Thank you for being here and I'll be talking about the CNCF tag runtime, some of the activities that we've been involved with and some of the communities that we've been reaching out to and this session is mostly about the audience to understand what we're doing and how they can help with the tag and the different groups within the tag and also how they can maybe attract some folks who are interested in contributing. All right, so a little bit of what I'll be talking about today is some of the overview of the tag and what it means. The activities that we've been working on or we've been having presentations and the different working groups within the tag. We have the IoT Edge, the batch system initiative working group. We also have the container device interface, wasm, special purpose operating system, recently created and we have an AI cloud native working group that we just created the charter and we expect that to be approved in the next two weeks. Then we'll touch on some future work and activities that we're planning to do and how you can get involved. So I have a slide on the charter with ChatGPT that I showed at KubeCon Amsterdam and I went to ChatGPT this time and they didn't actually have a lot there. So it seems like they shut down some of their algorithms so it doesn't say much about tag runtime but I did actually went to Google Barg and it came out with a better answer so just for the fun of it, this is the answer. So it gives you a pretty good detail answer about the tag. I guess it looks at the GitHub repository and the website and it provides pretty good information so it's good to understand some of these things that are happening out there and I think tag runtime is no different. And just for the fun of it, also I went to an image generation site or generative AI, image logo creator and it did actually create three different versions of logo. It's not actually very close to what our actual logo is but I mean, if you want to get started it is something. But a lot of talk on generative AI but what it is with tag runtime, it's there to help different users and communities use cloud-native technologies when it comes to workloads. And these workloads can be batch type of workloads like high performance type of workloads that run in multiple machines or they could be latency sensitive workloads for example microservices. So all of these in the cloud-native context. We work with the TOC, TOC is the CNCF TOC, the technical oversight committee. We have three TOC liaisons, we also have chairs, I'm one of the co-chairs. And we also have tech leads and the tech leads help out with the different activities that some of the chairs also do. But they tend to focus a little bit more on technology. We meet every first and third Thursday of every month and communication happens over email and Slack. So these are some of the sample projects within the tag runtime scope. You can see there's a variety of different projects in different areas. You have things like Container D, there's a Container Shim. You have Harbor, which is a container image registry. You have other projects like Cata that helps you auto scale workloads in an automated way with different metrics. Unicraft, it's another project that allows you to run Unicurnals. So a variety of different projects in different areas. And these different areas, we loosely define them into scope areas. Within the tag, you have the general workload orchestration. Where Cata and Kubernetes fit in, and you have the runtimes, the VMs, such as the Container D and Cryo Shims. Lately, there's been a lot of conversations around Wasm. So the Wasm runtimes also fall within the scope. Several less workloads is another area and Knetive is one example of those projects currently in the CNCF. Then another special area is the special purpose operating system area. So there are several projects there, like Bottle Rocket, Flag Car. Recently, we just created a new working group that will tackle some of these areas in special purpose operating systems. Another area that is super exciting is AI and machine learning. So we do have a lot of projects that fall within that scope, such as Qflow, Kserve that allows you to serve machine learning models. And then, obviously, we have the areas of the different working groups under the tag that describe here that I mentioned also previously. So now, some of the activities and presentations that we've had in the tag. So we do have a website. So there's updates on the website. So some of our community members are posting information there. And also, we request anybody in the community who has any feedback or information that we'd like to share or would like to update on the website. They're free to do so and they can create a pull request on Github repo and make the change to the tag runtime website. So one of the exciting things that we have going on now is the proposal to create a cloud native AI working group. There's been a lot of excitement and hype, if you will, about AI and generative AI and LLMs. And we feel that we need to address that area. So there's a lot of community members that have gotten together and started creating a charter. And as a matter of fact, they already created a charter and that's being reviewed by the CNCF, TOC. And we expect that to get started maybe in about two weeks from now. And some of the sample deliverables for this working group are things like white papers on cloud native AI. And we could have things like the landscape with all the cloud native projects and how they can help enable machine learning ops and AI type of workloads, some surveys that they can send out to different community members or organizations to understand more of the ecosystem. Reviews and recommendations are another area that is interesting in that the working group is interested in tackling. Also reports on new trends in the industry that can help cloud native. So all of these in the context of cloud native and how AI can help cloud native. And also how cloud native can run AI type of workloads. Another thing that we have going on is that we recently created the CNCF tax club organization. So Nikita from the TOC created the pull request or the issue to start this initiative. And right now this is available to all the tax. But one of our container or working groups in the tax actually created an artifact that is actually hosted in this organization. And this is just a home for these working groups to have a place and to have something that can be shared across the community. And it can be actually used by several organizations or by different community members. This is a sample of presentations that we've had in this year and last year in different areas. We have the container of tools, projects like Unicraft and container D presented and some others. In terms of workloads, we had Cube Edge graduation presentation. The Cube Edge project is pretty mature. So they wanted to provide feedback to the community and they presented in our meeting. And other areas of presentations include like Kubernetes related projects that enhance the Kubernetes ecosystem like Kata, Eraser or Cube Stellar and so forth. And finally, we had quite a few presentations also. On operating systems, this will actually be more developed within the special purpose operating system working group that I'm going to be talking about in a little bit. And just to give you an example, we had the Eraser project presented in our meetings. And so Eraser is a project that allows you to remove non running container images in Kubernetes clusters and in the nodes and going backwards, oops. And this is a demo of the project so you can see that here we're creating a sample cluster with kind. And the idea here is that it'll create a service that brings a container image or create a deployment that brings in a container image. And that container image or deployment or demon set will be deleted in this case is the demon set. That is going to create it and then it will be deleted. So you see it's coming up, this demon set. And it is a job that is completed. And then the image is not being used anymore. And you can see that the pods have been deleted. And right now it actually installs the control plane of Eraser. And the idea here is that after this is created, then there won't be any container images related to this specific demon set that was created. So you can see the cluster got, the image got deleted and it's not there anymore. So another project that actually presented is the Flat Carp project, which is a special purpose operating system just to run containers. It's a minimal distribution of Linux. It helps the whole ecosystem create this server that is more secure, more automated. And it provides this declarative way of provisioning. And you can see that it's actually being used by a wide variety of different organizations, commercial Azure, AWS, VMware, etc. Unicraft is another project that presented. It's a Go-based tool framework based on, sorry, it's CraftKit and it's presented and it's based on Unicraft. CraftKit allows you to create Unicernals. So it's the tooling around Unicernals created for Unicraft. So it's Go-based and as you can see, it's a CLI-based system. And here we have just a sample demo of Hello World. And you can see that we update the craft package update. And we run and we modify main.c file to create that Unicernal, which is with this command line. And it also has this craft file that defines how you define that Unicernal. And right here, we're building the Unicernal with craft build. And we just do a craft run. And you can see your Hello World of Unicernal. So another project that we had was Cata, but they were interested in graduating. So they presented and they showed us their progress. So Cata allows you to automatically scale deployments up and down based on different scalers. And the scalers are integrations with different endpoints like Apache Kafka, Messagen, or AWS SQS, or different CI CD systems that allows you to spin up many workers to run your CI CD jobs. It actually provides over 55 scalers or 55 different integration points. It can run on Linux or ARM. So the idea with this project is focusing on scaling your ASP, but not the scaling internals. And so you can see the progress of Cata towards graduation. In V2, they had about 20 scalers, but when they went for incubation, they were up to 40 scalers. And now that they graduated, I think they're over 60 scalers. So it continues to grow over time. And as you can see, there's a lot of end users using the project. About 11% of creditors users are using Cata Azure Container Ops is using this project in production, and AKS and OpenShift are offering a managed version of Cata. So another working group, shifting gears a little bit, or now going into working groups, rather. So we recently created the Wasm working group. So there's been a lot of conversations around how WebAssembly can help cloud native and WebAssembly runtimes can be used to run cloud native workloads, and initially started with this PR trying to reach out to the community members who were interested in the space. And we did actually get a lot of interest, and we came up with a charter, a document, and folks started collaborating, and they created the working group. And right now they're actually having meetings almost every week. These meetings are actually getting recorded, getting posted on the CNCF Tag Runtime channel on YouTube. And there's a large lineup of different presentations. So we got a lot of participation, and it's a very exciting feel. So the other working group that we recently created was a special purpose operating system working group. And there's a lot of interest in this space as well. So you can see that we had some presentations on October 5th, and we have a full lineup of different operating systems. And there's a lot of conversations about standardizing the APIs that talk to these different operating systems. So excited to see this evolve, and we'll probably see a lot more than the rest of this year and next year. And some of the things that we're thinking about is doing or addressing the special operating system working group. For example, standards to run containers, common APIs to manage these operating systems, speed up the OS provisioning for Kubernetes. And different standards to run the containers or run specific things like WebAssembly modules on top of these operating systems. So another working group is the IoT Edge working group. And the scope within this working group includes many different projects that are about workloads at the Edge, for example, Cube Edge, K3S. But now they're also collaborating quite a bit with the Wasm Cloud and Wasm Edge communities, or the Wasm ecosystem. And we'll continue to see