Accounting

The controls should include someone reviewing the work of the person who prepares the calculations or inputs information into a software package. In addition, the disclosure requirements are much more extensive in the new standard, meaning companies will need to compile more information about their leases for disclosure. While both operating and finance leases will be recorded on the balance sheet, the expense recognition pattern differs. Operating leases require lease expense to be recognized […]

The insurance company pays the investor a stream of income payments that could last a specific period of time. Fixed annuities offer more safety and predictability than variable annuities. One or more payments to the insurance company is made in exchange for the promise of a lifetime of income payments.

IAS 12 was reissued in October 1996 and is applicable to annual periods beginning on or after 1 January 1998.
To anticipate the month that you’ll pay 30% more on your shopping trip to Bed […]

Inflation also distorts reported income when the costs of fixed assets are charged to income through depreciation. The increased costs of replacing fixed assets are not reflected in the depreciation charge.

Inflation accounting has its own merits and demerits due to which the use of inflation accounting is not still very much prevalent in the industry.
Accordingly, the model opts for the use of assumptions and shortcut techniques to avoid striving for unattainable precision.
Business could be […]

The revenue standard for public companies became effective for annual reporting periods beginning after December 15, 2017 for most calendar year-end public business entities and 2019 for many non-public business entities. However, in June 2020, the FASB deferred the effective date for nonpublic entities that had not yet issued, or made available for issuance, their financial statements reflecting the adoption of the standard. For those entities, they may elect to adopt the standard for annual r […]

This means it’s not going to be sold within the next accounting year and cannot be liquidized easily. While it’s good to have current assets that give your business ready access to cash, acquiring long-term assets can also be a good thing. For investors, this suggests a company is well equipped for long-term growth and scaling up operations as new equipment increases your efficiencies. Current assets, on the other hand, can be relatively easily converted into cash. Any current asset […]

The terms “stakeholder” and “shareholder” are often used interchangeably in the business environment. Looking closely at the meanings of stakeholder vs shareholder, there are key differences in usage. Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder. Taxable value per membership pupil means taxable value, as certified by the department of treasury, for the calendar year ending in the current state fiscal year d […]