Good morning class. In the last class we had completed almost the substantive portion of financial accounting and when we began this course I had clearly mentioned that there will be two parts in accounting that I will be handling. One is financial accounting and the next one is management accounting. So we would be entering into sessions related to management accounting and before I venture to do that I would like to quickly summarize and give you a snapshot that will capture the basic essence of financial accounting for the benefit of those who could not attend to some of the previous sessions. And also I had already told you that the purpose of this entire course is to enable you to intellectually engage in a conversation that has got something to do with financial accounting in some form whether it is a balance sheet or an income statement or some terminology is used in financial accounting. With that perspective also before I spend some time on management accounting I thought I will quickly provide a quick summary of all those important topics that we dealt in financial accounting. The very purpose of accounting as I said before was to collect information and for collecting the information we have to identify what type of information is relevant record that information and communicate in a way that it is best understood by the end user group. The financial accounting is one form of accounting where we identify, measure and communicate all sets of activities that happen within any entity and in the process try to create financial statements, a balance sheet, an income statement and a cash flow statement all three independently conveying some sense on the way in which the organization is functioning. And the reason that we do this is essentially to capture information because the purpose of accounting by enlarge is to capture information and communicate it in a way that it is understood uniformly by any end user for various decision making. So I had already explained the two major forms of accounting and we will be spending some time on understanding the difference between these two types of accounting namely the financial and management accounting. As I said before I will be just quickly providing you a summary of what financial accounting is all about. Financial accounting is as I told you before it tries to identify, measure and communicate in monetary terms all relevant activities of an entity and hence it becomes the language of business. And since it is identified as the language of business there must be some syntax, some nomenclature that makes it uniform as a result of which a balance sheet is interpreted the same way given all things being equal in India or in the US or in Europe wherever you are. Geography is disappearing there is a common syntax that is followed for the purpose of understanding these financial statement as a result of which financial accounting is popularly called the language of business. Now when it comes to following a uniform syntax it means that there must be some set of principles which form the underlying basis on which these three requirements of identifying, measuring and communicating in monetary terms these activities have to be done. So the language of business or financial accounting has basically eleven accounting principles and these principles form the underlying basis on which the entire accounting concept rests. The first one would be the money measurement concept, principles or concepts I would rather use the word concepts. The money measurement concept is the fundamental requirement that governs accounting principles which means that all the activities that happen within a given entity that needs to be recorded has to be expressed in some monetary terms. It does not make sense to record that an entity has 3 tons of inventory, 20,000 square feet of building and that does not show up as 20,000 square feet and 3 tons of inventory in your balance sheet and even if it shows up it does not really make any financial sense it makes some sense but then for the purpose of balance sheet it does not make any sense. Now the money measurement concept is one that enables or necessitates that all the activities that are required to be communicated needs to be expressed in monetary terms and the type of activity that happens in an organization is very diverse. So for all these heterogeneous activities you need one homogenous identity and this homogenous identity is the expression of all these activities in monetary terms. In short all these heterogeneous activities need to be identified in monetary terms, it has to be monetized. So a 20,000 square feet of building needs to be expressed as 2 crore rupees in value. 3 tons of inventory needs to be expressed as some value in rupees and only when all these activities get monetized and expressed in monetary terms it makes financial sense when these sit either in the balance sheet or the income statement. So that is the first fundamental concept based on which the accounting principles are framed. The second one is the entity concept. The entity concept clearly draws a line differentiating the owner or the individual who run the company as against the entity itself and I gave you a very simple example when as a owner if I take some money from the entity it does not mean that I have to be oblivious to this activity. Though I am the owner the fact that I take money from the entity needs to be recorded as an accounting information because the owner is different from the entity. So the entity concept clearly differentiates the owner of the firm from the firm itself and you need to appreciate that because at times people think that the owners and the firms are one and the same but from an accounting perspective they are entirely two different entities. One is the firm the other is the owner of the firm which is who is totally different from the entity itself. The third assumption is the going concern concept. The third concept is the going concern concept. As the name suggests the going concern concept is one that believes that any entity for which we are recording all this information is assumed to exist for a perpetual period of time. Now this is a fundamental assumption that is reasonably valid because we are trying to understand the principles of accounting for entities that are assumed to exist forever. So a going concern concept justifiably assumes that any entity exists for a perpetual period of time. It is not that it is going to start today and going to wind up business in two months from now but of course there are some operations which have shorter durations and still these concepts are applicable for those but then we will deal it in a different way. A majority of the accounting information that is collated for various entities however assumes that such entities exist for a perpetual period of time. The fourth concept is the cost concept which we discussed at length when we actually had discussions on balance sheet depreciation when activities relating to acquiring new assets were discussed. The fundamental assumption is that the cost concept records the cost of an entity the economic resource of an entity is always recorded at its cost of acquisition and thereby there is no room scope for any subjectivity in the recording. Now suppose you look at the balance sheet and you buy some land at some point of time for 10 million rupees it gets recorded at the cost of acquisition and the land stays with the entity 5 years, 10 years and at the 10th year if you look at the balance sheet still the cost of the land will be recorded. The value of the land will be recorded in your balance sheet at the cost of its acquisition which is 10 million, 10 years back. We do not record the value of that particular asset any economic resource for that matter at its future value or at its expected value because then that gives room for a lot of subjectivity because different people have different valuation models as a result of which there might be different values for the same underlying asset. Now to make sure that there is no room for such subjectivity the cost concept assumes that all economic resources of any entity needs to be recorded at its cost of acquisition and as and when an asset gets used if that asset needs to be depreciated it is the annual depreciation that gets reduced from the value of the economic resource. The fifth concept is the dual aspect concept in which we saw that the fundamental equation when we discuss about the balance sheet is that the assets will be equal to the liabilities plus owner's equity and any activity that happens within an organization within an entity will impact the accounting records in such a way that this fundamental equation assets is equal to liabilities and owner's equity is not compromised. So there is a dual impact to ensure that