This document summarizes accounting standards for not-for-profit entities as outlined in Chapter 19. It discusses how the GASB controls accounting for governmental nonprofits and the FASB controls accounting for non-governmental nonprofits. The FASB has issued standards regarding financial reporting, contributions, investments, and transfers of assets for private nonprofits. Private nonprofits must report net assets in three classes - unrestricted, temporarily restricted, and permanently restricted.
This document discusses controls related to IT governance, including the structure of the IT function, computer center operations, and disaster recovery planning. It covers topics such as segregating incompatible duties within the IT function, physical and environmental controls for the computer center, and key elements of an effective disaster recovery plan including identifying critical systems, backup sites, and testing procedures. Audit procedures are also presented for evaluating these various IT governance controls.
Financial Statement Analysis: Learn The Best Tricks And Tips!Andrew Li
Learn how to read financial statements and SEC filings like an investing pro!
Also, check out the last 2 pages for an amazing and exclusive discount offer for my Udemy course on financial statement analysis!
IFRS 2 requires an entity to recognise share-based payment transactions in its financial statements. Equity-settled share-based payment transactions are generally those in which shares, share options or other equity instruments are granted to employees or other parties in return for goods or services.
governmental and Non profit Accounting chapter 1NeveenJamal
This document discusses the key differences between governmental/not-for-profit (NFP) entities and business enterprises. Governmental and NFP entities operate under different legal and financial constraints compared to businesses. They rely on involuntary taxes and voluntary donations rather than sales. Budgets are legally binding for governments and donor restrictions apply to NFPs. Financial reporting focuses on accountability, compliance with budgets/restrictions, and measuring service efforts rather than profitability. Fund accounting and modified accrual basis are used by governments.
Ch02-conceptual framework or financial reportingVivi Tazkia
The document provides an overview and learning objectives for a chapter on the conceptual framework for financial reporting. It discusses the need for a conceptual framework to establish consistent concepts to underlie financial reporting standards. It describes efforts to construct a conceptual framework, which comprises chapters on the objective of financial reporting, qualitative characteristics of accounting information, and basic concepts related to recognition, measurement and disclosure. The chapter objectives cover understanding the usefulness of the conceptual framework, its development, the financial reporting objective, qualitative characteristics, basic elements of financial statements, accounting assumptions, and how the cost constraint affects reporting.
1) The chapter defines key terms related to consolidation such as control, subsidiary, parent, non-controlling interest, and consolidated financial statements.
2) Assessing control of an investee involves considering its purpose and design, how decisions about relevant activities are made, and who has the ability to direct activities and receive returns.
3) Consolidation procedures require combining like items of the parent and subsidiaries, offsetting the parent's investment, and eliminating intragroup balances and transactions.
Introduction to IPSAS and conceptual frameworkFoluwa Amisu
Detailed and informative introduction to International Public Sector Accounting Standards for the preparation of general purpose financial statements by governments and other public sector entities around the world.
This document discusses controls related to IT governance, including the structure of the IT function, computer center operations, and disaster recovery planning. It covers topics such as segregating incompatible duties within the IT function, physical and environmental controls for the computer center, and key elements of an effective disaster recovery plan including identifying critical systems, backup sites, and testing procedures. Audit procedures are also presented for evaluating these various IT governance controls.
Financial Statement Analysis: Learn The Best Tricks And Tips!Andrew Li
Learn how to read financial statements and SEC filings like an investing pro!
Also, check out the last 2 pages for an amazing and exclusive discount offer for my Udemy course on financial statement analysis!
IFRS 2 requires an entity to recognise share-based payment transactions in its financial statements. Equity-settled share-based payment transactions are generally those in which shares, share options or other equity instruments are granted to employees or other parties in return for goods or services.
governmental and Non profit Accounting chapter 1NeveenJamal
This document discusses the key differences between governmental/not-for-profit (NFP) entities and business enterprises. Governmental and NFP entities operate under different legal and financial constraints compared to businesses. They rely on involuntary taxes and voluntary donations rather than sales. Budgets are legally binding for governments and donor restrictions apply to NFPs. Financial reporting focuses on accountability, compliance with budgets/restrictions, and measuring service efforts rather than profitability. Fund accounting and modified accrual basis are used by governments.
