Measurement Software in Construction

Measurement Software in Construction 3.1 Introduction The use of measurement software in construction industry has focused on measurement and BQ since these two have been the predominant core activities of work. However, as we are aware today, the use of computers can be applied to many different situations. This chapter will review the application and features of measurement software in local construction companies. The common application functions of measurement software such as measurement, cost estimation, tender document preparation, BQ preparation and the like will briefly described in the first sub-chapter. In addition, case studies of measurement software currently available in market whether local or foreign will be conducted in this chapter. This chapter will also provide the key features or modules of the Microsoft Office Excel 2007, CATO Suite, BinaLink, Buildsoft, WinQS, PriMus-DCF and PriMus REVOLUTION in more details. The positive or negative impacts of measurement software on local construction industry will be explained and carried out by few survey analyses additionally. A summary of this chapter will be presented in the last section. Questionnaire will be drafted based on this chapter to meet the last two objectives of the research which are the extent of measurement software application and the resulted impacts from it in local construction companies. 3.2 Application and Features of Measurement Software in Local Construction Companies Measurement software were created and developed to serves the roles and responsibilities of QS profession in a construction companies with lesser time and higher accuracy. Application functions of measurement software enable to perform the following: Measurement Measurement is the main activity that any quantity surveyor engages in during the stage of tender preparation. Curren (1987) advocates that computer can measure quantities automatically and is more accurate compared to measurement done manually (cited by Lim and Ong, 2008). This goes to show the use of computers is vital to the quantity surveyor as it helps in reducing the time needed for taking-off quantities. Cost Estimation Ahuja and Campbell (1988) defined that cost estimation is prediction of probable cost incurred for a proposed construction project. It is a technical process and has been described as both an art and also science. Estimating is usually carried out by quantity surveyor or estimator on behalf of contractor with the attempt to forecast the tender sum to be included in the BQ before submitting the tender. The purpose of the cost estimation is to obtain the expected cost of a project in varying degrees of accuracy at different phases of project. Cost estimating software will enhance the accuracy while estimating the building cost and examine the implication of initial cost design. BQ Preparation Computer systems are used to facilitate this process by automatically reducing double keying work and thus saving a huge amount of time. In term of BQ production, Microsoft Excel is widely used for doing taking off and preparation of BQ. Traditional spreadsheet measurement sheet have the ability to reduce the burden of timesing and squaring as well as checking of this two steps (Hamid and Chong, n.d.). BQ production involves a long and tedious process. Nigel (1978) has listed out eight major steps in producing a BQ as below: Measurement of Quantities Timesing and Squaring Checking of Timesing and Squaring Abstracting Checking of Abstracting Preparation and Checking of Draft BQ Preparation of BQ and Checking Final BQ Tender Documents Preparation The phase of preparation of the tender documents is extremely important, as it determines the terms of the tender procedure as well as the terms for execution of the contract. Kovari (n.d.) noted that seven documents will be provided in tender documents preparation and the format of it can be saved into the memory of the computers as shown below: Advertisement for Bids (Notice to Contractors or Invitation to Bid) Draft Contract which included type of contract, general provisions or general conditions and special provisions or special provisions. Statements of Work, Services and Technical Specifications BQ Schedule of Execution Bidding Schedule Approved Drawings Project Cost Control Cost control starts at inception, when guide prices or indicative costs will be required through the stage when an early price estimate is prepared and the tender process undertaken by the contractors through the final completion and agreements of the final account for the project. The architect or engineer will want to consider alternative solutions that meet the clients overall aims and objectives during the various stages of design. The quantity surveyor will offer cost advice for the comparative design solutions of the alternative materials to be used and also advice on the cost implications of the design morphology and procurement. Cost control does not stop at tender stage but continues up to the agreement of the final account and the issue of the final certificate for the works. Hence, cash flow estimating software enables quantity surveyor record and calculates the date driven accurately and faster. It is also providing a better monitoring on the building process (Ashworth an d Hogg, eds, 2007). Valuation In practice, the contract normally is to be paid by employed