aeronautics. Since 1917, NASA's Langley Research Center, Hampton, Virginia, has been serving this country's needs both in aeronautics and astronautics. Recalling some of the early history, senior historian and curator for the Smithsonian's National Air and Space Museum, Mr. Paul Garber. Welcome to the Smithsonian Institution National Air and Space Museum. The third head of this institution was Samuel Pierpont Langley, for whom the laboratory at Hampton, Virginia was named. And his successor, Charles D. Little-Walkett, as early as 1912, realized that we should have here in America a laboratory where scientific investigations could be made of the basic facts of aeronautics so that our aircraft could be developed further. This is probably the most famous award in the history of flight. It was donated in 1912 by Robert J. Collier, who was then head of the Aero Club of America. It is awarded annually for the greatest accomplishment in aeronautics or astronautics, the value of which has been proven by a previous year of practical use. Eight times, those awards have been either directly to NACA or NASA, that is the National Advisory Committee for Aeronautics or the National Aeronautics and Space Administration, either directly or in connection with some development with which they were associated. The award for 1929 was the first one to NACA, and that was for the engine cowling on the front of an airplane or on the engines of an airplane. This cowling was a cylindrical sleeve that fit over the cylinders of the engine. Now on the spirit of St. Louis, those cylinders protrude, and by protruding, cause so much friction of the air that they are a serious drag to the speed of the aircraft. But by development of the NACA cowling, that engine could be so enshroudered, so smooth, so streamlined, while at the same time the engine itself was better cooled, that the performance of aircraft was increased greatly. In fact, the application of that cowling to such aircraft as the Lockheed Air Express and to the Winnie May increased the speed appreciably. It was during the years following World War One that Captain Charles A. Lindbergh made the first solo flight across the Atlantic, drawing worldwide attention to the potential of the airplane. Dr. Robert H. Goddard successfully developed and fired liquid-fueled rocket motors, events which would influence later history. These were the post-war years. At Langley, wind tunnels were being constructed. Wind tunnels able to test models in free flight, making accurate measurements and corrections before a plane was built, pointing the way to improved airplane design concepts. To help determine the spin characteristics of aircraft, a spin tunnel was so designed that models could be spun simulating full-scale free flight. This same facility was used also to test out models of all of the manned spacecraft, Mercury, Gemini and Apollo. During the second decade at Langley, 1927 to 1937, the dirigible plagued by a series of tragic accidents and the biplanes faded from the scene. In their place, the all-metal single wing craft, predecessors of our commercial airlines, planes with two rather than three air-cooled engines and retractable landing gear. The NACA was asked to determine the conditions which caused ice formation on aircraft and develop means of preventing it. These studies grew into a major effort that did in fact find a solution with the 1946 awarding of the Collier Trophy for the pioneering research. To serve the needs of the sea plane and amphibious airplane designers, the first of Langley's hydrodynamic test tanks were made ready for operation. Towing a model hull through the water up to the point of a simulated takeoff speed, engineers could suggest improvements in the basic design. In later years, Mercury, Gemini and Apollo water landing techniques would be checked out using the same tank. World War II dominated Langley's third decade. The urgency of the war dictated the programs of this period. Programs aimed many times at curing the immediate ills of already flying combat aircraft. Typical of these were the ditching studies. Here, a highly instrumented B-24 was crash-landed in the James River. Research aimed at giving over-the-water combat crews a better chance of survival should they be forced down. Other work during the wartime period included studies of airplane stalling characteristics, aircraft loads in maneuvering flight, and problems associated with diving and braking. Near the end of the war, Langley scientists were working on the idea of wing sweepback, an idea for attaining higher flight speeds. One method of experimentation was with rocket-propelled models. These early studies can be seen in present flying airplanes. High speed presented some problems of ejecting from an airplane. This test pilot was subjected to wind tunnel blasts at speeds up to 400 miles per hour to check human tolerance. October 1947, Captain Charles E. Jaeger piloting the Bell X-1 flew through the speed of sound for the first time and pioneered the way to supersonic flight. Speeds made possible by the long research effort that had begun early in the war at Langley. The next decade, 1948 to 1957, research continued on the X series of aircraft. These included the X-3, X-5, and the most significant airplane design, the X-15 hypersonic research aircraft, shown here being proved out in a Langley wind tunnel. Today, the X-15 travels at speeds in excess of 4,000 miles per hour and is returning information about high speed, high altitude flight, as it maneuvers close to the fringes of space. Research and flight tests of helicopters continued to take place to help determine future designs. A landing loads track began operation during this period. With it, aircraft landing gear could be subjected to the same type of load stress encountered during landing. Later tests identified the problem of aircraft and automobile hydro planning as a result of water drenched pavements, a condition that can cause loss of control. Speaking about his years in aviation, General James H. Doolittle, former chairman of the National Advisory Committee for Aeronautics. This is my 50th year on aviation. I started in 1917. In those days, the aeroplane was very simple. There was a stick and wire contraption covered with cloth, and if somebody had drawn a picture of a modern-day aeroplane, we would have thought him slightly mad. Perhaps the best way to explain what's happened in aviation is to say that in those days, there was a fixed landing gear, simple engine, simple airframe. Since then came flaps, flaps, flaps, retractable landing gear, jet engine, air conditioning, pressurization, and all of the multiple, manifold, communicational, and navigational equipment, all the military equipment that's gone in and the aeroplane from a very simple thing has become very complex. The most modern aeroplanes today cost something over five million dollars or a thousand times more than they cost in 1917. This gives some indication of the increased complexity of aviation and, of course, the improved performance and utility of aircraft today. But part of that, of course, is due to a reduction in the purchasing power of the dollar, but most of it is due to the things that have been put in the aircraft. Now, if we look at this aeroplane over here, we see a subsonic aeroplane flying at around 600 miles an hour, crossing the continent in about five hours. I see in the future the supersonic aeroplane that will cross the continent in something over an hour. And prior to that, there's a very large aeroplane. The Boeing 747, the Lockheed C5A, which will greatly reduce the cost of air travel and tremendously increase the amount of air travel. It will have a profound effect on air cargo and the amount of air cargo that's carried. There will also be the VTOL and STOL aircraft that will make it more convenient to fly and will save time over short distances. All of these things are coming. To study the heating problems generated by reentry flight into the Earth's atmosphere, arc jet facilities were put into use at Langley. With the orbiting of the Russian Sputnik, getting men into space and returning them safely through the searing heat of reentry became a high priority problem. Now, in the decade of the 60s, the Langley Research Center is charged with a dual responsibility. Continue aeronautical research and contribute to the science of spaceflight. A space task group originally formed at Langley went on to become the manned spacecraft center. By the end of the Mercury program, there was no doubt that man could live and work in space. At the White House, President Kennedy awarded the Collier Trophy to the first seven astronauts. And I'm particularly glad that the decision has been made to award the trophy this year to them. I think it honors an extraordinary page in American history as well as in the history of flight. And I hope that this award, which in a sense, closes out this particular phase of the space program, will be a stimulus to them and to other astronauts who will carry our flag to the moon and perhaps even someday beyond. So, it's a great pleasure I present to them this celebrated award. Here are some of Langley's other projects. ECHO. An automatically inflating satellite grew out of a Langley concept and was developed there. Rendezvous and docking critical to the Apollo moon program was studied and determined feasible. Commercial supersonic transport. The initial configuration was developed to meet the unique flight requirements. Lifting bodies. This, the so-called HL-10. Craft which may someday shuttle men and equipment through space, then land like a conventional plane at an airport. VTOL. Vertical takeoff or landing aircraft. Forerunners of intercity transports which fly forward at high speed and then set down like a helicopter. The concept for this tilt-wing craft evolved into the first operational VTOL transport. Lunar Orbiter. A series of moon mapping craft surveying safe landing sites for American astronauts conceived and managed by Langley scientists. Airport landing studies. And the list could go on. Langley Research Center. In 50 short years it has risen from a few buildings and facilities testing out biplanes to join NASA's national effort in both aeronautics and space. But it's really 50 years of people. People make the machines and design the test facilities and plan the missions. Aeronautics and Space Report. Presented by NASA. The National Aeronautics and Space Administration.