progress as well in this working group. But this working group is not reason. It's been there for maybe about two, two and a half years. So there's a lot of different deliverables that actually have come out from this working group. And one example is this Edge native applications principles white paper. And basically talks about the differences between what it is to be cloud native and Edge native. So with Edge native, there are some differences with the applications where they need to be aware of the different constraints at the Edge. For example, they don't have large amounts of CPU and memory. They have access to last power. They need to be more resilient to network outages or not being able to connect to a centralized location. They need to be more secure in terms of having a lockdown mechanism if somebody breaks into the closet where they're actually stored. So a variety of different principles that they need to be taken into account and this working group has actually created this white paper to educate the community. And now they're working on the next step of this white paper. And that's the application design behavior white paper. And this is how you put these principles in practice. So this is currently in the works. We expect this to be published in the next maybe month or so. And that's quite a bit of work that we can say that's happening there in that working group. Another one is batch system initiative. And this one has been there for maybe two years. But right now with the advent of AI, there's a lot of overlap with some of this high performance type of workload. So we might see collaboration with this working group and the cloud native AI working group. But right now they're working on a batch landscape. As you can see, there are not that many projects. There's a few, but we expect this to continue growing. For example, there's one called Volcano that allows you to schedule batch jobs and communities and some other projects that are allowed to manage how these jobs get run across multiple set of nodes and in a Kubernetes fleet. But yeah, it's an exciting field and I think we'll see more tiles here popping up in the next few months. They're also working or have created a white paper on batch scheduling tools. And the features around batch or details that are looking at our scheduling policies, preemption, access to SDK and APIs, or the different project characteristics within the batch space like whether they're open source, whether there's active development or whether these projects can become a CMCF project or are already a CMCF project. And finally we have the container orchestrator devices working group. And this working group has been working on container device interface standard for all kinds of different container runtimes. So the idea is to have support in all of them across the board. And if you can see, they've added support for container D, they've added support for cryo, they've added support for potman in singularity and they also have vanilla docker support in the works. They've also, these artifacts that they've created, which I mentioned earlier, have been moved to the CMCF tax organization. This is again, this is just not specific to tag runtime. But this is the first working group and group of people who have actually both artifacts to this organization in the CMCF. And they're also converting some of the tax CMCF that I owe URLs with package names. So what's next for the tag runtime? And what are some of the things that we're looking at? So obviously we want to have more people participate in the tag. I think this is a common problem in a lot of the open source communities. But and this is no different in the tag runtime. Some of the things that we can do is actually revisit some of the old projects. Have them present again and provide an update or re-engage or provide advice on how they can improve or how they can pivot, maybe pivot in different ways if they don't have a lot of traction with contributors. Keep on reaching to the different projects in the different areas. For example, cloud native AI is happening now. So there's LLIMs everywhere, so we'll continue to ride that hype. Another project that is interesting is Open Tofu. So if you actually follow some of the developments from HashiCorp and Terraform licensing, their licensing was changed to business licensing. So there was a group of folks in the open source community that decided to fork Terraform and they've started this project called Open Tofu, which is an exact fork of Terraform. But it wouldn't actually evolve into something else. So we plan to engage them as well. Continue to look at the variety of different runtimes that may come up in the ecosystem. Wasm are the ones that come to mind. Or some of the ones that are used in IoT Edge. Also continue looking at different tools in the Kubernetes managing ecosystem, how you manage multiple Kubernetes clusters as they grow, as they become more of a challenge. And obviously continue to have updates on our tag runtime website and have these on a regular basis. Yeah, with that, just feel free to reach out and talk to me or talk to anybody in this room. Feel free to come up to me and happy to answer any questions. Thank you.


So here's the bottom line You know it didn't used to be just a hundred years ago if you wanted to get laid you had to get married and getting married You made a vow with someone So what's so wrong with being more intentional instead of Cavalier ambivalent or uncertain these days? It's just listen Realistically speaking there's gonna be guys that will agree to it and bail But I will tell you it's about having a deeper conversation instead of this stupid You know dysfunctional way people are dating today because it's like walking into that stadium I spoke of and trying to figure out your soulmate out of a hundred thousand people as I shared before By weeding people out. It's much easier to see who's more aligned to who you are and what you want


Today's topic is behavior grass management, and I'm Dr. Lee Ann Dillard, the Alabama State Forage Extension Specialist. So behavior grass, this is one of the grasses that we used to kind of pick on, but now as we've seen some problems with some of our other perennial options, it's quickly becoming more popular across the state. It is a long-lived warm-season perennial. Traditionally, we see this grown in the southern half of Alabama, but there are varieties that are adapted up through most of North Alabama, and I'll talk about that in just a few minutes. It's commonly used for pasture, but it can be used for hay, erosion, troll, and wildlife habitat. Also, it's pretty common to use it in a sod-based rotation, especially in the Gulf Coast region of the state. As you would plant peanuts or cotton for several years and then put it into the hay grass for a couple of years, and this picture here is from a successful sod-based rotation in Florida. So what are the characteristics of the hay grass? It is very grazing tolerant, and I'll talk about why that is a little bit later, but compared to some of our other forage options, it is very grazing tolerant. It does have a few diseases and insect problems compared to Bremutagrass, which obviously has Bremutagrass stem maggot, and some of our other issues with other perennials such as Paltesbury as well. It's very drought tolerant. It only has moderate forage quality, but it also only needs low to moderate fertility. So compared to like I'll compare this a lot to Bremutagrass, that is our most common warm-season perennial grass in Alabama, but Bremutagrass is most successful under high fertility. Condition. So this does give us an option for a lower fertility forage. It's also tolerant of stool acidity, which for about three-quarters of the state can be an issue. So that's a good thing, but I will say that if you live in a black belt stool, that is very basic, say over seven and a half or eight, you may have struggled to get it established. It is going to work better more on the neutral to acidic side. So this graph demonstrates the different growing seasons of different common grasses here in Alabama. And these are going to be our warm-season perennial grasses. As you can see, the hairgrass, which is the top row, will grow from anywhere to mid-March through the beginning of November. Now, we can pair that with an improved Bremutagrass or a high Bremutagrass, such as PIP85 or Russell. And it's going to have a much shorter growing season, roughly mid-May through the beginning of October. But you can also see the relative forage yield of Bremutagrass is higher than that of the hairgrass. But again, the growing season is quite shorter. Now, common Bremutagrass is going to have a little bit longer growing season than the high Bremutagrass, but not much. But then, obviously, there are your sacrifice and yield. Dallas grass, which is a pretty common forage, especially in the black belt, but growing across the state, has a similar growing season to that of the hairgrass. And then, Johnson grass, which, again, is probably most popular as a forage in the black belt, but does grow extensively across the state, is, again, going to be a little bit shorter than that of the hairgrass. So, the hairgrass of our warm-season perennials does have the longest growing season. Now, there are several different varieties of the hairgrass. Pensacola is probably the most common, most people have heard of Pensacola. It's best used on less fertile soils and in pastures that will not be well managed. It is kind of what we consider the parents of most of our improved the hairgrass varieties. For the most part, I don't suggest using this anymore because we do have improved varieties, but you can still find plenty of fields that are planted in Pensacola and can easily get Pensacola seed. Argentine was the original hairgrass that was brought actually from Argentina, South America. It's not very cold tolerant and it's very susceptible to ergot or fungus disease. So, we don't see that as much anymore. It's also the lowest yielding of our variety. And honestly, I'm not even sure if you can find seed anymore for this, but it is the original hairgrass that was brought to the US, so I thought it was worthy of bringing up. This picture here you see on the screen is actually of Pensacola and Argentine. And you can see the difference in the leaf size as well as the productivity. In this particular picture, Argentine has a little bit of a bigger leaf size. Pensacola has a finer leaf, which a lot of producers prefer the finer leaf to the hair grasses. So, tip to nine is probably the most common variety that you see planted currently. It is a derivative of Pensacola, but it has greater seedling vigor, which is important and I guess one issue with the hairgrass is the establishment can be difficult. It also has a more upright growth habit, which makes it better for hay production. And it also produces 25% greater yield than Pensacola. And this is why we suggest planting it rather than Pensacola. As the name suggests, it was developed in Tipton, Georgia. So it has moderate cold tolerance into Central Alabama, where again, Argentine is going to do much better in the extreme Gulf Coast, the Panhandle, Florida and places like that. AU Sand Mountain was developed here in Auburn in Alabama. Actually at the Sand Mountain Research Station across still. So this was, I believe, a stand of Pensacola that was planted in Sand Mountain just to see how it would do. And a few of the plants survived and they were able to ecotype it and sell it as AU Sand Mountain. It is the most cold tolerant. If you are Birmingham North, this is the variety that I would suggest planting. Some of the others may survive, but this is going to be the most prolific. In recent years, it's been difficult to find seed. But I actually recently spoke with a seed producer in Geneva County that is producing Sand Mountain seed and selling it through the Alabama Farmers Co-op. So the seed is limited, but you will be able to find some this year if you are in the northern third of the state. Tip Quick is a variant of Tip 9, which again is going to be from Pensacola. As I said, Pensacola is kind of the parent of most of our varieties. It is superior in ceiling vigor to Tip 9. Otherwise, it's essentially Tip 9. So all the other characteristics are very similar. I will mention and I have it yet that all of these varieties, you're going to see the quality is pretty much standard across all of them. The big difference is going to be in the yield. And that's where the benefit is going to be. Tip Quick, as the name suggests, does germinate a little bit faster and have a higher germination rate than Tip 9. It is a little bit more expensive.  