a sum on account as the construction work proceeds. Before the Architect issuing a certificate, quantity surveyor has to prepare an interim valuation (Lian, 2009). Interim valuation can be carried out by using the BQ programme as database usually. The main items to be considered when valuing the words area as following: Preliminaries Main Contractors Works Variation Unfixed Materials and Goods Statutory Fees and Charges Nominated Sub-Contractors Works Nominated Suppliers Goods Fluctuation in Costs of Labour, Materials Retention Final Account Preparation According to Ashworth and Hogg (eds, 2007), the majority of construction projects result in a final cost that is different to that agreed by the client and contractor at commencement of the construction works. The calculation and agreement of this final construction cost, the final account is usually of the utmost importance to both the employer and contractor. Therefore, parties to the contract need to ensure that the final account incorporates a fair valuation of the works carried out. Within lump sum contract arrangements the price agreed by the client at commencement will normally require adjustment for several matters including variations, provisional measurements, provisional sums, fluctuations, and claims. Thus, quantity application software will sort, store and analyse the capability and score the goal of time saving. 3.3 Case Studies of Measurement Software Available in Market Anything and everything can be computerised nowadays. It is inevitable that the complex task of measuring quantities off drawings or taking-off has now progressed into the digital realm. ICT is becoming a strategic asset for any organisation to deliver business improvement in the AEC industry. Hence, QS firms are encouraged to use the computer to perform traditional tasks. The following are some measurement software currently used in the market. 3.3.1 Microsoft Office Excel 2007 Microsoft Corporation is a software company based in Redmond, Washington. Microsoft is ranked 15th in the worlds top 500 companies and its operating software has driven 93% of the worlds desktop computers since 1991. Microsoft Office software encompassing a suite of e-mail, word-processing, spreadsheet and presentation tools dominates 90% of the market and brings in $9 billion annually as a third of the companys revenue (Corporate Watch UK, 2004). Graduate School (2010) stated that Microsoft Office Excel is a software application that offers three distinct processes for managing data such as spreadsheet, database or graphing. The primary feature, spreadsheet is a number crunching tool allowing for sophisticated calculations such as budgets, finances, inventories or any task that is numerically oriented. The database and graphing functions allow for selecting, retrieving, viewing and charting data that is contained within the spreadsheet mode. According Microsoft Corporation (2010), Microsoft Office Excel 2007 is a powerful and widely used tool that helps people analyses information to make more informed decisions. There are the top 10 ways in which Office Excel 2007 can help users create spreadsheets and analyse, share and manage information more effectively as shown below: Office Excel 2007 features the Microsoft Office Fluent user interface to help users find powerful tools when users need them. Import, organise and explore massive data sets within significantly expanded spreadsheets. Use the completely redesigned charting engine in Office Excel 2007 to communicate users analysis in professional-looking charts. Enjoy improve and powerful support for working with tables. Create and work with interactive PivotTable views with ease. See important trends and find exceptions in users data. Use office Excel 2007 and Excel Services to help share spreadsheets more securely with others. Help ensure users or users organisation work with the most current business information. Reduce the size of spreadsheets and improve damaged file recovery at the same time. Extend users business intelligence investments because Office Excel 2007 provides full support for Microsoft SQL Server Analysis Services. 3.3.2 CATO Suite Causeway Technologies was established in 1998 to provide its customers throughout the United Kingdom with a range of competitive software products and services. It is a fast growing organisation currently employing in the region of 200 people and is the leading software developer for the construction industry. From feasibility through to final account, cost management professionals are faced with ever tighter deadlines in which to deliver accurate cost information (Causeway Technologies Ltd., 2008). The CATO Suite has been developed with the close participation of the profession and provides powerful support to the QS professional. The introduction of CATO Enterprise is an opportunity to implement a step change in their business processes effectively to provide their staff with a QS desktop. The creation of BQ and cost plans in a controlled environment providing information can be relied upon and used to build a database for future projects and importantly reports produced in a consistent manor for clients (Causeway Technologies Ltd., 2008). 