And today we shall continue our discussion on depreciation. In the last session we have discussed what do you mean by depreciation. I hope you all remember that depreciation refers to continuous reduction in the value of fixed asset. Usually it is caused by wear and tear or by obsolescence or simply by passage of time. We are also started our discussion on certain methods of depreciation. Today we have discussed straight line method and reducing balance method. In straight line method the amount which is to be depreciated say the cost of asset is 1 crore and it has a useful life of 4 lakhs, 4 years. So we have to write off 1 crore over a period of 4 years. It is written off in the equal installments. That is why it is called as a straight line method. So what we will do is 1 crore upon 4. So each year we will write off 25 lakhs. That is known as straight line method. There is another method known as reducing balance method where we will apply some percentage. For example, say it is 1 crore we may decide to write off 30 percent each year. So in year 1 we will write off 30 lakhs. In year 2 we will not write off 30 lakhs we will take 1 crore minus 30 lakhs that is 70 lakhs which is known as written down value. On that 70 lakhs we will charge 30 percent. So maybe we will charge 21 lakhs in the year 2. In year 3 it is 70 minus 21. So 49 into 30 percent and so on. So in reducing balance method the amount of depreciation goes on falling goes on reducing. That is why it is known as reducing balance method. Because the two methods reducing balance method is advantages because in the initial years more depreciation is charged and in the latter years less depreciation is charged. As you all know in later years the cost of maintenance or repairs is going to increase. So depreciation plus repair the total charge is more or less matched over the period of time. So you usually RBM method is preferred over SLM method or straight line method. Let us go to next methods now. So this is about depreciation then causes of depreciation, objectives, factors we were here we have already discussed SLM and RBM. Now let us see the third method which is known as machine hour method. Now here the depreciation is actually charged on the basis of use of asset. Because depreciation is basically meant to be a charge on use. So here we are trying to really charge it for the number of hours the asset is used. Of course here there is a precondition that there should be proper recording of number of hours each day and each month and so on. Now here the rate of depreciation is calculated by estimating the total number of hours that machine could be used throughout the life. So here is an example if the cost of machine let us say is 5 lakhs estimated hours are 40,000 the scrap value is 10,000. Now estimation has to be made as to the pattern of use. So this is the roughly the pattern. Now here we have the information that the total cost of the asset is 5 lakhs. You also know the scrap value. Can you calculate the depreciation per hour? Think of it. First of all you will have to calculate the depreciable amount throughout the life. So 5 lakh is a cost minus 10,000 which is scrap.  And over the life we know that 40,000 is a number of hours. So 4 lakh 90,000 divided by 40,000 is a hourly rate. We can see the solution. So here you can see in the year 1 and 2 what is expected is only 5000 hours of usage. So 5000 upon 40,000 into 5 lakh minus 10,000 which is a depreciable amount. So depreciation comes to 61,250 per annum. Are you getting me? So essentially what we are doing is 5 lakh minus 10,000 that is 490 is a depreciable amount divided by 40,000 gives me the rate. I am multiplying it by 5,000 in years 1 and 2. Same way in year 3 and 4 I am going to multiply the rate by 7,000 because machine is going to be used more in this period. So early rate becomes 87,000 85,750. In year 6 and 8 again the amount of use is going to come down to just 3000 hours. So the depreciation amount has been recalculated and it is now 36,750. So you will realize that in machine hour method the charge of depreciation is not kept uniform but it is based on number of hours the machine is likely to be used or is actually used. So according to this chart you will realize that initial 2 years the use is 5000, maximum use is between 3 to 5 years where it is 7,000 and in the last years it tapers off. It reduces to just 3000 between 6 and 8 years. So we have calculated depreciation also according to the use that is why this is a better method than the earlier 2 methods but only disadvantage is you should have reliable estimates on number of hours the machine is likely to be used. There is one more method which is similar that is based on production units. So here we try to calculate the number of units for which the machine is used and the output which it produces. Now the depreciation is calculated like this. So you have the depreciable amount we will multiply by production during the period divided by the estimated total production. So again let us look at an example. Now the cost of machine is let us say 3000 the machine is likely to give a production of 4000 during its useful life and scrap value is 2000. Now looking at this data can you calculate estimated depreciation per unit? Can you calculate how much is a depreciable amount? We will realize the depreciable amount is 3000 minus 2000 that means 28000 is to be depreciated over a life and the total estimated production is around 4000. So 28 upon 4 so 7 rupees per unit becomes depreciation of the machine. Now we will look at the pattern of production. Now it is estimated that highest use that is 2000 units will be produced in year 1. The use will reduce it will become 1 5 in year 2 and only 500 in year 3. Thus the depreciation now also will be calculated proportionately. So it is 14000 in year 1. Now you already know that the rate is 7 rupees per unit 7 into 2000 also you can calculate it will come to 14000 or the weight is calculated here. You can take 2000 upon 4000 into 30 minus 28. In year 2 the use is 1500 so the depreciation charge becomes 10500. In year 3 how much will be depreciation? If you remember in year 3 the units produced is expected to be only 500. So depreciation will be 500 upon 4000 into 28000. So it is 3500 is it clear? So both the methods are fairly similar machine hour and production unit and both intend to charge the depreciation based on the actual use of the asset. Now let us go to one more concept in accounting that is known as provision. This is a very interesting concept because you might remember that we have discussed about current liability and this is very close to current liability. So suppose company has to pay 30000 per month to an employee in the month of March the salary has not yet been paid and it is expected to be paid in the month of April. So as on 31st March the salary of March is treated as a current liability in the balance sheet. Now sometimes what happens is the expected liability cannot be estimated with substantial accuracy. So we were discussing that the salary is 30000 so we could easily estimate we could easily know that the amount which is payable is going to be 30. Suppose what happens is the amount of depreciation the amount of expense is not known to us. Let us say instead of salary usually an employee is paid a bonus of 5000 per month bonus or an incentive but this is usually it may change as per performance. So we do not know exactly how much amount will be payable in the month of March. So when we prepare the balance sheet for 31st March we will have to make a rough estimate and based on a rough estimate we will try to estimate the liability such rough estimate is known as provision. Can you think of any other example of a provision? Just think over where the liability exists but we do not know the amount. Let us say we have to pay electricity bill at the end of the month. As on 31st March the bill is not yet received for the month of March. It is expected to be received only say by 15th of April but we have to pay the amount of bill for March in the month of April. So we need to make calculation of some liability towards electricity bill of the month of March and show it in the balance sheet of 31st March. Since we do not know the amount the bill is yet to be received what we will do is we will try to calculate the estimate the bill of March based on the earlier data. We may use last 12 months average or last 3 months average and so on will estimate and we will make the calculation for the amount of liability which is payable. So what you can see is provision is very similar to current liability however the amount is required to be estimated it is not very much well known. Now why we have to make provision? One important reason we have to make provision is because of the principle of conservatism. So all the probable liabilities we need to estimate and make a provision for show them as liability. Secondly it also goes with the matching concept because the expenditure is for this period we have to show it in this period only. Even if it is likely to be paid in next period it is necessary that it should be accounted for in the current period since we do not know the amount we try to go for the provision. Some more examples of provision when is product service warranty cost. So let us say we have sold a product we give the warranty for next 3 years. So if there is any fault which occurs in the next 3 years the manufacturer will have to repair it without any charges. Now naturally manufacturer does not know what is the likely repair cost in the first 3 years. So manufacturer based on the past data makes an estimate of likely cost of giving warranty and make the provision for it. That is why there is a provision required for product service warranty cost. Same way bad debts. Now whenever business sells the goods on credit there is likelihood that some of the customers fail to pay the amount. So when we sell the goods there is a chance that a few customers will not pay for which we have to make a provision that is known as provision for bad debts or provision for doubtful debts. Here again based on the past data company may make a provision for 1 percent, 2 percent, 30 percent depending on the bad debts which were incurred in the earlier years. One more example is given here that changes in the foreign exchange rates. Now if the company is entering into international transactions there is every possibility that forex rates may change leading to reduction in the value of our foreign exchange assets. Again company will have to make an estimate and make the provision. Of course it is much difficult to estimate forex rates but based on the reasonable assumption some estimation may have to be made. So this was about provisions. Now let us go to the second part which is now about valuation of inventory. So in module 3 alone we are going to look at the valuation of inventory now. We have discussed the depreciation. In this particular PPT we are going to discuss Goodwill and its amortization, valuation and accounting for inventory and about the window dressing. So initially we will