So what I discussed you in the previous session is basically the concept, the base key concept which all of you must you know recollect in one way again because we have taken one hour on that and that one hour is very important, the small term it was you know 15 minutes but I have given you one hour because I want to put everybody's heart to this concept this is an entity, this is different, owner is different, okay, so whatever transaction is carried in any institution, any trade, any commerce, this has got nothing to do, okay. The owner is also liability for this, this you note down in the hard bold word the owner's amount, the owner's capital, the owner's profit, net earning are also liability for this till it finally discharge all the liability of owner make nil, no asset, no liability, no payment, no receipt, okay, so this is the main thing I discussed with you and second thing I want to discuss with you that every transaction, everything you understand in one set of mind that if any amount is paid or payable is either asset or an expenditure, any amount is received, any amount is received is either a income or a liability, why income or liability because all incomes are liability for this, even some professionals might be sitting here but this concept should be finally whenever they go you know in the business world they should teach this, this is very important, the most and you know the highest drawback of our Indian economy because this is telecasted everywhere and I am proud to say and I do not you know I hesitate to saying this that the basic accounting system has not been given due recognition in any of the department, they have gone by their own conventional methods, they have never thought that accounting system should be a top priority for each and every sector, each and every department, at each and every place, they created a legal entity, the government of India created a legal entity before the constitution of the government came in play, in 1949 the Charred Accountant Act was made and in 1950 the constitution came in effect before that because at that time they wanted that there must be an accountant, there must be a qualified experienced trained person to look after all accounting, financial reporting, auditing and all aspect so that whatever comes in the constitution can be taken care properly but unfortunately the most drawback of this Indian economic system is that the legal person created by the government, by the constitution itself has not been used for the purpose. I can understand all of your problem because whenever new systems, new entities, new trend comes in you will not be able to address every issue, you need one professional in your department, you can carry out all transaction, you can make entries, you can understand, you can make you know the evidences, you can prepare trial and etc. But for understanding the transaction, for making the financial reporting, for making the figures in comparative form, for analyzing information, you need a professional person in your sector. So kindly insist wherever you go in your institution that a qualified professional under an act, a Charred Accountant should be employed in each and every organization so that all of you can powerfully take up this accounting and auditing department. This must, I think none of the institution at the time of appointment of finance people, the criteria is that it should be Charred Accountant, nowhere I think. So you should have it because academic quality is different, professional quality is different. You have it so that you can you know you can work in the different manner whatever you know your generation comes you know professional etc. Our all consulted library is to take this profession, take this country in different manner. If we are not using the expertise accounting, not only accounting only, accounting you people are doing but auditing concept, financial information, financial analysis, data analysis, recovery of the dues you know and taking action, drafting the agreement, drafting the financial document etc. etc. you need a financial expert and that is why it is to be taken care and now MHRD is taken you know very good stand for it that you know throughout the country you know the accounting with the IKAI is taken up. So we have come to the conclusion that we must have you know the accounting concept in our institution. So that you are aware that where we are standing. So this we have come to the first part. I came to the terminology used in the Palantra Accountants, we will run fast okay. If you are able to have you know if you are not able to understand anything and you want to query you can stop me any moment because there are a lot of accounting concept I will take it because other lectures are there then they will teach you accounting standard etc. etc. that will go from your head because till you do not understand the basic concept accounting. I am not able to understand those standard etc. etc. So let us understand this accounting in a very fruitful and a different manner so that everything comes in your mind. So only four transactions are there either there is a income or there is a liability either there is a asset or there is a expenditure. A slip of mind a small slip of mind can convert an asset into an expenditure because in one side debit side only while making a posting amount paid to Shyamlal Agarwal you say Shyamlal Agarwal okay here it is always expenditure.  A small slip of mind a liability somebody is giving you the money your income you can say no no I have to pay back to him it will become a liability. So a small slip of sense will make income a liability and asset an expenditure. So you have to understand that the side in one a set extra side is one and liability and income side I told you why liability is one side that everything comes okay and the there are only two account or all practical but there may be different lot of final two final final account only one is income and expenditure account or profit and loss account it may be called by any name but when one side there will be all incomes income means which are not payable after the close of the period to which it is prepared expenditure whatever incurred is not recoverable anything out after the period is over. Once you incurred the expenditure it is not recovered in the future there is no endeavouring benefit for next period you are preparing out 30% mark 2014 any expenditure incurred or income on expenditure will not give benefit in through the 15th salary paid for mark finish April you work you will ask salary more okay so it will not carry further but amount which will carry further will become a asset because you want to recover in future year. So suppose salary paid for two month advance one month is expenditure one month you will recover next year so next year it will carried on so that is the concept so on that basis of that you must understand asset liability and income and expenditure so that is close I think everybody is capable to take up your mind take up his mind at this stage okay now I go to account terminology account lot of trumps will come in your life your accounting so I will explain to you what is the terminology you must understand account account means one account so first you under account account means any account one account it may be sub account it may more sub account more sub account there may be control account because all account suppose there are four account only one is income one is liability one is asset one is there are four major head now under four major head there can be group head so one group head is in asset we can say fixed asset we can say fixed asset fixed it means they said which are not consumed during the operation if you consume it become current suppose I purchase a purchase a cotton and make you know the cloth so cloth is sellable so cotton is consumed I use labor labor is consumed okay so everything the whatever asset I purchase I purchase any item suppose I purchase this I am selling the furniture so furniture I am buying this board and selling it so what the board has converted to table so table is not a fixed asset because it itself is you know consume in the operation and it will be sellable item so fixed asset is asset which provides support for the production for the operation for the service as a institution is furniture is providing you support furniture not consumed it is depreciated so we provide depreciation not consumed okay so fixed asset means asset which give you enduring benefit for the next period asset that other is current asset current asset means the asset which is used in operation current is used in cycle like your operating cycle your institution so in your institution what is current asset you have given some advance salary advance for some supplier advance for consultants advance for anything cash balance in your bank account bank on balance okay all these are the current asset because they are assets for you but they are changing from time to time period to period and at least in next 12 month they will be converted to cash or cash will be converted to current asset so they are current asset they are moving okay now fixed asset suppose you are building is you are made so building will not build in the fix okay it will not be consumed so like fixed asset and current asset there are two things in asset side and liability side there is a capital capital means whatever amount I have given I see I will not take it back it is liability ultimately it has come to me only for business liability but I put the money not as a loan if I give a loan I will pay interest so one is liability means capital if it is one person it is a proprietor if it is two persons taking together their partner if we incorporate a company