A detailed overview of what comprises a change in accounting method, including regulatory requirements, examples, and FAQs.
A comprehensive definition of closing entry in accounting, its importance, examples, historical context, and implications for financial statements.
A detailed examination of complex capital structures in finance, including the implications of potential dilution, dual presentation of earnings per share, and comprehensive definitions.
A detailed description of the Comprehensive Annual Financial Report (CAFR), which provides a thorough and publicly accessible financial summary of a governmental entity.
A comprehensive look at the principles and implications of conservatism in accounting and other contexts, including finance, business, and politics.
A comprehensive guide to understanding Depreciation Systems, including different types, methods, and their applications.
An in-depth look at the Direct Charge-Off Method, a key accounting practice for writing off specific bad debts.
A comprehensive guide on Discontinued Operation including its definition, reporting, and implications in financial statements.
An in-depth explanation of the Dollar Value LIFO inventory method, its computations, and applications in inventory management.
EDGAR is the Electronic Data Gathering, Analysis, and Retrieval system, which is used for the automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC).
The Emerging Issues Task Force (EITF) was founded in 1984 by the Financial Accounting Standards Board (FASB) to identify and resolve emerging accounting issues promptly, fostering standard practices before divergent practices become prevalent.
Understanding the End of Month: An essential financial and accounting period that includes significant activities such as the due date for receivables and closing inventory dates.
Understanding End-of-Year (EOY) in financial reporting, taxation, and other contexts.
An extraordinary item is a nonrecurring occurrence that must be explained to shareholders in an annual or quarterly report. Examples include the write-off of a division, acquisition of another company, sale of a large amount of real estate, or uncovering employee fraud that negatively affects the company's financial condition.
A comprehensive overview of Financial Accounting, its key aspects including balance sheets and income statements, differences from managerial accounting, historical context, applicability, and more.
Comprehensive guide to the Financial Accounting Standards Board (FASB), its history, role in setting Generally Accepted Accounting Principles (GAAP), and its comparison with the International Accounting Standards Board (IASB).
Comprehensive guide to the process of expressing amounts denominated in one currency in terms of a second currency using the exchange rate between the currencies. Detailed considerations of assets, liabilities, and income statement items.
Form 8-K is a report that public companies file with the SEC to disclose material events that shareholders should know about, such as lawsuits or changes in auditors.
Fund Accounting is a system used by nonprofit organizations, focusing on accountability over profitability. It ensures proper stewardship of financial resources in compliance with legal requirements.
A detailed exploration of Generally Accepted Accounting Principles (GAAP), including definitions, historical context, applications, comparisons, and related terms.
Detailed overview of Generally Accepted Accounting Principles (GAAP), including broad guidelines, detailed procedures, and their importance in accounting practices.
The concept of an increase in the value of an asset and its treatment under Generally Accepted Accounting Principles (GAAP), including methodologies, examples, and limitations.
Inflation Accounting addresses the impact of inflation on financial statements, offering a clearer view of a company's financial health. The Financial Accounting Standards Board (FASB) mandates major companies to provide supplementary information reflecting the effects of inflation.
A detailed exploration of interim statements, including their purpose, components, and significance in financial reporting.
The International Accounting Standards Board (IASB) is a London-based privately funded organization established in 1973 to develop and promote International Financial Reporting Standards (IFRS) for general-purpose financial statements.
An in-depth look at the Investor Relations Department in major public companies, its responsibilities, duties, and importance within the organization.
LIFO is an acronym for Last In, First Out, which is a method used in inventory management and accounting.
Understanding loss carryforward, a tax strategy that allows businesses to offset current year's net operating loss against future years' net incomes, when loss carryback is not fully possible.
An in-depth look at minimum lease payments, their role in accounting for capital leases, and the financial implications for lessees and lessors.
Comprehensive Guide to Modified Accrual Basis Accounting in Government Entities
A comprehensive explanation of the Natural Business Year, including its definition, applications, examples, and related concepts.
An in-depth look at noncurrent assets, their characteristics, examples, and importance in accounting and finance.
Understanding Nonmonetary Items in Financial Statements and Their Adjustments
Comprehensive overview of nonprofit accounting, including policies, procedures, and techniques distinct to governmental and nongovernmental units.
