Accounting

These criteria include consideration of the future economic benefits. If you want to further your accounting knowledge, it’s critical to understand the standards that guide how companies record transactions and report finances. Here’s a look at the two primary sets of accounting standards—GAAP and IFRS—and how they compare. The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and […]

Some construction businesses use the cash method; and there are many other companies that use a modified form of the cash method, which is acceptable under federal income-tax regulations. While many smaller, younger companies can use cash basis accounting, it’s not suitable for all. Most smaller companies that carry inventory will need to use accrual accounting, as it will enable them to track changes in inventory. Most businesses that offer their services on credit also will need to use […]

Property owners can manipulate their operating expenses by deferring certain expenses while accelerating others. NOI can also be increased by raising rents and other fees, while simultaneously decreasing reasonably necessary operating expenses. Describing a cap rate as good or bad is relative to the geographical location. Investors cannot compare cap rates obtained from different regions but should use comparable cap rates for similar type properties in close proximity. For example, two similar […]

We need to Calendarize because companies can choose reporting periods for their Fiscal Year that do not align with the Calendar Year. Free Financial Modeling Guide A Complete Guide to Financial Modeling This resource is designed to be the best free guide to financial modeling! When using LTM figures, investors should differentiate the figures as coinciding with the company’s most recent reports for the fiscal year. Governments use the fiscal year timeline to prepare budgets and create law […]

FCF calculation will also provide investors with insight into a company’s financials, helping them make better investment decisions. Similar to the current ratio, net cash is a measure of a company’s liquidity—or its ability to quickly meet its financial obligations.

It can take a long time for an offshore reservoir to decline and finally reach the threshold of being an uneconomic well. This limit is determined as occurring when the operating expense begins to be higher than the in […]

54 In some circumstances, the seller’s continuing interest may be so great that divestiture accounting is inappropriate. 49 The staff believes there is a rebuttable presumption that no asset should be recognized for a claim for recovery from a party that is asserting that it is not liable to indemnify the registrant. Registrants that overcome that presumption should disclose the amount of recorded recoveries that are being contested and discuss the reasons for concluding that the amounts […]