The last variety I want to talk about is the variety developed at the University of Florida, D.U.F. It has later fall growth and earlier in the spring compared to our Tip 10 varieties, but it's only been studied in the lower coastal plain of Alabama. And since it was developed in the Panhandle, Florida, it's cold tolerant, has not been really pushed. I really like this variety, especially like I said, if you are, you know, in the coastal plain, the lower coastal plain, the headland area, the mobile area, but at this point, we need to do further studies to see how far and more we can successfully grow U.F. Reata. So here's a picture comparing some of the varieties that I talked about. This was a headland, which is outside of Dometon, the Wiregrass Research Station, about 10 years ago. And it just kind of shows you the differences. You can see the Tip 9 is a much thicker stand than that of the Pensacola. Also, again, I mentioned it. Remember it has a much more erect growth habit. And you can see that as it's slightly lodged compared to the Pensacola, which is much lower growing. And it's really difficult, as you can see here, to see the difference between the Tip Quick and the Tip 9. Again, remember, Tip Quick is Tip 9, which is a little bit better sealing vigor. So the plant itself is pretty much the same. So establishment of the headgrass. As with most gorges, prepared seedbed is always the preferred method. Now, obviously, if you are in highly erodible soils, this is not the method I would suggest. But if you are an area that is you're capable of doing the prepared seedbed, be it full tillage or conservation tillage, this will increase your germination, which is, again, one of the challenges of dealing with behavior grass. So you want to plant scarified seed that basically is a conditioning of the seed, either it can be physical or they actually like basically scrape the seed or it can be chemical. Again, a lot of our warm season forages and the headgrass in particular have a very thick seed coat, which is why we get a lot of hard seed. It is seed that will germinate, but not necessarily in the first year or when we plant. So by scarifying it helps the plant, the seed germinate faster. We do want to plant about 10 to 15 pounds of the acre in March or April. So around this time of year. We don't want to go deeper than an inch. So about a quarter to a half an inch. I always suggest to producers, it's much better to go too shallow than it is to go too deep. So I would make sure your drill is set at a quarter of an inch. And then in some areas where it may be less firm, you may go down to a half an inch and that's okay. In this also, cultivating and making sure we have a firm seedbed, it's very important. You can see in this picture here that I took several years ago at some plots we were doing that while we do see some divots from the tractor tires. They're not very deep. So we want to make sure we have a good firm seedbed before we plant. You can broadcast the hay or grass. You do want to increase your seeding rate to about 18 to 20 pounds per acre in this scenario so that you're able to, because you're going to have less seed to full contact so that you're able to have more seed out there. Now, with tip to nine and tip to quick since they have better germination, it is suggested that you can reduce the seeding rate a little bit compared to the more traditional like Pensacola. So the suggestion for tip to nine and tip quick are eight to 10 pounds per acre when you drill it, either no till or in conventional till and 12 to 15 pounds per acre in broadcast. Now when it comes to the other varieties, we don't have as much information our other novel variety. So with those, I would suggest using the higher seeding rate when in doubt, it's always better to have a little too much seed than not quite enough, especially in a crop that is difficult to establish. So but if you are using the tip and variety, she can reduce that a little bit, which obviously reduces your cost for acre establishment. So in terms of fertility, I mentioned already that behavior has a lower fertility requirements and some of our other warm season perennials. So our general recommendation is 75 to 175 pounds to the acre. I would say 75 is going to be for a pasture situation. And then 175 is going to be in a hay situation. And also if you are considering producing speed and I'll talk about the benefits of keeping your field for seed production a little bit later. As with all crops, we do need potash as well as phosphorus, and we know those at 40 pounds to the acre of peas. And that is in terms of P2O5 and K2O. It is taller of solosidity, but we still need lime. Obviously our soils are nationally very acidic outside the black belt. So annual lime is going to be anywhere from 0.3 to 0.5 tons per acre. I would defer to your soil test when it comes to this. You always want to soil test and follow your soil test recommendations. Many of our soils in Alabama are high in phosphorus and probably won't require it. And many of our soils are acidic, so we probably will need more lime. So in pastures, we do suggest soil testing every two years, and in hay crop situations, we suggest doing it every year. So the typical forage quality for behedgrass is about 85 to 90 RFQ or relative forage quality. You give you an idea of what that means. Bermudagrass can range from 90 to 100, and novel tall fescue is anywhere from 100 to 120. So you can see it's slightly lower than Bermudagrass, and I would say that it's slightly lower in quality or similar quality to that as close to Bermudagrass. The thing, one thing that's unique about behedgrass is close grazing is necessary to obtain good utilization. But as I mentioned earlier, all varieties are similar in quality. So planting the new varieties are not really going to get you a benefit there, but they will increase your yield, which will increase your caring capacity. When we look at the forage yield, and now this is Pensacola at different nitrogen fertilization and clipping frequency, we can see that with no nitrogen application on average, we're producing about 1240 pounds of dry matter per acre, and that's average across clipping frequency of every week, two, three, four, or six weeks. Now when we look at just the addition of 50 pounds of nitrogen, we're able to almost double that. In 100 pounds, again, we're not seeing quite the same increase. Now at 200 pounds of nitrogen, we do see it jump up to about two and a half tons per acre, which is quite substantial, but still when you consider Bermudagrass, and think about Bermudagrass, when you produce seven, eight tons of dry matter per acre, we're still seeing it's relatively low. Obviously, the less frequent you clip, the more biomass you're going to produce. So this kind of gives you an idea of clipping frequency, maybe you can either see that in terms of hay clippings or in rotational grazing. So we do suggest about a 28 to 30 day rest period in Bermudagrass, and so you would see that around the four week mark, which is here. So we've got 1,300 pounds at none, up to 5,600 pounds per acre at 200 pounds of nitrogen. So again, the recommended rate that we suggest is somewhere between about 50 and 100, you know, about 75 to 100 pounds nitrogen per acre. So improved varieties. Remember, I told you that they're going to produce more, so this study was done on Pensacola. So remember that if you're planting tipped in nine, tipped in quid, ufriata, you're going to easily get 10 to 15 percent more yield compared to this table. So looking at forage availability, and I brought this up because I've mentioned now several times that close grazing is the best way to utilize the hay grass, which is kind of the opposite of what we typically say, right? We typically say eat half, leave half. Well, in the hay grass, the growth happens a little bit different than those forages. So to leave half, we're actually going to have to graze it a little bit closer than we would with some of our others. So when we look at our behia grass, and we look at two inches to greater than five inches, and you add those numbers of percent of forage cutting high, and it doesn't matter which column you use, which nitrogen rate. Let's talk about these purposes. Talk about New York, no nitrogen applications of this column right here. You can see that for every inch, you're going to see roughly, and this should be four to five, not four to 52, 9.48 percent, almost 10 percent, 11 percent. So when you add those up, in the above two inches, you're only going to have 40 to 50 percent of your total forage yield. Now, for most of our forages, we talk about grazing down to only three to four inches. For me to grasp, we can push a little bit lower. But so if this is 40 to 50 percent and above two inches, your bottom two inches are going to have over at least half of your forage biomass. So that's why we say that to get the best utilization, you really have to push it a little bit further than you do some of our other grass options. Now, having said that, we only want to do that in an established stand. If this was the first year of the stand, I definitely would not push it that far. But if it's an established stand of being a grass and it's your following appropriate fertility, then you should be able to push it down into that right at two inch mark. And you can see just in the first inch, this last row here, 40 percent of the grass is in that first inch. So it does make it a bit challenging to manage. You also need to keep this in mind when looking at hay production. Now again, remember, these data is from Pensacola and I did tell you the tips and varieties have more erect growth habit. So the data would be a little bit different with those. We might see the numbers shift a little bit upwards. But if you are dealing with Pensacola, unfortunately, we see that about 40 to 50 percent of our forage is in that first inch. So grazing management, the carrying capacity for the hay grass is about three quarters to about 1.25 animal units per acre per year. And the animal unit is defined as a thousand pounds of animal, be that two five hundred pounds fierce or one thousand pound cow. So comparing that to Bermuda grass, it's about one to one and a half. So Bermuda grass is able to carry a little bit more. As mentioned several times, Bermuda grass is higher yielding than the hay grass. And then novel tall fescue is about a half to one. So similar, a little bit lower. So it does have a pretty good carrying capacity. And remember, it's going to be growing a little bit longer than the Bermuda grass. The Bermuda grass is just so much more productive. You're going to have a higher stocking density for a sheer period of time where the hay grass you're going to have a smaller stocking rate, the stocking density over a longer period of the year. So looking at performance, which is always important. This is stocker cattle data. Obviously in terms of average daily gain, which is the easiest thing to measure stock cattle kind of easy way to do this. We're going to see anywhere from three quarters to one pound per head per day. This obviously is not going to be profitable if you're working on a stocker cattle system. Obviously stocking cattle during the summer is a huge challenge. When you compare that to Bermuda grass, we're talking about about three quarters of that with what you give Bermuda grass, and then even lower that and novel tall fescue. Tall fescue, the endophyte, the novel endophyte tall fescue, which obviously does not have fescue toxicosis, it's going to be our cool seasons are always going to be higher quality than that of our one season. Now, if you were to do this, keeping this in mind, this could easily be a system where you graze and also supplement stockers. And that's how you could be economical that way. It will be difficult to get enough gain on those stockers, though, to be able to be economical. Now, for a mature cow, this is perfect forage in nature quality demands quite well. So it's really good for cow calf operation. So hay management, obviously hay is quite popular in the hay grass. One, because it is more drought tolerant and tends to stay green longer during the drought than Bermuda grass. But also there's a big interest at the moment from the horse industry and the hay grass, because it's perceived to have less carbohydrates or less sugars available. So it's better for laminated horses. Also, it has a more finer, finer week. So it is moderate quality when cut in less than five week interval. So this is going to be similar to Bermuda grass. You want to be cutting this approximately every 28 to 30 days. The TDN is going to be 50 to 56%. The requirement for a mature cow is 55. So again, as I said, good quality for your cow calf operation. Crude