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There is always a chance, in any companies, that physical fixed assets is unmatched with its accounting book. And this, by the accounting principle and rules,...
Due to its complexity and wide-range of risks inherent with the use of financial statement, developing an audit approach for financial instruments is crucial. Paradoxically; on...
Reconciling physical fixed assets—into existing property records, is often the case of a company that has just established new policies for minimum capitalization going forward. In...
Have you known that IRS has just issued notice on the 2012 standard mileage rates? Incase that you haven’t noticed just yet, here is the summary...
Following on the Financial Instruments Disclosures Part 1—where we have discussed about disclosures of financial instruments by categories, reclassifications disclosures, derecognition of financial assets disclosures, and...
Fixed asset tagging is a good practice in the pursuit of better fixed assets physical control. Putting tags on fixed assets, not only help custodians to...
IFRS 7, “Financial Instruments: Disclosures”, requires an entity to provide disclosures in their financial statements that enable users to evaluate (a) the significance of financial instruments...
Virtually, every taxing jurisdiction relies on self-reporting of property additions and deletions. Annual reports are submitted. Municipalities then keep records by taxpayer showing on a cumulative...
Cost segregation studies are conducted for a variety of reasons (e.g., financial accounting, insurance purposes, property tax and income tax). After a number of years the...
There is a very easy way to tell if you have been assigning appropriate lives to fixed asset in your company. Take the existing file and...
There is a direct correlation between the costs of running a fixed-asset system, and the number of assets one is trying to control with that system....
Impairment testing was introduced to ensure that the carrying amount of an asset recognized on the balance sheets does not exceed its recoverable amount. Therefore, basically...
Basically, analytical procedures consist of evaluations of financial information made by an auditor of plausible and expected relationships among both financial and non-financial data. The analyses...
The times interest earned ratio indicates a firm’s long-term debt-paying ability from the income statement view. If the times interest earned is adequate, little danger exists...
Discretionary-cost ratio is used to analyze those cost that may easily be changed by management. Discretionary costs may be decreased when a company or department is...
For some reasons, a company may change its accountant. Example: ABC Company’s financial statement for 2011 fiscal year has been reviewed by Andrew Clarkson, CPA. For...
Cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012 has just been announced by the IRS on...
New income tax rate table for 2012 (inflation adjustment) has been released by the IRS on Thursday (October 20, 2011) and it’s effective in the beginning...