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This post provides basic guidelines on how to conduct inventory audit. Inventory is second most liquid asset in a company, serious problems maybe hidden behind thousand...
A stock option gives an employee the right to buy stock at a specific price within a specific time period. Stock options come in two varieties:...
The cost accounting focus is not only on internal costs, but now are also on supply chain cost (costs that arise from the entire gamut of...
IAS 1 states that, at the minimum, the income statement must include line items that present the following items: revenue, finance costs, share of profits and...
Be a purchaser specialist or an accounting staff who also have to meet vendors often–hence you have to take care of vendor relationship particularly when negotiating...
Interim financial reports are financial statements covering periods of less than a full fiscal year. Most commonly such reports will be for a period of three...
IFRS provides insufficient guidance regarding the actual accounting for share capital transactions, including the issuance of shares of various classes of equity instruments. This post offers...
Intraperiod tax allocation relates to the matching in the income statement of various categories of comprehensive income or expense (continuing operations, corrections of errors, etc.) with...
Changes in either tax status or rates, definitely affect the financial statements of the company particularly its tax expense, and should be reported. The changes may...
A company can present its net cash flow from operating activities by using either a direct method or an indirect method approach in the statement of...
When a company has deductible temporary differences and taxable temporary differences pertaining to the same tax jurisdiction, there is a presumption that realization of the relevant...
Deferred tax asset is the amounts of income taxes recoverable in future periods in respect of deductible temporary differences, carryforwards of unused tax losses, and carryforwards...
Cash inflow can be a crucial issue for small businesses: until customers pay invoices issued by the company, it may not be able to turn around...
Accounting for construction contract under IAS 11 says that contract costs and estimated earnings in excess of billings occurred—in a contractor company which uses ‘percentage-of-completion method’—should...
Have you ever heard about ‘Adjusted Consolidated Segment Operating Income (CSOI)’? It is new accounting metric came from a dot com company going IPO this fall....
Under IAS 2, specific identification must be employed to cost inventory that is not ordinarily interchangeable, and goods and services produced and segregated for specific projects....
A product financing arrangement is a transaction in which an entity sells and agrees to repurchase inventory with the repurchase price equal to the original sales...
Thinking of accounts receivable: credit sales converted into accounts receivable (A/R), and then wash them when the corresponding cash is collected. That is what I learnt...