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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 substantive...
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); or...
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 IT...
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 audit...
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 standard,...
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 time...
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 finance...
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 to...
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 billing...
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 to...
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 stuffs...
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 for...
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 ask....
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 people,...
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 name...
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 amounts...
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 earnings...
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 today...