on one side the asset and on the other side the liabilities the owner's equity remains equal and that in every transaction happens each transaction has a dual impact that does not compromise the integrity of this fundamental accounting equation. Remember this is the fundamental accounting equation assets is equal to liabilities plus owner's equity and we will also understand how this is recorded when we actually get into the double entry book keeping. The sixth accounting principle is the principle of conservatism the previous five concepts are in a way related to activities that has a huge impact on the balance sheet and the remaining that we will be discussing are the ones that not all the remaining but the most of the remaining concepts will be the concepts that will have an impact on the income statement. The conservatism concept is about the principle regarding revenue recognition and this is where I had re-iterated and I would like to reinforce now that it follows the concept that revenue will be recognized if it is reasonably certain and expenses if it is reasonably possible and a classic example is always when I walk into a automobile dealer showroom and say that I need a car the dealer should not record that as a revenue though I would end up purchasing the car two months three months from now but suppose the same dealer loses or a car gets stolen then it has to be recorded as some bad expense though the dealer believes that three months four months down the line there is every possibility that the car will be recovered. You will understand that when it comes to recognizing revenues it has to be recognized only if it is reasonably certain that the revenue can be generated and contrary to that expenses have to be recognized when actually there is some possibility that it would be incurred and this is the principle the concept of conservatism. So conservatism is about the timing and the next concept is the realization concept which is more about the amount. Conservation is about timing the realization concept is about the amount and based on historical experience if you make a sale on credit to what extent will you be able to get the entire collections for the sale that depends on the type of customer the historical record that the customer has got with the entity. So based on that to that extent you will realize the extent of revenue that will be recognized. The next concept is the matching concept the matching concept is the fundamental to the matching concept is that given an accounting period all the revenues and it is related expenses need to be recorded within the same accounting period. So if you are recognizing revenue within an accounting period the expenses related to that revenue within that accounting period needs to be matched to it. So this is the matching concept and only if we are able to follow this matching concept will your financial statement actually be accurate because it is only the expenses relevant to the revenue and both of them when captured within the same accounting period makes more financial sense. So that is the fundamental to the matching concept. The next is the consistency concept now consistency concept assumes the need for following the same procedure methodology for recording activities in a given particular way and as long as you follow the same methodology and you do not change methodologies frequently then your financial statement the resultant financial statement is in perfect order that does not mean that you cannot change the way in which you record transactions. But consistency concept only requires that such changes are infrequently done for example you might change the way in which you would like to depreciate an asset it is possible except that you do not do it straight line this year then the next year accelerated then again the next year straight line. So such types of frequent change the way in which you record this transaction do not happen and if at all when you actually change the way in which you do this you would see at as a footnote in these financial statements that they would record that till last year we followed this principle and from this this year we are actually changing the way in which we have recorded these transactions. But by and large there is a consistent way in which such transactions are being recorded and this concept ensures that there is not inconsistency in the way in which these transactions are recorded. The next concept is the accounting period concept now every day in a given entity has a set of activity and technically every day you can end every day by creating an income statement and balance sheet for each day but that is not the purpose we are interested in understanding these financial statements over a longer accounting period and typically for the sake of uniformity and convenience in understanding an accounting period that is why you would see you would find the annual reports that talks about the balance sheet and income statement for a given particular year and across the globe the standard accounting period is assumed to be one year but at the same time we also need to meet the regulation set by various you know stock exchanges I am talking about companies that are listed in exchanges where you will have to file information every quarter so that is why you would see companies also filing quarterly returns that talks about the balance sheet and income statement for a given quarter so that is why you would see quarterly balance sheet and income statement and the aggregate of these four quarters is your annual report that you see at the end of every financial year. So by and large the accounting period is assumed to be one year and at the end of every year you would see annual reports publishing these balance sheets and income statement the 11th principle is the concept is the materiality concept now materiality concept the fundamental understanding a given is that I am interested in monetizing in expressing in monetary terms evens that have a significant material impact so I am interested in only recording such transactions and the classic example that I usually give to a class is that the fact that I purchase one box of stapler pins does not mean that the entity owns an asset though it is an asset I do not record it as an asset in a balance sheet item in the balance sheet I do not record the stapler pin as an asset rather the money that I spend to buy a stapler pin I would rather treat it as an expense a stationary expense and that gets reflected in my income statement. So the materiality concept is one that assumes that only activities that have significant material impact needs to be recorded appropriately that does not mean that activities which are not significant need not be recorded but then has to be dealt based on its significance that is the materiality concept. So if you find all these 11 concepts and if you are able to understand these 11 concepts then you will know that these 11 concepts actually form the very foundation on which accounting principles are evolved now with these 11 concepts how do we actually record these activities in an organization and for that the standard methodology that is followed world over is the double entry book keeping and what is it I told you that the fundamental equation is assets is equal to liabilities plus owners equity. And the double entry book keeping is just one way of recording all these transactions by identifying each of the transactions as a particular account activity and each activity has an account head like cash or inventory or accounts receivable sales asset purchase so each of them is an account and each of these accounts get recorded in a manner appropriate based on what happens to the account as a result of the transactions. And how do we record that we record these transactions in monetary terms by entering one in a debit side and since one of the fundamental concepts of accounting assets double the dual impact there needs to be something called a credit and do not get confused by debit credit add attach some grammatical interpretation the English grammatical interpretation to it in accounting debit simply means the left hand side and credit simply means the right hand side that is it. And when we record each of the transactions and it is impact to a particular account we just use this particular t this is the t the t account and record the impact of the transaction to that particular account. And how do we know what is the impact now this is very important that you need to understand that any increase in asset is debit and the rest simply follows. So, the fundamental assumption non-negotiable is that any increase in asset is debit now if any increase in asset is debit then any decrease in asset is credit then any decrease in liability is debit any increase in liability is credit. Likewise