure 1. 5: ZBMS Location on McFarlan’s Strategic Grid 43 Low Current Dependence on AIS Support Turnaround High Factory –AIS at ZBMS Strategic Low Future Importance of AIS High 4. Direction for Future Research Having mentioned the above opportunities and challenges to the AIS, future research should investigate the AIS contribution on the organisation’s growth of knowledge. Though AIS would organise and structure the data input and knowledge, lack of understanding on the potential effect of human behaviour on the system such as human error, manipulation and work-style. In fact, Ponemon and Nagoda (1990) noted, â€Å"the most difficult problems often are caused, or are exacerbated, by those individuals who have erroneous expectations of the new system being implemented† (p. 1). The study would be fruitful with the use of questionnaire and interview survey. Perhaps, the survey should concentrate on a sample of senior managers of the top hundred companies listed on the Bursa Malaysia (Malaysian Stock Exchange), banks and regulatory bodies. These groups could contribute significantly due to their role as a decision maker in their respective organisations. Secondly, future research should also investigate the possibility to expand the use of AIS to the other areas that still did not use the system such as non-profit organisation and society. Indeed, the current level of usage shows that the benefit outweighs the investment cost. The successful implementation of AIS could save shareholder’s money and time. Finally, future research should explore issues on the information value generated by AIS to shareholders and stakeholders in making investment decisions. Case study approach on top companies would be appropriate methodology because the understanding on specific AIS model would be more valuable rather than using questionnaire and interview approach that assumes AIS across sampled organisation is identical. 5. Conclusion This paper examines the use of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd. The wide varieties of people that involve in the company’s operation get the benefits from the implementation of AIS and the use of Contract Plus software developed by ZYXW. The system assists the operational managers to come out with monthly reports for the top managerial level (i. e. tactical and strategic) plan, control and decide resources allocation. In addition, the paper showed that the AIS add value to information processed within the company. The automated AIS could speed up information process and overcome traditional human weaknesses. As a result, the system supports the resource management and help ZBMS pursue its projection of continuing business profit. The use of AIS indicate the growth of tacit and explicit knowledge, where personnel were trained intensively and experience and trouble shooting were 44 Zulkarnain Muhamad Sori recorded for future reference and training. Indeed, the successful implementation of an accounting information system can be described as a series of complex, interconnected activities necessitating participants to have technical and managerial skills to sort out prospective problems (Ponemon and Nagoda, 1990: 1). Note To keep the identity of the respondent and it’s software developer anonymous, an imaginary name was used in this study i. e. ZBMS Sdn. Bhd. and ZYXW respectively. References [1] [2] Bhatt, G. D. (2001). Knowledge management in organisations: examining the interaction between technologies, techniques, and people. Journal of Knowledge Management, 5(1): 68-75. Borthick, A. F. ; Clark, R. L. (1990). Making accounting information systems work: An empirical investigation of the creative thinking paradigm. Journal of Information Systems, 4(3): 48-62. Capon, G. C. C. (1990). Construction Industry. London: The Institute of Chartered Accountants in England and Wales. Curtis, G. (1995). Business Information Systems: Analysis, Design and Practice. Wokingham: Addison-Wesley Publishing Company. Drucker McCarthy, D. J. , Minichiello, R. J. and Curran, J. R. (1987). Business Policy and Strategy: Concepts and Readings. Illinois: Irwin. Ponemon, L. A. and Nagoda, R. J. (1990). Perceptual Variation and the Implementation of Accounting Information Systems: An Empirical Investigation. Journal of Information System, 4(2): 1-14. Probst, Raub Romhardt (1999) Rahman, M. and Halladay, M. (1988). Accounting Information Systems: Principles, Applications and Future Directions. New Jersey: Prentice Hall. Reneau, J. H. and Grabski, S. V. (1987). A Review of Research in Computer-Human Interaction and Individual Differences Within a Model for Research in Accounting Information Systems. Journal of Information Systems, 2(1): 33-53. Rowley, J. (1999). â€Å"What is knowledge management†. Library Management, 20 (8): 416-420. Syed-Ikhsan, S. O. S. (2004). â€Å"Benchmarking Knowledge Management in a Public Organisation in Malaysia. Benchmarking: An International Journal, 11 (3): 238-266. Thomas, V. and Kleiner, B. H. (1995). New developments in computer software. Industrial Management Data Systems, 95(6): 22-26. Wilkinson, J. W. (1993). Accounting Information Systems: Essential Concepts and Applications. Second Edition. New York: John Wiley Sons Inc. Wilkinson, J. W. , Cerullo, M. J. , Raval, V. and Wong-On-Wing, B. (2000). Accounting Information Systems: Essential Concepts and Applications. New York: John Wiley and Sons. [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] How to cite Accounting Information System 5, Papers

Accounting Information System 5 Free Essays

string(195) " its complexity mixture of people, plant, materials, locations, technology, knowledge of the law as well as the design and valuation of work done, which are much subjectivity \(Capon, 1990: 1\)\." American Journal of Scientific Research ISSN 1450-223X Issue 4 (2009), pp36-44  © EuroJournals Publishing, Inc. 2009 http://www. eurojournals. We will write a custom essay sample on Accounting Information System 5 or any similar topic only for you Order Now com/ajsr. htm Accounting Information Systems (AIS) and Knowledge Management: A Case Study Zulkarnain Muhamad Sori Department of Accounting and Finance, Faculty of Economics and Management Universiti Putra Malaysia Abstract This study seeks to examine the use of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd. , and it’s contribution to the knowledge management and strategic role of the organisation. ZBMS is a company that registered in Kuala Lumpur and operate in construction industry. The company used automated AIS known as ‘Contract Plus – Financial Project Accounting’ package commercially developed by a private company (ZYXW). Wide variety of people that involve in the company’s operation within and outside the organisation uses accounting information generated by this system for decisionmaking. Based on input provided by operational level managers, the Contract Plus software produces monthly projects’ income statements, balance sheets and statement of changes in financial position for the strategic and tactical managers to plan, control and make decision on the resources allocation. The role-played by AIS enhanced the organisations’ accounting functions, and add information value. The automated AIS speed up the process to generate financial statements and overcome human weaknesses in data processing. The system enhances management of resources and the process of monitoring, control and prediction of ZBMS business for better future. With the advent of AIS, the growth of tacit and explicit knowledge could be seen from the intensive training of personnel at the early stage of system implementation to the development and use of company’s own manual in training of new staff and assisting the job of existing staff. Given the benefit of AIS to ZBMS, this paper recommended that the source of data should be fully automated, and the existing system should be upgraded through computerise the pre-tendering and post-tendering of projects to enable AIS integration. Keywords: Accounting Information Systems, Knowledge Management, Accounting Functions, Information Value, Financial Statements 1. Introduction Accounting Information System (AIS) is vital to all organisations (Borthick and Clark, 1990; Curtis, 1995; Rahman et al. , 1988; Wilkinson, 1993; Wilkinson et al. 2000) and perhaps, every organisations either profit or non profit-oriented need to maintain the AISs (Wilkinson, 2000: 3-4). To better understand the term ‘Accounting Information System’, the three words constitute AIS would be elaborate separately. Firstly, literature documented that accounting could be identified into three components, namely information system, â€Å"language of business† and source of financial inform ation (Wilkinson, 1993: 6-7). Secondly, information is a valuable data processing that provides a basis for making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity, Accounting Information Systems (AIS) and Knowledge Management: A Case Study 37 where the framework is focused on a set of objectives. The combination of the three words Accounting Information System indicate an integrated framework within an entity (such as a business firm) that employs physical resources (i. e. , materials, supplies, personnel, equipment, funds) to transform economic data into financial information for; (1) conducting the firm’s operations and activities, and (2) providing information concerning the entity to a variety of interested users. Indeed, the combination or interaction between human, technology and techniques would permit an organisation