enter company it becomes a company okay so it is capital second is amount given to this entity which is recoverable in cash paid in cash recovered in cash that becomes loan if paid in cash recovered in kind that becomes advance okay if paid in cash recovered in cash it becomes loan so one is loan and one is capital third is third is the current liability like current asset current liability okay suppose I have given advance to this fellow it will it will not a loan then against the advance it will give me some material some amount some services so it becomes advance because I have given cash but will return the other item not cash if given cash taking cash back it is a loan giving cash and taking some services some material then it is advance okay and liability I have purchased something but I have not paid it is a liability means I have taken material but to pay cash pay cash to take a material taken material or to pay cash both are not cash so that is a current liability so one is capital one is loan and third is current liability these are the basic terms which normally comes in your under other things you will automatically understand when you will go through those things what is current what is non-current what under fix what are the brackets fixed may they are going to building they are going to fixture there will be machinery there will be typewriter there can be computer because I purchased not be consumed I am using it for providing lecture to you so it is not you pan I am using it will finish today's night finish so pan is consumed a stationary consume but this will available to download all other things etc this is equipment equipment you can say fix that there can be furniture there can be fixture there can be equipment there can be machine there can be computer whatever category one you can have lot of category out of those categories you can make subcategory one type of thing you can pay to one place okay other culture other nature type you can put other place or under law something is required you have to group this way will go that way so we will assemble the head in such a manner that either it comply your requirement and also the complies the requirement of the law or of the institution or whatever it is so that way the account and heads are created so this I give brief before going it so that you can understand all the concept very nicely the account I told you it is one account it may be 100 sub head it may carry a hundred sub account it may be sub head of a main account but account means one type of transaction collected at one place net balance you can know if I am dealing with samal agarwal what I have to pay samal agarwal or why I would recover to him or samal was in my expenditure how much expenditure incurred on samal agarwal in a particular period at one place I must know what is the status of a particular type of transaction carried out in a particular period okay accounting entry now a basic system which we normally carry and I have discussed at the time case accounting is we have to make accounting entry any transaction have to make accounting and whatever I make I given cash to the come I made an entry this entity made an entry cash account debit to samal agarwal this is entry this is me this this is known as accounting entry if somebody given furniture to this furniture account debit to X and company because X money has to pay it if paid cash then to cash so this is accounting and debit and credit or credit or debit but first normally we do debit always the system of entry always first we do debit then we do credit so that once we give somebody then we can say to whom to pay back that is the concept that is why we have taken debit first and then credit second something has to be there to debit somebody then only we can pay to somebody so the concept is always to debit first money came no entry to whom to give to cash book then yes cash book debit then I credit samal because I will recover from this I will pay till I am not sure from where I will recover I will not credit anybody okay till it is in the hands here and there only land is allotted by the government without any code land become a set of the come of the institution at rupee one okay just accounting entry why repeat one why repeat one because one rupee means week we have to make account of the land otherwise it will not be in the books so we standard standard will take place whenever standard will be taught to you every entry even if even if it is made nil value you have to account for for asset for expenditure you may not account for asset land for IIT center two thousand six hundred is given by government of India free of course one rupee or there are certain expenses incurred on the land transfer charges resistance charges stem charges duty charges whatever it is one rupee two rupee stamp paper that will form the cost of the land whatever cost incurred to you is the cost of land and that is represented in fixed asset because land is not consume if you are a real estate developer you purchase land and sale the land then land is not your fixed asset it is sailing so it will be correct asset it's token trade land two thousand biga okay next year sale one thousand biga it will remain one thousand biga that is okay so that is account so accounting entry you must have every transaction every transaction is to have accounting entry first to debit and then next to credit account payable account payable means suppose you brought furniture then you have to pay you have to pay this entity accent company because you are not paid cash account payable payable means the company the entity has to pay somebody this account payable so you will say how much total amount payable in this year so we'll say Ramlal, Shyamlal, Mohanlal, Jyobin, Namlaki whatever name but all these persons I have to pay amount and total amount payable comes to this month that is account payable so individual account payable you have to prepare then total account payable will be available to you accounting period accounting period is for you know if they are the period for which the accounts are prepared in year is not discussed right particularly because there can be a separate period for separate account sometimes we prepare account for three months six months normally we take finances period means it you must know before preparation of any account what is accounting period so that what will happen when we go to acral accounting then we have to account for all the libraries that are said till that date so we must know the accounting period so accounting period means for the period we are preparing the account or we have to prepare the account suppose initially started capital entry but I must know this day that I have entered this entry but my accounting period will end on 31st March so my account will be prepared on 31st March till then whatever transaction taken place net balance on 31st March will be reflected in the net statement of this balance sheet account if it is capital or P and L account if it is other account so that is the accounting period accounting principle the accounting principle basically what accounting principles you are following I will not take detail here accounting principle again there are certain accounting principles will take it later on accounting principle whatever account the principle which guide to prepare the account the principle which guide to prepare the account now we say single accounting principle we are following double entry accounting with the acral accounting principle you are applying or some again some there are certain accounting principle separately also but for view view people I will know this is principal as a technical. You should understand only one thing, whatever principle, there are certain principles which are fundamental accounting principles. Now fundamental accounting principles say, you have to prepare your account on acro-base of accounting, but you are preparing case-base accounting, you are not following fundamental accounting. So I will not go by principle. I will go by only one thing that what are the accounting principles, so that you must know if somebody is acro-accounting, okay, okay, acro-accounting is a principle, but we are preparing the books on double-entry accounting case system. So acro-accounting principle we are not following. So you must know what is accounting principle available, what you follow, they are different. It is not necessary that all accounting principles, all entities are following, but we must ensure that when we become perfect accountant, perfect account unit, then we must follow all the applicable accounting principles to that entity. So principles may be different to you, for education there may be, the principle may apply in a different manner, or in a different manner. Though principles are same always, principles are guiding force, but interpretation of those principles may be, in your case may be different. So I will not go what principle should follow, what not follow, because if I educate that or discuss that, then you will be misguided. At this juncture you must in your life understand, there are certain accounting principles which should be followed while preparing the account, okay, and one of two of three them which we discuss, others I don't know. If we don't, if we discuss other and I don't know it will confuse everything, okay. So next, account receivable, I have sold you the goods, but you not paid me the account, so it is account receivable. So I have to take money from you, receivable, okay. What receivable means? I have to receive, payable means I have to pay, means I have not received cash while selling the goods or giving the services, but it is payable or receivable as the case may be. So it is receivable, simple