14 types of modules of the CATO Suite provide an affordable solution that can be managed and adapted to company requirements are (Brochure of CATO Suite): CATO Full Contract CATO Management Contracts CATO Quickest CATO CADMeasure CATO Earthworks CATO Cost Planning CATO Cashflow CATO Document Register CATO Procurement CATO E-Tendering CATP Project Controls CATO Cost Management CATO Whole Life Costing CATO Rates CADMeasure is a multi-purpose measurement tool that enables users to measure from electronic drawings with unprecedented accuracy. It provides an easy to use CAD based on-screen professional measurement facility, ideal for all types of measurement from the most sophisticated 3-dimensional building object model to the simplest sketch (Brochure of CADMeasure). The features of CADMeasure are: Easy to use through familiar pull down menus, toolbars and dialogues. Local or network versions available with concurrent licensing. Access to all non-editing AutoCAD commands during measurement session. Comprehensive on-line help system. Full Audit trail with automatically annotated drawing record. Suitable for a range of different users including those involved with property, construction, manufacturing, medical and retail sectors. Ability to store and record complete measurement history in line with design changes. Dynamic link between measurement and drawing content. Available both as a standalone solution and for use with existing installations of AutoDesk products including AutoCAD, MAP 3D and Architectural Desktop. Drawing integrity retained. Improved measurement integrity via new XML file format. Supports remote software development for effective multi-user implementation and updates. 3.3.3 BinaLink Bina Link Solutions Sdn. Bhd. is a company formed by Malaysians who are familiar with local standards and procedures with the objective of providing IT solutions to the construction industry. The company founded by experienced personnel of the construction of the construction and IT industry. The company staffs have vast experience working in consultants and contractors environments. They involved themselves in the rapid advancement of computer development and usage in the construction industry in the last two decades. The development of the companys programme is carried out by dynamic and knowledgeable staffs that are conversant with the latest in IT (Bina Link Solutions Sdn. Bhd., 2006). According to brochure of BinaLink, there are 9 types of modules are: BinaLink BQ Module Binalink Tender Module Binalink CAD Measure Binalink Tender Comparison Module Binalink E-Tender Binalink Preliminaries Binalink Worksheets Binalink Progress Payment Module Binalink Final Account Module The BinaLink BQ Module is an exciting innovative system especially developed for use as a superior tool for the preparation of BQ and construction costing. It is developed by Malaysian experts on a familiar Microsoft Windows platform to suit a standalone or networking environment. In addition, it will be unique local working methods and cost effective system (Brochure of BinaLink). The key features of BinaLink BQ Module are: Standard BQ Libraries Mutiple Column BQ up to 3 columns Lump Sum Bills Project Summary Reports Direct Measurement Method 2 Dimensional Worksheet Measurement Formula Worksheet Measurement Rebar Worksheet Measurement Flagging Reports for Sub-total Quantities Resource Reports Built-up Rates with resources, price and resource databases Mark-up Reports Gross Floor Area Measurement for Elemental Cost Analysis CAD Measurement Facilities with Direct Linking to Worksheet (Optional) 3.3.4 Buildsoft Buildsoft is an Australian company with its head office in Sydney. Buildsoft was established in 1985 to develop and market computer software for the building and construction industry. The company staffed by an enthusiastic team with many years of practical experience in the building industry. In Australia, its products became the industry standard and now exported to 20 countries. The company have a select network of accredited overseas distributors and over 5000 worldwide users. Because of this, Universities and TAFE colleges in Australia as well as selected Universities throughout Asia and the United Kingdom are teaching its products as the accepted standard (Builsoft, 2009). Products available are: Offsider Estimating Global Estimating Subbies Comparison On-Screen/Digitizer Take-off Digitizer Board Scale-Link USB Maths Mate Buildsoft Global Estimating is an estimating programme that has been tailored for commercial use in the building and construction industry. BQ or detailed Estimates and Cost Plans will be produced. It designed primarily for use by commercial building contractors and professional quantity surveyors. It is also including features which allow it to be used in other industries where estimating is required. The main features of Buildsoft Global Estimating System are: BQ Composite Rates Libraries for Description Rates Tendering Function Multi-level Mark-up Function Estimating Functions Job Analysis Cost Analysis Quality Analysis Measurement Calculation Sheet Interim Valuation/Progress Claim Tender Comparison System SCP Module Buildsoft Take Off System (BTOS) CAD Measurement Module Buildsoft Online Tendering System (BOLTS) 3.3.5 WinQS Advanced Cost Engineering (AEC) Solutions cc was formed in June 1996. It is involved in the system design, the marketing and the support of the WinQS system which, over ten years has grown to be the most widely used QS system and had more than 3000 licensed systems installed in Southern Africa as well as internationally