All posts on March, 2009

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 …

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 …

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 …

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 …

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 …

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 …

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 …

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 …

primary financial instruments – Financial instruments such as receivables, payables and equity securities, that are not derivative financial instruments. [IAS 32.AG15] prior period errors – …

matching of costs with revenues – A process in which expenses are recognized in the income statement [statement of comprehensive income] on the basis of …

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 …

financial guarantee contract – A contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a …

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) …

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 …

accounting policies – The specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements [IAS 8, 5] accounting …

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 …

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 …

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, …