term. Accounting standard, accounting standard we are the regulator of the accounting, so we prepare the accounting standard applicable as Mr. Patak was telling that there should be separate accounting system for education institution, but you know accounting standard are prepared based on certain accounting principle. So those accounting standard are applicable as applicable to you under different scenario, but it is true and I think we have discussed with ministry also, not HRD, other ministry also, that any accounting standard applicable to a particular type of department should be made separate. So that whenever he you know understand and discuss the accounting standard, he will understand only those standard. In one accounting there are thousands of systems which are not applicable to you. So we'll see that accounting standard as applicable to education institution will be made available or will be called out from the accounting standard applicable so that you can easily understand those standard only. So standard means standard prescribed by the government of India, only one. Who can prescribe accounting? Bharat Sarkar, government of India. No state government can prescribe accounting standard. Whenever from account it comes, it is government of India. Government of India means ICI prepare, recommend, approve and submit to government of India to government and say okay go ahead. Or they amend something, it is amended. But ultimately it is approved by the government of India. It is not approved to government of India, then till then no separate account will be approved. The account is not prepared by Institute of Chartered Accounts of India will apply. Okay. Why standard is used? Can somebody tell? What is standard? Now accounting standard is the simplest thing which is you know which I think when you will see the lecture of Mr. Goyal and Banka, you will say it is very complicated. I'll request both of them to teach in a very simple manner. Yeah please. So I have one question. You have told about that every transaction has to be entered in the books of accounts. There should be an entry. But my experience is that there are many items which are not entered into the books of accounts also. There are institutes like IITs or Institutes of Higher Learning where they have many patents, copyrights etc. But they are not reflected in books of accounts. They carry the value. They are the assets. Those are the assets, copyrights and patents. So which accounting standard has been developed for incorporating the values of these patents and copyrights and what is the best way to depict it in the books of accounts? Actually what is happened? Again I told you anything which is earned you know that becomes your earning but anything which is earned as a asset and the enduring benefit available in future that becomes your asset. So for copyright, patent etc. etc. if you know you are not able to quantify in terms of money you take rupees one and specify it. If you incurred R&D expenditure on that patent etc. that will become your asset on that value. But if somebody is not accounting for because he is not following actual system of accounting. If he is following actual system of accounting then he has to account for each and every transaction under these specified heads. If you are creating R&D and you are creating an asset then you have to create that asset as a fictitious asset, as an intangible asset but as a asset. There are two types of asset. One is physical asset. One is tangible, one is intangible. There can be intangible asset also. So that is also clutch that there is also accounting standard. How to value, how to account for every standard there but I am telling what is standard. I am discussing standard with you. The standard is the simplest term in a man's life. Simplest term because in 33 years of my career I have not seen anything which I cannot understand the standard. The sun rises in the east. Sun rises in the east. Everybody knows. If it starts rising different east or like that. If everybody of us, one 33 members, you know, we used to wear pant shirt, okay.  Used to do something. Used to work something. And we say, somebody has to you know examine what is the standard of wearing of a man. Then say sir pant and shirt. Shirt may be full or half but it is pant and shirt. It becomes standard. Now somebody comes wearing a kurta pajama. It will be a division from the standard. The standard means a general layman having a basic conceptual, a normal level of knowledge will work in the manner. And the work in the manner will be acceptable to mass of the public. Means more than 90 percent, 95 percent or general layman. It becomes the standard. Standard. Yes, everybody drinks water after having food. They eat food. Lunch time is a day or two. It becomes standard. Lunch time is 30 days. What happened? So that night party is you know morning and then so it becomes division. What is standard? A general people are doing. If you are understanding a projection in a manner that suppose you are earning 10,000 rupees a month. How much you should expand? More than 10,000 or less than 10,000? If you spend more than 10,000 then standard will apply. Where you are going? More than 10,000. Oh my God, see. So there we have to, why you spend? Where you board the money? When you will recover? What will happen to you? Why so much question? Because you are deviated in the standard. So standard means the things which apply everybody or a common mass of general people. Whenever a person working in underground mine, he has to wear the helmet. It is a division. Okay? Because he has to go somewhere in such a situation. Somebody going hill areas he has to wear some different dress. Because there is a division. The country is not covered by all hill areas. You will not carry all the clothes to go hill areas. You will not carry all the clothes through the downward. So standard is very simple. So whenever accounting standard says, first accounting standard says that you should have accrual basis of accounting. What do you say? Accrual, why accrual basis accounting? Because at the year of end you must know how much is recovered, how much is payable. If you don't know and you carry the transaction year to year, you will send down the shop at one point of time. For government is not bothered because government you earn, you don't earn. As you have to run, it will be run by the government budget. They have to see government budgetary and all things. So standard applies to government of India, not to you. But in any of the general mode, standard means you must know at particular date what is your asset, what is your liability, how much you have earned, how much you have lost. The standard says, the basic principle says, you must carry on your activity. Like, today you are running institution, tomorrow you will also run. After three you will also run. After five years, otherwise you are entering the person for five year course and tomorrow you are not certain how you can enter a student for five year course. Means you assume that it will run for the years two together. The standard says that whatever you purchase, if it is not consumed this year, it becomes your asset because the benefit of it will be accrued to next year only. So suppose I purchase a set of ten crore and this year I do business of one crore only. I put all ten crore as expenditure. So nobody will give you the loan, fund etc. I will finish one year only. But say ten crore as a purchase and one year I will use only 7% of it, 70 lakhs this year. Then I justify yes. So you must account for the expenditure only to the extent matching the revenue or it will actually consume. It is a standard. Now what happens after two or three years, whatever asset is there, you debit all the expenditure. Then you will say, what happened to you? Now machine becomes obsolete. New machines came. Nobody is buying this equipment. Nobody is doing this transaction. So that becomes deviation. So we will say you have not followed the standard and deviation is because of this reason. So we will justify the transaction that standard in this case is not followed because of this reason. So wherever standard is applied, you have to see three things. Number one, whether standard has been followed? Yes, finished. If not followed, reason, why not followed? Quantification, if would have been followed, then what would have been the result? Suppose you are running 5 lakhs per year today. Now if you follow the standard, what would have been your income? Either 10 lakh or 2 lakh or what quantum effect of it. And then disclosure. Disclose means disclose right in the book. So either can understand. You vote upon the institution running very nicely. At one fine morning it has gone down. So they will understand because of these specified courses closed by the government of India. No permission granted. Nothing has taken place. All building machinery has become obsolete. Thereup it has to be written off. So that is why the expenditure has gone up. So this is the standard and deviation. So standard is a very simple thing. You understand every standard in a very simplicity, a simple manner. Standard both, it is very simple. Not following, what is the reason? So standard will come from your own heart. I have taken more time with standard because standard, there are only after this you will learn only standards only. What is one, what is two, what is three, what is the count of these only. So wherever I go and teach, standard is a very simplest thing as if I am making a simple accounting entry in the book. Only three things. If the standard you do not follow, you have to find what is the reason. If reason, then is reason is affected, how much amount and then disclose the book. Finish. That is the