nowadays. The WinQS software is constantly being upgraded and new modules written to provide solutions for quantity surveyors and contractors. WinQS provides a complete QS system with on-screen take-off dimension, It provides an ease on pricing due to multiple sets of price may be stored for each project and be copied, multiplied and select for use in Bills production, estimating, valuation and others. The system features of WinQS will be shown in Table 3 (WinQS, n.d.). WinQS is a complete QS system for: The Production of BQ Documents The Production of Estimates Documents The Calculation of Monthly Valuations The Cost Analysis of a Project Joint Building Contracts Committee (JBCC) 2000 Certificate Module Contract Price Adjustment Calculations Tender Analysis Financial Review Costs Reports Table 3: The system features of WinQS (WinQS, n.d.) 3.3.6 PriMus-DCF and PriMus REVOLUTION ACCA is the Italian leader in the Building Industry Software. ACCA is a reference point in the field now to covering an unparalleled range of solutions and distributing the programs which are the standard for the industry. Founded in 1989, ACCA grew rapidly thanks to its products, well-known for their usability and their strongly innovative inspiration. This company is ISO 9001:2008 quality management system certified. Therefore, the company structure will ensure to improve constantly the processes and activities meeting customers needs and satisfaction (ACCA software, n.d.). PriMus-DCF is the BQ software for working directly with Internet Explorer. It is more transparent, closer to your natural and ordinary way of working and thinking, and therefore easy to manage with the What You See Is What You Get (WYSIWYG) philosophy. The Document Computation Format (DCF) standard introduces a revolution in the building software world undertaking the basic data sharing concept. Users can easily transmit BQ and estimates documents and everything in users document will be contained in one unique file, no heavier database structures but just a small size compressed file. With PriMus-DCF, everybody can open a DCF document and work on it freely (ACCA software, n.d.). According to ACCA software (n.d.), PriMus REVOLUTION allows integrated development and processing of all estimating or project management documents, updated with the latest regulatory guidelines with the automatic generation of: BQ (forecasts, resulting costs, work variation surveys, final accounting, quantity estimates, requests for proposal, labour incidence estimate, etc.) Measurement Book Accounting Register Cost Summary Work Progress Statement Payment Certificate Steel Reinforcement Bars Requirements Book Price Lists Comparison Table (for work variation surveys, comparison of work progress statements, comparison of multiple design assumptions or proposals, etc.) Weekly Lists of Workers, Equipment and Costs Forms (completion of works, beginning of works, suspensions, resumptions, execution, etc.) History Management 3.4 Impacts of Measurement Software on Local Construction Industry According to the conducted survey of Lim and Ong (2008), the measurement software is still not widely use or fully utilised in measuring quantities for preparation of BQ or other extent usages in local construction industry although most of the companies have it. Based on the feedback from the survey, the common problems associated with measurement software are: The use of such software requires learning and remembering many procedures Lack of flexibility Need to train new staff to use the software Using measurement software to take-off quantity requires the taker-off to perform transferring of raw quantities from one software into another either digitally or manually to produce the quantities in the BQ format as compared to the manual method. Newer technology is being developed that allows seamless transfer of quantities from measurement software to the customised software for the preparation of BQ. However, not all measurement software has the complete package of measuring and BQ production software. Most of the companies which using the measurement software would need to spend money and time to train existing and new staff to use the software before it can be utilised efficiently. The need of training also indicates that the education of quantity surveyors has not focus on this skill, as it has never been required. Nevertheless, a change to the education curriculum is necessary to produce QS graduates that are skilled in using measurement software now. The survey also noted that it is difficult to check the measured quantities if the measurement is done by using measurement software if compared with the manual method. In fact, only staffs that are skilled in using it would be able to check the quantities easily. Besides, the survey also attempted to find out the advantages of measurement software as the following: Higher accuracy Ease in editing the measurement Increase speed of measurement Easy to measure Reduction of Workforce Most of the companies agreed that utilising measurement software in measurement of quantities produces high accuracy. Measurement of quantities directly from digital format drawings removes the need to reproduce drawings on paper. Wheeler (1992) stated that reproduction of drawing on paper will reduce the accuracy of the drawings and measurement scaled from paper will further erode the accuracy (cited by Lim and