to administer its knowledge effectively (Bhatt, 2001; Thomas and Kleiner, 1995). Currently, the world and human life has been transformed from information age to a knowledge age (Syed-Ikhsan and Rowland, 2004: 238; Thomas and Kleiner, 1995: 22), and knowledge has been recognised as the most valuable asset. In fact, knowledge is not impersonal like money and does not reside in a book, a data bank or a software program (Drucker, 1993). Drucker believed that knowledge is always embodied in a person, taught and learned by a person, used or misused by a person. As the world moving into knowledge era, this paper will examine how ZBMS Sdn. Bhd. manages its knowledge in order to remain competitive amongst the construction industry. Probst, Raub Romhardt (1999, p. 1) stressed that companies must learn to manage their intellectual assets (i. e. knowledge) in order to survive and compete in the ‘knowledge society’. Indeed, knowledge management is concerned with the exploitation and development of the knowledge assets (Davenport et al. , 1998). This paper seeks to examine the Accounting Information Systems (AIS) used by a Malaysian company named ZBMS Sdn. Bhd. The paper will highlight the users of the system and the way information adds value to the organisation. Also, the paper will investigate the way knowledge is managed through the process of creating, storing, disseminating and applying and how information system plays an important role throughout the process and the AIS contribution in the organisation’s strategic role. The remainder of the paper is organised as follows. The following section describes the background of ZBMS and the use of accounting information systems. The third section provides research findings on accounting information systems employed by ZBMS. The fourth section offer suggestions for future research. The final section concludes the paper and outlines the limitations of the study. 2. The Use of Accounting Information Systems in ZBMS ZBMS is a private limited company registered in Kuala Lumpur, Malaysia that operate in construction industry, where the main activities ranging from construction of infrastructure, building, power, waste water to property development as well as engineering, procurement, construction and commissioning (EPCC) in the oil gas sector. The company used automated AIS known as ‘Contract Plus – Financial Project Accounting’ package in their Finance Department, which was commercially developed by a private company (ZYXW). Contract Plus is a fully integrated business solution designed specifically for companies in the engineering and construction industry. The software will generate financial data to be analysed by the accountants and subsequently used by top level of management for strategic decision making, thus, these managers could identify future opportunities and limitations face by the company and industry (McCarthy, Minichiello and Curran, 1987: 243-244). . Findings As mentioned earlier in section 2, ZBMS is a company that operate in construction industry. The industry was identified as one of the most difficult to understand due to its complexity mixture of people, plant, materials, locations, technology, knowledge of the law as well as the design and valuation of work done, which are much subjectivity (Capon, 1990: 1). You read "Accounting Information System 5" in category "Papers" However, these challenges are under control with the advent of technology such as software development that allows systematic data 38 Zulkarnain Muhamad Sori processing. Therefore, it is important to understand the information flow in ZBMS in order to appreciate the usage of information within the organisation as shown in Figure 1-1 below. 3. 1. Users of AIS As shown in Figure 1-1, the finance personnel that reside at site project office (or called Project Accountants) and head office such as the Financial Accountants, Management Accountants and Finance Manager are the internal users of the system. Also, the management team that consists of Finance General Manager, Chief Operating Officer, Managing Director and Board of Directors are among the internal users of the system. On the other hand, the external users consist of government agency (i. e. Inland Revenue), external auditors and creditors. Indeed, wide variety of people within and outside the organisation uses accounting information for decision-making (Rahman and Halladay, 1988, Renau and Grabski, 1987). Figure 1. 1: Information Flow of ZBMS ZBMS HEAD OFFICE Management Team Inland Revenue ZBMS HEAD OFFICE External Auditors Finance Department Bankers Suppliers Site Office Design Team SubContractors Client 3. 