any decrease in owner's equity is debit any increase in owner's equity is credit now this fundamental equation and the way in which we record in monetary terms the transactions that impact a given account by following the debit credit double entry book keeping is the heart and soul for this accounting. And it is based on this that we actually create these three financial statements. Now assume that you have to do this for an entity and that one year has passed and that you have recorded all the individual transactions that have impacted various accounts cash inventory accounts receivable accounts payable accounts receivable loans. So, you have various accounts each of them has an account title and the aggregate the summary of all these accounts at the end of a given accounting period is what you find in a balance sheet or an income statement. A balance sheet is a snapshot or a stock statement which provides information regarding the financial strength of the entity and an income statement is a flow statement that provides information on the financial performance of the entity. But then both of them are linked and I have told in class that I would consider an income statement a little subordinate to a balance sheet because the balance sheet is the real statement that gives more information on the financial strength of the entity. And if you look at the balance sheet that is where you would find the assets and liabilities and onos equity on the other side. And do not be surprised that their assets is equal to liabilities with onos equity. It has to be that way only then it is a balance sheet and it will be that way as long as you follow all the concepts and record transactions without compromising on the integrity of the fundamental accounting equation. Where the income statement talks more about the financial performance where you start with sales, the cost of goods sold, the expenses and the net income. And before we actually prepare this balance sheet and income statement we also create a trial balance which is an interim report which we use to ensure that before we advance to a balance sheet and income state preparation it is just a checking mechanism to ensure that all the transactions that we have recorded are recorded correctly. And how do we do this check? I explain that for each of the account you find the closing balance and record them as debit or credit and the summation of all the debits and summation of all the credits will equal. That is a signal that tells you yes if you go ahead and prepare a balance sheet from here your balance sheet will balance. But that does not tell you that all the information or the way in which you have recorded this transaction is correct. You could have made an error on the right side and still your trial balance will show that your debit is equal to credit and if you go ahead still your balance sheet will be balancing. But then it does not provide correct information your balance sheet will balance but then the balance sheet is not correct. So a trial balance is an interim check just to ensure that your debit is equal to credit and if it is not it tells you that there is some mistake somewhere and you have to go and rectify those mistakes. And we also dealt with three special cases, three special cases in these accounting categories, the revenue, the cost of goods sold and depreciation. And revenue this can be elaborated at length but then we restrict it so that we understand that two important requirements is on the realization and recognition. Whether you need to recognize the revenue in this accounting period or postpone it later. In the moment you recognize an activity as revenue generating to what extent would you realize the revenue and this is open to a lot of subjectivity but as long as there is some reasonability in the assumptions that you are making to record revenue transactions then your income statement is correct. The second thing is cost of goods sold, the cost of goods sold at elaborate we discussed on how the cost of goods ready for sale after it gets sold finds itself in two places inventories and cost of goods sold. And what is the value of the cost of goods sold and what is the value of the inventory depends on what type of inventory recording method that you have adopted. It could be a leaf oak last in first out or a first in first out leaf oak or an average inventory costing mechanism or a direct inventory identification where every inventory is tagged and then the cost of acquisition is recorded and as in which as and when an inventory is consumed it gets identified and recorded at specific inventory levels. So specific identification and average leaf oak, leaf oak, leaf oak these were the four methods that we use to record inventory and also find the value of the cost of goods sold. The depreciation also we discussed on how there are two methods straight line and sum of years digit two ways by which an asset can be depreciated. So these are the three special cases that we also discussed at length. And then finally we also discussed about a cash flow statement which is the third important financial statement and this is where that we appreciated the concept that income is not cash. The cash that you see in your balance sheet is not equal to income that you see in your income statement and both are different because the misconception that people who have no accounting sense is that cash and income are one and the same then you will appreciate when you actually get into these concepts that both are different. And that a cash flow statement actually gives you more information on the behavior of cash between two successive accounting periods and you will know how cash got into the firm, how cash left the firm and a resultant of all the activities that have either consumed or generated cash will actually give you an ending cash and that is the cash that you see in your balance sheet. And these activities we found that are predominantly categorized into three types namely the operating activity, financing activity and investing activity and by and large if you are able to categorize all the activities in these three heads and study how each of the activity has influenced the behavior of cash and the summation of all the activities that have influenced cash between two successive accounting periods is what gets recorded as a cash flow statement. And then finally we also saw how a financial statement can be analyzed and we understood that by actually getting into some of the ratios that are popularly being popularly used which fall broadly under four categories namely the liquidity ratio, the activity ratio, leverage ratio, profitability ratio. So these four ratios that talk about the extent of the liquidity of the firm, the efficiency with assets are being used gets captured in the activity ratio, the various sources of capital and the potential of the firm to services debts gets captured in the leverage ratio and the profitability ratio is the one that provides explanation for the extent to which the firm is generating net income, the return on income is expressed in various ratios that come under profitability ratio and also finally we also saw what a due point ratio is and how that return on equity is split into three parts and each of them important. Remember we talked about the net income by sales which is the return on investment that is the profitability ratio and then the asset turnover ratio sales by assets and then assets by equity is the equity multiplier. So these are the three individual components which put together forms is the due point ratio which is your profitability ratio expressed as net income by sales times sales by asset which talks about the activity ratio how efficiently you have used the assets. Assets by equity is more a leverage ratio and equity multiplier and all these three put together is your return on equity which is your net income by equity and this is important because return on equity is another important measure because you will find that many of the entity the main objective is to maximize shareholder value which is actually maximized when your return on equity gets maximized. So this in a nutshell is what financial accounting is all about that we have to follow some concepts that actually govern the generally accepted accounting principles and these are the principles that are uniformly used wherever you are except that there might be some minor changes suiting to the local needs but then if you see an income statement of Ford Motor Company listed in the US and you see that income statement in India you could still make sense from those income statement and balance sheet just as somebody sitting in Europe can make the same sense looking at an income statement of Atada Concentracy Services or any other Indian company and then these