protein is going to range from 9 to 11%. A lot of that is going to be dependent on the weather conditions as well as your nitrogen fertility. Nitrogen fertility has a huge impact on food protein. Again, for a mature cow, we're talking about eight to 9% requirement. So again, it's going to be able to meet current needs. For a stalker cow, we're talking about upwards of 55% to 70% TDN requirement and more 14 to 50% crude protein. So they're likely going to have to supplement those animals. As I just mentioned, the majority of the forage biomass is below one and a half to two inch lower cutting height. So it's typically not considered a good species for hay production. I would say that the caveat to that is if you are working with an improved variety, tip to nine, tip to quick or ufriata, you can more successfully make hay. I'm not saying that there are people that you can't make hay on Pinsicola behiagras. You definitely can, but your yield will suffer. And really below one and a half to two inches, even if we were able to cut lower than that, you would be getting so much soul into your hay, you would really be reducing the quality of it. So I would suggest if you're interested in behiagras hay, looking for an improved variety, you're also going to get higher yield, which has going to help you be more profitable. So behiagras can be invasive in your grass hay fields. So if you do have behiagras that you're grazing or cutting for hay and also Bermuda grass, I would, you know, try my best not to let there be any contamination, washing equipment before you go between fields and not feeding the hay grass hay in Bermuda grass. While there's no effect on nutritive quality, because behiagras will dry darker than the Bermuda grass, it's not very visually appealing. There are some options of dealing with behiagras and Bermuda grass, but they're extremely expensive. So prevention is the best case here, if you are trying to keep them separate. So this is a graph just showing the average forage yield from either tips and 85 or coastal Bermuda grass versus 59 Pensacola and Argentine behiagras. And this was done in Tipton, Georgia, so southern Georgia and the coastal plain over three years. And we can see, as you would expect, tipton 85 is the highest producing of all five varieties, pushing about 1700 pounds of dry matter per acre. Now, coastal did a little bit worse, but it was higher than the tipton nine. And then we look at our tipton nine Pensacola Argentine, you can see they kind of stair step down. So again, if you're in hay production, I would suggest it's probably worth it to upgrade to tipton nine. If you are using Pensacola, just for the added yield, you're going to get about 20000 more pounds of dry matter on average per year when you have tipton nine compared to Pensacola. So seed production, and this is something we see quite a bit in Florida as well as south Alabama as a way of getting a little extra money off your pasture. So it can be an additional source of income on both pastures and hayfields. New varieties are plant variety protected. So it's illegal to collect seed unless it's a certified field.  This does not apply to Pensacola. So if you have a Pensacola field, you can very easily harvest your seed. Filled to Pensacola and Argentina can be harvested to offset fertilizer and other production costs. They produce about 150 to 400 pounds of seed per acre. And depending on the year, again, that could easily set off your fertilizer cost if nothing else. There's several custom seed combines in Alabama that will come and harvest your seed for you. So the growth of tillers that later developed in the seed heads is stimulated by grazing and mowing. So we suggest grazing and mowing through the beginning of the summer applying 100 pounds and then applying 100 pounds of nitrogen per acre. Producing seed is quite expensive for my energy standpoint. They do have a higher fertility requirement. So one of the challenges of doing this is determining when seed is time to harvest the seed. Maturity rates will vary. So you want to check multiple seed heads. But the easiest thing to do is just grab the seed head, try to strip it with your hand. And if the seed is mature, it'll easily release from the seed head. And the handgrass color is not the greatest indicator of whether the seed is mature or not, because often it's still green, but ready to be harvested. You want to dry the seed as quickly as possible to avoid any heat damage, as obviously the seed is going to mature at a different rate throughout the field. So you will have some immature seed that will not be completely dried in the field. So the timing is going to be on each year is going to be dependent on rainfall, fertility and management. But generally we're going to stay mid to late June in the coastal plain. So weed management in behaergrass, as with any pasture or hayfield, the best defense in management is remote against vigorous behaergrass growth. By managing it correctly in terms of fertility and cutting or grazing height, we can make sure that our behaergrass is able to compete. The behaergrass is extremely competitive and is able to under the right conditions out to feed mostly. And as example of that is many permutagrass producers have it as a weed in their community best. So for broadly points, the easiest option is to 40, but we do not want to do that during the establishment year or before behaergrass is about eight inches tall for grassy weeds, specifically basic grass and smut grass, which tend to be problems in behaergrass, you can use the bill far, which is going to be again an expensive option. You want to apply it April through late July at about 0.67 to 0.12 pounds of active ingredient per acre. You only apply this when the full moisture is sufficient. Humidity is high and the air temperature is greater than 80 degrees Fahrenheit. It will injure the behaergrass by temporary burning and yelling it about two to four weeks after application that will help reduce your basic grass and smut grass. So for more specific situations on your weed control options, I would suggest going to the ACIS website, acis.edu, search IPM guides and pull up this publication, which is IPM 0028 Passures and Forge Props Insect Illumine Control Recommendations. This is going to give you information on specifically what herbicide options are currently labeled, excuse me, in Alabama or behaergrass. I would also say regardless of what this publication says, always read the label of the herbicide so that you can verify that it will not kill your behaergrass. So as part of this, I wanted to bring up a current topic or a new upcoming topic, which is Brunswick grass. Excuse me. So Brunswick grass is an emerging weed problem in behaergrass, and the reason it's emerging is because it's a cousin to behaergrass. They look very similar, but unfortunately, even though it's got moderate quality, it's not palatable to livestock. So you can see in this field, which was in, I believe, Levi County, Florida, the tufts of grass that you see in that field are Brunswick grass, and the overeaten areas are the behaergrass. So you can see how quickly it could take over a field because the cattle are going to select for the behaergrass, make it weaker, and since they're not grazing the Brunswick grass, it's able to take over quite quickly. So we can outcompete behaergrass and basically lead to a field of what is a behaergrass look-alike. And I'll show you some pictures in a minute to kind of so you can distinguish between the two. I will say we have this grass or this weed in Alabama. We do not see it nearly as much as a problem in Florida, but we do have it in Alabama. So at this point, what we're trying to do is trying to keep it from becoming a problem and control it before it does. So in this picture, you can see Brunswick grass has a seed head very similar to Dallas grass. It's got three to four racines, which are the lines of seeds compared to behaergrass, which typically has two. Always remember that you want your behaergrass to give you the peace law of sign. If it's not doing that, it's either infested with Dallas grass or Brunswick grass. Now Brunswick grass in terms of the leaves are going to be very similar to behaergrass, where Dallas grass has a much thicker leaf so when you look at the bunch of grass, you can tell the difference between the Dallas grass and the behaergrass. Now Brunswick grass, behaergrass and Dallas grass are all in the same genus, so that's what can make them very difficult to distinguish is because they're very close cousins. So Brunswick grass, just like behaergrass, is a perennial summer grass. It has a similar growing season and appearance to that of behaergrass and you can imagine if you were looking at this field without the seed heads, you could very quickly just assume that it was a field of behaergrass. So again, it has similar flowering to the Pensacola behaergrass but it often has three to four of the seeds per head. And I will tell you even our behaergrass expert down in Florida, Dr. Ann Lunt, who is the one that kind of initiated this, initially she had a hard time telling the difference and she's a forage breeder and this is what she does every day. So they are very, very similar. So the easiest thing to do to confirm or deny if you have Brunswick grass, excuse me, is to dig up the roots. So especially if there's not seed heads present to be able to look at. If you look at Brunswick grass, it has long, skinny rhizomes and you'll see it tiller where the plants are connected. Where behaergrass has a much short scubby rhizome, you can see it there. It's kind of shaped like a J and it's not going to be connected as these are. You see that you have what appears to be two plants connected by the same root. You're not going to see that in behaergrass. So you can also look at the seed. There is, while the seed is similar in size and color, Brunswick grass seed typically has a bull's eye on it. As you can see in the picture there compared to behaergrass, which is usually a lighter color of brown. Not in this picture, but it usually is more of a white color. Also it's not going to have the dot in the middle. So that's the easiest way to tell on the seed wise. So again, prevention is the key to control this problem. And we do this by buying certified seed. We just talked a little bit about seed production and how that can be used as a secondary source of income. But the way this has gotten around and spread is through brown bag seed. Because it is not tested for contamination. So the certified seed is always tested. It has to be in certified fields which are checked regularly to see for any weed component. And also they go through a lab and here's an example of a seed tag you see here. And it's going to list the amount of weed seed. Now Brunswick grass is not listed as a noxious weed. Any noxious weed seed that's found has to be listed on the label. But you can call the certifying lab. Give them the information there about the lot. And they can tell you any weed seeds they found. They just don't print it on the tag. But certified seed does have to have I think below 0.1% weed seed total. This also gives you obviously information on germination rates, hard seed and things like that to help better calculate your seed rates. So insect management probably the most common concern for insects in bahia grass is fall armyworms. There are some other smaller issues with bill bugs and things like this. But I didn't, I'm not going to talk about those. I'm going to focus on fall armyworms. They do have the most severe outbreaks late summer early fall after a dry period. We see that right some years we don't get very much and in other years it takes off and we see a horrible amount of fall armyworms. They will reduce the yield but usually if you have a good established stand you don't have to worry about the stand being killed.  I will say anecdotally that most people see that the fall armyworms will attack other forages first before they become to the bahia grass which I think is kind of a good thing. So you'll see they'll take out the ramita grass first and then it'll come back to the bahia grass. You can treat for fall armyworms but usually in bahia grass given the quality and the yield the loss is not enough to justify the treatment because it is quite expensive. But again if you are interested in learning more about fall armyworms and management in bahia grass or other pasture crops you can either go back to our IPM guide for insect and weed control recommendations. Also we do have a separate publication on management of fall armyworms and pastures and hay fields that talk specifically about just fall armyworms. And those can again be found on the ASIS website asis.edu.