Detailed entry on Original Cost in accounting, including definitions, types, historical context, and practical applications within both general and public utilities accounting.
An overview of other income on a profit and loss statement including examples such as interest on customers' notes, dividends from investments, and gain on foreign exchange.
Detailed explanation of payee statements, their types, applicability, and significance in financial reporting and compliance.
Period expenses are costs that are recognized over time, typically within specific accounting periods, such as rent or salaries.
The term 'Present Fairly' used in the auditor's report implies sufficient disclosure, reasonable detail, and absence of bias, ensuring that financial statements are clear, detailed, and impartial.
Detailed guide on pro forma statements, their uses in financial reporting, and their importance in hypothetical financial scenarios such as mergers or proposed debt issues.
A detailed exploration of restatements in financial statements due to accounting irregularities, misrepresentations, or errors.
A comprehensive guide to retroactive adjustments, their significance in financial reporting, methods, and examples.
A reversing entry is a crucial accounting procedure used to cancel out previous journal entries, simplifying the accounting process by mitigating errors and facilitating accurate financial reporting.
An in-depth guide on Sales Type Lease accounting by the lessor, covering criteria, requirements, and nuances.
Legislation aimed at improving corporate governance and accountability in response to financial scandals, introducing measures such as CEO and CFO certification of financial reports, auditor independence, and stringent penalties for securities law violations.
An in-depth exploration of short-term debt obligations, their characteristics, types, and implications on business balance sheets.
An in-depth look at the Straight-Line Method of Depreciation: definitions, formulas, examples, and applications in accounting.
Transparency refers to the full, clear, and timely disclosure of relevant information in financial reporting and securities transactions. It enables ease of understanding and detects fraud or manipulation.
Detailed overview of the unamortized bond discount, covering its definition, significance in finance, methods of amortization, and applicable examples.
The concept of Year-to-Date (YTD) covers the aggregation of accounts including sales, purchases, and profits from the beginning of the fiscal year to the most recent available period.
An in-depth guide to understanding the 10-K report, its contents, filing requirements, and how to access these vital documents for publicly-traded companies.
An in-depth look at the 2000 investor limit rule set by the SEC, including its definition, how it works, and a practical example.
An in-depth exploration of the ethical responsibilities accountants have to their stakeholders, including key duties and illustrative examples.
A comprehensive exploration of accounting conservatism, detailing its definition, underlying principles, historical context, advantages, disadvantages, and its implications in modern accounting practices.
A comprehensive guide to understanding accounting methods, including their definitions, types, comparison, examples, historical context, and applicability in various financial contexts.
Explore the detailed process of accounting, uncover its rich historical background, and understand modern job requirements in the field. Learn about recording, summarizing, and reporting financial transactions to oversight agencies, regulators, and the IRS.
An in-depth exploration of accounting theory, its foundational principles, methodologies, and applications in financial reporting.
An in-depth guide to accruals and how accrual accounting works, complete with examples and practical applications.
Learn about accrued liabilities, their various types, accounting treatments, and practical examples in business finance to understand how businesses manage expenses that have been incurred but not yet paid.
Explore the concept of actuarial gain or loss, the adjustments made to the assumptions used to value a corporation’s defined benefit pension plan obligations. Learn about its significance, how it works, and its impact on financial statements.
A comprehensive guide to understanding adjusting journal entries, including their purpose, types, examples, and their role in financial reporting.
An in-depth explanation of the allowance for credit losses, including its definition, methods of calculation, significance in financial reporting, and its impact on company financials.
An in-depth guide on the key components of an auditor’s report, complete with detailed examples and explanations.
An in-depth look at the Average Cost Method, including its definition, the formula used to calculate it, real-world examples, and its importance in inventory management and cost accounting.
A comprehensive guide to understanding bad debt expense, including its definition, various methods for estimating, and its overall impact on a business.
Explore the concept of contra accounts, their types, and practical examples. Learn how these accounts function to provide clarity in financial reporting by offsetting related accounts.
Comprehensive exploration of Deferred Acquisition Costs (DAC) in insurance, encompassing definitions, types, applications, and key considerations for businesses.
Comprehensive guide to understanding deferred tax assets, including their calculation, uses, and practical examples in business finance.