standard. Accounting unit. So suppose you in an institution you can have different accounting unit. Suppose separate budget is given. So separate department has to prepare separate account. Separate trial bank. So all department trial bank say one unit trial bank will consolidate one place. Account there can be one unit. So you can prepare for institution, unit-wise account also. So that will become your accounting unit. Accounting here, we discussed one accounting here. Accrual, again I discussed accrual. Accrual means recognition of all transactions in a particular period, particular year matching with that particular period. Accrual. Like I prepare the accounting for financial year, then till this financial year how much amount is due, how much account is recoverable, how much amount is payable, whatever transactions I have carried this year. All transactions should be valued, accounted for in such a manner that on a particular date at the end of the year, whether it is paid or not paid, whether accounted or not accounted, it should be accounted for on the value for which either it is payable or it is receivable. In case of a set, it is created at what value? In case of liability, it is created at what value? That is the accrual basis of accounting. Now what is different between you and me? Suppose somebody is not giving the fees, some students or you are not paid, not refunded certain money received to you or you have incurred the expenditure but not paid salary of certain people. You are not paid bills of certain expenditure. So in case accounting, you will account for only income and expenditure what is received but you will not account for the expenditure which already incurred but you didn't pay because bill didn't receive by you or don't pay because you don't have the money or don't pay because your accountant has not verified the bill or don't pay because the officer says no, no, no, I will take time, let him come to me. As he said, I will not pay this big amount, let him discuss. There may be 1,000 these are. Liability and action, what is happening? If these are not cleared or these are not paid or received, how these are cleared? Clear. Clear means suppose a simple example, you take only one example and then make your mind complete work. Simple example, suppose you have done 12 months work in the IIT, okay, 12 month IIT, okay. Now you have to pay, your salary is 1 lakh per year. So total salary payable due for this year is 12 lakh, not 12 lakh. If IIT does not pay me for 1 month. You does not pay for 1 month. So what I will say, I will make an entry, salary account debit due to salary has to be 12 lakh for this year. Salary account debit to you because it is payable to you. And if IIT does not clear for years together for how many years that should be carried? No, not so many. It will remain as liability. You have to pay. If you do not pay, that is a legal issue. If you do not pay, that is your legal issue. You do not have money. Is there any standard for clearance of that also? Standard is if any liability is not cleared within the period of 3 years. Or any current non-payment has been for 3 or 1 year, then auditor or the management can examine that issue whether it is really payable or not. Whether it was really payable or not, whether there is a claim against you, whether you have not performed well, whether you have to make deduction or whether it was not payable wrongly accounted for. No, wrongly it was not wrongly accounted for. No, but there can be situation. There can be situation when suppose you did not come 1 month or you came all half an hour and there is a complaint against you. So it was not payable as per law because there is a complaint and you didn't do it in full time. Suppose somebody is coming for a whole of the year. He is not paid. There is no example. I am not saying that. I go to question. Your question is suppose it is accounted for not paid. Not paid we don't have rule. Because that is the entity business rule. That is the business has to do. Because the institute or accounting but does not run the business. You don't pay, you will file suit against you, file suit. Then court will tell you to pay with interest. Now court has ordered that you have to pay within 1 month otherwise you have to pay interest. Accountant will say if you are not paid you again credit interest. So we will make entry interest credit to you also. That will do. But we cannot compel. The standard cannot compel you should pay in 2 months. If you are not paid in 1 year you have to disclose non-current liability. It is not a current. It is non-current. So that people should know this much because non-current liability has not been paid within 12 months. That standards are coming. But we cannot say you are not paid. Or if it is not payable you reverse it. Or auditor will qualify and report this amount due from long period is not paid. My question is that after how much time that should be revert back. So much time not paid that management and you have to decide. Law says income tax department will what income tax will do. Whatever you want not paid after 3 years he will treat as your income. Because liability income one side. So it will treat income. He will put tax on you. And accounting people auditing will report in the books they are not paying. But if either the receivable or the payable person has to you know put claim or file a suit against you in the legal court. Okay. Accurate basis of accounting you have discussed accrued and due. Accrued and due means on 31st March you have done some work. And the amount was also payable on 31st March. It becomes accrued and due. Suppose your salary or I have given you services for accounting. I have prepared account of 31st March. But my amount was also payable at the end of the month. But at end of month it means account accrued and due. Interest in the bank you borrow the money. So interest is payable on 31st March. So accrued and due is not paid. But interest is not due. So it is accrued and due. Accrued but not due. Suppose interest up to 31st March payable in April by 15th. So it is accrued but not due. So the people should know that certain amount which was accrued and due payable you are not paid. But other thing means accrued but not due. It was not payable I have not paid I have not committed a mistake. So accrued and due and accrued not due we have concept has come. Sir all transactions they are qualified by the documents supporting documents. Now the in case of procurement of assets suppose a purchase order is issued. So purchase order is nothing but it is document. So a commitment is made along with the purchase order a commitment is made. Now suppose the purchase order is issued but the payment is not made by 31st March. Neither the goods are paid. Now how do we exhibit this this account is means basically what happened what is the transaction you and your very good question what is the transaction you had committed a liability what transaction you have committed a liability will purchase this and you pay it. But since asset has not come you cannot account for it. You cannot account for it. But you have to show in the notes along with the account that this much amount is committed by me as liability. Means ultimately I have given the purchase order and in future if somebody read my books he must understand that already he has given order for 10 lakh rupees to purchase he is having banked 5 lakh rupees. So I will not make him transaction. So you will show in the books as committed liability. So commitments made as on 31st March not materialized and also no transaction has been taken place. No asset has come or no revenue has earned or no transaction taken place then it will be a committed liability and will be shown in the books of account as contingent liability under committed liability. Now we are discussing accounting standards and there I notice that a significant aspect which needs to be covered here. Maybe you have already planned it or not. That is the disclosure. Disclosure is gaining significance from as accounting standards are coming in practice. Conventionally we were not disclosing normal disclosures that we have now accounting policy or through notes on accounts. Even that is a new phenomena that has been added to the accounts. Now in view of the accounting standards we are required to disclose a number of aspects. There are several disclosures that are to be made. But there is no standard language and the people who are dealing with accounts usually do not have an idea of the extent to which disclosures to be made or what language to be used or how just how go about disclosing. There are general accounting principles. Whenever you prepare account there are general accounting principles and general accounting principle cover all these things. Whenever you have a general accounting principle applicable applicable to all. This simple accounting principle if you have committed a liability you should show in the notes on account. Every accounting will say you. If you entered into a transaction, transaction means you started a dialogue and that has created a liability on you. Suppose tomorrow you given a purchase order and you don't purchase. Then say if not purchase then you have to pay 1 lakh at damages. So liability has come on you. So that is a general accounting principle and all standard if not you know specified for a particular thing. It applicable to you also to the extent applicable. So whatever standard made applicable that system are discussing is that for a specific account whatever standard applicable should be carved out in a manner that they can read at one place all the standard. That system is coming. So that system when comes then you will be facilitating at one place everything. Otherwise general