start our discussion on Goodwill. Now Goodwill is a benefit and advantage of the good name. As you know suppose we have to purchase something we generally prefer a well known company or a well known brand. So if shopkeeper shows you a product which is totally new which you have never heard of company which you have never heard of you are likely to say that no no no I want the product which I normally use. This happens because of the Goodwill which is created by the company. In some manner when employees have to join some company usually they prefer a listed company they prefer a large size company they prefer a company which is known for having good policies or good behavior towards employees. Why it happens? Again because of the Goodwill of the company. When suppliers have to supply the goods again if they have already dealt with some person or some company they prefer to supply to the same person because they know that they will receive the payment in time they also know the party. They know that the party is reliable all these factors are built into what is known as Goodwill. So Goodwill is a benefit and advantage of good name reputation and connection. This is something which makes the difference between an existing entity and a newly new entrant in the field. Always an existing entity has an advantage over a new entrant because existing entity is likely to have developed Goodwill over the period of years. Now Goodwill is nothing but the attractive force which attracts customers, employees or suppliers as we have just now discussed. Now what is the effect? The effect of Goodwill is that over the period of time a well known company will be able to earn more profits than a new company. Why? Because they get access to raw material easily they have the capacity to sell more goods or they may have a capacity to charge premium on the products or services which they sell. They also may attract good employees. As a result of all these things an established player is likely to have more profit than a new player. So what profit which can normally be earned is known as normal profit whereas a reputed entity is likely to earn something known as super profit which is extra profit over the normal profit. So if a company is earning super profit generally it is assumed that the company has some Goodwill in the market. Now Goodwill of a business is something which is composite of many things. It is very difficult to know exactly because of what Goodwill is created or generated. I have tried to list a few factors. One of the factor is location or locations of business especially in case of retail trade. This is very important where the shop or the mall is located because that helps in attracting customers. It also depends on where the factories or where the workplaces are located. Then the way in which business is conducted this is very important. So if as a customer if you visit a shop if you get a feeling that the person the shop is reliable the people are courters the people are providing good service then you are likely to again go to the same shop. So the way the business is conducted actually creates the Goodwill for the entity. The third personality of the people conducting the business here again it is important if the person receives you well you feel very happy you feel like you can go ahead you can go again. So right from the employee with whom you are interacting up to CEO different persons you may be interacting in a particular entity or a company and that personality helps those personalities help in creating the Goodwill. Next is customer relationship and service quality. So if a company is known to have good relationship with customers it is known that the quality of service they provide is good then it helps in building Goodwill. Then again good relations with employees employee friendly policy especially from employee angle the good for Goodwill these things are very important. The number of years the business or the entity exists this is also very important. Can you remember some very well known companies in India or very well known brand names in India which are there for a pretty long time. I think most of you would remember Tata group it has been around for more than 100 years. So any new product which is launched by a Tata group company naturally has an advantage because it has been there for so many years in business. So just by being in the business is not enough they have developed a good name. But even when a company exists for a pretty long time there is an advantage over new years new players. Next factor is track record of a benevolent management. So if you know that the management is good they are not going to cheat they are not the ones who create malpractices then the Goodwill gets developed. As you all know Goodwill is an intangible asset. Can you think of three four well known brand names or three four well known corporations in India or abroad give a thought which are the companies who have developed Goodwill. Let us say in automobile segment I think most of you will remember the name Maruti. Maruti is not as old as Tata's it has emerged in 1980s but still it has a very good name in the Indian automobile company industry. Same way in consumer products there are number of companies say like HLL which have developed names. In the same manner in the industrial products also people know the companies in their fields which are known to be reputed. As you all know there are IT companies like TCS or Infosys or Vipro Satyam these all now Satyam has been converted into Mahendra Tech but these are all the companies which have developed Goodwill of their own. Now the Goodwill which most of you were talking or most of the time which we are talking is self generated Goodwill. Keep in mind it is not recognized in the financial statements. So company might have been working for a pretty long time it may be very good it might have created good name in the market and the advantage which it gets because of its may be reflected as a Goodwill. However, accounting standards or gap does not allow self generated Goodwill to be recognized in the financial statements. Now what could be the reason? It is for two three reasons. The most important reason is it is very difficult to reliably estimate. There is no objectivity. Many people will put many different values for their own Goodwill. Since the accounts are supposed to be objective and reliable documents you cannot have something which is vague something which is just judgmental in nature that is why self generated Goodwill is not permitted to be shown in the financial statements. Does it mean that no Goodwill is recorded that is not true. So Goodwill which comes from purchase of business from a third party is recognized as Goodwill in the business. It is known as purchase Goodwill. For example, to you think of any can you think of any merger related transactions in last few years any company has taken over some another company. A very famous merger or takeover was when Tata Motors took over Jaguar. You must be knowing that Jaguar was extremely well is was and is extremely well known name all over the world particularly in Europe. So, when Jaguar and Landlover were taken over by Tata's they had to pay huge premium. That money which they paid is shown in the books of Tata Motors as Goodwill. This is an example of purchase Goodwill. So, if some business is purchased and purchase consideration exceeds the value of net assets taken over then the loss suffered is treated as Goodwill. This is as per AS 14 in AS 38 and also as per IAS 38. Now, let us see some examples as to how the Goodwill is calculated and recognized. So, suppose A took over B and the purchase consideration paid by A is 150 crores and the assets of B which are taken over are as follows. So, they have taken over machinery, land and net current assets and they have also taken over liabilities. We know the book value, we know the market value and we know that the purchase consideration is 150 crores. Now, how much is a Goodwill of the entity? How much is a Goodwill which A has paid to B? Can anyone calculate? Imagine, how you can calculate the Goodwill? Goodwill is calculated as the price paid that is purchase consideration minus net assets which are taken over. So, 150 crores minus the assets which is acquired. Now, should the assets be taken at book value or at the market value? Book value is a value which is there in the balance sheet of the selling company which is B or we should look at the market or the current value. Just give a thought, since B is being sold out to A, it is logical to take market value rather than book value. So, if you make a fast calculation on market value, what is the value of net assets taken over by B, taken over of B by A? So, you can see it is 50 plus 70 plus 40 minus 20. So, how much it will come to? So, 140 is a net assets which are taken over and the purchase consideration paid is 150. So, Goodwill is 10 crores. So, as we were seeing Goodwill is something over and about the value of assets which A or the buying company has paid. So, the value of assets at the market prices is 140, but A has agreed to pay 150 which is over and about the market price. Why is A paying more? Because they realize that the business of B is actually more than that 140 more than the assets which you can see. There is something more which is hidden, something more which you cannot see, but it exists. It gives benefit to the business. That something more is a reputation of the company which is known as Goodwill. So, Goodwill is valued at 10 crores. Is it clear to all? Let us go ahead. Now about amortization. Now, in this case you have seen that A has purchased business of B and when it purchased it paid 10 crore more, which is shown in the balance sheet of balance sheet of A as Goodwill. Now, can you show this Goodwill forever in the business, in the balance sheet of the business? The answer is no. Just as you will write off all other assets through depreciation, you will also have to write off Goodwill. This process of writing of Goodwill is known as amortization. So, what accounting standard says is the depreciable value amount of intangible asset should be allocated on a systematic basis over its useful life. This is known as amortization. In simple words, you can say amortization is nothing but depreciation on intangible assets. So, all intangible assets like say Goodwill, brand name, patents need to be amortized. Now, how to calculate? Now, it should commence when the asset is available for use. So, as soon as the business of B is taken over by A, it has started using B's reputation. So, immediately the Goodwill should also be amortized. Now, estimation of useful life generally becomes less reliable, because somebody may say, let us say we have purchased machinery. We know that we can use it for 3 years, 5 years, 6 years, etcetera. As per the manufacturer specification, it is easy to use. However, it is very difficult to estimate how long you can use Goodwill, because Goodwill is something which may be useful forever. At the same time, unless the policies of the new business are good, we