Explore the concept of Deferred Tax Liability, understand its mechanisms, examine examples, and learn about its implications in financial reporting and taxation.
Comprehensive guide to understanding earnings management, including its definition, concrete examples, various types, and implications for financial reporting.
Explore the equity method of accounting, its definition, application, and practical examples. Learn how companies record profits from their investments using this technique.
An in-depth examination of extraordinary items, their historical usage in financial reporting, and the implications of their removal from GAAP standards in 2015.
An in-depth overview of the Financial Accounting Standards Board (FASB), its role in setting accounting standards, its impact on financial reporting, and its importance for companies and nonprofits in the U.S.
An in-depth exploration of fiscal quarters, their significance in financial reporting, and their impact on earnings and dividends.
An in-depth article explaining the types, importance, and details of footnotes to financial statements, providing clarity on how companies arrive at their financial statement figures.
An in-depth exploration of the International Monetary Fund's Global Financial Stability Report, including its purpose, function, and impact on global financial markets.
An in-depth exploration of goodwill impairment, including its definition, examples, applicable accounting standards, and methods for conducting impairment tests.
An in-depth exploration of the Governmental Accounting Standards Board (GASB), its mission, core functions, and the significance of its role in developing accounting principles for state and local governments.
An in-depth guide to Held-to-Maturity (HTM) securities, covering their definition, accounting practices, implications, and practical examples.
An in-depth exploration of the Hierarchy of Generally Accepted Accounting Principles (GAAP), detailing its meaning, structure, authority levels, and requirements for accounting practices.
A comprehensive guide to understanding impaired assets, including their meaning, common causes, testing methods, and recording procedures. Essential for financial professionals and businesses.
A comprehensive guide to understanding impairment in accounting, including its definition, causes, examples, and its impact on financial statements.
Discover the definition, purpose, uses, and examples of interim statements. Understand their importance in financial reporting and decision-making.
Explore the foundations of International Accounting Standards (IAS) and their evolution into the International Financial Reporting Standards (IFRS). Understand their history, principles, and global impact on financial reporting.
An in-depth look at International Financial Reporting Standards (IFRS), a set of accounting rules used by public companies in 166 jurisdictions. Learn about the importance, framework, and global applicability of IFRS.
A comprehensive guide to understanding Last In, First Out (LIFO), an inventory costing method where the most recently produced items are recorded as sold first.
A comprehensive exploration of the Last Twelve Months (LTM) metric, including its significance, applications in financial analysis, calculation methods, and examples.
Delve into the comprehensive definition of Level 3 assets, including examples, how they compare to Level 1 and Level 2 assets, and their unique characteristics in financial reporting.
A comprehensive guide to the Lower of Cost or Market (LCM) method in inventory valuation, its significance in financial reporting, and practical applications.
An in-depth exploration of Management Discussion and Analysis (MD&A), covering its definition, purpose, key components, and a practical example to elucidate its importance in a company's annual report.
An in-depth guide to Modified Accrual Accounting, including its definition, key principles, applications, and comparison to other accounting methods.
Explore the modified cash-basis accounting system, its features, advantages, and disadvantages compared to cash and accrual accounting methods.
Explore the concept of negative assurance in auditing, its significance, application, and frequently asked questions for a comprehensive understanding.
A comprehensive guide to understanding Other Comprehensive Basis of Accounting (OCBOA), a system used for financial statements as an alternative to GAAP.
A comprehensive guide to off-balance sheet (OBS) activities, including their types, examples, implications, and real-world applications.
Options backdating involves the practice of issuing stock options retroactively to benefit the option holder. This entry explores its mechanics, legal considerations, historical examples, and impacts on financial reporting and corporate governance.
A comprehensive guide on the accounting term 'Over and Short,' detailing its definition, causes, significance, and how to address discrepancies between reported and audited figures.
In-depth exploration of the Percentage of Completion Method in accounting, complete with examples and applications for long-term contracts.
Explore the comprehensive definition of Pushdown Accounting, understand its implementation in financial reporting, review practical examples, and learn about key considerations in applying this method.
In-depth examination of Quarterly Earnings Reports, which public companies file every three months to disclose their most recent financial performance.