Good morning class. Last class we covered the first five concepts of accounting based on which the accounting principles were framed. Those were the concepts of money measurement, going concern, entity concept, cost concept and the principle of duality. Now I thought before I go to the next six concepts, I think there is enough input that is already given for you to understand what a balance sheet is based on these five concepts. So before we go into the six concepts, remaining six, I will just give you a quick overview of what a balance sheet is and how you view a balance sheet as a critical financial statement. Now I have already told to the class that a financial statement that shows the financial position of an entity at a given point of time is a balance sheet. So balance sheet as I told you it is a status report, status report at a point of time. Based on this we can understand the financial position of the entity. Now how do we understand? Because the balance sheet reports two entities namely the assets and the liabilities and I had told you last class the assets will definitely be equal to the liabilities because that is the underlying basis of a balance sheet. So you should not be surprised looking at a balance sheet and that the assets is equal to liabilities. There is nothing significant because assets definitely have to equal the liabilities. So a statement that reports both assets as well as liabilities based on which one is able to judge the financial position of an entity is called a balance sheet. Now a balance sheet has a specific nomenclature or a balance sheet has a specific structure, a specific form in which it is been expressed. Let us for example say I am going to write a balance sheet for an entity namely a firm XYZ. So what we typically do is we write the name of the firm XYZ. So this is the name of the entity and that since we are talking about balance sheet we write that the statement that we are going to create is the balance sheet which is the name of the statement. And balance sheet I told you is a report at a given point of time. So we need to know at one point of time are we creating this balance sheet as on which date are we creating this balance sheet. So that is why you would see in various balance sheets that there is a specific date that comes along with it as of let us say December 31, 2011. So this is the moment of time. Now this typically constitutes the heading of a balance sheet. So XYZ balance sheet as on 31, 12, 2011. Now let us see how balance sheet in terms of some of the concepts that we already covered last class. Let us see how the balance sheet adheres to those specific concepts. Now a balance sheet is typically represented as I told you before to show the assets and liabilities. So let us say we are going to report assets on the left hand side and liabilities on the right hand side. You can also report assets at the top as well as liabilities at the bottom. There are two ways of reporting or presenting a balance sheet. It begins with current assets and I am going to explain what this current assets, what is current liabilities and all those terminologies later. But just for the purpose of understanding what a balance sheet is, let me just say current assets, cash, accounts receivables, inventory. So this will be total current assets and then you have fixed assets in a balance sheet which will be plant, equipment, building. So total fixed assets and then finally you have total assets which will be your total current assets plus your total fixed assets. So all of this will have some number. Let us say 1, 2, 3, 2, 3, 4. Let us say we are expressing this in thousands. So that will also be indicated in your title of the balance sheet for the sake of simplicity. I am just writing 3 digits, 565. So the total of these 3 will come here. That is 12 and then again let us say you have plant and equipment, 1000, building, 2000. So total fixed assets is 3000. So the total assets will be 3922. Likewise on the liabilities you will have current liabilities which comes in the form of accounts payable and then you have let us say wages payable. You have deferred revenues. These are all current liability items. These are current liability items and then you have total current liabilities and then let us say you have long term debt. This is a long term liability, long term debt and then in the liabilities you will also have another section called shareholders equity which comprises of the owners, capital, retained earnings. I am going to explain each of this later and then the total liabilities which will be equal to your total current liabilities plus long term debt plus shareholders capital. So this will be a number which definitely will be equal to 3922 just for the sake of understanding and just leaving these unfilled. But a balance sheet as the name clearly suggest will give you a statement that equates the total assets to the total liabilities. Now the point that I want to just highlight here is that let us see how a balance sheet actually confirms in terms of the concepts that we covered last class. All the events events is expressed in terms of money. That is the first concept of monetary measurement. So you can see that all of this is expressed in terms of money. So you cannot say accounts receivable 10 tons of apple that you sold that cannot be in your bank account. So that is again not a form in which you express an inventory in your balance sheet. All of this gets converted into a monetary measurement. So all these gets monetized. So the first principle is that you can very clearly see that all of these are expressed in terms of money. And the entity involved here is XYZ. So that is your concept of entity, the entity concept. And though not explicitly stated in the balance sheet, it is assumed that this is a going concern. It is very unlikely that in every balance sheet that you will find that the entity explicitly stating that this entity is a going concern. But it is taken that this entity is a going concern. Then the cost concept is also followed especially when we are going to spend more time on this fixed asset portion. What we usually do is this plan equipment that the value of 1000 is actually recorded at the cost of its acquisition initially. Let us say we bought this equipment for 2000 rupees. And the cost of acquisition gets first written cost of acquisition 2000 and let us say 5 years since we purchased this equipment. Then less accumulated depreciation. I already told last class what depreciation is. As and when an equipment gets used, we charge the equipment a specific value and that specific charge is the depreciation. So when it was purchased at 2000 and now the value of the equipment, the book value of the equipment is 1000. It means in the last 5 years the equipment has been charged a sum of rupees 1000. And let us say we are having a linear depreciation which means every year the cost of depreciation is 200. So the cost of acquisition is 2000. Now the value of the equipment is 1000. Though I have not recorded the cost of acquisition which actually I should have. So before this you should see in balance sheets that they would record the fixed assets at the cost of its acquisition. In this case 2000 then less accumulated depreciation 1000 and the resultant value is this 1000. That is the principle of cost concept. The other aspect is the dual aspect which is very evident from the fact that the assets is equal to the liabilities. And I already told you that you know you should not be surprised that the assets is equal to liabilities because the principle of duality means this that the asset has to equal to the liability because for every event that we record as an accounting transaction it impacts in two ways so that the assets is equal to liabilities that fundamental equation does not get compromised. Now as I told you this can be expressed in two ways assets on the left hand side the liabilities on the right hand side or assets on the top and liabilities at the bottom. If you express in left right fashion it is called an account form. If you express in the top down format it is called the report form. So this is the account form and if it is top down we call it the report form of expressing a balance sheet. Now there are two views of looking at a balance sheet. Two views of looking at a balance sheet and both the views are acceptable views except that the way in which we look at the balance sheet differs a little bit. The first one is the resources and claims view. Now this understanding this resources and claims view of understanding what a balance sheet is one way in which when you look at the balance sheet you see the items on the asset side these are economic resources of an entity. So the assets is equal to the economic resources of the entity in this case we just wrote it was x, y, z. So it is economic resources of that particular entity x, y, z. The liabilities which is the right hand side is the claims against the resources and since it is a balance sheet it is the claims against the resources as on today. Suppose this is the balance sheet today today what is the claim against each of the assets on the balance sheet. Now what do I mean by claim? So the liabilities are claims of outsiders. It could be anybody I mean those who have a claim against the asset and invariably it would be the banks who should have given the entity some money or it could be the owners themselves who have also put in their own money to start the business. It could be vendors to whom the entity owes money. It could be even the employees to whom the entity's own wages, salaries etc. So there are different sources of this claims against the assets. So it is this view which is called the resources and claims view which says that for every asset that is created that you see in the balance sheet there is a liability partner who has a claim against the asset that is being created. Now this liabilities I told you last class has two components liabilities will have the shareholder liability or the owners liability as well as the other liabilities in the form of banks accounts payable the vendors and other creditors. But you must understand that the owners do not have a claim in the same sense as the creditors have just a quick example for you to understand. Let us say in the balance sheet that we discussed suppose there was another current liability item called taxes payable and that taxes payable was let us say 100. Now not a penny more or a penny less than 100 is the amount that the firm the entity is liable to pay. To that extent we can say that 100 has some specific claim against an asset created here and that specificity is not more or not less than 100. So to that exact amount we can say that taxes payable is a claim against an asset whose value is 100. Now the question is whether we can in the same exactness say that the different claims have the same level against the assets that are being created. Let us for example say that the shareholder's equity here the shareholder's equity total is this entire total is around 1000. So the shareholder's equity let us say is 1000. Now let us say that the entity is going to get liquidated. Now the shareholder's equity of 1000 means that in the event of liquidation if all the assets on the left hand side is sold at the book value at which it is being recorded and if all the existing liabilities are met which means I am paying the bank loans I am paying all my existing accounts payable. So all the claims against the assets are met then finally the shareholder receives 1000. So that is the meaning of the shareholder's equity being 1000. But then in real sense does it happen because there is a lot of if first on liquidation if the assets are being disposed at book value if I am able to meet all the liabilities and after meeting all the