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On my previous post [How to set-up General Ledger and Opening Entries], you have just seen how easy it is to add an account to the...
Late filing is one of the top critera for an IRS audit. To keep you and your business on time in filing, you then need to come up with...
Increasing on investment accounts are obviously symptoms that a controller [financial managers or even CFO] should react immediately. It indicates the presence of a multitude of...
General Ledger is the basic structure of the accounting system. It is the place where accounts can be examined and adjusted. At the end of each...
Obsolete inventory is any inventory for which there is no longer any use, either through inclusion in viable manufactured goods or by direct sale to customers....
When creating a transfer price based on any type of cost, one should carefully consider the types of cost that are used to develop the price....
Before any meaningful discussion of the Lean’s effect to the accounting, accountants, and chief financial officer (CFO) in a lean business can take place, we need...
share-based payment transaction – A transaction in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share...
primary financial instruments – Financial instruments such as receivables, payables and equity securities, that are not derivative financial instruments. [IAS 32.AG15] prior period errors – Omissions...
matching of costs with revenues – A process in which expenses are recognized in the income statement [statement of comprehensive income] on the basis of a...
incremental borrowing rate of interest (lessee’s) – The rate of interest the lessee would have to pay on a similar lease or, if that is not...
financial guarantee contract – A contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified...
derivative – A financial instrument or other contract within the scope of IAS 39 (see paragraphs 2–7) with all three of the following characteristics: (a) its...
contingent asset – A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or...
accounting policies – The specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements [IAS 8, 5] accounting profit...
The ability of the production function to operate at its maximum levels of productivity are strongly influenced by the amount of investment that a company is...
Tax rules on retirement plans are complicated. This helps explain why only a third of small businesses have retirement plans, compared to five-sixths of major companies...
Borrowing costs, as understood generally, refer to interest costs. However, borrowing costs as envisaged by IAS 23 are not just interest costs on short-term borrowings, such...