accounting principles have to be properly understood and all the transactions that are relevant needs to be identified, measured and communicated by following a set of rules that govern this language of business and if you are able to do that then you would end up preparing a correct balance sheet income statement cash flow statement based on which both internal as well as external users can use this information can analyze how well the entity has performed because you have different ratios that you can calculate from all these statements that you have prepared. So the use of such financial statement is not only for those inside the organization but also for those who are outside namely the shareholders, the bankers, the income tax authorities, the government authorities, the regulators, whoever it is they would be able to make the same sense because the financial statements that you have prepared is one and the same whoever is the end user and as long as you have followed some of the basic principles and you have not compromised on any of those then you have a correct financial statement in place. So in essence the previous sessions I have given you inputs on how to record these transactions and why these concepts are very important and after having understood these concepts then you can take a decision whether these transactions are relevant, the significance of these transactions and how it needs to be identified under particular account category and how such transactions are recorded by following the principles of double entry book keeping and an aggregate of all these transactions will form your balance sheet income statement and cash flow statement. Now this is about financial accounting and I told you that on the other side there is also something called the management accounting. So next class I will be giving you some inputs on the fundamentals of management accounting but we would not be spending a lot of time on management accounting just as we spend a lot of time on financial accounting not that it is not relevant but then it is not that popular because the user of the information that comes out of management accounting is more internal as against financial accounting where the user group could be even external stakeholders but then it is essential from an internal control point of view that we need to understand what management accounting is all about. So next class I will give you some inputs on the need for management accounting the difference between management accounting and financial accounting which relates to the behavior of cost and how cost is the understood the cost structure is understood and the impact of changes in the cost structure on the pricing decision or other financial impact can be best understood when we actually know what management accounting is all about. So next class I will give you some inputs on management accounting. Thank you.


So Kyle, good to see you. Obviously a hugely successful weekend on the rally in front for you. It's nice to win a championship, isn't it? Oh, that's great. It's been a tricky weekend there over in Wales. Now we're happy to get through and get to the finish line and we wrapped up the Caramay Trophy Cup and the BRC. So now it was a great weekend. So it was a huge effort, I'm sure, by you and obviously all those involved in the team because it was a big commitment. So what is it, Kyle? Oh, definitely for sure. It's a lot of work to get over to an event like that and not only the event to do it throughout the year, like a huge thanks actually to all my sponsors and all the people who helped me to get over there and to do what I'm doing at the minute. It's been a privilege to do it and it's been very good so far. Was it tough going the championship? Tell us about your campaign. Yeah, it was a bit of a bad luck at the start of the year with the car, few mechanical issues, but now whenever we got the car sorted and we got everything sorted, we're good to go and we're happy with our pace throughout the year. It's been a really good year so far. We did the championship over in the Caramay Trophy and the BRC and we're doing the Motorsport Ireland Geo Surface Championship in Ireland. So it's been a very busy year there within the last four weeks with the event. So now it's been very busy, but it's good to be very active. Whenever we are in Wales at the weekend, we're just fresh and go away somewhere. So now it's good to be coming out of one event so fresh and straight into another. It's good for your pace and for bolding your pace and moving on for progressing. It's good to have. Are you still in contention on the other championships as well, Kel? Yeah, we're very tight. It's going to go down to the last round and then I got a harvest. So we're sitting currently, we're leading it, you know, but when the draft scores want to play, it's a bit all over the place. But no, it's going to go down to the last round and it's going to be a hell of a risk once again. So now I'm really looking forward to get going and it's only four or five more weeks to go so now I can't wait. You haven't been rallying for too long, have you? No, well, I started off in the J1000 since I was 15, you know. So no, we're at it now a few years, you know, but we've moved up a lot. So we're happy. We're happy enough. So you're involved with the Motorsport Ireland Rally Academy. You were in the T-shirt today. Tell us about that and how did that come about for you because it's important for you to be part of it? It's a huge thing for me to be in. You know, it's an academy team in Ireland that they pick drivers out of Ireland, you know. I got selected from one in the J1000s back in 2019. So it's a full year. You're with them and they definitely had to opt for them. They put a huge effort in the work they put in this mental to try and push all the drivers on and take that next step to see where we can find that extra bit of time, you know. And it's just all learning to me and it's great to be part of, you know. But no, it's great to be in, you know. Yeah, hugely beneficial. Maybe we'll just go back to Sunday again, obviously coming over the Funnishramp. Great celebrations with you and your team. Moments like that when you're under the sport at a very young age, things that you dream of? Definitely, actually 100%. You dream of these things when you're young and ever they come through, like it is just mental, like it's hard to take in at the time. But no, it's great to get across the Funnishramp now. It was a long lucky end and the stages over in Wales are extremely tricky, you know. And definitely to get through them all with no major hassle. It was great. And a couple of men's been keeping you right this year, okay? Oh, definitely. I had a fair play to Darren on the notes there. He made a good job all year and out of a few other lads it was an early year, you know, helped me out, you know.  And hopefully I'll see him again for next year. Yeah, well, what is next then for you? Because in a rally special this week, we're speaking to yourself and we're also going to speaking to Joseph Kelly, who won the ERT Trophy, and Eamon Kelly, who's British Junior Champion as well. So you're the Academy winner. What's the next step for you, Cain? Yeah, so looking forward to next year, I'd say, well, we secured the championship this year in the Academy Trophy and the prize for that was free entries for the Junior BRC, which that's the one of the Eamon one. So obviously our plan would be to go back over now and to compete on that. But we have to upgrade our KR to Rally 4, so we're going to try and upgrade the KR and go over and compete on the Junior BRC all going well. Yeah. What's the difference between the Rally 2 and the 4-Kers? The KR, I have 20-15, and then the Rally 4-Kers is just the newer one, they're the 2019, they're the same KR, they're 4-Kers, they're the exact same, just the newer ones are a lot more f*****g, you know. But no, that's our plan. Hopefully we can be able to do it, you know. Yeah, okay. And if I was to ask you a question, where would you like to be in your motorsport career, five, ten years down the line, Cain? Where would you like to be? Oh, well, you always have to look as far forward as you can, you know. We all want to be like, in the world rally car someday, you know, but you never know. You just have to dream it and you never know it. Yeah. Would one in Donegal and International be a dream toofie? Definitely, definitely. You never know, so high. So yeah, Donegal would be mental, you know, but yeah, you never know. Well, listen, you keep dreaming and keep the heart work up as well. Cain, you're doing a fantastic job. You're off to a great start in your young motorsport career. We wish you every success in the future and many congratulations again on your Academy Trophy one. Thank you, Yashin. Thanks for having me.