liabilities the shareholder gets this 1000. Now this if condition could be unrealistic during different circumstances. Let us say for example the shareholder's equity the book value what we see here is the book value. Suppose let us say that this entity has got a tremendous growth opportunities. So the shareholder equity could be greater than the book value that we see in the balance sheet if the entity has tremendous growth potential because remember last class I told you that the value of the shareholder's equity that you see in the balance sheet is the book value. But the perception that the value of the shareholder's equity could be more than the book value in this case because there is a great potential for the entity to grow. So the shareholder's equity could be more than the book value and hence what you see there as 1000 in the book value need not necessarily be what the shareholder will get in case he decides to sell his stakes in this entity. It is also possible that the shareholder's equity is less than the book value let us say the company is sick if the entity is sick. So I would not even accept that the book value itself is a share is a fair value of the shareholder's equity. So that could be instances where even the book value is exactly not the shareholder's fair value it could be even less than that because the entity is sick and there is it is very unlikely that there is tremendous growth potential in the entity. Let us say even a worst case scenario where the company is bankrupt leave alone shareholder's equity even if you dispose all the assets there might be instances where the stages of bankruptcy the assets disposed would not have generated enough resources to meet even the liabilities like banks or accounts payable or other forms of liabilities leave alone shareholder's equity. So different stages or different perceptions of what could be the true value of shareholder's equity and hence whether this resources and claims view is the best form of viewing a balance sheet becomes a genuine question and there are a lot of theories that say no this is not necessarily the only way of viewing a balance sheet but that does not mean that this is not a correct way to view a balance sheet there is also another way in which you can view a balance sheet which is the sources and funds view the previous one was the resources and claims view which is very clear that the asset that is created has somebody on the right hand side on the liability side who has a claim against the asset the sources and funds view is that again it is got to do with the assets and the liabilities it says the asset represents the form in which the funds is utilized or invested the liabilities represents the sources of these funds which means for every 1 rupee asset that I create where did I get that 1 rupee from that is from the liability side so both views are correct both views whether it is the resources and claims view or the sources and funds view both views are correct but for easy understanding the sources and funds view because it very clearly says that you know the asset represents the way in which all the funds that were received have been utilized or invested and the liabilities represent the sources of these funds where did I get these funds from did I get it from banks did I get it from raising money in the stock market or the fact that I did not pay my vendor money but still manage to get some inventories in my balance sheet is an inherent source of fund the accounts payable is a source of fund and hence the liability because I have not paid the vendor I am only deferring my payment so it is an inherent fund that I have generated the result is that I have utilized that to get some inventory which shows up in my asset current assets as inventories so both forms are acceptable except that the sources and funds views more convenient and comfortable to understand now if you look at the balance sheet a balance sheet as I told you before is categorized assets liabilities under assets you will have current assets and fixed assets under liabilities you will have current liabilities long-term liabilities which is debt bank loans then shareholder equity I will be referring this to as SHE now this categorization is done for easy understanding identification you can also present a balance sheet by just recording all the assets you have a value a total value record all the liabilities you have a value total value both the values will equal but then for easy understanding and for easy interpretation of the financial strength of the entity you categorize these accounts now current assets fixed assets all these category heads will have under them different subcategories all those subcategories will be identical to the extent that they are current assets likewise all subcategories of fixed assets will be identical to the extent that they are fixed assets and those subcategories let us say for example cash or inventories so those will be the aggregate of all those individual events that are identical to this subcategory I will explain that in detail later but for you to understand you should know that such categories under each of these are created cash accounts receivable inventory etc likewise here building land machine here accounts payable wages payable debt retail earnings paid in capital etc. So these are subcategories and under these subcategories will represent the aggregation of all those identical events that have happened that relate to this specific subcategory let us for example say accounts receivables so for easy identification aggregation and then title them under specific subcategories and then group them under a bigger category called current assets and then present them in the balance sheet this way you will easily understand and interpret a balance sheet by creating these subcategories. Now the assets of a balance sheet I told you that an asset is an economic resource let us just extend this definition a little further that is controlled by an entity because now we are getting into the finer details of what qualifies an asset controlled by an entity whose cost of acquisition is objectively measurable. So the key words it has to be an economic resource should be controlled by the entity and it has to be objectively measurable. So what do I mean by economic resource it means that an asset is an economic resource if the entity derives a future benefits like cash or benefits that can be easily converted to cash or it could be inventories finished or work in process that can be converted to finish good and then sold to generate cash or it could be equipment which can be utilized in future so this equipment can be used in future for activities which will result in finished goods which can be sold to generate cash. So broadly an economic resource is one that can generate cash or can be converted to cash and hence qualifies to be an asset the second key point is that it has to be controlled by the entity which means let us say you the building that the entity is operating is on a 25 year lease then I can assume that this building is an asset to the entity as against using a different economic resource which is not owned by the entity let us say it has been leased for a short period of six months or ten months or less than a year then I cannot say that I own this entity because the lease duration is very short term which means I do not have direct control on this entity the ownership will pass after the end of the lease period it gets transferred under these circumstances I do not treat this though it can be used to generate cash I cannot treat this as an asset because I do not directly control the asset or I do not own this particular asset and the third thing is that it has to be measurable objectively so I pay cash to buy an asset I may trade my existing asset to get a new asset that is measurable because the existing asset will have a value the new asset that I get is traded for this particular value the question is whether it is measurable or not it is measurable because the existing value of the asset that I use for trading has a measurable value or I could probably sell shares raise capital that is also measurable as again suppose I have gained reputation I have been in business for 25 years and I have gained a reputation it can be an asset to the entity but very difficult to objectively measure reputation of an entity so I cannot record that as an asset item it has to be a measurable item and also let us say if I purchase building I use 30,000 rupees of my money and then 70,000 rupees I borrowed from the bank and use this 1 lakh to purchase a small building so it is not just the entities the owners contribution in creating the asset needs to be measurable it is both my 30,000 as well as the money that I got from the bank the 70,000 that also needs to be measurable only then there is some objectivity in measuring the asset that we have created. So asset will have three important elements that it has to be an economic resource directly controlled by the entity and objectively measurable at the time of its acquisition. Now I told you that there are account categories that we create in a balance sheet let us begin with current assets what does current assets mean current assets are type of asset categories that can be consumed within one year less than a year let us say for example cash or accounts receivable marketable securities marketable securities or cash equivalence short term investments or inventories. So current assets are the ones that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle in this case less than one year and if that is the case then it can be classified as current assets. So for example cash is a current asset there is no current asset more current than cash because it is cash it is hot cash funds that are readily available for disbursement for whatever purpose it may be the next could be marketable securities I am just trying to explain this in the order of liquidity cash is the most liquid form of asset marketable securities let us say you have a short term deposit in a bank. So it can be easily converted into cash or accounts receivable what is accounts receivable suppose the entity makes a sale and there are times where I record a sale and that I do not receive money for the sale that I have made but at the same time I know that I will be receiving this money within a reasonable period of time in the future that amount that I have to receive would appear under the heading accounts receivable in terms of the liquidity cash marketable securities and the next liquid current asset means that suppose I want this money I have cash I have marketable securities converted to cash and still I do not I do not have enough cash to meet some of my commitments the next current asset that can be converted into cash is my accounts receivables then is inventories that is also current asset inventories could be in different forms I could have purchased some raw material or some raw material would have undergone some process and it is in the stage of being processed into finished goods so we usually call that as work in process or an inventory that has been converted into finished good but not at sold now all these three inventory classes are current assets because they can be sold at some point of time to be converted into cash and hence it is a current asset why is it in the order of liquidity next to accounts receivables or cash or marketable securities because you cannot immediately convert inventories to cash and assume you are in raw material unless you just dispose the raw material for some price raw material needs to be converted into finished good the finished good needs to be sold and then your sales should generate cash so in the order of liquidity it will be always cash marketable securities the