cannot use Goodwill for a longer period, because even if A takes over B, eventually it will have to develop its own policies. It will have to be good to people, then only the reputation can be maintained. So, it is illogical to say that Goodwill of B can be used by A forever. That is why accounting standards provide that you cannot have a very long life for writing of intangible asset. So, maximum cap for writing of any intangible asset is kept at 10 years. So, we can assume that Goodwill also should not be amortized for a period in excess of 10 years. It has to be written off within first 10 years itself. Further, now you can use a variety of amortization methods, just as in depreciation we saw various methods. Do you remember them? So, we have seen there is a straight line method, there is a reducing balance method, there is a machine hour method. In the same way, for amortizing Goodwill, usually written down value method or reducing balance method is used. Sometimes straight line method is used, different methods of depreciation are applied so that the cost of Goodwill which is paid gets written off over the period of its useful life. So, these methods include various methods like we have seen. Now, Goodwill arising on business purchases represents the amount paid in anticipation of future income. So, as we estimate when we will receive income in the same proportion it is logical to amortize it. Now, the Goodwill is such that you cannot hope to make the business by using some other persons good name for a very long time. That is why AS 14, which talks about Goodwill says that Goodwill should be written off usually within 5 years. Only in exceptional circumstances you can use a longer period. That also cannot be longer than 10 years. And the norm is Goodwill is written off within 3 to 5 years. Now, let us take an example. Now, suppose Goodwill is 10 crore. Say company expects that during next 4 years such Goodwill should be written off and they are using straight line method. So, how much is the amortization charge each year? Of course, it is pretty simple. You know that the value of Goodwill is 10 crore. You also know that the period it should be written off is 4 and it is equally it is on a straight line basis. So, 10 by 4 that means 2.5 crores is the amount of Goodwill which should be written off each year. So, I trust you have understood the concept of Goodwill and its amortization. Now, let us go to the next concept that is about inventory. In this module we are discussing earlier we discussed about depreciation. Then we also discussed the concept of conservatism, the concept of provision. Now, we have completed the concept of Goodwill and we are starting with inventory and its valuation. Now, what is inventory? How do you define inventory? Now, popularly the term stock is also used for inventory and it includes fixed assets, the finished goods. It includes something which is known as work in progress and it also includes raw material. As you all know it is a tangible current asset. So, you can see you can feel the inventory it has to be usually kept in go downs or in stores that is why it is tangible in nature. It is current asset because it is not supposed to be kept like a machine. It is not a fixed asset which will be there in the business forever. It is a current asset and usually you are supposed to have a rolling life cycle. You will buy inventory you will sell it out or you will buy raw material use it for consumption. You will make finished goods you will sell them out. So, inventory is a moving item that is why it is defined as a tangible current asset and it consists of finished goods, work in progress and raw materials. Now, let us look at the formal definition of inventory as per international accounting standard IAS 2.6. Again the same thing is given that these are the assets which are held for sale in the normal course of business when it is a finished goods stock or the assets in the production process which is meant again for a normal course of business which we call work in progress or the materials and supplies that are for consumption in the production which we call as raw material. So, all these three things are included in the term inventory. Now, the question is valuation of inventory keep in mind that the valuation of inventory is extremely important for preparing proper financial statement because inventory is one of the few items that is going to be there both in profit and loss account and also in the balance sheet. Because on one hand the amount of inventory which is there in the go downs is shown in the income statement as reducing the cost that is why more the inventory your profits will rise. On the other hand inventory being a current asset it is shown in the balance sheet as an asset. So, if your inventory value is high your financial position is also better that is why any manipulation in the value of inventory or any increase in the value of inventory will significantly show a better profitability and at the same time it will also show a better financial position. On the other hand if business tries to understate or undervalue its inventory profit will be undervalued and the financial position also will be somewhat understated. That is why it is very very important that proper valuation of inventory is done. Now, the question is how to value the inventory? Naturally since we use cost concept all assets should be valued at cost. So, inventory is also normally valued at cost. Now, it is very important to know what are the items which are included in the cost of inventory? Here I have tried to list such items first is of course the cost of acquisition. So, suppose I have raw material which I have purchased for say 4000 rupees 4000 is the main cost of raw material I will also include the cost of transportation. So, if I have paid 500 rupees for the transporter to bring the inventory from the place where I have purchased to my go down. So, the cost of inventory will become 4000 plus 500. So, I do include all those cost to bring the inventory to my location. So, it will include carriage inward, freight, import duties, taxes like octribe which are necessary which are required to be paid to change the location of inventory and bring them to my place. It will also include on those cost which are incurred to change the condition of inventory. For example, if I have purchased raw material and I process it. So, I incur my labor, I incur the cost of electricity, I incur the cost of various items which I may add or the packing which I provide. So, all these from inventory if I say let us say I have purchased the raw material at 4000, I have paid 500 for freight. So, the cost of raw material was 4500, I have incurred 10000 on it to convert it into finished goods. So, 4500 plus 3000, the cost of finished good inventory will become 14500. So, here the definition as per international accounting standard 2.10 is given. So, cost of inventory is to include number 1, the cost of purchase which is pretty common sense what you pay for, but you should not forget to include taxes, transportation and handling charges on all the purchases. But you will have to reduce the cost of the discount which you avail. That is why it is a cost of purchase net of trade discount. Secondly, it will include the cost of conversion especially when you are manufacturing a finished good, you buy raw material and you convert it into finished goods. So, those cost of conversion are to be added. Now, you may remember that the costs are of two types, you have some variable cost, some fixed cost, both these costs are to be added. So, second item is cost of conversion. Second item if you have incurred any extra cost which are required to bring the item to present location and condition. Location we have already discussed let us say transportation or condition. So, you might have done some finishing or you might have applied some attractive packing which increases the cost of item that will also be added. That is why all these three components cost of purchase, the cost of conversion and other related costs, these three comprise of what is known as cost of inventory as per international accounting standard 2.10. Now, what is inventory and how will you value? We have already seen how to calculate the cost, but it is not necessary that inventory is always valued at cost. We were just discussing that we have a raw material of 4000, we incurred 500 on the same. So, 4500 plus 10000, so 14500 was the cost of finished goods which I have produced. Unfortunately, the market value of that item is only 13000. Now, should I value the inventory at 14500 or at 13000? The answer is I should value it only at 13000 because I am going to sell it only at 13000. That is why I cannot show it at 14500 though I might have incurred the cost. Suppose you take another example, let us say I have manufactured a raw material by incurring 14500, it has been a I mean it is a good process. The output is highly valued, so it has a market value of 20000. So now, I have a cost of 14500, the market value is 20, so inventory will be valued at how much? 14500 or 20, again the answer is I should value it at cost only. Now, I cannot take the market value of 20, so the rule is inventory should be valued at cost or net realizable value whichever is lower. This is as per accounting standard 2 or as per IAS 2.9. If you remember, we have discussed the concept of conservatism. So, what conservatism says is if you have made any profit do not account for it unless it is realized. So, if my cost is 14500, market value is 20, there is a hidden profit, but I will not record it because it is yet to be realized. However, if losses are incurred, they should be immediately provided. So, if my cost is 14500 and market value has gone down to 13, so there is a loss of 1500, I will not wait till it is realized. As soon as I know the loss, I will immediately reduce the value of my inventory from 1400 to 13. That is why the rule is inventory should be valued at cost or net realizable value whichever is less. So, I think there is a clarity. Now, what do you mean by net realizable value? Loosely speaking, we can say that the market value is net realizable value, but there is a slight difference. Net realizable value is an estimated selling price in the ordinary course of business. So, it is basically a market price, but minus the estimated cost of completion and estimation necessary to make the sale. So, in our example, we were saying that the cost is 14500, the market value is 13000, but suppose to sell it, I have to incur some commission. So, when I sell the product at 13, actually I have to pay 1000 rupees to the seller as a sales commission and I actually realize only 12. So, in that case, the market value will be taken at 12 and not at 13. So, market value in a way is 13, but market value minus commission, net realizable value is still.  