Dante II, an eight-legged walking machine, is shown here during field trials, with its actions sped up. Named for a 14th century Italian poet, this 20th century robot has been designed to withstand and report on its journey to the floor of a volcano. NASA sponsored the team from Carnegie Mellon University to build Dante, a robot designed to withstand Earth's harshest conditions. Its goal? Prove out technology to explore distant planets. Remotely controlled from 80 miles away, the robot was able to explore the inner depths of a lengthy volcano at Mount Spur, Alaska. David Lavery, his manager of NASA's Color Robotics program. The fundamental purpose that our program is interested in is the robotics technology itself and the ability of a robotic instrument to go and do this type of mission in a harsh, unstructured environment that can deliver a science payload to the interior of the volcano. Information from Dante's onboard video cameras and sensors was relayed via satellite to scientists in Anchorage, 80 miles away. From their remote location, controllers used a computer-generated image created by a laser scanner to track its movement. Having accomplished one short-term goal with the successful descent into Mount Spur, the robot team hopes to apply the lessons learned to NASA's long-term plans for the future. Our hope is that a lot of that will find its way into future planetary missions. That's obviously where NASA's interest lies, is we want to take this and move it out to the surface of other heavenly bodies, the moon, Mars, and other planets. Dante II, an eight-legged walking machine, is shown here during field trials with its actions sped up. Named for a 14th-century Italian poet, this 20th-century robot has been designed to withstand and record on its journey to the floor of a volcano. NASA sponsored a team from Carnegie Mellon University to build Dante, a robot designed to withstand Earth's harshest conditions. Its goal, prove-out technology to explore distant planets. Remotely controlled from 80 miles away, the robot was able to investigate the inner depths of an active volcano at Mount Spur, Alaska. There is an open pit of steaming vents, surrounded by sheer walls of fractured rock. There's everything from pebbles to car-sized boulders rolling down all day long. We tried to pick a descent course that would protect, insulate the machine from most of the rockfall. John Bear's heads, the CMUT. With help from the Alaska National Guard, Dante was pairly put safely to the crater rig. Mount Spur's crater erupted in 1992. One of the robot's functions was to measure levels of volcanic gases. This information gives Mike Dukas of the Alaska Volcano Observatory an idea of how active the crater might be. It has gas sensors on board. It has a sulfurous sensor, a carbon dioxide sensor. And so that's going to give us a real close-in view and sampling of what the fumaroles are made up of. In the past few years, 11 scientists have perished while working near active volcanoes. This danger makes robots an obvious alternative.  And so it's a matter of, you have to ask that question, why are you going into that zone? Is it necessary for you to go into that zone? Can you do that same measurement from a safer position? Because of the ever-present danger of an explosion, scientists monitored seismic activity and kept constant radio contact with the team on the crater rim. In 1993, the first Dante robot attempted to explore Mount Erebus in Antarctica. When its fiber-optic communications cable snapped, the mission was cut short. But according to CMU's John Bears, the mission taught them some valuable lessons. We looked at the experience from Dante 1, which taught us an awful lot about what would work, what wouldn't work, what was appropriate for the environment, what was appropriate for the terrain, what was appropriate to take on in a year. And then we came here and looked at the volcano. To improve its systems, major design changes had to be made quickly to keep the project on schedule. It was done with the help of experts in laser technology, telecommunications, computer software and mechanical engineering. After power was supplied to the robot from a generator and all communications links were set, Dante was ready. Heading, I think we're ready to scan up and try stroking and turning. The eight-legged craft began its assault on the crater. We're at 90 meters. Special rubber snowshoes helped it traverse the first snow field. Ultimately, Dante spent three and one-half days traversing the nearly 700 feet down to the crater floor, an area covered with boulders. Information from on-board video cameras and sensors was relayed via satellite to scientists in Anchorage. From their remote location, controllers used a computer-generated image created by a laser scanner to track its movement. In addition, they had a computer display that was in effect the robot's dashboard that gave them information and feedback from all the on-board sensor systems, told them when the legs were in contact with the ground, what angle the legs were positioned at, what attitude the body had with respect to gravity in the ground. That sort of information. David Lavery is manager of NASA's Telerobotics program. Dante also incorporates virtual reality technology developed at NASA Ames Research Center. The system gives the user a feeling of being there. What it is, is a pair of cameras that are set at the human ocular distance, roughly that, and then those cameras, frames from those images, are sequenced back at the operator station using a special monitor and a special glasses so that the human is able to perceive some depth. This same technology has been tested in a number of applications by NASA. Martian rover prototypes and underwater explorers have been operated remotely using 3D visual displays and specially censored gloves. Artificial intelligence allowed Dante to navigate on its own. A lot of what we learned had to do with how much autonomy can be used on board a robot given our current level of technology to navigate through the extremely rugged terrains that we saw inside the crater. We had a capability for at least half of the descent to basically turn on all of the onboard intelligence on the robot and let it do its own thing. Although the extremely treacherous terrain impeded Dante's climb from the crater, all science and technology objectives were completed, indicating that the crater will probably remain inactive. It proved that exploring dangerous terrain was possible using unaided robotic technology. It's becoming almost like a life goal. Every single person who got involved in both projects has made their decisions to try to make something happen and make it known to the outside world. Having accomplished one short-term goal with the successful descent into Mount Spur, the robot team hopes to apply the lessons learned to NASA's long-term plans for the future. Our hope is that a lot of that will find its way into future planetary missions. That's obviously where NASA's interest lies, is we want to take this and move it out to the surface of other heavenly bodies, the moon, Mars, and other planets. In addition, they had a computer display that was in effect the robot's dashboard that gave them information and feedback from all the onboard sensor systems, told them when the legs were in contact with the ground, the angle the legs were positioned at, what attitude the body had with respect to gravity in the ground, that sort of information. A lot of what we learned had to do with how much autonomy can be used onboard a robot given our current level of technology to navigate through the extremely rugged terrains that we saw inside the crater. We had a capability for at least half of the descent to basically turn on all of the onboard intelligence on the robot and let us, in effect, do its own thing. Our hope is that a lot of that will find its way into future planetary missions. That's obviously where NASA's interest lies, is we want to take this and move it out to the surface of other heavenly bodies, the moon, the Mars, and other planets.