Ong, 2008). There is also eliminated to mistakes due to human error in reading the dimension off scale rule and recording the dimension on paper or spreadsheet file. Measurement software allows for easy digital editing of quantities measured. This is because it contained function such as block, entity area, copy, paste, delete and undo as any other software that facilitate the editing process. In addition, application of measurement software will increases the speed in measuring quantities as compared to manual method. This is due to the ability of the software to generate quantities. Memory of computer also enables a program of instruction saved and turns it into fully automatic, it then simplifying the works. Finally, workforce required to measure quantities could be reduced with the use of measurement software. Most QS firms have reduced the number of technical assistants specialising only in measurement of quantities in common practice. With the use of technology, the measurement work is now easier and faster but the skill needed has also evolved to a higher level consequently. 3.5 Summary This chapter is about the current application and features of measurement software and its impact on the construction industry. Due to many business processes are now almost completely computerised and the tendency is toward a greater computerisation of the remaining processes, there might be a market in the use of measurement software for QS to carry out the works such as measurement, taking-off, BQ production, etc. more efficiently and speedily. This research also found that Microsoft Office Excel 2007, CATO Suite, BinaLink, and Buildsoft are the common and popular measurement software have been used in local market. Although there are vary measurement software provided in the market and adopted in construction companies, this research found that QS appears to be one of the few professions that have not been profoundly transformed by the application of the technological advancement offered by digital revolution especially in a developing economy like Malaysia. The biggest impact of measuring software on QS practice had been on improving the speed and efficiency of professional services. Information flows in construction would increasingly be made electronically and a wide range of measurement, estimating and costing procedures also would be done through the use of software packages.

Is China A World Power?

A world power may be defined as a country, which has great political power, great military, great economy et cetera. The People's Republic of China may have completed some of these criteria itself but it may not be considered a world power as some of the small factors are holding them behind. China may be a big country with large population, which face inequality, corruption, social stability and the Chinese environment that is not very grand for the health and also with it limited supplies and energy. China claims that they are a communist state but they are just capitalist, under their current government. A lot of discrimination is there in the nation. Health for the Chinese isn't very pleasant either for the country lack proper medication care and doctors. China is a capitalist state under the â€Å"SOCIALIST REPUBLIC† government. This has made many things difficult in China such as Human rights, freedom and equality. The Chinese government are very tolerate people as they closed its door towards people, yet they declare an open door policy in the late 70's and 80's which is not true in all cases. The new Chinese settlers have created an alternate society: a Chinese apartheid which, denying Tibetans equal social and economic status in our own land, threatens to finally overwhelm and absorb us. † was quoted by the Dalai Lama in 1991. Groups who fought for political freedom to be heard were jailed without trial and have been forgotten imprisoned. Religious freedom is another problem in China, as religions don't get any freedom. All religions have to be within the communist party (they have to register within the government) and must be loyal to the Mainland. This have caused many affairs with some religion for example Catholicism who is led by the Pope in Rome, China doesn't allow that and they created the Chinese Patriotic Catholic- Association to replace Roman Catholic. Another unfair factor is that religious people aren't allowed to work with the government as they say being openly religious can affect the economy. Other rights that people should have are No child policy where people can have as many babies, so no girls are being abandoned, Labour rights, as people should not have small wages for long hour of work. China also has problems with the whole of African continent as they treated those Africans poorly during the 1990's and in 2005 it still happen as Manfred Nowak (human rights lawyer) visited China to observe the country. He complained the officials for not letting him interview people and say what he want to say, he also said the discrimination can be seen widespread. The economy of the PRC has increased so much during the past 10 years. Their economy is fourth largest in the world. The value of their Gross National Product was 2. 