May 7, 2015

In the highly competitive market conditions enterprises are forced to increase their profitability. In this article we will review the impact of inventory on financial results of a company

April 22, 2015

In its regular course of business, a company needs to verify its balances and turnovers with banks, suppliers or other counterparties. The confirmation process is one of the ways to obtain such information. The article below focuses attention on the confirmation process peculiarities and contrasts accounting and audit confirmation procedures.

April 11, 2015

Financial statements and other financial information may include uncertainties. Impact of such uncertainties may be assessed using sensitivity analysis. In this article, we will describe the nature of sensitivity analysis and how it can be performed.

April 5, 2015

History of accounting standards has had several interactions of rules related to accounting for goodwill. Goodwill is a premium paid for a company over its assets and liabilities. There are situations, however, when a buyer pays less than what the assets and liabilities of the company are worth. This creates a bargain purchase.

March 26, 2015

Efficient and ethical corporate governance and internal audit function became increasingly important for investors after Enron scandal in 2001. This article focuses on the nature of internal audit, shows differences with external audit and provides overview of main audit assignments.

March 14, 2015

Under US GAAP, the cash flow statement can be prepared using either an indirect or a direct method. In this article, we will compare those two methods.

March 1, 2015

In this article, we’ll briefly describe how to account for stock warrants, which can be detached from a bond and exchanged for common stock – almost like a coupon

February 20, 2015

Valuation of fixed assets has always been a contradictory issue for standards setters. Accounting for fixed assets at historical costs decreases the likelihood of manipulation, while accounting for fixed assets at fair values provides more relevant information to users of financial statements. In this article we will review US GAAP rules about initial measurement and subsequent accounting for fixed assets, and compare them with the IFRS requirements.

February 12, 2015

These days companies manufacture a lot of product varieties. Each product requires multiple parts to be created. Manufacturers can produce such parts themselves or they can buy them. Of course, the choice of producing parts or buying them includes various aspects and one of them is cost. In this article, we will discuss make or buy decisions.

January 29, 2015

A conversion feature can add a lot of value for potential bondholders because the investor could take advantage of future company growth. In this article, we’ll discuss the basics of recording an issuance of convertible bonds and transferring the bond liability to equity accounts when the bonds are converted.