accounting applicable whatever account should be taken in the book. They all are applicable. When actual accounting now certain transactions you are not carrying like stock and trade. So institutions will not have a stock and trade because they are not trading unit for trading but you may have books to purchase and sale sometime. So that will cover in the trading unit also. Some are applicable to manufacturing you are not manufacturing. So those part will not be applicable to you. That is like that only. So you have to understand only basic principle basic system that whatever applicable to a institution as a matter of general practice the layman thinking you will see yes it should be applicable. So my query is probably my query is slightly different what I was trying to make out of was that in case of deviation from standards we are required to quantify and disclose. That disclosure is sometimes it is to be in the form of foot note sometimes to be in the say accounting policy sometimes it is in the notes and accounts. That is notes and account whenever there are now the new format which has come from companies that we are making applicable to everybody. So there has to be a annexure to the balance sheet attached. You understand annexure only with note in different language is a part of finance statement. Notes on account the notes on account will be compulsorily there. Whatever note available in the because in balance sheet you cannot write lot of things. So you can refer note number this you can put it is already standard practice to prepare account. It is standard practice also. And what about accounting policy I mean just as I said you are not preparing in Jamia. I am preparing accounting policy accounting policy notes everything is applicable. Everything is there but as you just mentioned that in case there is any deviation from accounting status. You are not reporting. Yes. That should report. That disclosure because you are not reporting because you are not following accurate basis of accounting Jamia Nushti. You are following cash system of accounting. No. You are following accurate basis of accounting. Yes. We are strictly following a approval system of accounting. Accrual system of accounting I mean accrual our accounts are made on accrual system and the balance sheet that we the format that we have that is. No, no, no there is a accurate basis of accounting there cannot be a situation where the division is not reported. It has to be there. Otherwise there is no division. I do not understand but there can be no division. What I was asking that the just now you mentioned that accounting standards when there is any deviation the deviation is to be quantified and to be disclosed. That area is gaining significance and often we are faced with a problem that the disclosure part. Is not doing. No, no disclosure how that deviation is to be disclosed. The language for disclosure or the standard I was trying to make out that this should be adequately discussed, covered by in your lecture. No, that would be because next lecture I am going to explain you why this is not applicable to all the students. They will also tell you this standard applicable if not applied how to disclose. How to quantify. They will tell you everything. As far as Jamath accounts are concerned available on Jamath website and there is adequate disclosure. You may anybody can visit the site and see it. Accumulated depreciation Accumulated depreciation because on asset. Hello sir, I am from the North Eastern Hill University. I have encountered problem about the unclaimed checks these last 2 years. Unclaimed checks means checks not presented before the bank. So can these checks, can these these amounts be credited back can they be credited back into our asset and then can the liability also be provided again. I think it cannot be done because it will be repeating the expenditure of the previous previous years. Though audit is insisting that these should be credited back unclaimed checks. Unclaimed tax. Unclaimed checks. Payment made but not claimed. I understand that is the problem of every student. Because you prepare the check for every payment even 25 rupees you pay to convince from this room to that room to the professor. You go to take a lecture from this room to that room you pay him the convince. Every lecture every class etc. Special lecture you are paying the local convince.  And the number one by the vendor in one situation and sometimes some checks are taken by them they are not depositing the account and in third cases when they are depositing the account sometime they are time barred sometime they are you know outdated check etc. In that case what you should do whatever checks remain unclaimed and the due date means the date by which the validity date of check is expired ok. Those checks particularly you should you should arrive at in different manner that these are the complete checks you know unclaimed check and that liability should be shown separately in the bank reconsider statement. What is happening? You are issuing the check you are creating the bank. Bank balance is reduced but on the other side you should increase the bank balance and take the liability against the unclaimed checks. That will create that will make your issue easy because whenever they will go to bank they will not be in case because the validity of the check is expired. When validity of the check is expired then it will it will come to you again. So you can see style check. You can say keep a separate hand under liability style check. Payable payable and bank balance you can increase. That is permissible because you cannot credit style checks you have to carry till it is not written off finally otherwise you have to assess again and three year period is expired and after three year no claim is there then you can credit that check in your income side or reverse the expenditure whatever it is. Hello one question sir. Actually generally in educational institution we are maintaining for accounting purpose we are maintaining financial year but for admission purpose we are maintaining account year June to July. So we are collecting admission fee for the whole year that is from June to July and how we will treat this admission fee in two how we adjust this in two years. Otherwise I will tell you one simple system because in educational system there is a standard system accounting is already prescribed that whenever you account for a particular fees receipt for a particular session there are two methods of accounting one way you can segregate the fees by period and say accrued income not accrued but not due or income not accrued or un-earned income if receipt accrued not due if amount received then un-earned income un-earned income un-earned income number one No no not earned you have received the income not earned you will earn only when you will provide the service there is a difference between receipt and earning if you receive the income but you have not earned you will earn only when you will give the expenditure again that suppose I have given you to you have given me 10000 to teach up to December 2015 so 2015 means every month 1500 water come so it is not it is received but not earned by me it will be earned only when I finish the last lecture so the difference is earned and received number one number two you can go by accounting policy there can be accounting policy that the institution the admission fees received will be treated as the income in the receipt of the year so that accounting policy will suffice because that is a continuing accounting policy that will not have effect in the further years you are following a policy year to year and you eject quantum and eject classification of that may not be giving a justice to the accounting when you are seeing any income where you are confirm that a classification of the income from one year to other will not give a justice you may have the accounting policy that this income will be accountable in the receipt year all two methods are there but you have to disclose the accounting principle but basic accounting principle says it should be segregated in the manner that income earned and income not earned that way it is the basic principle so it will go by fees wise some examination fees you take fees taken for forgery exams held in my that can be the criteria that is the regular system in that case only you have to go by the accounting system and accounting policy that is the only thing there are certain fees which we received for three years also in that situation that has to be segregated 100% like affiliation fees affiliation fees is not three years there cannot be applicable for three years affiliation fees affiliation fees is definitely three years affiliation you have to divide it three years nobody can do it four years five years it is lapse of one month two months coming year to year that can be covered by accounting policy okay


