Business Functions and Supply

Chains

Chapter 3
John Paolo T. Joson
Classroom Rules:
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slides.
 Learning Objectives

 Identify various business functions and the role of Iss in

these functions.
 Explain how Iss in the basic functions relate to each other.
 Articulate what supply chains are and how information
technology supports management of supply chains.
 Enumerate the purposes of customer relationship
management systems.
 Explain the notion of enterprise resource planning systems.
 How much of its goal is achieved
Effectiveness
The degree to which it achieves better
outcomes than other systems do

Benefits
Efficiency Costs

Efficiency of human
Productivity resources

Customer relationship management

systems
ERP SYSTEMS
Supply chain management systems
 Picture of your financial
Accounting situation

Manage an organization’s
Finance money as efficiently as
possible

collecting payables as soon as possible

Making payments at the latest time allowed

by contract or law

Ensuring that sufficient funds are available

for day-to-day operations

Taking advantage of opportunities to accrue

the highest yield on funds not used for
current activities
 Cash Management
Systems
Electronic Funds Systems
Investment Analysis and
Services
 Is an agreement whereby the
lessor conveys to the lessee, in
Lease return for a payment or series of
payments, the right to use an asset
for an agreed period of time.

Finance Lease

Operating Lease

Lease of Land and Pro-rate

Building
Finance Lease
 Commencement of
Inception of the lease
the lease term

Asset
Finance Lease by
Lessees Liabilities

Fair value of the leased

property
Contingent Rent
Present value of the
minimum lease payment

Initial Direct Costs

Interest rate implicit in the lease
 Useful Life
Right-of-Use Asset
Lease Term

Finance Lease Net Investment in the Lease

by Lessor (Gross Investment – Unearned Interest)

Initial Direct
Cost

The minimum lease

Interest rate implicit in the payment
lease The unguaranteed residual
value
Finance Lease Net Investment in the Lease
by Lessor (Gross Investment – Unearned Interest)

Initial Direct
Cost
 Is land and/or
Investment building held for
Property rentals or capital
appreciation

Initial Cost
Measurement
Cash Purchase

Installment Purchase
Modes of Acquisition Non-Exchange
Transactions
Self-Construction
 Start-up cost

Cost does not include Operating losses

Abnormal losses

Subsequent Cost Model

Measurement

Transfer Change in Use

No gain or loss Except if impaired

 Disposed
Derecognize
Withdrawn from use
when
No future economic
benefit

Net disposal proceeds - CA Gain/Loss

Impairment CA > Recoverable Amount

Fair Value less cost to

Recoverable amount sell
(Higher)
Value in Use
 External Sources
Indication of Impairment
Internal Sources

Smallest identifiable group of

Cash Generating assets held with the primary
objective of generating
Unit commercial return

CA > Recoverable Amount Pro rata basis

FV less costs to sell

CA is not lower
Value in use
than
Zero
 Reversal of If there is an
Impairment indication

New RA > Original CA (if no impairment is recognized)

Compensation Recognized in
from Third Parties Surplus/Deficit