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How unethical management fraudulently misstates financial statement? The majority of cases of fraudulent financial reporting involve making a company’s financial health appear better than it really...
I have discussed various techniques and ratios to analyze a set of financial statements. On other hand, there are various techniques used to report financial statements...
Sometimes the initial review of the period-end financial statements comes as quite a shock—the revenues or expenses may be wildly off from expectations. This results in...
The balance sheet date is the pivotal date at which the financial position of an entity is determined and reported. Thus, events that occur up to...
Most business publish three financial statements, usually annually but sometimes more frequently. These are the profit and loss account (income statement), the balance sheet and the...
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...
“What does this ‘Accounting: The Language of Business, Investing, Finance, and Taxes’ about?”, you may wonder. Okay, this is not about calculating (measuring), nor recording transaction (recognizing),...
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...
After a business decides on the format for reporting its income statement (multi-step or single-step), the next main decision concerns how much information to disclose about...
The foreign entity’s financial statements in a highly inflationary economy is not sufficiently stable and should be re-measured as if the functional currency were the reporting...
This post series will cover the following issues: FASB statement related with foreign currency translation, important term in foreign currency topic you should familiar with, how...
Segmental reporting is the process of reporting the activities of profit centers such as divisions, product lines, or sales territories. The contribution approach is valuable for...
One among irregular items that gets special accounting consideration is an extraordinary event. An extraordinary item is a transaction or event that is both unusual and...
Assets are financed both by debt and equity. “Equity“ represents the “net assets“ of a corporation. This concept can be compared to owning a house (asset)...
Long-term liabilities/debt generally represent the most significant obligation for the corporation. Although this obligation does not impact a firm’s current liquidity, ultimately it becomes payable. Thus,...
Liabilities and stockholders’ equity support a company’s investment in assets. Liabilities must be recognized on the date they were incurred. Liabilities, much like assets, can be...
Generally the most significant non-current asset in terms of value is a company’s investment in property and equipment. These are the assets that companies commit millions...