August 16, 2015

The article below discusses how to distinguish property, plant and equipment from inventory, provides key controls for purchasing inventory purchasing and underlines some peculiarities of capital acquisitions.

July 23, 2015

In many business areas intellectual property developed by a company or individual is licensed to another party under royalty agreements. The article below describes what royalties are and provides general rules for accounting for royalty arrangements.

July 5, 2015

Public accounting attracts a lot of graduates annually. Two most commonly selected career paths are audit and tax. Both have advantages which draw attention of students when they choose which track to choose. In this article, we analyze research results explaining student beliefs in their career path selection.

June 27, 2015

Activity-based costing has been around for some time and is used by some of the largest and successful companies in the world. This costing approach, though, may require a lot of internal resources to develop and maintain. In this article, we will discuss a new flavor of this costing method called time-driven activity-based costing.

June 20, 2015

Disclosure of nonfinancial information has become more prominent. This article talks about the impact such disclosure may have on the cost of equity capital.

June 14, 2015

Trademarks may be important for businesses nowadays. Customers are often ready to pay more for the recognized quality of branded goods that in turn stimulates companies to invest more in acquisition and development of trademarks. This article discusses the initial recognition, measurement and accounting for trademarks.

June 5, 2015

This article looks at the question of whether the CEO origin impacts a company’s earnings management by manipulating accruals. This information will be helpful to external and internal auditors, Boards of Directors, Compensation Committees, among others.

May 30, 2015

In this accounting guide we will look at the main principles of the traditional costing model and compare it with activity-based costing (ABC).

May 21, 2015

Out-of-balance items play an important role in the determination of the financial health of a company. Being harder to track, they can become hidden traps aimed to artificially improve the company’s financial position and performance. In this article we will describe the main types of out-of-balance transactions and provide approaches to accounting for the most common ones.

May 16, 2015

Should a reasonable investor be influenced by a 5% error in net income? Or would a 10% variation make a difference to the investor? The answer is related to the concept of materiality. In this accounting article we define materiality, list a few possible approaches to calculating materiality, and provide examples of the application of the materiality concept in accounting.