Now, let us take one simple example. So, if you have some semi-finished goods in hand, let us say for year ended March 11-12, the cost of semi-finished product is 70000 and this product can be finished by incurring further cost of 10000 in coming year. So, how much should be the value of inventory? About the market value, it is given that this product can be sold at 60000 subject to selling commission of 5 percent on the selling price. So, determine the value of inventory. Let us look at it again. So, you have the data of both now cost as well as market prices. So, think over what will be the value of inventory. So, what is the rule of valuation? Rule of valuation is cost or net realizable value, whichever is less. So, let us try to calculate first cost and net realizable value.  It is given in the problem that the selling price is 60, but I have to incur 10000 rupees as a extra cost to complete the product. So, 60 minus 10 minus I also have to pay commission of 5 percent on the selling price. So, 60 less 10 less 3, my net realizable value comes to 47 and as you know my cost is as high as 70. So, NRV of 47 versus the cost of 70, as a rule I will take the lower of the two. So, valuation of inventory becomes 47500. Now, let us also try to understand some techniques of inventory valuation. Now, what happens is in the cases which we were discussing we had only one item, but actually in business hundreds of units of the same item keep on coming at a different dates. So, some raw material same raw material say let us say we have a raw material X it is purchased on 2nd of January it is again purchased from 4th of January it is again purchased on 6th of January all of these purchases are different rates. Now the problem is which of this should be taken at the as a value as on the valuation date as on the balance sheet date. So, there are a variety of methods as you can see here one is specific identification method there is a first in first out or FIFO method last in first out weighted average price adjusted selling price and so on. So, in specific identification method you exactly know which item has gone out. So, each item is specifically identifiable then it is possible to attribute the cost of that item to that specific item. So, this method is the simplest and most systematic because you exactly know the item and you allocate the cost of that item only to that item. However, in practice it is not possible for all the items because many items may be interchangeable. Now, can you tell me for which items for example, we can use specific identification just imagine the go downs of different types of industries which some can use specific identification some cannot use. Can you just think over which can use which cannot use let us say you are a dealer in vehicles. So, each vehicle has a registration number. So, you specifically there is also a chassis number. So, you specifically know a vehicle it is a costly item also. So, each vehicle can be specifically identified you can use specific identification method same way for which item you can use specific identification there are specialized items. Let us say in a in case of say designer clothes each item of clothing which is made is a very special and a costly item each item is different from other items. So, it is possible to use specific identification and where you cannot use that is the case where items are interchangeable. Let us say you are dealing in vegetables. So, you buy potatoes. So, you buy hundreds and thousands of potatoes from different sources all potatoes are interchangeable you cannot have any particular tack for each potato. Same way for items like FMCG let us say soaps let us say eatables you may be buying large number. So, it is not possible to identify which item has come at what time and so on. That is why though specific identification method is a very suitable method it cannot be used for all the items. So, there are some other methods there is a method popularly known as FIFO or first in first out method is a very logical method. So, what is assumed is if you have number of items coming in the first item which is received is issued out first. So, naturally what you have in hand consists of the latest received items. Let us see an example here. So, this is a list of purchases which are made in the month of June 2012. So, you know the date unit and the prices. So, 5 items 5 times the item same item 5 times purchase all units are identical. So, you have 12, 17, 20, 22nd and 27, 5 times the purchases are made and during the year or during the month 20,000 units are issued. So, you are asked to determine the value of stock. How will you value? First thing you have to do is first calculate how much is a total purchase in the month. So, you will realize that total material coming in is 24,900 of which 20 is issued. So, you have 4,900 units of closing stock as you know the rule is first in is first out. So, the purchases of 12, 17 and 20 have already been issued. What is in stock is from the purchases of 22nd and 27. So, first we will know that whatever is from 27 that is 2000 they are all there with us and out of the purchases of 22nd 2,900 units are there. So, you are clear. So, I know that I have 4,900 units. First the last item that is 2000 units at rupees 13 and then remaining that is 2,900 units at rupees 11. So, valuation you can see here 2000 into 13 so 26,000 and 2,900 into 11 so 31,900 so value of closing stock is 57,900. So, this is about the first method first in first out there are also other methods like LIFO, weighted average, moving average and so on we will see them in the next session. Thank you so much.


What's going on infinite fam? Welcome back to another video. Real quick guys, fam up that like button because this one's about to be a banger and comment down below to my zeo all day every day. You guys already know how it gets down on this side. So as you guys can tell by the title and thumbnail of the video, your boy is basically going to be dyeing his hair orange to see how my girlfriend reacts. Now, Janice is currently with her friend at the mall. She's been gone all morning and it is currently... It is currently 5... Oh, ESPN. Sorry. It is currently 5.12 in the afternoon, which means she should be home in about an hour or so give her a take because the mall closes within the next hour or so. So I got to hurry up and do this intro. This is the spray cam right here. This is temporary hair dye spray. I guess is what you could call it. It's going to make my hair all orange.  Hopefully it comes out like nice and bright because I really want this to be like, wow, like what did you do kind of thing? And then I'm just going to set up the camera in the living room and we're going to wait for her to get home. Obviously, when she walks in, she's going to see the freaking carrot top and she's just going to... I don't know how she's going to react honestly. Comment down below how you think she's going to react. But again, if you guys are ready for this video, make sure you guys comment down below Team Isaiah all day every day. Spam up that like button and let's get into it. Alright guys, before we start this, I just realized I don't want to spray my face orange. Alright, I don't want to look back up along on Jersey Shore. I'm going to be putting this tape on my forehead and like right here just to like cover my face for any overspray and stuff like that. Alright guys, so I think I'm good. Please no comments. Do not screenshot. Don't do any of that. Alright, don't expose me. But this is what we're looking like. This is again for the overspray but now it's going to get to the spraying part. Alright guys, now without further ado, here we go. I hope this looks good man. I hope. I hope. Ow! Dang, bruh! Okay, I'm not going to lie. It's looking pretty good so far and thank God that I put this tape on me because my face will be completely orange right now. But I'm going to continue doing this and I'm going to let you guys see what it looks like when I'm done. Alright, Infinite Fam, before I show you my head, yo, I want no name. I don't want to hear the carrot top.  I don't want to hear none of that, alright? Here we go. This is what I look like after I clean myself up and I've finished everything. Yeah, yeah, it's your boy Carrot Top. What'd it do? Your boy Carrot Top? Alright guys, so now we're all good. I cleaned myself up. All I got to do is set up the camera in the living room, wait for her to get home.  And then, yeah, we're going to see how she reacts. Whoo! I can't wait to see her freaking reaction guys. I don't know you guys can't too, so make sure you guys smash that thumbs up button and let's get into it. So I actually decided to take a different approach as to basically surprising her with this whole thing going on right now. So I'm actually going to tell her that I vlogged the whole experience and I got my hair dyed. Rather than just hiding the camera, maybe she'll think it's more believable, like holy crap, he really vlogged this whole thing. So I'm basically going to be tracking her location and when I see that she gets home and she's like in the parking lot, I'll be waiting here in the living room and when she walks through that door, I'm going to tell her to close her eyes immediately. I have a surprise that I want to show her and then we'll make her open her eyes and then that's going to be the reaction right there. We're going to see how she reacts. I'm going to tell her I vlogged the whole experience. I went to one of the girls that she used to go to to dye her hair and this is what happened and I really like it. I'll tell her that I was preparing for the fall, you know, I'm going in for the season. But yeah guys, I'll see you when she's basically almost home. Alright, from the fam, she just got home. She's parking the car right now. Yo, if she caught me looking through the window right now, I'd look like such a creep with this caratop look I got going on. But damn, she looked, damn, I know she left the, oh nah, hold up. Bruh, I did not know she left the freaking house and them pants. Damn, she looked good. Babe, close your eyes. Oh goodness, what?  What is it?  Why? Because I can see you in the viewfinder of the camera.  I have a surprise for you. Okay. Okay, walk forward. Okay? Okay, come back to a surprise. I like this. This is going to be a big surprise. Give me your hand. Alright, give me your hand right here, right here. Okay, here we go. Alright, come over here.  Okay, wait, stand over here. Why are you stepping back? Like you're scared or something? I don't know, I'm scared. I don't want to bump into anything. Stay right here, stay right here. Okay? On three, open your eyes. I'm nervous. I'm nervous too. My hand is shaking like crazy. Alright, go. Alright, so I did something while you were at the mall today. What? Okay. Okay, this is probably why you shouldn't leave me alone for more than like three hours. Oh my goodness. It's great though, I love it. Alright, so on three, open your eyes. Okay. One, two. Don't touch it, don't touch it. Why? Because don't touch it. Why did you just touch it? It's actually done. I got it all styled nice and all that. Don't touch it. It looks great right now. I want to get some pictures for Instagram. I'm so confused. What are you confused about? I got my hand. Wait, wait, what is this? Babe, we're getting into the season. Fall is coming. Fall is here. You look, look. Look, look. Guys, she did all this last night. Like she's getting into the season, right? The fall season. Look, we got a runner right here.  