Accounting

In order to complete registration, the company must include audited financial statements and numerous other disclosures. If the registration statement was to be found materially misstated, both the company and its auditors may be held liable.

They have also bound the ethics applicable to them as issued by the auditing boards.
With this approach the auditor is liable to all third parties in which their reliance is foreseen even if the auditor doesn’t know the third party.
This method is v […]

It might be that the company has successfully managed to negotiate better payment terms which allow it to make payments less frequently, without any penalty. The accounts receivable turnover ratio is an accounting measure used to quantify a company’s effectiveness in collecting its receivables or money owed by clients. The ratio shows how well a company uses and manages the credit it extends to customers and how quickly that short-term debt is collected or is paid. Take total supplier pur […]

Instead of using the above rules, you can elect, for depreciation purposes, to treat the adjusted basis of the exchanged or involuntarily converted property as if disposed of at the time of the exchange or involuntary conversion. Treat the carryover basis and excess basis, if any, for the acquired property as if placed in service the later of the date you acquired it or the time of the disposition of the exchanged or involuntarily converted property.

Unadjusted basis is the same basis amount y […]

One of the main topics of concern facing the analysts of deregulation is the question of the so-called stranded costs. The term “stranded costs” has emerged as an issue only in the context of electricity deregulation. For instance, there was little or no attention paid to stranded costs in the discussions on airline deregulation, trucking deregulation, and most oddly, the breakup of AT&T. Note 1 Why the issue appears now and not in the first cases of deregulation is an interest […]

Liabilities that governments normally pay in a timely manner and in full from expendable available financial resources should be recognized when incurred, without regard to the extent to which resources are currently available to liquidate the liability. The modified accrual accounting method recognizes revenues when they are available and measurable. Depreciation expense is not recorded for governmental funds under the modified accrual basis — assets are instead expensed in the operating fund […]

Topic 13 provides the staff’s views regarding the general revenue recognition guidance codified in ASC Topic 605. ASC Topic 606 provides a single set of revenue recognition principles governing all contracts with customers and supersedes the revenue recognition framework in ASC Topic 605, which eliminates the need for Topic 13. Prior to adoption of ASC Topic 606, registrants should continue to refer to prior Commission and staff guidance on revenue recognition topics. If Company M does no […]