3 trillion in 2006, which is extremely high, but there's one thing we shouldn't be forgetting; they also have the largest population, which average the GDP per capita to roughly i1,000 whilst it's around i25,000 in countries like Ireland, Switzerland and Denmark. As economy in China is rapidly increasing, it's also facing labour shortage, wages demand and less service. Workers are quitting agricultural jobs to get industry job. The wages of worker have been raised to an average of i 55 a month but as Industry increase, pollution increases. China emits 19% of the world CO2 emissions that is a real shame. The Kyoto Protocol does not require China to reduce its emission, as their status is â€Å"Developing Country â€Å"not† Developed. A world health organisation reported that seven out of the ten most polluted are in China. 30% of acid rain falls on the country. It is estimated that 7% of the GDP per annum must be spend to control the environmental problem so far only 1% is spent on this trouble; this show China's lack of environmental concern. Main economic area for China is it's eastern coast where most of their economy rely. This also create another problem, the equality of income isn't same throughout China as it should be, City such as irimqi, Piking, Shanghai, Canton, Shenzhen et cetera receives most of the high income when city such as Lanzhou, Lhasa et cetera receives a lot lesser. Health of the Chinese can be considered as very poor at the moment that they were ranked 144 out of 191 by The World Health Report. The life expectancy for China s of 2006 is 73, this have been a huge improvement since 1950 when it was 32 but can still be considered low compared to countries like Sweden, Switzerland and Japan whose expectancy is over 80. Their infant mortality currently is 23 per thousand people, which aren't very bad compared to others for example Singapore and Japan (2). Health Development Index of the PRC is medium as it stood at 0. 768 as of 2007. As Chinese economy has grown rapidly, health problems also have. Some of the problems they face now are Air pollution (this killed 760,000 people per annum alone), cigarette smokers is also another problem as the number increases each year and Urban youngster can also be overweight as Chinese at average take in 2,940 calories a day (25% more than what Food and Agriculture Organisation suggested). China lacks doctors, 680 people per one doctor doesn't sound too bad but they still need more doctors so that those with sickness could be attended and cared for more. Schizophrenia are suffered 7. 8 million Chinese and only 60% is being cared for properly. Male also outnumber female in China as they have the superstition of boys are better than girls, this leaves hundred of thousands baby girls orphaned. 2. 3 million is the number of the People's Liberation Army, the largest force in the world plus it's 500,000-reserve force. The number have actually decreased from 4 million from 1980 compared to another emerging super power such as India who has an armed force of 1. 3 million from 500,000 in 1960s. Military personnel should not be all that counts but reserves should also be taken into account, China has a reserve force of five hundred thousand compared to Taiwan which has 1. 5 million. The result from 1980 is that their army have decreased twice the number from 1980 (from 120 divisions to 60). The spending on military have also decreased. China can defend itself from foreign occupation and remain a regional status-quo power, but it is not a rising or threatening power† James H. Nolt, 2006 Chinese military use to create it's own weapons but this stopped in 1980's when their weapons were made of the very worst quality and workmanship. An Incident occurred when it sold Thailand and Burma what they claimed to be â€Å"A NEWLY MADE CHINESE FRIGATES† after the delivery both discovered that the vessels were purely rubbish that can't float properly. The Thais later demanded they give them a new one with an empty hull, as they'll modernise it themselves. After all the Chinese military doesn't seemed to be very strong as it's viewed. Professor James H. Nolt even says it can't even beat those of Vietnam, Taiwan or India. Their possession of nuclear weapons may fill them in for the nuclear criterion. They have never launched one before and stated it themselves that they will never use it, this have put them off for being a nation with nuclear power. Resources that China lacks can be a huge problem. It produces 6. tonnes of oil equivalent per capita and it consumes 7. 3, this is a huge problem they found a way to dealt with the way which is not very reliable. In 2004 Wen Jinbao the prime minister offered Russia almost i 6,000,000,000 for energy purchase. China therefore rely on Russia for energy, Russia could use this as a weapon and they did but not to China, In 2005 Vladimir Putin cut off energy supply to Ukraine as it wants higher price for energy. Russia may not be very reliable for this source either. Some of the other things they lack off may be public transportation where there s an average of 2 buses per one thousand people. Some of the children in China still lack education, as 10% of the children under age 15 are literate. With all these weaknesses revealed, does China fit in the definition of â€Å"World Power†: The answer is resounding no. Not now or anywhere in the future like others who say China will someday be a world power. Their current government won't last longer than 30 years, when they collapse the idea of China being a world power will start to fade away and a more favourable China would be reality.