2. Function of AIS The main function of AIS is to assign quantitative value of the past, present and future economics events. At ZBMS, AIS through its computerised accounting system (i. e. ZYXW-Contract Plus) produces the financial statements namely income statements, balance sheets and cash flow statement. The system will process the data and transform them into accounting information during input, processing and output stages that will be used by a wide variety of users such as internal and external users (see for example Wilkinson, 2000: 10-11). Wilkinson noted that an effective AIS performs several key functions throughout these three stages such as data collection, data maintenance, data Accounting Information Systems (AIS) and Knowledge Management: A Case Study 39 management; data control (including security) and information generation. Figure 1-2 summarised the transformation process of AIS. Figure 1. 2: Data Processing in Finance Department at ZBMS Input – Progress Billing Certificate, Subcontractors Progress Certificate, Suppliers’ Invoices Processor – ZYXW Accounting System Output – Financial Statement Human Element – Finance Personnel 3. 3. Usage of Information Within AIS The construction projects undertaken by the company are divided according to the type of construction activities that comprised of five divisions, namely infrastructure, building, power, wastewater and oil and gas, where each project is treated as a separate company. The number of projects undertaken by each division depends on the contracts being awarded to the company. As indicated by Figure 1-2, the sources of data originated from external parties such as client, subcontractors and suppliers. The Project Accountants will work closely with the Quantity Surveyors to come out with the appropriate information as illustrated below: Client – The client’s Quantity Surveyors (QSs) will evaluate work in progress (WIP) and come out with percentage of WIP to be agreed by both parties. Once agreed, Progress Billing Certificates (PBC) will be issued by Client’s QSs, which a copy of it will be sent to head office for data processing. Subcontractors – The ZBMS’s QSs will evaluate subcontractor’s WIP at site and come out with percentage of WIP to be agreed by both parties. Once agreed, Subcontractor Progress Certificate (SPC) will be issued by ZBMS’s QSs and verified by ZBMS’s Project Manager, which a copy of it will be sent to head office for data processing. Suppliers – QSs and Project Accountants will ensure that the materials and machineries are delivered in good condition at construction site before delivery orders are accepted. The delivery orders will be attached to supplier’s invoice and sent to Head Office for processing. 40 Figure 1. 3: Simplifies the AIS within ZBMS: Zulkarnain Muhamad Sori CLIENT SUBCONTRACTORS SUPPLIERS Site Valuation by Client Site Valuation by ZBMS Materials machineries delivered Certified by Client Certified by ZBMS Materials machineries delivered PBC SPC Invoices Verified KeyPunched by Project Accountants Projects’ Accounts Receivables HQ Database (ZYXW) Head Office Maintenance Projects’ Accounts Payable Projects’ Fixed Assets Projects’ Cash Book Project Ledger Projects’ Trial Balance Projects’ Financial Statement Consolidated Consolidated General Ledger Consolidated Trial Balance Consolidated Financial Statements These documents will be verified and input into the system by Project Accountants. The projects’ data will be stored at Projects’ Account Receivables, Account Payables, Fixed Assets accordingly. Projects’ cashbook will be updated automatically after the data being entered to the projects’ Account Receivables and Account Payables. Any expenses incurred at head office will be stored at HQ Maintenance master file by Financial Accountant. The Contract Plus Accounting System software will process the data and produce financial statements of individual company’s projects on Accounting Information Systems (AIS) and Knowledge Management: A Case Study 41 monthly basis, which subsequently consolidated at group level. The process flow is shown in Figure 13 above. The automated AIS play an important role in the ZBMS’s operational level. As indicated by Rahman and Halladay (1988: 20), most modern organisation’s operational control of financial resources depends largely on automated support. This is due to the financial statements are generated by the Contract Plus. As shown in Figure 1-4, projects financial statements are generated by the Project Accountants, while the Financial Accountant generates the consolidated financial statements. The Management Accountant uses the consolidated financial statements to prepare company’s Performance Report such as cash-flow forecasts and ratio analysis. Once the Finance Manager (operational level) approve the report, it will then be submitted to the Finance General Manager and Chief Operating Officer (tactical level) to assist them for planning, control and decision making. The Performance Report will provide the information regarding work in progress relevant information. Therefore, AIS plays very important role at operational and tactical level as the activities at these level depend heavily on the information generated by the AIS. Figure 1. 