It is not surprisingly, my post about “Capitalization and Amortization of Software Cost“ been gaining lots of reaction and questions on the ground [through email], particularly... More »

Following on my previous post “Premature or Fictitious Revenue Recognition [A Closer Look”, this post provide a checklist of items to consider in detecting premature or fictitious... More »

Premature revenue recognition and fictitious revenue recognition differ in the degree to which aggressive accounting actions are taken. In the case of premature revenue, revenue is... More »

The International Financial Reporting Standards (IFRS) are arguably the most widely discussed accounting topic of the moment among businesses in the United States (US)—in particular,... More »

How unethical management fraudulently misstates financial statement? The majority of cases of fraudulent financial reporting involve making a company’s financial health appear better... More »

Microsoft office 2010 Beta has been released for public together with Microsoft Exchange 2010, Microsoft SharePoint Server 2010, Microsoft Visio 2010 and Microsoft Project 2010. Microsoft... More »

Following on my previous post “Audit: Accounts Receivable Confirmation [Application techniques]“, as a complement, this post contains illustrations which are some instant... More »

Confirmation of accounts receivable, including a financial institution’s loans, is a generally accepted auditing procedure. It is therefore presumed that the auditor will request... More »

As some people whined through grammar school, high school, and college, “Math is hard!” But business valuation goes beyond math. It’s the assessment of a business’s hard and... More »

Ownership in a corporation is represented by stock certificates, which is why the owners are called stockholders. In some states, stockholders are called shareholders. Ownership interest... More »

Transfer pricing is a key tax consideration, because it can result in the permanent reduction of an organization’s tax liability. The permanent reduction is caused by the recognition... More »

What is the role of internal Audit? The historic basic role of internal audit has been to test on an interim basis the operations of internal controls within a business organization... More »

Every type of company will, of course, tailor its chart of accounts, procedures, subsidiary records, etc., to meet its own operating and organizational needs and the philosophy of its... More »

Most revenue transactions—those initiated and completed almost at the same  time—pose few problems for revenue recognition. However, not all transactions are that simple. For example,... More »

Revenue is a crucial part of an entity’s financial statements. Capital providers use an entity’s revenue when analyzing the entity’s financial position and financial performance... More »

There are a great many kinds of analysis needed when a company is contemplating an acquisition. For a full acquisition, involving the assumption of all financial, environmental, and... More »

Intangible assets are derived from a number of areas, including research and development (R&D) effort grouped as “intangible asset generated from internal process”. In... More »

CON 6 defines stockholder’s equity as the residual interest in the assets of an entity after deducting its liabilities. Stockholders’ equity is comprised of all capital contributed... More »

Your primary objective in preparing for the CPA examination is to pass. Other objectives such as learning new and reviewing old material should be considered secondary. There are six... More »

Controllers often receive a special request from management to perform a financial analysis. If instead, you’re in charge for the task although you are not a controller [this is common... More »

Banking Operations Department Manager Manages and directs the operations department for a financial institution. Ensures efficient delivery of products and services to clients. Develops... More »

Accounting Director Responsibilities include directing and overseeing all or one of the following accounting functions: general accounting, payroll, and cost accounting. Requires a... More »

Accounting Manager Responsible for managing the general accounting function. Oversees the completion of ledger accounts and financial statements. Evaluates and makes appropriate improvements... More »

Accounting Supervisor Responsible for the supervision of accounting professionals. Oversees calculating, posting, verifying, and typing duties to obtain and record financial data for... More »

Accountant Prepares balance sheets, profit and loss statements, and other financial reports. Responsibilities also include analyzing trends, costs, revenues, financial commitments,... More »

Accounting Clerk Accounting Clerk performs routine accounting activities such as maintenance of the general ledger, preparation of various accounting statements and financial reports... More »

Due to computer technology, it is often unclear whether existing financial statements have been “prepared” by an accountant or by management. In considering whether an accountant... More »

In addition to the measurement accounting principles that guide the values placed on the elements included in a balance sheet, there are accounting principles specifying the informative... More »

Balance sheets (also known as statements of financial position) present information about assets, liabilities, and owner’s equity (depending on the type of reporting enterprise, this... More »

It usually takes more than just your brains and hard work to make a business run. You need equipment, from technology-based items (e.g., computers and cell phones), to furniture (e.g.,... More »