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Lease accounting has been a disaster for a very long time. Many Corporate managers can deceive investors and creditors by reporting leases as operating leases and...
Business managers, lenders, and investors need to know the financial condition of a business. A summary of cash flows, though very useful in its own right....
In a troubled debt restructuring, the debtor has financial problems and is relieved of part or all of the obligations. The concession arises from the debtor-creditor...
The accounting for impairment and loss recognition of property depends on the type of property (e.g., property held for development or completed real estate project) and...
Back in January 2005, listed companies in the European Union must comply with the rules of the International Financial Reporting Standards (IFRS) elaborated by the London-based...
At the end of every accounting period certain accounts are closed and others remain open. This post is softly trying to remind you with some essential...
Businesses must expect to sustain some losses from uncollectible accounts and should therefore show on the balance sheet the net amount of accounts receivable, the amount...
Why have practices such as lean manufacturing and six-sigma process improvement tools had such a profound impact on inventories? And how does e-commerce enable even more...
A large portion of all business transactions are credit transactions. One way of extending credit is by the acceptance of a “promissory note“, a contract in...
Although a physical inventory is taken once a year, there are occasions when the value of the inventory must be known during the year. When interim...
When evaluating a real estate sale transaction, two separate issues arise: (1). Is it appropriate to record the transaction as a sale? And; (2). If a...
There are several tools used to conduct financial analysis. One is a database of accounting information, in which an analyst can roam for days, tracking down...
Income for financial statement purposes is determined under generally accepted accounting principles as set forth by the accounting profession. Income for tax purposes is determined according...
The trial balance is quite simple to understand and quite simple to do. How if I find error during the construction? What should I do? Easy,...
Asset disposal accounts are like miniature profit & loss accounts: they are final accounts, and not going on any further. Once written up, with their one...
In some industries it is common practice for customers to have the right to return a product to the seller for a credit or refund. However,...
How are Economic Order Quantity (EOQ), Economic Production Run (EPR), Re-order Point, and Safety Stock determined and computed? Read this post for the answers. Typically it...
This post contains three forms and seven reports related to the inventory function. Some of these forms, such as the receiving log and inventory tag, are...