Working capital, current assets, current liabilities - Free Essay Example

Sample details Pages: 5 Words: 1480 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Therefore, in an equation form, working capital is: Working capital = current assets current liabilities The quantity can be positive or negative, depending on the amount of debt the company is carrying. If a company has a lot of working capital, it will be more successful. Companies with negative working capital may be short of the funds necessary for growth. (C) Working capital is important to a business. It can maximize growth, can help minimize future financial shortcomings, and its an indicator of potential financial problems. However, various problems can be faced if there is not enough working capital in an organization. Too little working capital is recognized as over-trading and is frequent when a business is starting up or going through a period of quick growth. This can result in cash flow problems beyond its agreed overdraft limit, flawing to pay suppliers on time and being incapable to claim discounts for punctual payment. A business with in adequate working capital will be incapable to meet its current obligations. Poor management of working capital will also result in unnecessary amounts tied up in current assets. Such a circumstance will lead to a business earning a lower than expected return. (D) There are different ways in which a sole trader can increase their working capital. One way to do so is by increasing the net profit. This can be done by reducing expenses. This involves you to evaluate your expenses. Increasing sales is an additional way to increase net profit therefore increasing working capital. This requires knowledge about the connection your sales have to your expenses. Eliminating certain services or products that are too expensive and unsuccessful can also create additional profit for your company. Owners adding capital to their business can also increase working capital. This can be done through providing a cash loan to your company or buying additional supply in exchange for cash. Another way to increase working capital is by selling unwanted assets. A business must know what assets are needed, wanted and unwanted for it to determine if it will generate additional capital. Increasing long-term debt can also increase working capital. A long term loan enables small and medium sized enterprises to breathe easily and pay for assets at a set pace. Collecting payments from customers faster is a route to keeping more capital in a company. Entrepreneurs can also consider refinancing fixed assets such as equipment in order to increase working capital. This is done by controlling ones assets and turning them into the cash that they need. Another option to increase working capital is to make personal investments. In order to do this, one needs to first do a cost/benefit analysis to see what return they will get on their investments. This is an important method if a sole trader sees that the payoff in their business outweighs person losses. Question 2: (A) The di fference between cash and accrual basis accounting has to do with the time structure in which revenues and expenses are recorded and reported. Accrual basis accounting matches revenues to the time phase in which they are earned and matches expenses to the time period in which they are incurred. This means that sales are recorded straight away, expenses are posted at once, and any other sort of operation goes to the books at the time the event takes place. Also a receivable is recorded when payments is not received at the moment of sale. Payables are also recorded when payments is not made at the time of purchase. Cash basis accounting is a very simple and quick form of accounting. It records only cash spending and cash receipts. It is a method of bookkeeping that is centered on the inflow of cash received and the outflow of cash. Expenses in cash basis are recorded when they are paid, which may be before or after they are incurred. Unlike accrual basis, in cash basis, no receivab les, payables or methods of tracking partial payments are recorded. Accrual basis accounting is more complicated than cash basis accounting; however, it provides much more information about ones business. Cash basis accounting will suffice if ones business is a simple one. However, the accrual basis will give a more accurate picture of the results of business procedures. (B) Businesses have to make adjustments in their concluding accounts to give a more realistic portrayal of how the business is doing. One of these adjustments involves appropriately signifying the expenses and income of the business in the accounts using accruals and prepayments. Accruals are adjustments for revenues that have been earned but not yet recorded in the accounts and expenses that have been incurred but not yet recorded in the financial records. They are those items which have already been taken by company but the payments are not yet paid or services of which already provided but amounts are no t yet received. Prepayments are the reverse of accruals as these are payments which have been made already but are not yet taken by the company. It is early repayments of a loan by a borrower. Accruals decrease the net profit of a firm as expenses are increased while prepayments show a greater net profit as expenses are reduced. An