I think it looks good. I'm getting into the season. Orange is the season.   That's what I'm saying. I've never seen a skinny pumpkin. Yes, you have. Remember the one with little holes on them? The little bumps? I don't know what you're talking about. So you don't like it? Babe, it's been, the girl spent hours doing this. Where did you go? Who did this? The salon down the street.  Hey, they do good work. How do you know? Look, it looks good. What are you talking about? The cybers is all messed up. Babe, I told her not to do the cybers because I'm getting a haircut. Obviously when I get a haircut, they fade all this and I don't have hair here. Babe, seriously, like this is like mad patches. It's like missing patches. They clearly didn't use beads. I get a fade. So I told her don't really, I said focus on the top.  They're going to shave it right off. Guys, are you trying to look like Archie Andrews? I'm getting it. Babe, I'm getting into the season. I'm getting into the spirit. Halloween is coming up. The fall is here. Look, the fall is here. Babe, you said that you were going to dye your hair when we reached a thousand, I mean a million subscribers. Okay, but I'm getting into the season. I'm getting into spirit. I'm like in shock. I don't even know what to say. You don't like it?  Babe, just say if you don't like it. Say if you don't like it because then we can just, you could dye my hair black. We can go get box dye.  They use box dye on your head. What other dye is there? Oh, professional dye. That's what they're supposed to use. It was a box dye done by a professional. What do you mean? Done by, clearly not a professional. All right, all right, stop coming into the salon. I'm sorry, I'm sorry. Okay, like if it were a little less bright. I asked for this though. This is what I wanted. Okay. I think it looks good. Look at that. Look at the color. What patches do you see up top? I told them focus really up top. This looks great. Babe, oh my God. All right, I feel like you're just hating because I feel like you're hating because you can't do this type of work. Yeah, first of all, I can do better than that. All right, so don't even get me started on dyeing it. All right, well if you don't like it then then we'll dye it black and let's see if you come out with any patches or anything. Let's see if you could dye my whole head black with no patches or nothing. I can. I can easily do that with patches, especially men's hair. But honestly, like, I feel like you're getting a little defensive. I don't really... I like it. And you're already telling me I look ugly.   This looks good. You want to see something? What? This is a perfect opportunity. Where are you going? This is how I feel. What is that? What? You're the pumpkin to my spice. I don't understand if that's a joke or not. I don't understand what you're trying to go for right there. All right, you know what? This is over. All right, this is a prank. Okay, this is fake hair dye. All right, it's a spray can. It comes out when you shampoo it. I did this myself. I didn't go anywhere. I just want to see how you would react if I dyed my hair orange.  You look absolutely... You know what? You really look like a whole size of carrot cake. You know what? I don't need this right now. No, bro, don't taste it because when I sprayed it, I tasted it myself because it was in the air. It tastes like garbage. So what? It's like spray? Yes, I said it. It's spray hair dye. It comes out when you wash it or whatever. It's like, I'm pretty sure it's the stuff you used for Halloween and stuff like that. I just chose orange because I thought it was the best for fall or whatever. Okay, good thing that is a prank.  Oh my God. Babe, this is not a look for you. No, you're right. It definitely is not. I'm telling you.  It was really good in the season. I look like carrot top. This is crazy. No, you look like... No, but yo. Not for nothing, yo. For like a little $3 can of like hairspray dye, whatever, this is actually like really bright and like heavy in the paint. It's not like faded or anything.  You just remind me of Archie from Riverdale. All right. You know what, guys? I'm going to close this video right here. I'm going to go shower because she's not about to think about another man while looking at me. I don't feel like that was your intention up here. No, no, it's not. All right, Infinifam.  It is time for today's post notification shout out. Today's post notification shout out goes out to Gigi Wiley. Shout out to you. Thank you so much for the love and support. If you guys want to post notification shout out, all you guys got to do is... All right. All you got to do is like, comment, share and subscribe. Comment down below. Team Isaiah all day every day. It's not that. It's not that.  Hell not. All right, guys. We're going to see you on... We're going to see you on the next video.


Hello in this video, I'm going to talk about a penny stock that I think could increase by 800% up to 800% I think that this penny stocks got a lot of potential to really move up It's got a diversified look at what it's trying to do in different industries And I'll go through the information the research and stay till the end because I'll give you my price predictions My price targets where the best time to get into this might be and also I'm going to give you my long-term view as Well, so we'll get into the information. I'm going to say I'm not a financial advisor I'm a business teacher in my daily life, but I'm buying no means an expert on the stock market Let's go right into the information if you could leave the video like if you appreciate the direct approach Then that'd be fantastic. Just doing it to respect your time and we get right into the information Okay, so here we go. So we've got golden Triangle ventures. Okay, the ticker symbol is G T V H Now you may have heard of them before you may have not if you have heard of them before There's been a lot of recent updates a lot of recent updates to the company And there's been a lot of good positive news coming out recently now. So what is it? What are golden triangle adventures? So they venture to be better the company aims to purchase a choir And or joint venture with established entities within these areas of business Golden triangle ventures provides a professional corporate advisory service to select clients that fall within our three sectors of business So they are looking at acquiring businesses Working with businesses in the sectors essentially trying to acquire them and they have been acquiring some Okay, so this is in the entertainment area In the health area and the technology area. So this is incredibly diversified in terms of they're looking at a range of different industries here Okay, now first of all the health division. So what's that? So the golden triangle adventures owns a company called global Named global health services, which operates a wholly subsidiary under its health division global health services a mission to provide Solutions to a variety of different businesses in the health sector whilst maintaining the high professional standards available Okay, so it's involved in the health sector And it's trying to obviously be in that industry there But another one here, which I think is a massive play Is actually the entertainment sector that they want to get into. Okay This is a massive play as the pandemic reduces as the vaccines come out. This is going to be very very big I think out of their sectors that they're looking at there is some of those as well But this is one that's really big. So it's called lavish entertainment And it actually earns and establishes concept production companies called lavish entertainment Which is a license and insured professional events Organization company based out of las vegas navada las vegas navada been a really good area For the sort kind of entertainment and events Come for this now. Obviously recently They haven't been doing potentially really good because of the pandemic But as that begins to reduce this could be a company that actually does really well Okay, because people are going to want to go to these events. Okay, what do they do? So they have a strong focus on the electronic dance music market, which was one of the fastest fastest growing Genres in the world the company has organized many successful events to date and has been operation since early 2017 So they've had that success in the past by actually producing events that are well attended And obviously if they're well attended that means potential good quality revenue So this is an area that is going to be massive. Okay, there's going to be a Like this pent up Entertainment that people haven't been having much recently in these past Months and months there's going to be a lot of demand. There is going to be a surge of demand in this area So I think that the entertainment play As part of the company as part of Golden Triangle Ventures is really good. Okay Before we move on to favor stock information, I just want to say thank you everybody for the support on the channel We have just smashed 3 000 subscribers. I wanted to get that by the end of january We've actually got this at the beginning of january So i'm going to set a new target. It would be nice if we could hit 4 000 subscribers by the end of january So if you're new to the channel, please like the video It helps it get it up into the youtube set results into the youtube algorithm If you do that, that'd be absolutely fantastic I'd be grateful for that if you could like the video and also subscribe if you're new We cover many penny stocks, but we're going to get right back in to this stock The next one is the technology sector. So what's this what they involved in so we've got high frontier technology And golden triangle fingers to gold triangle fingers golden triangle ventures Earns for 51 of high frontier technologies. Okay, nature's patent pending technology called hygros Um, it would be good if it wasn't if it was patent accepted rather than patent pending you know But still this it seems really interesting what they're doing here. So mollucca Um hydrogen and oxygen delivery system for agriculture High frontier technologies as a mission to improve global crop crop production efficiency by including hydrogen directly into the water stream, okay So it's about making things more efficient for farmers Which is really important for farmers because they actually have really tight margins on their products, right? They're selling to a supermarket wholesale. For example, they've got to offer a really cheap price on products So if they can increase crop production and there's other areas that this can be used as well So in recent news as well, we've got a lot of recent news coming out. Okay, so They are keeping the investors informed every week. So this is a positive sign. There's positive news coming out We've got letters to the shareholders Um announced a breakthrough with their technology