4: Type of Information in ZBMS Strategic Board of Director, Managing Director Tactical Chief Operating Officer, General Manager (Finance) Finance Manager, Management Accountant, Financial Accountant, Project Accountant Operational Transaction Processing ZYXW Accounting System . 4. Value Added of AIS The role played by accounting functions has been enhanced with the development of AIS, which in turn contribute to the profession’s value added to organisation. In fact automated AIS employed by ZBMS expedite the process to generate financial statement and reduce the human errors compared to non-automated AIS, which add the existing value of accountants. AIS also provide information on both actual and budget dat a of the organisation that helps company’s management to plan and control business operation. Good management of resources and better control of cost, budgeting and forecasting enhance the well being of ZBMS to continually generated profits. The AIS also played a crucial role that contributes to ZBMS’s value added by providing internally generated inputs from financial statements. Rahman and Halladay (1988: 19) believed that viable strategic plan must have inputs based on history of organisation, the current assets and capabilities of the organisation, and the trends in operations of the organisation. 42 3. 5. Role of Knowledge Zulkarnain Muhamad Sori At ZBMS, both tacit and explicit knowledge are used as shown by the extensive used of accounting information system to assist business decision-making. The ZBMS begins its computerised accounting system in 1997. During the transformation process from manual to computerised accounting system, all finance personnel were sent for comprehensive computer training. Table 1: Relationship of AIS at ZBMS and Knowledge Management System Knowledge Management System Creation of knowledge Creation of Knowledge Storing of Knowledge Disseminating of Knowledge Knowledge Conversion Explicit to Tacit Explicit to Tacit Tacit to Explicit Tacit to Explicit Development of Automated AIS Training by hands-on experience ZYXW implemented, staffs learned from vendor’s manual Staffs gaining experience; Problems and solution being recorded on paper Improvement on system; Internal manual that suits the ZBMS needs being produced; Widely used in the department; Assists learning process of new staffs Explicit to Tacit System constantly use in Finance Department to generate monthly financial statements Applying of Knowledge Explicit to Explicit As shown in Table 1, the staffs were given hands on experience on the ZYXW System. During the early stage of system implementation, finance personnel were given flexibility to explore the system due to limited experience on the software at that time, and most of the staffs depend largely on the manual provided by the vendor for trouble-shooting. At initial stage, two-way communications with the vendor were developed to solve problems arised. As the time going on, the personnel were encouraged to record the problems aroused. Problems that have been solved were recorded for future reference. Currently, the ZBMS Finance Department has its own ZYXW manual that suits with the department needs. The manual provides valuable information to new employees as well as to the existing personnel at Finance Department. Indeed, AIS provide the systematic recording, processing and generating of accounting information, and in the absence of AIS, information would be scattered, random and hard to access, which would become a barrier to the growth of knowledge. 3. 6. Strategic Role and AIS To analyse the AIS strategy in ZBMS, McFarlan Strategic Grid will be utilised. The McFarlan’s strategic grid would locate ZBMS to the appropriate category with respect to its information system strategy (Curtis, 1995: 61). Automated AIS is fundamental part of the strategic plan of ZBMS in 1997. It has been improved over the years of implementation and generates accurate and timely accounting information that contributes to a good decision-making. Realising the benefit brought by the AIS, the sour ce of data must be fully automated. The existing system should be upgraded through computerise the pre-tendering and post-tendering of projects in the primary stages of the construction activities. When the system is upgraded, the ZYXW Contract Plus will integrate the two modules of pre- and post-tendering with the currently automated Financial and Project Accounting. Therefore, the most suitable position to locate AIS at ZBMS on the McFarlan Grid is on Factory Grid as shown in Figure 1-5 below. Accounting Information Systems (AIS) and Knowledge Management: A Case Study Figure 1. 