Items which are presented on the face of the financial statement of changes in equity: Net profit or loss for the period Items of income, gain, expense or loss that are directly recognized in the reserves in compliance with other accounting standards Total profit attributable to equity holders and minority interests Effect of changes in … Read more
Under Malaysia FRS 100 an entity shall present an analysis of expenses recognized in profit or loss using a classification based on either their nature or their function within the entity, whichever provides information that is reliable and more relevant. This article looks at the two methods of presenting the expenses format in the Income … Read more
Ricardo’s theory of rent: States that the rent of a piece of land has been the excess of the yield of that piece of and over that of the worst land in cultivation. He regarded that land at the margin of cultivation yielded no rent, indeed if rent was charged the land would not be … Read more
Classical theory of employment: Economic thought of the Classical School of economist and based on two fundamental postulates: The wage will be equal to the marginal product of labor; (represent the demand schedule for labor) and the utility of the wage when a given volume of labor is employed is equal the marginal disutility of … Read more
Thomas Malthus(1766-1834) developed the theory of population and published it in An Essay on the Principle of Population in 1978. Malthusian Theory Of Population advocates the following: That population would soon out-strip the means of feeding it, if it were not kept down by vice, misery or self-restraint; That in a state of society where … Read more
Karl Marx advocated the Marxist socialism which had its origin in the conditions created by the Industrial Revolution. He showed that the capitalist system could not by its very nature survive and in due course get replaced by socialism and that the class which would effect the revolution would be the new industrial working-class or … Read more
Alfred Marshall contributed the following thoughts to economic science vide his Principles of Economics: The general theory of economic equilibrium in which all the elements of the economic world are kept in their places by mutual counterpoise and interaction, a theory, strengthened by two subsidiary concepts- the “margin” and “substitution” The distinction between “ external” … Read more
Disinflation is the process of eliminating or reducing inflation Stagflation refers to the periods of recession and rising unemployment coupled with positive rates of price inflation.
Integrated Economy definition: Refers to a situation when different sector of an economy, like the agricultural and industrial sectors work together efficiently; and have been mutually interdependent. By achieving an integrated economy, government hopes to achieve sustained growth.
Closed Economy: An economy having no external trade which is completely self-sufficient and insulated from external forces Opened Economy: An economy which has been engaging in international trade. Degree of openness of the economy may be approximated by the size of its foreign trade sector relative to its gross domestic product.