there. They've got Lavish entertainment that they're building up and and preparing for for the demand that's going to inevitably come for this brand Okay Really important stuff. So hygros. This is one of the areas here that so what is hygros? What are they trying to do there? So it's reduced the need for certain fertilizers pesticides Fungus seeds and other nutrients as well as a quicker harvest time quicker harvest time This could increase revenues for potential farmers and allowing for the possibility of an extra crop grow Okay, so reducing Inefficiency be more efficient. Okay, and potentially improving harvests This means that it's going to be more effective. It's going to be more revenue generating And so if this is what this technology can do, this could be groundbreaking this could be really big Moving back to the Raves and the and the entertainment sector. I thought I'd have a look. Okay. You've got this brand. Are they established? Are they a good brand? And actually bear in mind. This is a penny stock. This is actually quite decent You know, we've got epic Graves here epic graves and they've got Really 30 000 followers and actually I've looked at the post. They've got quite good amount of engagement on the person Remember, this is at a time when there's this The situation right now in the world. So there's a lot of demand for these. Okay. There's a lot of demand for these events Okay, so this is really good. It's promising. They've got a strong brand here ready to go for when things are a bit better Yeah And also they've they've launched this new website Okay, so they are going to get into concerts and events, but they're also looking at artists management and theater It's looking at different aspects of Entertainment in the entertainment industry Within that sector all areas that are going to be really good after things get a bit better Okay, so there's a lot of potential And also I've got a quote here. So this is on the look go golden triangle ventures Twitter page and it was just a retweet and actually it's quite interesting over the past 90 days I have been focusing on a great deal of my time towards getting the company current obtaining our symbol change and Laying the fundamental groundwork on each division so that all three ventures have a clear path to success We have completed all three of our recent goals and going forward I will be focusing more harder on our core business We are developing some amazing new products from scratch. So again, this this has a bit of an insight there So you've got the products already, but they're building more products. They're looking at working with more Businesses potentially acquiring more businesses. Again, these are all catalysts as well Uh, and I can't wait to show everyone how each one of our divisions will transform into the companies I see becoming in the months ahead Now what is the price at at the moment? So it's that incredibly cheap Incredibly cheap. We're well, we're at 0.058. It has had a little bit of run up Okay, I said a little bit little bit of run up But I think that it's got potential to move up in the next few months to years by about 800 percent I think up to 800 percent. I think this could easily reach An increase of 800 percent because of the areas that it's involved in right I certainly think maybe in the next two to three four months We could see this double triple as well. So this has got a lot of potential. I think Okay, what I want you to do is obviously look at your own research as well. But what a price tag It's what are we looking at here? So it's at 0.058. It did actually dip towards 0.04 here Okay, so that tells me obviously it's volatile What I would try and do is I would see if it can dip back down to you know, well you 0.045 If you can do another dip like a temporary dip and then maybe buy in then buy a small position However, if this stock is incredibly cheap, I think that you know in a couple of months This is going to be worth more than it currently is at the moment Okay So I would buy in maybe buy a small position as it comes down a bit more But I think that this stock's going to do really well. I'm going to put in a small position Again, I might start my small position at this level But then average down so I start really small position And then I'll average down as it hopefully dips a bit so we can buy more at a cheaper price And then what we're going to do we're going to ride the wave back up We're going to ride the roller coaster back up as it goes to really good levels here He's got a lot of potential. Look at the business. Look at the fundamentals of the business Look at the products. Look at the acquisitions Look at the catalysts There's a lot going for it. Okay A lot going for it. So we're checking out be sure to like the video if this was at all helpful in any way That really does help out in the youtube algorithm Okay, it helps it out to go up into the youtube algorithm and it helps out the channel immensely And thank you for everybody who's really supporting the channel the channel's blowing up as I say So thanks for everybody who's supporting that and I'll see everybody in the next video


Welcome to the NTN Nightly. I'm Nisha Charles. This edition stops stories. St Lucia's Prime Minister and Carrickham Chairman discusses the importance of the Caribbean Beast and Initiative. St Lucia drums of massive interest at Carifesta 14. The Department of Gender Relations continues to combat discrimination and violence against women and girls. All that plus the latest in youth development, sports and the NTN Nouvelle-Arcueille. The trade programs known collectively as the Caribbean Beast and Initiative, CBI, remains important elements of U.S. economic relations with the Caribbean. The CBI is intended to facilitate the development of stable Caribbean economies by providing beneficiary countries with duty-free access to the U.S. market for most goods. The Caribbean Beast and Trade Partnership Act of the trade program is scheduled to expire on September 30, 2020. Chairman of Carrickham and Prime Minister, the Honourable Alan Shastney, indicated that he has been dialoguing with U.S. Congressman Elliot Engel, Chairman of the House of Foreign Affairs Committee, on a number of initiatives including immigration, free borders and security, all of which he explained can be beneficial to the Caribbean. One of those initiatives is the idea of having a Florida-Caribbean conference, which we're trying to organize. In December, we've gotten the support of Carrickham at our last Heads of Government meeting. My ambassador is working with many of the other ambassadors from the Carrickham, as well as the State of Florida, and I can say Congressman Engel's office, to facilitate in making sure that that meeting happens. Florida is the state that benefits the most from the Caribbean, whether it's from our diaspora who live there, whether it's economically from flights and ships, as well as the amount of stuff that we purchase, predominantly comes from the State of Florida. And I think that it would give us a great opportunity as Heads of Government in this region to ensure that at least one meeting a year. The Prime Minister added that parts of the U.S. and the Caribbean are faced with similar challenges. He explained that as a result, it is important that the U.S. and the Caribbean work together on the many issues plaguing the region. From climate change, the same hurricanes that are impacting us are impacting Florida. From a crime perspective, it's the same criminals, it's the same type of crimes. And if we can now start sharing on intelligence, for instance, you take the Miami Port, imagine how many screeners that they have. They're now able to benefit from their volume discount and also their maintenance service because they're only three hours away from us. It would be significantly improved the security of this country if we can scan all the containers coming into solution. We're currently doing a better job with the barrels, but we need to be able to do that. If we want to eliminate illegal guns in this country, we must first start preventing them from coming in. And then secondly, being able to identify them much quicker than we currently are once they're in our country. The CBI was launched in 1983 through the Caribbean Basin Economic Recovery Act and expanded in 2000 by the U.S. Caribbean Basin Trade Partnership Act and again by the Trade Act of 2002. It was implemented on January 1, 1984 and has no set expiration date. St. Lucia is stirring quite a bit of interest at this year's Cara Festa being held in Trinidad and Tobago. The contingent participated in the Parade of Nations an official opening ceremony on Friday, more from Inesia Antoine. National delegations from 21 Caribbean countries including St. Lucia have converged in Trinidad and Tobago for Cara Festa 14 to showcase and market their cultural and creative talents. The festival has evolved and transformed over its 46-year history and is expected to generate greater value for key stakeholders like artists, cultural entrepreneurs, host and sending governments, and the Caricom Secretariat. A major highlight of the festival is the Cara Festa 14 Grand Market at the grandstand Queens Park Savannah where festival goers can shop, dine and lime. Draenia Frederick is the artistic director of Cara Festa's team St. Lucia. I think it's an investment for those persons who produce products and craft at the grand market, buyers and persons looking forward to buying their stuff and showing what we can produce in terms of manufacturing. It's also a means of networking and workshops. A lot of the performers and the contingent will be attending dance workshops, theater, drama, music, the poets will be doing poetry readings, lectures. So it's really an exchange of that. A festival is more than just music, itemized music on a stage. It has symposiums. It has where we discuss issues that are related to Caribbean life. Where are we going? How are we channeling this creative industry? Frederick stated that the period of nations at Queens Park Savannah and other facets of the Cara Festa 14 allows for the infusion of different cultural practices. The St. Lucia contingent has been hired at rehearsals for the production entitled A Little Folk Tale which is written by Monique Auguste and Jesse Myers. Everybody who has seen clips of the advertisement and have gone around and publicized it and Cara Festa has promoted it, persons are just looking forward to it. Lucia is a country to watch and of course as you can see from the parade, how we celebrate and we have our flags and we're dancing. So it's really a festive spirit and a spirit of celebration of that otherness of being a Caribbean person today. I am extremely proud to be a contingent. A Little Folk Tale will be staged at Queens Hall in Port of Spain on Friday, August 23, 2019. From the Government Information Service, I am Anisia Antoine reporting. Meantime, the parade of nations created a festive atmosphere in the host country. We get more highlights from Cara Cam News Time. The Caribbean Festival of Arts Cara Festa 14 starts here at the Queens Park