Accounting

The existence of the liability is uncertain and usually the amount is uncertain because contingent liabilities depend on some future event occurring or not occurring. Examples include liabilities arising from lawsuits, discounted notes receivable, income tax disputes, penalties that may be assessed because of some past action, and failure of another party to pay a debt that a company has guaranteed. When liabilities are contingent, the company usually is not sure that the liability exists and i […]

It is reduced by the cost of merchandise that has been sold to customers. Purchases of merchandise are recorded in one or more Purchases accounts. The amount appearing in the general ledger Inventory account is not updated when purchases of merchandise are made from suppliers or when goods are sold.

Because this is complex, there are not many software platforms that handle it well, if at all. This means that you’re best building your own custom spreadsheet, if not using a system that ful […]

Therefore, the settlement gain or loss under IAS 19 will differ from the US GAAP amount if there are unrecognized actuarial gains and losses under US GAAP. Accountants prefer amortization because it provides consistency across the statements. However, under the International Financial Reporting Standards , the increase and the decrease in the projected benefit obligation aren’t amortized into the income statement. All defined benefits pension plans will see periodic actuarial gains or los […]

Therefore, Company A would depreciate the machine at the amount of $16,000 annually for 5 years. Simply get paid with the SumUp Card Reader by taking debit, credit and contactless payments. The SumUp Card Reader enables businesses to take credit, debit and contactless payments. That’s cash that can be put to work for future growth or bigger dividends to owners. The time value of money is that, in most cases, a dollar today is more valuable than a dollar in the future. Joshua Kennon co-aut […]

The accountant does not verify the exactness or the completeness of the information supplied and does not give any opinion. The work carried out is not intended to offer any assurance on the trust worthiness of the information which has been compiled. To warn the reader of this absence of assurances, each page of the financial statements must bear a warning entitled “Notice to reader”. This notice, attached to the financial statements, specifies that the information has not been the […]

Inherent risks exist because the nature of business and their respective environments can be complex and unruly. The risk of material misstatement is under the control of management of the company and the auditor can only directly manipulate detection risk. So, if their assessment of the risk of material misstatement and audit risk is high, they must reduce the detection risk in order to contain overall audit risk within acceptable level.

Many businesses have suffered losses because there were […]