accounts receivable inventories also you might have some prepaid expenses which can also be your current assets and usually these are intangible in nature for example an insurance policy I the entity pays some amount for an insurance protection in advance and let us say it is a two-year insurance cover and at the end of one year it let us I paid around 250,000 for insurance protection for two years and one year has gone now what happens to the amount of this current asset at the end of one year which means no longer is this 250,000 the value of the insurance that I paid one year back one year has gone so the prepaid expenses of two 250,000 has reduced to 125,000 which is the cost of the one year protection that I have enjoyed or the one year protection that is remaining so prepaid expenses at the time of purchasing this in advance is a current asset whose value will keep reducing proportionately as and when you start losing the benefit of paying the advance to get that current asset now just as we have current assets we also have fixed assets these are assets that are tangible and relatively long lived long-term assets these are not the current assets type where you had that one year time period so these are assets that are relatively long lived and typically you will have land building equipment all machinery all sorts of assets for which the life of the asset let us say is more than a year but that is not the it is a relatively long lived we will put it that way these are assets that are called fixed assets and these come next to your current assets now if you look at the balance sheet the fixed assets in the balance sheet I told you that let us say building building at cost will have some value then less accumulated depreciation it will have some value and then the building value which is the book value that you see in the balance sheet will be x y z minus a b c I will leave the class a copy of a sample balance sheet actually then you will be able to understand better but then if you look at any balance sheet you would see that these fixed assets because of the cost concept they are recorded at the cost of its acquisition less accumulated depreciation and then finally the book value of the asset which means the original cost of acquisition of the fixed asset is recorded and then a portion of that original cost is removed as we start using the fixed asset and that portion is your depreciation and over a period of time you use it the depreciation gets accumulated and let us say six years later you would say cost of acquisition less the total accumulated depreciation will be the value of the fixed asset at that point of time apart from these long term fixed assets you can also have other investments as your fixed asset these could be your long term investments could be that you have used the firms resources cash to purchase let us say a 10 year government bond so that is a long term investment and that is an asset to this firm or you could probably hold shares of some other entity that is an asset to this particular firm. So on the asset side you have current assets fixed assets the only thing that differentiates both is their lives fixed assets are depreciable not all fixed assets I am talking about land building machinery equipment current assets are the ones whose propensity to be converted into cash cash equivalence and consumed within a one year period are not generally depreciated likewise on the liability side you have different account categories now what is liability liability is an obligation to some external parties for events of the past let us say as on December 31, 2011 I am preparing a balance sheet and that I have not paid wages for my employees for the week December 26 to December 31 so the amount that I am supposed to pay is a liability and this is as on December 31, 2011 I am creating this balance sheet let us say on timeline today I am on January 10 and that I am preparing this balance sheet as of December 31 and I am not paid salary for January 1 to 10 but that is not a liability that has to be shown in the balance sheet because our balance sheet is as of December 31, 2011. So obligations to external parties for events that have happened in the past there might be some exceptions about which I will be talking later are liabilities so a liability as I told you before is a claim against the particular asset but you cannot say that a liability that has arisen out of let us say an accounts payable or wages payable or some short-term debt or some long-term debt is against a specific asset an accounts payable of 100 rupees is against this particular asset whose value is 100 rupees specific claim against specific assets is very unlikely usually not the case but there are instances where let us say a case of mortgage loans where you identify a specific asset class and tell that it is for this particular asset that I have taken this loan. So the underlying asset that is being mortgaged has a specific claim against it which is the mortgage loans so these are typically called secured loans. So unless you have categories of that type there isn't a specific claim against an asset for the existing liabilities sorry. So just as you had current assets you can also have current liabilities so your current liabilities or your accounts payable or accrued expenses what is accounts payable suppose the entity manufactures some product and for the purpose of manufacturing I need to buy some raw material and I buy raw material and I promise the supplier that I will pay this money sometime later which means I am bound to pay this money to the supplier sometime later till the time that I pay the supplier the money these accounts payable will be a liability so the amount that I have to pay is recorded as an accounts payable likewise accrued expenses these are expenses that are earned by outside parties but the entity has not paid it usually we categorize all this and then call it as accrued expenses or if we know who these external parties are what type of amount is outstanding then we categorize them according to those types for example if it is about salary suppose the accrued expense relates to salary I just simply use the heading salary payable suppose the accrued expense is related to interest then the corresponding current liability item is interest payable there is also another current liability item called deferred revenue is an advance payment that I the entity has received for a revenue service that is yet to be delivered that is deferred revenue and it is also a liability because I have received some advance payment for some service that I have to give in the future which means I am liable bound to deliver that service in the future. So these are current liability items so let us just stop here before we go to long term liabilities which will include your long term debts as well as shareholders equity I am sure this class you would have understood what a balance sheet is different components of the balance sheet and how it is viewed both from a sources and funds point of view and resources and claims point of view and how asset classes are defined and categorized what are the first places asset and then how liabilities are classified and categorized you will see next class on what long term liabilities are thank you.


Good morning everyone. This has been quite the morning first things first in election day I hope you guys all went and voted it is so important. This is such an important election. I love you guys I see you guys. I know this is a very It's just a tough day guys. It's a tough week. It's a tough time. It's been a tough year and here we are So anyways on a lighter now I hope that these vlogs this week are a little bit of a distraction for you guys without Negating from where our country is not and also it is important to vote I know it's too late for you guys to vote, but if you guys didn't vote I said this on my podcast if you guys didn't vote Please get registered to vote next time like voting is so important Especially if you feel like the election doesn't affect you then even more so look into your privilege in that sense You know what I mean? So anyways, I love you all. Um, it's just a really tough election Anyways, happy vlog week day two. It is currently 10 30 this morning I woke up at like 6 45 just automatically this whole daylight savings time has really been helping me lately Took the dogs out went into my 12 3 30. That was great. I'm showered curl my hair got ready I've just been working on this week's podcast episode, which is what Britney Xavier if you guys haven't followed her anything You guys should but I'm sure you guys have seen her She's like the tick tock star also blogger and like so much more than that But she's a really great tick tock so I was recording the intro for that sending all that stuff in I made some coffee that is now gone And I've just been working this morning.  So I got that for her and then Like dropping off like tiffs treats and things that she like so that's what we're doing today also lots of work I have a lot of cleaning to do I have a lot of things to do before Dom gets here and literally tomorrow night I realized that today when I was like, oh shoot. I thought I had an extra day I don't know why I was thinking I also need to go to the mall There's like random errands and things that I need to do so I'm gonna go through my to-do list right now I always do to my notes up and I just check it off every single day. It's the best way for me I want to get Dom a welcome to Texas present. I think that's so funny. It's changed. I'm wearing this denim like Sure, I don't know it needs to be iron. This is from misguided. These jeans are revolved girlfriend denim And then I'm just wearing Yeezy's. This is basically like a dad outfit, but like a mom outfit I'm gonna put a baseball cap on too I'm really into baseball caps as of lately and I'm very grateful that they're in because they're so easy I got this at the Sephora. So it's a Charlotte Tilbury pillow talk lift I cannot talk these Charlotte Tilbury pillow talk lip secrets So this lip liner and this lip stick are my two favorites. They're the best shade so perfect And then there's two lip glosses one of them is what is it called the collagen lip bath, which looks like something I want So I'm testing this out and I said I would and I thought oh, you know why they're so cheap because this is not a full-size liner I also I'm kind of put it all over my lips, too Because it helps it stay. This is the collagen lip bath Whatever that really means. Okay. This applicator is so weird Wait, do you I don't know if you can even tell on camera?  I'm gonna go grab a hat So I have my outfit ready to go Okay, honestly guys all I want to do right now is clean my house, but I just like don't have time Not that it's like messy, but I just need to like go through I want to wash my bedding I just like really need to clean Maybe I'll have time to do that this afternoon if I like leave right? I don't know. I just I don't know I have a lot to do these are my two hat options black or This new one. I actually got it from Amazon. It's like an old pull-up. It's not old But I remember when these were popular.  