Okay, so we have talking for the next 30 minutes, Alan Stevo, who is the chief of staff at Kraken Exchange, which supports Monero and we have a strong relationship with, and he is also the author of the Bitcoin Manifesto book. So let's give a hand for Alan Stevo, please. Now, when you zoom the microphone out, when you zoom the microscope out a little, a New York apartment building and a Moroccan rural village, they share the same internet challenges. This would be inefficient methods of distribution across the last mile. And an idea, an idea that we have come up with is to address this inefficiency, to provide greater internet availability than user. And this presentation is going to discuss the concept of micropayments with strong privacy protections that address these challenges. And the challenges, the solutions we're talking about would make the question of who can thank you for that shush back there. We have such a rowdy, full group here. It's amazing. The idea for this came out of a series of discussions with Peter Runyon, who along with me is available to speak further about the idea afterwards, if you may be so inclined. Today, I'm going to present to you a draft from a white paper that we are working on how to deliver internet access across the last mile to users globally. Now, to contextualize this, if you turn on antenna, everyone in this room knows this. If you turn on antenna or phone or computer in many urban areas around the developed world, and even in undeveloped areas, it's going to show you 30, maybe 40 accessible and publicly identifiable routers. Then there may be other routers that are not publicly identifiable. And very few of these routers reach their capacity each month on their bandwidth allocation. Now, how many people here, how many people show of hands, please, a little audience participation? How many people have utility service in their homes? Water, gas? Some people are not raising their hands. Maybe they do not have utilities. Maybe they are shy. And how many people have internet access in their homes? I am not trying to social engineer you. Thank you. Thank you. Now, setting up monthly internet in a home or office is just something people do. And it's considered a cost of living on your own. It's a necessary utility. Just like having electricity and gas. And electricity and gas are paid for in units rather than as a flat fee. Now, internet users tend to pay with a flat fee. So there's a flat fee for monthly internet. And this is closer to a wholesale model, I would argue, than how electricity and natural gas service are handled. And there's an opportunity to make it a little bit more retail. And I think that there's incentive for people to do good. There is incentive for profit. And there's incentive to spread the internet further through local networks. Some that do not yet exist. It's often because of a lack of communication between neighbors that this situation can even exist. And if a technology existed that enabled and proved communication among neighbors on this topic, then a marketplace would immediately form. So there's an issue of communication here. And a little software, a little software in the middle can help neighbors communicate with each other better. It can help with a communal aspect of sharing the resources we have if we so desired to, if we felt so incentivized to. I'd like to go through a few of the problems. Because there's more of a wholesale environment than a retail environment, I'd like to go through a few of the problems that that seemingly simple zoomed out microscope view creates. And in addition to access to food, water, and shelter, to be part of the global economy, you need information. And how do you empower people with that information, with that access? And it's through the internet. And internet service is of poor quality and expensive in many areas of the globe. And internet service often does not easily reach the users who want it without significant infrastructure challenges. And we've addressed a few topics as they relate to developing nations. Also, developed nations have some other concerns also shared by some developing nations. This would be ISP throttling, where large enough adoption of a software like the one we describe would allow people to assert direct file transfer without the risk of information being slowed by someone who might disagree with the information being transferred. There's privacy concerns. There's the certainty related to that first. There's that certainty that the information is going to arrive at its intended destination. There's government interference, of course, in determining who has access to one information. And users most often agree to one month or longer contracts rather than bite-sized chunks. And in a developed world, many users will end up using five or 10 gigabytes of internet a month. There's a tremendous amount of room here for software that would encourage some of that excess capacity to be utilized. And to summarize this problem in one sentence, there's residential internet usage continues to exist in a wholesale environment rather than a retail environment. With the consideration the internet has the ability to change the world bringing education and work and a world economy to every person in every corner of the globe who wants it. But we'll have a very hard time doing it if it cannot reach every corner of the globe. On this topic, the words of William Gibson from the early 1990s remain true. The future is already here. It's just not very evenly distributed. Our proposal is a software system to enable a sharing economy for internet usage among people who do not already know each other. And to take this software and to combine it with a useful payment system that would ensure privacy, like Monero, is how we envision that. The software to enable better communication and privacy combined with an ability for users to pay for services they've received, for value they have gotten, and an ability for providers to obtain payment for the value they have provided others. Now expected outcomes of this are places where people want Wi-Fi, are going to have Wi-Fi. And this will simply be an impact of creating a market environment here through software like this. It doesn't have to be more complicated than simply incentivizing. I believe places where people don't want Wi-Fi will not have Wi-Fi. That's another consequence, I believe. This transition will be incentivized to take place virtually overnight in some places. The infrastructure largely exists already. The cost will be very low for Wi-Fi customers under this model. In the market environment without centralization, without regulation, users who desire privacy will incentivize providers to give them the privacy they desire. There will be competition among providers for how to satisfy a consumer. Two networks will consequently form most likely. There will be flow of information through the ISPs. This will be one type of network. There will be a second peer-to-peer network that will likely form where no one is going to want a sensor. There will be no incentive for anyone to want to sensor what you do across that peer-to-peer network. And on top of that, we're likely to see additional applications built. Now, governments take it upon themselves to perform an array of social good. And many voters expect that behavior. Non-profits pick up the slack when possible. Many find it impossible to imagine a world any differently than that. The truth is that the vast amount of social good, I think many in this room would agree if we discussed the vast amount of social good and cooperation among strangers, takes part in a market environment, motivated by profit. It's how we get our food. It's how we get our clothes. And in almost all situations, it's how we get our shelter. It's how we get cars, leisure, and technology. And true to this principle, our system will incentivize internet node holders to deliver the internet that last mile. Who here has used couch surfing before? Please raise your hand if you've used couch surfing. Cool. A few people I've used couch surfing. I love it. How many people in this room have used Airbnb? More people. More people. I use Airbnb. I love it. And there's a difference there. There's a difference in between couch surfing and Airbnb. And there's really neat models out there for providing internet. There's LibreMesh right now, for example. Really cool concept for how to provide internet that last mile. And I think the difference there is perhaps comparable to couch surfing and Airbnb, if you compare LibreMesh to what I'm discussing here. That the ideal is to incentivize the provider. Some retailers exist already, such as Boingo would be an example like that. They provide mobile access to consumers using wireless devices, but there's much more potential here if the software existed for that potential to exist. And there's several impacts of that kind of software I'd like to point to for a moment or two. What would be an example of a network of peers? So the network will eventually connect nodes outside the ISP. So one way to transfer information will be across the network, peer to peer through wireless connections between nodes, as I described. This will have profound implications that there's no central source to throttle internet communication. Internet through producers fighting with each other, there's the idea that free internet, free internet is what we need. And I don't believe free internet is realistic because of the amount of effort that goes into creating internet access for someone. But it's entirely plausible to imagine nearly free internet. It's entirely plausible to imagine a network that spans the globe and provides nearly free internet. And not nearly free internet that someone is going to extract your data from and make you the product. But really, truly free internet where you have a private presence on that network. Anyone of course who offers free internet should be looked at suspiciously in this era. Certainly everyone in this room understands that, you know, what's wrong with the quality or how many advertisements will I see or who's my data going to be exposed to? And I believe with the technology like this, we're done with the idea of everyone paying 50 to 80 dollars a month for home internet service with virtually no options available in some areas in terms of competition. Now a few use cases, a few use cases here, a residential apartment building in New York City for example, maybe not the most attractive use case to begin with, but one that is perhaps readily accessible in that you have a three to six unit building, you can end up in a situation where people are paying maybe 15 or 20 dollars a month by simply communicating with each other, by simply sharing the internet resources they have. This would be kind of a nice advantage, it's not groundbreaking, it's not that impressive, but it's a small change, right?  