What's going on guys? It's your boy DPJ here today with another Destiny video and today I bring you the fourth secret exotic chest location from the wrath of the machine Red. Now if you guys do enjoy the video do hit that like button, I do appreciate your support. Let's try and reach 4000 likes, that'd be absolutely epic.  Eventually you'll come to a pipe inside that pipe is the secret chest. Now the actual scaling of this mountain is very very easy, nothing like the one we see at Foul Winter Temple but there it is guys the fourth secret exotic chest from the wrath of the machine Red. Hope you guys enjoyed the video, subscribe for daily destiny, turn on the notifications so you don't miss a thing and I'll catch you on that next one. Guardian down.


And yeah, welcome to Digital Asset News. So today, what I want to talk to you about real quick was every time we think we know what the market is going to do, it does the exact opposite. And this month has been no different.  We take a look at just how bad September could have been. And it seems like, and we've been talking about this for quite some time on the show, not just this show in many shows and multiple different people across the spectrum as well, just how September is historically one of the worst months, not just in crypto, the crypto markets, but in traditional finance as well. And so far it has not lived up to the hype, which is, I will take it actually. And so far, this being September 16th, we're looking at 2.4% up for the month. Now, does that mean that we can't crash down and have a horrible month? No, but so far it's holding up and it's been quite resilient. And if we take a look over, take a look from 2010 all the way to 2023, historically speaking, there's only two months that are pretty darn red over time. And those two months are August and September. You can see these things right here. And of course, if we take a look at it, exactly how it is, August is not near as bad as September has been historically. And we can see here, this is 2010, looking at 2011, negative 40%, negative 20%, this is back in 2014, couple of green months here and there, but I'm not gonna bore you with the details, but this is what everybody thought. People also thought or are still thinking that we'll see a recession by end of Q4, potentially Q1 of 2024. We have seen that, there's a lot of different predictions that are out there and that's all they are. There are predictions. So this is why I like my strategy moving forward because every time we think we know what it's gonna do, the market rears up and smacks us right in the head and says, guess what? I'm gonna do something totally different. So for right now, I'm glad I didn't panic and sell everything because, you know, September is gonna be so awful, so far so good. So that's what we have and I'm pretty happy with how things are going. Also, there's another criteria we take a look at which is with Bitcoin and money supply. And this is from the website, Look into Bitcoin.com. It's a free website. There's all the different charts for Bitcoin are free, but the macro charts you have to sign up and pay for, I don't have a link for you. I just have Look into Bitcoin. I think there's a, you can find it on possibly every show I do just about, but I don't have any kind of affiliation with them or anything like that. But we take a look here is the US money, US M2 money supply versus Bitcoin year over year. And this is Bitcoin year over year change. We can see that, you know, as the money supply goes up, it's like a lag factor. And of course, this is year over year, so it's a little bit different. We can see that when the money supply goes up, then the price of Bitcoin goes up because there's so much liquidity in the system. And then of course, things go down. But one thing I noticed recently is that even though we've had a year over year change, consistently going all the way back, this is November 30th, 2022 to today, the government is doing quantitative tightening. And yet we don't see a massive drop off for Bitcoin currently. As a matter of fact, if we take a look here, you know, over time, Bitcoin year over year has been doing pretty good, which goes against what most people would say about liquidity. And actually, if we take a look over here, M2 money supply going all the way back to the Genesis block, 2010, 2009, excuse me. What does it go back that far? And then put it back here. We can see that the money supply in red, I mean, has gone up and it's actually been a lockstep with Bitcoin. Bitcoin's had their peaks and valleys. We can see over here, November 21, remember that? Ah, it was a great month. Everything was happy. No one had anything negative to say on Twitter. It was awesome. Everybody was in profit. But you can see that as the actual money supply peaks over here, and then starts to drop off, in all honesty, October, November, December, from December, as we started to drop off all day today, or until June, we were up 80% for Bitcoin. So it shows that it can be done and that even though we are missing the liquidity of the almighty government printing a bunch of money, I think they're still on the right track. So there is the positive parts for the crypto market. And then also, we started this, it was a little experiment for dollar cost averaging. What I want to do is just show everybody week by week, how you could profit as time went on, just dollar cost averaging, $10 per week, starting on September 1st, 2023. And we started this a couple of weeks ago. And so tomorrow, what I wanted to go over with you tomorrow when we do this, I'm not gonna do this today, but I need to go over about the fees, because if you're buying crypto at $10 a week, and this is of course for the every man, I didn't want to say, hey, buy $1,000 a day, because very few people can do that, but $10 a week, I think there's people out there that can do that. So I want to show just about the fees, what I'm doing currently to eliminate those fees or reduce them drastically, and then also the fees of transfer and the cold storage devices, because we're always talking about that's what the rules are. So we'll talk about that tomorrow. I'll show you what cryptos are actually in profits or actually just holding water and which ones are sucking. And then also as a reminder, we did this about a month ago, and we just showed that, hey, if you put $10 a week, we take a look at the four year cycles all the way back and starting in 2019 in August, you'd be up pretty massively, just 10 bucks a week investing into some basic cryptos of the day, Dogecoin, Matic, Ada, look at that. You would have invested under a grand and with Matic, you would have 44,000. So that's the whole point of this moving forward. I think that people can do quite well, but not financial advice and just showing you what I'm investing into and how I'm doing it. Then just as a side note, I'm not just doing 10 bucks a day or a week, but it's something that I think everybody can subscribe to. All right, let me just think about that in the comments section. Then also some good news is this. Let me highlight this one, it's a good one. So I don't know if you guys have taken a look at your portfolios lately. I'm just gonna guess you have a Tunkcoin. It just came out of nowhere and it's up 25% for the week. And if you don't know Tunkcoin, it's actually about to break into the top 10. Go figure, right? 