In planning a financial statement audit, auditors should develop an overall program for (a) considering a client’s internal control—technically called “risk assessment”; and (b) performing …
Earnings management, in simple words, could be defined as an attempt—usually by the management—to influence reported earnings by using: specific accounting methods (or changing methods); …
Understanding how payroll process work (or flows) is a must to those who involve in the payroll issues (from payroll clerk, bookkeepers, accountants, or even …
I am sure you’ve been familiar with the term of financial auditors—those who perform financial auditing task and issue opinion, at the end of the …
What is provision? IFRS, the IAS 37 to be exact, defines provision as a liability of uncertain timing or amount. It means that, under the …
Including foreign currency transactions of foreign operations (usually subsidiary companies)—in the financial statements of corporate parent—has already been a complex and labor-intensive work, since long …
Despite recent disagreement between the IASB’s IFRS and FASB’s US-GAAP, on the lease accounting topic, lease transaction has became a popular way for companies to …
Remembering what to disclose on an income statement presentation, especially for a public company, could be daunting to even a highly-skilled accountant. This post aims …
Once products/services are delivered to a customer, you create an invoice and submit it to customer, don’t you? That is only a start. A better …
If you’re working for a small- to mid-sized company, controlling check receipt from customers could be a great challenge. Through this post, I am going …
While many sales are in certain collection, some others are uncertain. A good example of sales with uncertain collection is a stationary supplier delivers stationary …
The extent of the auditor’s planning depends on the nature of the client and the experience of the auditor with that client. For example, planning …
Basically, by the rule, you should not recognize revenue until it has been earned. So, when is, exactly, a revenue considered as earned? You may …
Among many important judgment and decision that accounting people often take on daily basis, is whether to or not to accrue an expense. For some …
Once, when browsing the internet—in the aim of getting various example of balance sheet formats, I was surprised by a website (eghh I forgot the …
In simple words, non-monetary transactions are exchanges and nonreciprocal transfers that involve little or no monetary assets or liabilities. While monetary assets are assets whose …
In the past, financial statements’ users rarely judged prospect of businesses based on balance sheet where investors put more weight on the short-run maximization of …
Many purchase business combinations involve the recognition of goodwill. Except to those who follow every bit of accounting standard update, talking about accounting for goodwill …
