In reality, inflation erodes the value of monetary units, but accounting records are based on the assumption that a monetary unit has a stable value. ABC School has headlined in a scandal and many parents have boycotted the school in protest. ABC Sch... Read more
Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return. Anyone paid to prepare tax returns for others should have a thorough under... Read more
ISA 320, paragraph 12 requires that materiality be revised as the audit progresses, if information is revealed that, if known at the onset of the audit, would have caused the auditor to set a lower materiality. In practice, materiality is re-assessed... Read more
The revenue recognition principle is an accounting principle that requires the revenue be recognized and recorded when it is realized and earned, regardless of when the payment is made. In other words, businesses don’t have to wait to receive c... Read more
Investors and analysts may have a different method for calculating intrinsic value, and rarely are they exactly accurate and precise. In addition, it's notoriously difficult to predict a company's earnings or revenue.The reality is that past security... Read more
For example, the property taxes and insurance on the manufacturing buildings are based on the assets' value and not on the number of units manufactured. Yet these and other indirect costs must be allocated to the units manufactured.Adam received his ... Read more
The value of offsetting greenhouse gas emissions is increasingly being considered in cost–benefit analysis. For example, a 1-kW-rated PV system on the East Coast of the United States will produce energy equivalent to burning about 44 tonnes of coal d... Read more
Both lifecycle costing and activity-based costing recognize that, in the typical modern factory, the avoidance of disruptive events is of far greater importance than reducing the costs of raw materials. Activity-based costing also de-emphasizes direc... Read more
Section 6 describes accounting for the derecognition of long-lived assets. Section 7 describes financial statement presentation, disclosures, and analysis of long-lived assets.... Read more
The company assumed the risk until its issue, not the investor, so that portion of the risk premium is priced into the instrument. It is listed as revenue and current asset by the lender. Accrued interest is listed as an expense on the borrower's inc... Read more