5: ZBMS Location on McFarlan’s Strategic Grid 43 Low Current Dependence on AIS Support Turnaround High Factory –AIS at ZBMS Strategic Low Future Importance of AIS High 4. Direction for Future Research Having mentioned the above opportunities and challenges to the AIS, future research should investigate the AIS contribution on the organisation’s growth of knowledge. Though AIS would organise and structure the data input and knowledge, lack of understanding on the potential effect of human behaviour on the system such as human error, manipulation and work-style. In fact, Ponemon and Nagoda (1990) noted, â€Å"the most difficult problems often are caused, or are exacerbated, by those individuals who have erroneous expectations of the new system being implemented† (p. 1). The study would be fruitful with the use of questionnaire and interview survey. Perhaps, the survey should concentrate on a sample of senior managers of the top hundred companies listed on the Bursa Malaysia (Malaysian Stock Exchange), banks and regulatory bodies. These groups could contribute significantly due to their role as a decision maker in their respective organisations. Secondly, future research should also investigate the possibility to expand the use of AIS to the other areas that still did not use the system such as non-profit organisation and society. Indeed, the current level of usage shows that the benefit outweighs the investment cost. The successful implementation of AIS could save shareholder’s money and time. Finally, future research should explore issues on the information value generated by AIS to shareholders and stakeholders in making investment decisions. Case study approach on top companies would be appropriate methodology because the understanding on specific AIS model would be more valuable rather than using questionnaire and interview approach that assumes AIS across sampled organisation is identical. 5. Conclusion This paper examines the use of Accounting Information Systems (AIS) by ZBMS Sdn. Bhd. The wide varieties of people that involve in the company’s operation get the benefits from the implementation of AIS and the use of Contract Plus software developed by ZYXW. The system assists the operational managers to come out with monthly reports for the top managerial level (i. e. tactical and strategic) plan, control and decide resources allocation. In addition, the paper showed that the AIS add value to information processed within the company. The automated AIS could speed up information process and overcome traditional human weaknesses. As a result, the system supports the resource management and help ZBMS pursue its projection of continuing business profit. The use of AIS indicate the growth of tacit and explicit knowledge, where personnel were trained intensively and experience and trouble shooting were 44 Zulkarnain Muhamad Sori recorded for future reference and training. Indeed, the successful implementation of an accounting information system can be described as a series of complex, interconnected activities necessitating participants to have technical and managerial skills to sort out prospective problems (Ponemon and Nagoda, 1990: 1). Note To keep the identity of the respondent and it’s software developer anonymous, an imaginary name was used in this study i. e. ZBMS Sdn. Bhd. and ZYXW respectively. References [1] [2] Bhatt, G. D. (2001). Knowledge management in organisations: examining the interaction between technologies, techniques, and people. Journal of Knowledge Management, 5(1): 68-75. Borthick, A. F. ; Clark, R. L. (1990). Making accounting information systems work: An empirical investigation of the creative thinking paradigm. Journal of Information Systems, 4(3): 48-62. Capon, G. C. C. (1990). Construction Industry. London: The Institute of Chartered Accountants in England and Wales. Curtis, G. (1995). Business Information Systems: Analysis, Design and Practice. Wokingham: Addison-Wesley Publishing Company. Drucker McCarthy, D. J. , Minichiello, R. J. and Curran, J. R. (1987). Business Policy and Strategy: Concepts and Readings. Illinois: Irwin. Ponemon, L. A. and Nagoda, R. J. (1990). Perceptual Variation and the Implementation of Accounting Information Systems: An Empirical Investigation. Journal of Information System, 4(2): 1-14. Probst, Raub Romhardt (1999) Rahman, M. and Halladay, M. (1988). Accounting Information Systems: Principles, Applications and Future Directions. New Jersey: Prentice Hall. Reneau, J. H. and Grabski, S. V. (1987). 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