So we're just gonna make this one work guys Oh, whoa, it is the lighting is so weird. Sorry I'm driving right now to grab lunch like 1130. I'm going to odd fellows I just really want a salad from there Then I have a little a few errands to run today. So I need to go get Just some like birthday stuff for my sister just for her present and then for Dom I won't I have had this planned for like months, but Dom's welcome to Texas Present I'm going to get her like a don't mess with Texas t-shirt don't mess with Texas mug Maybe some other like funny stupid stuff So I need to go to North Park and I have to go to Texas Treasures, which is a hidden gym I do say so myself So anyways, that's the plan right now. Then when I'm home, I'm gonna have to clean I'm gonna put a timer on for like two hours and just like really really deep clean the house do everything I possibly can my guest bath and no one's ever really used it So it's just been storage and it wasn't working for the longest time So it's literally just been storage since I moved in so I need to organize everything in there and clean that because that's gonna be Dom's Like bathroom while she's here for the month. Okay guys. I went to lunch. I'm not in North Park. I'm about to go in I need to pick up some things also the Zara here has been really good lately I'm just pushing off all of the things that I need to be doing today and just being irresponsible Yes, this is an error. I needed to run But now I'm just trying to like, you know, I don't feel like cleaning right now. Maybe I'll do that later tonight I don't know. It's a fun day. I'm in a good mood which is um Shocking I'm at North Park right now. I'm just gonna stop in Texas Treasures for Dom. This is literally where I'm at guys This is like literally my kid. I'm not kidding That one's cute. I want that Just stop I got this for Dom.   It is so good. We will be packing it tonight.  Why do I always forget about this H&M? It's cuz it's not the best H&M. Maybe that's why see I don't know what it is Like I got this little kid clothes. I want a kid. Not really. Finally It's arrived. I have been waiting for this book for it the longest time Fitz is crying. He doesn't like his coat at all Matthew McConaughey's book just keep living Here we go. Wow This is so cool. I am So excited to read this you have no idea like I am beyond excited I wish that the cover matched a little more. I'm sure I can eventually make it work on a bookshelf, you know But love I was just talking about my podcast in the intro for this week's episode How I have been waiting for it for so long the book was so hard to find even on prime It was like back ordered like a week, which you know, which you know, that's like such a Stupid problem to have but I finally got it. Oh I guess sometimes we have packages and I think it's just my management cute Literally thongs and underwear thongs and bras appreciate it. What is this? Oh? an evolution tank Wait, I think I did pick this out This tank top looks very nice. I Think that this is cool. I think that this is fun I'm I'm I was gonna say I'm with it. How old am I guys literally embarrassing Okay, this stuff is very exciting I love a good body balm, but what I'm most excited for first off. Thank you. Oh, see you say I have no idea How to pronounce the name but they sent me this package. I am so excited for the rest linen mist I love anything parachute and a good anything rest a good little pillow mist. I'm into so I'm really excited There's this as well, which is just a little Argan oil hydrating sooth, but is that like a lip balm? I'm not really sure, but I'm excited to try this stuff out We have a new mask. I haven't been doing a lot of mass lately. I probably should now cue my cleaning montage I need to clean my closet clean the bathrooms wash my sheets Go through my closet get rid of stuff because I have too many things Reorganize it. I'm giving myself two hours total for this place to be a new house Show on the road don't mind me everyone just going to the guest bathroom It is such a mess. It hasn't since I moved in it's pretty much my storage. I mean if I can oh, okay Do you see this? I? Don't even know it's just a mess. It's not good not good at all So we're gonna clean this and it's gonna be like a miracle. I'm really looking forward to it So it's looking much better in here. Thank God took me about five minutes. I'm shaking. I don't know why But yeah, I look so much better. I'm gonna move the cleaners and stuff Dom is lucky. She gets a skin fridge Lucky her Guys sorry that I'm on my phone vlogging but my vlog camera died in the new charger. Oh my gosh. Look at this from my It's okay. I can't scrub that off. I'm at the vlog camera died and My new charger is getting delivered today, but it's not here yet. So anyways as you guys can see I Set the tree up. I finally finished cleaning the house I mean, there's just a few things out here, but I have like scrubbed this house And I feel so good besides I have to like sweep this now Guys look at poor Fitz. First off. He thinks that my couch is his dog bed second.  I watched him 24 seven. He's never just left by himself especially right now, but He's just so cute. Anyways, I've scrubbed the upstairs I still need to vacuum and I'm gonna vacuum these floors, but I've cleaned like everything I do clean the kitchen I did everything up there. It's like 5 p.m. Now and I just ordered velvet taco to reward myself I'll go talk to you guys over here. Hello. I ordered at velvet taco to reward myself for my cleaning day and Alyssa's coming over in like an hour and then we're gonna do Maddie's little Present her birthday stuff and I need to actually this a lot of just work stuff I need to do like I said, I'm putting things off But I was productive and I did need to clean either today or tomorrow and that is just like lifting Anxiety off of me. I've just been on the phone with staff for the past hour And we're just both stressed about the election. But anyways over here. We have my beautiful Christmas tree I haven't really separated it too much yet. I haven't played around with it at all But I love it and I think it is so cute I got it from Hobby Lobby and it was originally I got it for 50% off and I think you can still get it for 50% off So anyways, love that. I actually cleaned this bathroom I don't know if this is I'm still have to do the floors I need to hang stuff in here and like get a rug and for in here and whatever I'm also gonna add the handles to these and then the bathroom with a master bath upstairs Whenever the guy comes back to do that So I'm excited for that But this has been another like storage closet that I've just been accumulating things into so I brought that down to the den And eventually hopefully this all will work out. So that's what's happening Christmas trees looking beautiful Got a lot going on cute little fitsy over here All right, it is. Oh my gosh Literally as soon as I hit record he made a noise this. Hey, no boy. No bark Thank you Yeah, okay, that's good. Anyways, I Ordered that velvet taco to reward myself even though it was unnecessary Dallas people velvet taco is now available on Door dash visit this code is for everyone not just off people and not to throw up a taco But use my door dash link and you guys get $10 credit Towards food and delivery, but because you're wondering I get the picnic chicken Tacos I get two of them and then I get the alote. It's just like my favorite thing ever. So good. Anyways, I'm gonna get to work It's five just work until the list I get here. I guess I am Fully like I want to be one of those people. I was telling us that has a life so put together that I don't even have to go get wrapping paper for a gift No, it really was my vision even before moving here like in my new house I just want to have but I just don't have it stored if I did I would be the person with like a wrapping Station yes, and I already have my Christmas wrapping paper. I know We don't mess around here November 1st, it's Christmas exactly this Okay, well we have to go guys We're downtown all I want to do is be home, but we're just dropping these things off For her birthday everything is boarded up because of the election. We're kind of on it We're not like the center of it. So some things are just not getting boarded up But still Downtown I'm like so anxious Really really anxious. Oh Yeah, 7-Eleven all boarded Great Okay, very successful. Love the tips treats Love those well Maddie loves those Here we go. I'm back in my camera is charged my tin has developed throughout the day I'm a little bit email tonight not gonna lie, but I'm gonna show you guys what I got at Texas treasures first off Okay, let's just go back to the math in the corner. Hey bug. Okay is really Just So exciting. I'm excited to read it. Anyways, this is what I Looks guys. I'll never get over it. Anyways, so This is what I picked up in Texas treasures. We have one mug right here We have mug number two, which I thought this one was so cute I showed you guys in the store someone in Texas loves you I want a job to have mug for this house. Then I got these little I'm gonna use them as like espresso shot Cups they need to be clean and cut a cute little postcard a Don't mess with Texas shirts, which is a must-have and then I also got this ornament Which will be cute so don't never own ornament. That's Texas on my tree And then I got us both these key chains that are like bottle openers So I just thought it would be funny don't mess with Texas And then also I had to get two bags because I just wasn't quite sure it would all fit in one And this is the only bag they had but I thought this tissue paper was so cute guys.  I'm so excited for the next few months I feel like they're just gonna be so good next few months is an endowment here this month and then December obviously holiday season Just gonna be good guys Guys, I feel like I have George Washington hair right now. That is it for today's vlog I hope you guys enjoyed subscribe if you haven't already. I love you guys so much I am really just anxious about the election, but I love you guys and I'll talk to you guys in the morning


Thierry Meriani, thank you very much for being with WPC TV. You are the French deputy in the National Assembly for French citizens in Asia-Pacific region and in Russia. How do you see the prospects for a reunification of the Korean peninsula? Honesty, I don't see a solution in the short period, but the good question I think in my opinion is if people really want reunification. Because I'm not living in Korea, I'm not a specialist of Korea, but each time when I go here, when I speak with friends from Korea, when I speak with other members of parliament, after the official position, there is a discussion more friendly and honestly I'm sure that everybody wants to have a peaceful relation with North Korea. I'm sure that everybody wants a more strong relation, but a reunification, I think for many responsible of the country or for many people from the country, it's a little bit afraid perspective and that's why I think we must push the effort for a peaceful relation between the two countries and if people really want a reunification, we will see. But do you regard the status quo now as stable enough or stable enough for comfort or do you think that the regime on North is basically too potentially dangerous for this status quo to be allowed to remain? Of course I think the presence of nuclear weapon is very dangerous and it's the most important danger for the relation. But if you remember some years ago, there was intensification of economic relations between the two countries and that's why I think the priority must stay about the denuclearization program and after with more and more relations by economics, I think the process will do naturally if it should be a reunification. I remarked that two years ago, South Korea was the second partner for North Korea for trade after China. That means the relation continued to exist. Which is a hopeful saying. Could China put more pressure on North Korea? It's a good question. When I heard Chinese ambassador, I said that of course the relation between China and North Korea are strong. But like between two friends, sometimes one is a little bit independent. And I think the interest of the China is to push the North Korea to avoid nuclear weapon and it's not the case. That means of course China has importance. But North Korea has an independent situation. Thierry Mariani, thank you very much indeed. Thank you.