13% of the last 24 hours and then it's 25% over seven days. And it looks like it's got market cap of over seven, almost hitting that almost eight billion and it's gonna pass Solana quite soon. And the question is what the heck is Tunkcoin and why is it? So I just put a tweet out, just said this is the whole reason behind it. And this is the thing about markets and getting into different positions and getting out of positions and whatever you wanna do is that, again, once you think you know what the market is, who'd expect that Tunkcoin, I don't know, 30, 60 days ago would almost be in the top 10. And it's amazing what announcements and partnerships can do. So this is why. It's September 14th, the Tunkcoin Foundation and Telegram, I don't know if you're aware of Telegram, 700 million people are using it.  And why this is so big is because, like I said, 700 million people are using Telegram monthly. And you can just see that there's a huge amount of potential. It's just you get 10% of those people, 20%, 30%. And I thought about this, I go, well now think about how many people are actually using Twitter on a daily basis and what that could do in which crypto, whatever Elon Musk's decides for crypto payments on Twitter is gonna be, that will be a kingmaker. I can't tell you what it is. I have my guests, I have my guesses as to what it could be but it's a relevance, they're all guests, they're all guesses. But I will tell you once that gets picked because as Elon Musk says, X is going to be an everything app just like how you have WeChat in China.  So at some point they're gonna need some type of payment and I don't think that the traditional dollar bill, especially globally is going to be used. So I guess it's up in the air. Let me know what you think, which one it could be. I will look into it, but those are the good parts. And then also as far as like usability, this is another good segment. Coinbase's base blockchain, which just came out a couple of months ago, base. It doesn't have a token, you can't buy it. It's built on optimism. It's a record high for daily transaction. And I think these are the things that we really need to start to pay attention to as opposed to just taking a look at, is the price going up? Is the price going up? No, the one's junk. Is this happening? No, well, it's trash. Or is the price going up? It's awesome, that Bitcoin? All right, it's good. I don't think that's the way we should be looking at things. I think if we should be looking at things like this. So this is why, this is what's happening. So base from Coinbase. So almost 2 million transactions on Thursday. And that's higher than arbitram and optimism combined. It's not because of DeFi. It's not because of NFT marketplace. There's nothing to do with that. It's because of one thing and one thing only or a significant portion, I guess you could call it. Is that app called FriendTech? You can do it. It's kind of Ponzi-ish me personally. Some people love it. I don't get it. But I mean, if you want to go in there and you want to pay for somebody's keys and then upgrade and then have them in there. I'm just telling you, I don't think it's going to last, but I've been wrong before. So just, you know, FriendTech is built on base and calls itself the marketplace for your friends. I don't know how many social media platforms we need, but that's irrelevant to what I think. It's what you think and what you think is best for you. So when I see that these types of projects are going off, it's because they're being used. People are actually using this blockchain. I think there's three things we should always be looking at. We should be looking at DapRadar, L2 Beat, and we should be taking a look at DeFi Llama. What I mean here is with DapRadar, it doesn't really have too much to do with the actual price per se, but unique act of wallets and which ones are doing well and which ones are falling off. And we talked about Kai Cheng and Neer and Farmers World. And these are things that are just, well, some are games and some are wallets, some are DeFi projects and of course pancake swap. But you can just see that these are the things that are actually being used, all these things. So the other stuff that's out there, I think it's all a bunch of traders manipulating, wash trading and really nobody's really doing much with them at all. These are the things that are actually being used. Now are they being used like massively like they should? No, probably not, but you can see the things that we just talked about, friend tech, Uniswap, hey, sweat economy, sweat coin, pancake swap, atomic assets and so on and so forth. These are the things that are actually being used. You can break this down by the balance, things that are locked up, unique act of wallet and you can wallet percentage and volume. And on top of that, L2 Beat is of course another great one to take a look at just to see which ones, which L2s are actually being utilized. For on Ethereum. And are they optimistic or ZKs? And we're gonna see that number one, Arbitrum. ZK saying, here's base making its way up through any seven million, market share 4%. But these are the things we should, I think, really be looking at. I mean, loop ring, I haven't heard of that in a long time but it looks like people are using it, not that much though, 100 million as opposed to Arbitrum's 5 billion or so. Polygon, yeah. And then lastly, DeFi Lama. Who's locking things up? Who has their funds locked in these DeFi protocols? And which chains are they? You can see them base, Solana 1.28, Optimism 1.6, Polygon almost 2%, Avalanche, which is pretty good. 2.1, Arbitrum, this is why I invest in Arbitrum 4.7, Binance Marching 7, Tron, who to thunk it, right? Well, if you need a stable coin, Tron's your play, especially in Southeast Asia. And then, of course, Ethereum, the big lion share. So if we take a look at these things, I think this is the things we should look at. But I could be wrong, but this is where I'm going for. So let me know what you think about that. And that is, that concludes the good part of the news. If you'd like to leave now, I don't blame you because now we'll get into the negative part. And this is the thing that I think that it's best to take a look at because quite honestly, if I just throw your sunshine and be like, well, that's great. Let me start selling everything so I can roll into this crypto market. I think you have to be aware that there's some negative parts to crypto and what's going on. Here's one of them. So this was from Singapore 2049 and they interviewed CZ Binance. And he gives a great response, which is, you're like, well, what is impeding us? What is stopping us from really taking off? And CZ said this, it's the banks, man. It's the banks and our fiat on wraps. Here's exactly what he says. So CZ thinks a key problem in expanding crypto is the lack of resources that help convert cash into crypto and vice versa. Also known as Operation Choke Point 2.0, which is essentially where the governments lean on the banks and say, look, we don't want you to work with those dirty, dirty crypto people.  