example of accruals is rent accrued for previous 6 months but has not yet been paid for. And an example of prepayments is prepaid rent for the next 6 months. Another example of accruals is bills that straddle and accounting period end, such as utility bill or a phone bill. (C) The matching concept is a concept is to ensure that the expenditure incurred in earning must be matched to it, in calculating profit. For example, if a business bought 30 buckets but only sold 27, it would be wrong to charge the profit and loss account with the cost of all 30 buckets, as there are still 3 in stock. The historical cost concept requires transactions to be recorded at the original cost. The changes in prices or values will be ignored. It states that all assets in the financial statement should be reported based on their original cost. An example of this is as followed: Fred buys an apartment for 4,000,000 eight years ago. The value of the building is now 5,000,000. But in Freds accounting records, the building is still recorded as 4,000,000. No account is taken of the increase in value. (D) Monetary concept: Accounting uses money to express certain facts of a firm and in a way that they can be a useful expression of the wealth of the firm. For example, it might be a fact that a firm owns $40,000 of cash: 8000 pounds of raw material, 10 trucks, 60,000 square feet of premises, and so on, these quantities cannot be added together to construct a significant total of what the firm owns. However, expressing these pieces in monetary terms makes it simpler: $30,000 of cash, 10,000 of raw material, $180,000 on trucks, and 5,000,000 on premises makes such an addition possible. Prudence Concept: Profits are not documented until a sale has been completed. Also, a cautious view is taken for future problems and costs of the business. For example, if a loss is foreseen, it should be taken into account right away. If a business purchases stick for $1400 but then can only be sold for $1200, then the stick should be valued at $1200 in the accounts. (E) Objectivity: This means that accounting information is prepared and reported in an unbiased way. It is not biased towards a particular user or interest. For example, supply of goods lying unsold should be valued as its cost price not at a higher price at the end of the year even if is likely to be sold at a higher price in the future. Consistency Concept: The consistency concept simply means that you treat comparable items in a similar way and that the same treatment should be applied from one period to another. While changes of methods may be made, they sho uld not be made frequently. For instance, if a firm is charging depreciation using the straight line method, then they must follow through with the straight line method. 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International Driving Permit for Canadians

Canadian travelers who plan to drive when they are outside North America can get an International Driving Permit (IDP) before they leave Canada. The IDP is used in conjunction with your provincial drivers license. The IDP is proof that you possess a valid drivers license, issued by a competent authority, in your country of residence, and it allows you to drive in other countries without having to take another test or apply for another license. It is recognized in more than 150 countries. An IDP must be issued in the same country as your drivers license. Because the IDP has additional photo identification and provides a multilingual translation of your current drivers license, it also serves as a recognizable piece of identification even if youre not driving. The Canadian IDP is translated into ten languages: English, French, Spanish, Russian, Chinese, German, Arabic, Italian, Scandinavian and Portuguese. In What Countries is the IDP Valid? The IDP is valid in all countries that have signed the 1949 Convention on Road Traffic. Many other countries recognize it too. Its a good idea to check the Travel and Currency section of the relevant country Travel Reports published by Foreign Affairs, Trade and Development Canada. In Canada, the Canadian Automobile Association (CAA) is the only organization authorized to issue IDPs. CAA IDPs are only valid outside Canada. How Long is an IDP Valid? An International Driving Permit lasts for one year from the date it is issued. It cant be extended or renewed. A new application must be submitted if a new IDP is needed. Who is Eligible for an IDP? To be issued an International Driving Permit you must be: at least 18 years oldhave a current full Canadian provincial drivers license. Learners licenses, provisional licenses, and licenses under suspension do not qualify. How to Get an IDP in Canada The Canadian Automobile Association is the only organization that issues International Driving Permits in Canada. To apply for an International Driving Permit: print, complete and sign the IDP Application Form​attach a photocopy of the front and back of your valid Canadian provincial drivers licenseattach two signed passport photos include the fee of $25 (in the form of a bank draft, money order, or cheque in Canadian funds drawn on a Canadian financial institution payable to your local CAA Club)submit the completed application and attachments to your local CAA Club(It would be a good idea to call first and check on the exact name of the club and where to submit.)