But to imagine where that can go as you make internet available, as you encourage someone to create a node around their home, as you encourage someone who lives near Times Square perhaps to create a node, and what that suddenly means for internet usage in a public space, and what that competition means is we suddenly enter into a place like New York City where we suddenly have 10,000 or 20,000 people becoming an ISP effectively, and what that could mean to the marketplace, how disruptive it could be, and how sad, how sad the telecommunications companies might be when an individual suddenly has a little bit more leverage against them. Another example might be a rural US downtown, you know, we can imagine that for three years the mayor has been promising in a rural US downtown that he's going to try to get Wi-Fi in an upstate New York area, and he's not feeling motivated, so Jane who owns the coffee shop makes sure that her Wi-Fi is up and running whenever a customer wants to use it, but Jane also doesn't feel incredibly motivated about it, and she lets it go down from time to time. Jane implements her software by the end of May, perhaps Jane ends up with 80 new people paying $5 to $10 a month for a little bit of internet access here and there when they're visiting, and they have reliable internet access, they have faster internet access, because Jane making maybe $500 a month now suddenly has a new source of revenue, and suddenly has an incentive to make sure that internet is great, so she hires a local college student to come by and look at the router every two weeks, maybe she pays him $75 a month, she's still making profit, and gives them a few free coffees. Here it becomes a little bit more interesting where we're building more access for people who do not have access, and couch surfing once, I had the pleasure of staying with a gentleman in his family in Morocco, and theirs was the last town right before the Atlas Mountains, and his father was, I don't know, maybe 70 years old and blind, and he was the man who went to go into the mosque to announce the call for prayer five times a day, and this gentleman, Muhammad, he ran a little kiosk where he'd sell these Made in China phone cases, and Muhammad would be a perfect example for me of where this technology would suddenly begin to make a real difference, because around his phone case store there was kind of a buzz, people would come around and hang out around there, it was a place to be, imagining him having the capacity to sell internet access more easily, 24 hours a day perhaps, I can imagine the comparison of wells being built, wells being built in villages, and how the water moves out in various channels from that well, for profit and more altruistically, similarly if an internet connection were set up in a village and allowed to information to be meshed out from that central location, or we might have a different kind of example, perhaps we're not going to go to Morocco, but a place like Bratislava Slovakia where we have Daniel who works in his office from 9am to 8pm each week, and his neighbor Julia runs internet marketing design firm out of her office 500 feet away, and the bulk of her internet usage is during the day, and he never uses the internet during the day, he only needs it during the night and she never needs it at night, here there's comparable uses, and perhaps there are 20 neighbors who might have a similar use in that area, now there's functionality to this idea that would be attractive, one example might be a public bidding system, does anyone have any familiarity with cryptocurrency in this room, raise your hand if you've, cool, a few people, a few people, I am not trying to social engineer you once again, who knows Bitfinex, who's heard of Bitfinex, same people awesome, now when someone's trading stocks or other instruments, there can be a need for the person to have access to instant credit, the same with crypto, you might have an opportunity where you need to immediately buy something, and if you're relying on the, let's say the US banking system, can I get a boo for the US banking system, if you're relying on the US banking system, boo, come on, let's hear it, boo, or maybe you love it, let's hear it, if you love it, let's hear it, silence, silence, okay, if you're relying on the US banking system, maybe you end up with two to five days waiting for money to move around, which is incredibly, can be incredibly frustrating dealing with these choke points, and in crypto, there's kind of some other neat solutions that are arising, in Bitfinex, on Bitfinex for example, there's a peer-to-peer credit system on the exchange, so because the peer-to-peer nature of this marketplace, there's no set official price deemed appropriate by a centralized body, no one is saying credit on the exchange costs this much, the price of money, the price of money is another word for interest, is at a moving price on that exchange, so when Bitcoin moves quickly or another crypto, it tends to increase the demand for quick money on the exchange, consequently the price of money moves up, again the price of money is interest, and this has the effect of preventing a shortage by incentivizing lenders to enter the marketplace who wouldn't have lent money at a lower rate, which makes perfect sense, and this market dynamic in which individuals lend to individuals has a very powerful role in providing for the needs of the individual in the marketplace and is a smart decentralized and arguably old-fashioned method in our era, this is an old-fashioned way to make sure crypto functions well, this old-fashioned method is simply letting people interact with each other, that's it, and Bitfinexa software allows people to interact with each other, and what is what's innovative is that it allows a trader, right, it's not just these two gentlemen who've walked in who know each other already, perhaps allowing them to interact with each other, Bitfinexa software allows, you know, arguably a trader in Nairobi with funds to lend on the exchange, and a trader in Tokyo who might be short funds at a given moment, they're able to do business with each other, one is able to lend to another, though those two may have no interaction with each other, though those two will never need to know each other, the software allows that ability, and for those who've just entered, I'm discussing a software that can kind of introduce an Airbnb idea to the last mile of internet service, a software that can incentivize someone to provide internet service to retail users, and similar to Bitfinexa, our internet protocol would, you know, there may be times, there may be times where it may cost one one-hundredth of a cent per gigabyte to purchase on our software, maybe that's how a provider sets it up, other times it may cost ten cents, or maybe it's twenty cents a gigabyte, maybe forty cents, and maybe you have information that you need so desperately at that moment that you will pay forty cents at that moment of high traffic, and when the price goes up it incentivizes more people into that marketplace, more providers into that marketplace, like Bitfinexa, the software is suddenly allowing people who do not have contact with each other to do business with each other, to provide for one another. Another aspect of the software that would be ideal is the ability to connect several nodes at once, and for a large data upload, if you could connect not to just one node and be throttled, but connect to forty nodes perhaps, your data upload might quickly be handled, or if one of the nodes were to go down you wouldn't have to be too reliant on it, there would be redundancy in the network with a quick ability to switch nodes. Another ideal might be a calendar system where a user, many users, perhaps a tourist or a business traveler or someone running errands around the city, they might need internet just for a moment or two, but other users might want some stability, and the idea that this gentleman here might sell this gentleman here, internet provisions for three years or two months to ensure some stability, that might be advantageous, this would even invite what farmers might do, farmers to protect themselves, they set up an insurance policy, for five or ten percent of the price they're cropped they can set up an insurance policy commonly known as futures today, a futures contract, and this might invite futures contracts for the price of internet, increasing the ability for low prices to be discovered in all likelihood. Here very attractive to us is that this might enable charity, this network, and a person who believes in free wi-fi for all can simply fund and run a wireless router with no password on it, and that person would be sharing their internet with anyone who identifies that open node and the internet connection could also be shared with a plethora of bad actors and that individual might be put at risk in a variety of ways at the same time, it might be hard for them to segregate or limit traffic, it might be hard for them to even figure out who is on the internet, which isn't necessary, but perhaps they might want to, I don't know, but it's the hope of the authors of this white paper that will inspire people who believe in free internet for all not to turn to government for the solution, because government has failed us repeatedly on this issue, and I promise you, I promise you, government will continue to fail us on this issue. Our system, we hope, will provide incentive for someone to privately