Statements

major accounting firms, the American Institute for CPAs (AICPA), and the accounting textbook publishers have recognized that the shift from a rules-based approach to a principles-based approach will require the preparers and auditors of financial statements to utilize more critical thinking skills and to be used to working with ambiguity in the absence of detailed and highlighted accounting standards as in GAAP The AICPA Board of Examiners have decided to test candidates for the national CPA…

What is Debt Management? Debt management is known as a technique which helps account-holders or debtors to payback or to handle their obligations in a better way. It involves some creditors working on helping and sorting-out debts which helps making it easier for defaulters to manage payments in a more successful and effective approach. If debtors have a problem with managing obligations they can reconsider some Management Companies. IMPORTANCE OF DEBT MANAGEMENT: From the early 1980s, Public…

According to DAMAC Properties' statement of cash flows as presented in the Annual Report for 2014, the major sources of financing that contributed to cash flows include: Bank Borrowings during the year(amounting to 75.3 million USD in 2014) Net Proceeds from issuance of Sukuk certificates(amounting…

As aforementioned in our previous discussions, there are a lot of different positives and negatives for expanding globally. It is a very delicate transformation that must be studied carefully from many different angles. When dealing with organizational issues at an international level, one must consider the language and culture differences, currency, and legalities regarding the alien country. Different countries follow different accounting principles, GAAP is only used in the U.S., which led to…

a) IASB stands for International Accounting Standards Board. The IASB is a standard-setting board whose main role is to ‘develop and approves ‘International Financial Reporting Standards’ so that all financial reports and financial statements globally are detailed and can be easily read by all users. With constant regulation and development, it ensures all business’ financial records are formatted the same and easy to transfer information to and from them. To become an IASB member isn’t an easy…

Lernout & Hauspie (L&H) was the world’s leading provider of speech and language technology products, solutions, and services to businesses worldwide. Both Microsoft and Intel invested millions in L&H. however, accounting scandals and fraud allegations sent the company’s stock crashing, and forced the firm to seek bankruptcy protection in Belgium and in the US. Selected information was gathered concerning L&H operations: • Consolidated revenue increased 184% from 1997 fiscal year to 1998 fiscal…

pledging). Under GAAP, secured borrowing is considered one of two basic forms of financing that companies can do to obtain cash from their accounts receivables. This is how this process will be recorded and accounted for in Hamilton Company’s financial statements. To account for a secured borrowing as a sale with recourse by recording the proceeds received, then removing the transferred asset. Record the assets and liabilities controlled and recognize a gain or…

When I was tasked to write my philosophy, I pondered on what I should discuss. As I thought back on what means the most to me and how I will lead my troops, I had to refer to my personal mission statement that I wrote for myself after I became a parent many years ago: Through the test and trials of life; endure, stay focused, stay encouraged and be reminded that joy comes in the morning. Never forget the morals and values that were instilled in me. Make sure my children possess and maintain…

Derivatives tend to be an intricate topic in accounting. So to begin, a basic understanding of derivatives is that they are a binding contract between two or more parties. The contract is for a future transaction of some underlying financial asset. The purpose for companies to implement derivatives are to aide them in managing risk by using a type of financial forwards, futures, options, or swaps. For example, a forward contract is when Company A believes Company B’s stock price will…

analysis helps the analyst to make quantitative judgement with regard to concern’s financial position and performance. Ratio analysis stands for the process of determining and presenting the relationship of items and group of items in the financial statements. It is an important technique of financial analysis. It is a way by which financial stability and health of a concern can be judged. Importance of Ratio Analysis • Useful in financial position analysis • Useful in simplifying accounting…