Savannah where over a thousand revelers from more than 20 countries will parade through the streets of Port of Spain, Trinidad and Tobago. North America has parted its festival. I've seen one of them as much as we could. Okay and living traditions. The way they dress, traditional garb, living traditions. And you've seen Dunkley Malcolm of Cara Cam News Time reports on the official opening ceremony. Patrons were treated to a spectacular display of elaborate performances paying homage to the culture and customs of Cara Cam Member States and associate members. The official aspect of the evening's proceedings included works from the Prime Minister of Trinidad and Tobago Doctor, the Honourable Keith Rowley, Minister of Community Development, Culture and the Arts, the Honourable Nayan Gadsby Dolly, and Cara Cam Secretary General Ambassador Irwin LaRocque. Prime Minister Rowley, after welcoming everyone to his country, said Cara Festa could not have been better placed on the calendar of Trinidad and Tobago as it was happening right after Emancipation and just before their Independence Day celebrations. And of course, it wouldn't be a Trinbego Cara Festa if all of the countries didn't cross the stage in true carnival style. The Department of Gender Relations recently conducted a three-day training for public offices from various departments on drafting national reports. Among the reports is the Convention on the Elimination of All Forms of Discrimination Against Women. The Convention on the Elimination of All Forms of Discrimination Against Women, or report, is submitted every four years by countries that have signed on to the Convention, which places emphasis on bringing the female half of humanity into the focus of human rights concerns. St. Lucia is preparing to submit its seventh to ninth combined reports and has been hosting training exercises in preparation of these reports. The second part of a two-part exercise was recently hosted by the Department of Gender Relations through the technical support from Sisters of Change through its Equality and Justice Alliance initiative. Acting Director of the Department of Gender Relations, Jeannie Joseph, says the exercise focused on drafters. We are hoping that by November we are going to have a final draft that we are going to take to Cabinet by the 25th of November when the 16 days of activism to end gender-based violence begins for the Cabinet of Ministers approval. Sisters for Change is an international organisation which works to combat discrimination and violence against women and girls. Legal Director Jeanne Gordon says its role is to help support and strengthen St. Lucia's capacity to be able to draft its report to the CDOR Committee. The work we have been doing is identifying the data that is needed, evidence that is needed to produce that report to identify the progress that has been made in the implementation of women's rights in St. Lucia between 2006 when St. Lucia last reported to 2019 and then working through how we will draft the final report and how that will be agreed before it is then submitted to Cabinet for review and approval. St. Lucia submitted its last CDOR report in 2016. And this is the NTN Nightly. Ryan O'Brien is up next. Additional information with third parties. Do not sign a contract that you are not satisfied or comfortable with. This message is brought to you as a public service announcement by Ectel, the NTRC and this station. Welcome back. We join Ryan O'Brien for the latest happenings in youth development and sports. Thanks, Misha. Welcome once again to your segment from youth development and sports on the NTN Nightly News. I'm Ryan O'Brien. The St. Lucia National Youth Council Executive recently visited Bellevue Vierfo to aid in facilitating a leadership workshop for the youth in the Vierfort North area. The workshop is part of a five-week series which is aimed at building capacity in young people. As part of the workshop, First Vice President Anya Edwin presented on the fundamentals of events management and was assisted by other members of the Executive. The St. Lucia National Youth Council then held a joint meeting with the Vierfort North and Vierfort South youth and sports councils to gain a better understanding of the issues affecting the councils as well as the youth of Vierfort. Additionally, solutions and possible collaborations were discussed as a remedy to these issues. The meeting was the first step as the council prepares to roll out its district branch revitalization. Among the pertinent issues facing the district youth and sports councils, which were discussed, included the lack of database for clubs and financial discrepancies during the turnover period of councils. President of the Confederation of North, Central American and Caribbean Football Association's ConquerCaf, Victor Montagliani has lauded the initiatives taken by the government of St. Lucia and the St. Lucia Football Association in an effort to develop the sport of football on island. The ConquerCaf president spoke to the NTN Knightley on a recent brief visit to St. Lucia. Obviously this facility is very impressive and the work that's being done. I also saw the plans of the government in their facility that is really leading edge stuff. The prime minister really has done some great work in his vision in using sport for the development of humanity really in St. Lucia. I think they're going to pop off there with that facility, not only for football, but I think for other sports as well as going to be state of the art in the region. So I've been very impressed by my short visit here. The ConquerCaf president was at the time accompanying the president of the Federation of International Football Association's FIFA Giovanni Infantino on a visit to St. Lucia, one of the stops on a tour of a number of islands affiliated to the two sporting bodies. And that's your segment from youth development and sports for today. I'm Ryan O'Brien. Thanks Ryan. In keeping with changes in international oil prices and government's application of the modified market passed through petroleum pricing mechanism, the retail price of gasoline and kerosene remains unchanged. The retail price of diesel, LPG 20, 22 and 100 pound cylinders has changed. The price changes take effect from Monday, August 19, 2019. Gasoline remains unchanged at $13.95 per gallon. Kerosene remains unchanged at $8.76 per gallon. Diesel increased from $13.27 to $13.32 per gallon. The 20 pound LPG cylinder decreased from $32.54 to $32.12. The 22 pound cylinder also decreased from $36.08 to $35.61. And the 100 pound cylinder decreased from $206.54 to $204.42. The next adjustment of the retail price of fuel products will be on Monday, September 9, 2019. And stay with the NTA nightly. Up next, Primus Hutchinson is here with the NTA Nouvelle Arquillon. Welcome back. We join Primus Hutchinson for the NTA Nouvelle Arquillon. Prime Minister Settlesi, I'm Alain Chastney. I've already found the opportunity for one demonstration. I declare that I'm very satisfied with the production. Anyway, I hope that Settlesi will be able to perform at a high level. We consider it as a high level. Director of Artistic Drainier-Fedric by Asi Wanslaki. Settlesi has continued to produce quality and contribution that I've done before, in terms of culture and folklore. And in addition to success, Settlesi, I declare that I'm very satisfied with the presentation. Your evolution of cultural affairs, and also the way in which you share different artistic and folklore presentations. I also mentioned the participation of the youth, and those who have advanced and experienced, who have greatly improved their contribution to Settlesi, for their generation to come. Settlesi has also found the opportunity to work together, and a lot of delegations, more than 20 countries, in which I work. And I have also worked with the Artistic Drainier-Fedric program. Specter Carey-Fester began last Friday, at 16 A'u, at Kaibut Dimash, 25 A'u. The Ministry of Health began its work, with several wellness centers in the whole country. The Center La Fague and Mabouj, in Comentua-Azei, which were opened since December 6, 2008, for this arrangement, which I have already seen in the operation, which has been carried out by the project to be established. But the presence of the environment has given the health facilities to be more sustainable. The work has already ended, and the Center Salah has already opened, and has started since the 6th of 2019. The Wellness Center, I am a 12-hour family, where you can find a lot of assistance for the Salah. The work that has been done, I have been able to implement this operation in Nef. It is a new Salah, which has made it possible to place these facilities on the Salah. It is more capable of addressing climate change, and while the Salah has been working, the Service Assistance Salah, has been able to go through the agrarivary. The work that has been done, the service clinic, the visitation, and the care that has been done, has continued as it has been done. I also want to inform you that it is very clear to visit Nef. at the Wellness Center, where the work has been done. According to the authorities, the work has been done for three months. The Ministry of Health, and the public in general, but in particular, the work that has been done, is the work that has been done for the Salah, and the work that has been done, is the work that has been done. So, I want to inform you that the Ministry of Health, is working in the sector of the area. I am a Minister of Economic Transportation, Kai Apamelot, Mr Claudius Emmanuel. I thank the government, and the people of the Republic of China, Taiwan, for supporting and supporting the development of the economic and social sector. He did this, during a ceremony, to officially open the Nef facility for the Garay Auto Passage, and the place for the Kiltivate and the Wyverdez to suffer. Mr Emmanuel explained that the objective of the project, is to form a facility that can encourage the Wyverdez to suffer, so that they can come to Dio, and also have a place for the Garay Auto Passage, which has served to suffer. Secretary Pomenin has declared that all the work, in total, costs a total of nearly $3 million. He proposed to suffer. We will hear from Stanislaus, and explain to him, that this is the beginning and that there is still more work to be done. There is also the place to suffer, which has been established in the most modern way, after all, because if it is not, it is a shame that it has never been seen and eaten. This is the third phase of the project, which is in the western part, which is moving forward. This is the third phase of the project, which has been established in the most modern way, with all the hard work, except for the duty-free work. Officially, we will hear from the 15th of December. Secretary Pomenin, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel, Mr Emmanuel. And that brings us to the end of the NTN Nightly. Join us next time at 7pm with a repeat at 7am. You can also catch up with us anytime on the St Lucia Government Facebook page or YouTube channel. I'm Nichiatrass.