fund charitable gifts of free internet for all. We believe that with our idea this can finally become a reality, this would bring us tremendous joy, and that it be done with recognition of how to effectively do well in a local environment. Western gifts of charity to Africa for some time have been derided as being detrimental to a local economy. If the US government suddenly dumps three years worth of corn on the African economy for three years, it will destroy the local farming economy. This is sometimes done with no regard for the local economy. We believe that we can help, through the proper software, we can help charitable giving in local economies of internet service to be done in a way that's more localized and more in line with what the local economy might need, more committed to a local economy. Billing is important for the idea. Now the greatest promise of micro payment technology exists in the realm of cryptocurrency in areas where KYC laws do not apply. Please raise your hand if you understand the term KYC. Okay, maybe half the room. When you open a bank account, you're asked for your ID, you're asked for your address, you may be asked for quite a bit of information, depending on what jurisdiction you open a bank account in. This is a know your customer. KYC is a know your customer law. Now the know your customer laws, they put a considerable amount of compliance, legal regulatory overhead onto payments. It's been estimated, it's been estimated that a PayPal transaction, so a PayPal transaction is free. It's virtually free for me to give any of you guys money by PayPal. PayPal is really a tremendous system. PayPal could be used to beat cryptocurrency many times over in cryptocurrency's current state, except PayPal has KYC. PayPal spends an estimated 25 to 30 cents per transaction on KYC. PayPal duplicates and goes beyond in some situations banking laws so that PayPal can entirely cut people out of an economy. It's disgusting what PayPal does. Fed up with this enough. A few cipher punks, knowledgeable about economics, said maybe there's a better solution out there. And we've arrived at Bitcoin. We've arrived at Monero. We've arrived at currency that's very hard to censor. Beautifully, if we can combine that technology with this idea, we arrive at internet that's very hard to censor. This inspires me beyond belief that that is possible, that we can have internet that is not able to be censored. And I believe it can be done with a high level of quality, if there's a profit motive involved. Now as the nodes of this network establish a reliable connection and reliable customers, they'll begin to reliably understand their income, their income potential. And they'll begin to invest. They'll begin to invest more and more on that potential. There'll be some people who do it as a hobby. Some people will do it as a business. And others are going to seek to try to provide a more robust network. The way the economy around internet provision has been structured to date is very siloed and prevents a great deal of competition. And I believe this will be a method of breaking up that siloing and introducing a great deal of competition. I'd like to thank you so much for your time right now. If anyone has questions, I'm going to stick around. If anyone has feedback to give me, I'm going to stick around. I'd really love to hear it again. Pete Runyon who's thought through this with me as well in the back there would also love to hear this. Thank you so much for your time. If you want, I'd be happy to. Okay, thank you so much, Alan. We have time for about two questions before I proceed. Does anyone have any questions for Alan? None? You covered everything during the talk? Okay, one here. Hi, thanks for the talk. I guess I'm trying to connect what you've just presented with your day job at Kraken. I'm guessing that has to do with globalization and seeking out coding talent throughout the world even if they don't happen to have super good internet. Is it something like that? So I'm here today totally on my own. No connection to Kraken. Kraken has no interest in this project. It is 100% a suggestion that felt like it fit this venue. But I can talk more. Anyone want to talk about becoming a developer at Kraken or local talent at Kraken? I'll talk about that all day too because I think we're going to do really awesome things and we're looking for people to be on the team. Excellent. One more. One over here. Thank you. I enjoyed your talk. I was thinking about how do you envision you would purchase like parcels of internet? Would it be beforehand or could you do it like per bit? Or what's the right sized lump of internet to buy? I guess that's my question. Yeah, this is such a good question. So like from the 1920s to like the 1980s, there was one cell one one telephone provider in the United States that was allowed effectively was AT&T. There were some that's not 100% true, but it's almost totally true where you only have one one option and you would have the Harvard economists and you would have the the PhDs on the news and the government PhDs and they would say they would say there's only one way to do any utility. It's natural monopoly theory and they would teach it in colleges and they would say there's no room for competition in here.  This is insane. And the people who believed in a marketplace who said, hey, there's these all these other times where marketplace functioned and it really benefited the consumer. It really benefits society, arguably. And the the PhDs would say you're going to destroy everything and the the person arguing for for marketplace would would say, you know, would have no real answer of how that marketplace might look like. It's impossible to know. And they would say, what, you want three telephone lines down every street? You want three buttons on every phone?  Well, I don't know. Maybe it will be three telephone lines on every down every street. Once once that once that monopoly came to an end, you know, it was almost 40 years of everyone in the same household in the US practically had the same telephone, right? You had you had you could have black, you could have cream, you could have like this pinkish color, but almost everyone had the exact same technology. And if you connected some technology that you bought in Japan, the phone company might find you for for trying to ruin the phone lines. So like there is tremendous pushback about any little inkling of competition. That's like 40 years of American technology. Then you end up, you end up, it took 27 years to go from to go from end of monopoly to viable supercomputer in your pocket marketplace profit making supercomputer in your pocket with the iPhone in 2007. And this is a true testament to what the marketplace can accomplish. If it's just allowed, if all that happens is for consumer, you and entrepreneur, you to be able to interact with each other in the marketplace, but you may never have met each other before. This is beautiful. So you ask me a question that I have no answer to. And the important thing, the important thing is that the marketplace will solve this. And I bet I bet there's going to be 10 people doing one thing and 10 people doing another and it being figured out. And importantly, importantly, when you hear people speak about Monero today, Monero is a great example because it's become the boogeyman of cryptocurrency. That's where all the bad criminals have gone to now. When you hear people speaking about this, you will notice, you will notice the, the PhDs from Harvard, the government PhDs saying the exact same thing they said in the 70s saying there's no room for competition. If you introduce competition to national currencies, you're going to ruin it all. And it sounds real familiar to me. And I know what happens. I know what happens 27 years after you introduce that competition. You don't even recognize what the future looks like. It's beautiful. Thank you for your question so much. All right. Let's give another hand for Alan again.


Hey guys, it's Elizabeth from the why do we have snot episode here to explain how I made the fake snot in the video and why it looks so real So you take half a cup of boiling water You can just use the microwave you take it off the heat So it's not scalding and you add about three packets of gelatin now You might have to play around with this amount I did But you gently stir it so that the gelatin powder can soften a bit in the water And this is really important because here the water molecules are actually binding to the gelatin now if it's super hot Let it sit and cool for just a minute and then add a quarter cup of light corn syrup Stir with a fork to watch the magic or the grossness happen Now in the other video I talked about how real snot is made up of proteins called musins Those are the guys in orange with a bunch of sugars branching off of it guys in black Now gelatin is also a protein. It's not musin But it is a protein and when you add water to it those water molecules end up cross-linking all Of the gelatin together like this now. You don't want the water scalding Otherwise, it'll break or denature the proteins, but that's why you want to stir the gelatin in very well Corn syrup is literally sugar. So when you add that to the mix, you're getting something That's pretty similar to me just both molecularly and visually If you decide to try this recipe out try tweaking some of the elements like how much of the ingredients you use or maybe try using Jello instead of plain gelatin and let me know how it goes in the comments below Leave your stories links pictures videos And if you have any questions about snot or the awesome related research that's happening at MIT Leave those in the comments as well


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