And of course, people will say, we don't need them. Well, we do need them in some way. At some way, we have to take the cash that we have and get paid the fiat and turn into crypto in some way. There has to be an on-ramp. So the challenge is to bring the next 100 million users in crypto. Today to be frank, it's just fiat with tightening regulations in the earlier parts of this year. We've seen a lot of traditional institutions that used to provide fiat ramp channels pull away. Now I'm not 100% for sure if this is just because of what's going on all around Binance and the Department of Justice and their investigation into Binance itself and maybe the other banks globally are pulling away or if this is rampant across multiple, multiple exchanges. But I know that this is an issue. So if we think that this is gonna be smooth sailing, it's not. And the thing that hinders us, that is an hindrance to us is the governments that stand in the way. And I've always said, I know it's not a very popular opinion, but there has to be some kind of regulation out there which shows us, which says, look, this is what currency is, excuse me. This is what crypto, this is whatever a security is, this is what property is, just to give us some clarity. And we can't get that with the current regime in place. Just not gonna happen unless Gary Gensler actually steps down and he's one of the few ones that is really putting themselves in the way. So there's that part. Then also, I think this is the biggest one, is people losing their crypto. And people, there's so many hacks, it's just, it's rampant. Like I remember in 2017, I mean, before we had DeFi, it wasn't this bad.  But now it just seems like every day, you just hear people just losing their crypto left and right. And I don't think there's any, there's gonna be a massive, massive option if people can't do this. This is Jason Casper, got a YouTube channel. Check him out. And he said that he lost 700,000 worth of crypto. Watch the YouTube video. Now, he put it on a hot wallet and I know it's not part of the rules. I'm not here to judge anybody, but that's what happened. And the thing was is that these hot wallets, it seems like I use hot wallets. I use a MetaMask wallet, but I don't leave $700,000 in there. Use it for what it is for small amounts. It's like the wallet that you have in your pocket.  You probably wanna keep your entire net worth in, assets, maybe the banks, not for sure. Maybe some kind of storage, like cold storage. But these things happen and this guy is, he's been around for quite some time. So if there's something like this, then Mark Cuban had the same thing happen yesterday and it looks like he lost 870,000. Now to be fair, Mark Cuban losing 870,000 is not a big of a deal as if we lose 870,000. And I'm sure he's like, well, there is my valet money out the window, but it just happens more and more and more. And the reason is, is because whatever it is with these smart contracts and the way that, that they integrate into these Ethereum wallets, and of course, it's not just Ethereum. It's across a wide swath of different cryptos that are out there. If you have any kind of like an airdrop token you don't understand or an NFT that's just there magically, don't interact with it. Because every time you do that and you sign the transaction, then of course these scammers, they put it in there for a reason and are able to drain your entire wallet. And I don't know exactly how it works. I am not a tech person, but I'm just saying that the way this happened with Mark and apparently with Jason is the same way.  And then of course on top of that, I just got this from Rick Middleton. This is on the Cardano network. It looks like Earth Note 775 has been stolen. So Earth Note is from World Mobile Token. So it's not just, and I don't know exactly how this one happened, but you can just see the issue here, you know? I mean, we want people to come in and we're like, yeah, it's super easy to use, but you know, don't sign any transactions and there's these NFTs that'll look like kind of like what you bought. And also there's a airdrops that could be worth something. Excuse me. So I just don't see us really hitting some mass adoption. This is all speculation for quite some time until we can figure out this issue because when people start losing their life savings or just a big chunk of money, it doesn't work. Sorry, that's how it is. So let me understand one of the comments section. Hold on. Hey, I did pretty good. Was coughing all night. I'm doing pretty, doing all right so far. But lastly, lastly, the bad news I guess, Wreck League, I did a video about this. This is the first triple A ranked fighting game that I got into. And I think NFTs were not expensive. It was like 50 bucks. But then when I went to go mint everything and go with the process, I did a video on it. And essentially it came down to this. Like you can mint something, you can build this mech and you can start fighting. But to get into the game, you have to verify a government ID to play the game. And I'm like, are we in the right, I mean universe? Is this what we want to do? To play a game, we got to have a verify a government ID so that can be tracked online. And who knows if there's a glitch or a leak.  It's not. It's gonna crash and play to earn the dead as well. So you can watch that video. I linked in the description. It's me for like 20 minutes in this. Well, it's me for like 10 minutes explaining how to go through it. But in the end, I'm like, you got to be kidding me. There's no chance. Heck, I would do that. And that's it. So look, I know that last part I wasn't the most upbeat, but it's the truth. And that's it for today's news. So if you want to stick around, we'll do a little Q and A.  Thanks so much. Like and subscribe and all that good stuff.