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Following on my previous post (Evolving Problems In Revenue Recognition), the following controls can be used to spot transactional errors or attempts to alter the reported...
Certain problems currently found in the application of the general principles of revenue recognition, which can sometimes lead to fraudulent reporting, are discussed in this post....
Due to the length of time involved in the development and construction of real estate properties, a project’s plans, cost estimates, and expected sales prices may...
As real estate projects often span long time periods until their completion, it is of critical importance to evaluate at the outset of a real estate...
Project costs are defined as “costs clearly associated with the acquisition, development, and construction of a real estate project”. In certain real estate projects, land is...
Pre-acquisition costs are costs related to a real estate property that are incurred for the express purpose of, BUT PRIOR TO, obtaining that property. They may...
Investments in real estate projects require significant amounts of capital. For real estate properties that are developed and constructed, rather than purchased, project costs include the...
Hopefully this post helps you understand the role and function of accounting record as source documents (such as: bills, invoices) and introduces the books of prime...
Accounting and finance departments have always strived to improve the management of cash flows, reduce working capital and financing costs, track long-term indicators of solvency and...
After discussing “interim reporting” in my previous posts, you may want to know about “segmental reporting” as well. So let’s discuss about this a bit. Through...
The income tax provision includes current and deferred taxes (e.g., total tax expense for a nine-month period is shown in the third quarter based on nine...
Interim reports may be issued periodically, such as quarterly or monthly. Complete financial statements or summarized data may be provided, but interim financial statements do not...
Closing of the accounting books refers to a process that starts with posting entries to the general ledger and results in a post-closing trial balance. The...
To you, who responsible for budgeting, “annual budget” process is one of your most important agenda in November. As a controller, budgeting is one of my...
Three months back, since my idea to provide a free accounting software tutorial, it is not easy to gather the materials. Even when it is prepared,...
The budget of finished goods inventory (or merchandise in the case of trading concerns) must be based on the sales budget. If, for example, it is...
On the previous post we have discussed Budgeting for Raw Materials Inventory, now let’s go on for Work-In-Process (WIP) Inventory. The inventory of goods actually in...
Inventory is an extremely difficult part of the balance sheet to budget, because of the multitude of individual inventory items, as well as the impact of...