Ch02-conceptual framework or financial reportingVivi Tazkia
The document provides an overview and learning objectives for a chapter on the conceptual framework for financial reporting. It discusses the need for a conceptual framework to establish consistent concepts to underlie financial reporting standards. It describes efforts to construct a conceptual framework, which comprises chapters on the objective of financial reporting, qualitative characteristics of accounting information, and basic concepts related to recognition, measurement and disclosure. The chapter objectives cover understanding the usefulness of the conceptual framework, its development, the financial reporting objective, qualitative characteristics, basic elements of financial statements, accounting assumptions, and how the cost constraint affects reporting.
1) The chapter defines key terms related to consolidation such as control, subsidiary, parent, non-controlling interest, and consolidated financial statements.
2) Assessing control of an investee involves considering its purpose and design, how decisions about relevant activities are made, and who has the ability to direct activities and receive returns.
3) Consolidation procedures require combining like items of the parent and subsidiaries, offsetting the parent's investment, and eliminating intragroup balances and transactions.
Introduction to IPSAS and conceptual frameworkFoluwa Amisu
Detailed and informative introduction to International Public Sector Accounting Standards for the preparation of general purpose financial statements by governments and other public sector entities around the world.
IAS 32: Presentation of Financial InstrumentsSohan Al Akbar
The document provides an overview of IAS 32 Presentation of Financial Instruments. It discusses the objectives of IAS 32 which are to establish principles for presenting financial instruments and provide definitions to distinguish between equity and liabilities. It also covers definitions of key terms like financial instrument, financial asset, financial liability, and equity instruments. Additionally, it addresses requirements around compound financial instruments, treasury shares, and offsetting financial assets and liabilities. The document aims to clarify the rules and principles in IAS 32 around the classification and presentation of different types of financial instruments.
The document provides an overview of auditing the business process outsourcing (BPO) industry. It discusses the nature and background of the BPO industry, including how BPO works and the different types of services BPO companies provide. It notes that BPO remains a strong trend and accounts for 10-15% of the global BPO market, with the Philippines consistently ranking among the top destinations. The document outlines the objectives of understanding the specialized industry, learning Philippine statistics and updates, and identifying audit considerations.
This document provides an overview of auditing and internal control. It defines different types of audits, including external financial audits, internal audits, and fraud audits. It describes the roles of external and internal auditors and audit committees. Key aspects of the audit process are explained, including audit risk, management assertions, audit objectives, and audit procedures. The document also provides details on auditing standards and the importance of internal control systems as defined by regulations like Sarbanes-Oxley.
The use of Funds in Governmental Accounting NeveenJamal
Governmental Accounting differs from Business enterprise accounting in three major respects:
1 Use a separate funds to accounts for its activities.
2. Use of current financial resources and modified accrual basis.
3. Incorporates Budgetary accounts into the financial Accounting System.
The main objectives of accounting system in government are to provide accountability for resources and to ensure the compliance with budgetary requirements and limitations.
IFRS 16 introduces significant changes to lease accounting that will primarily affect the accounting treatment of operating leases which were previously off-balance sheet. The new standard requires lessees to recognize a right-of-use asset and lease liability for all leases with a term of more than 12 months, unless the underlying asset is low value. It introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset is of low value. Lessor accounting remains substantially unchanged from IAS 17. The document provides an overview of the key changes and accounting requirements under IFRS 16.
This document provides an overview and introduction to International Financial Reporting Standard 15 Revenue from Contracts with Customers (IFRS 15). IFRS 15 was issued jointly with the FASB's new revenue standard to improve and converge revenue recognition guidance between IFRS and US GAAP. The core principle of IFRS 15 is for an entity to recognize revenue in an amount that reflects the consideration expected in exchange for transferring goods or services to a customer. IFRS 15 provides a five-step model for revenue recognition and includes increased disclosure requirements.
This document provides an overview of financial ratio analysis. It introduces four categories of ratios - liquidity, activity, leverage, and profitability - and discusses specific ratios within each category. These ratios are used to analyze a company's performance in areas like managing working capital and inventory, use of financial leverage, and overall profitability. The document also describes the DuPont system for performing a complete ratio analysis using return on assets and return on equity.
This document outlines the procedures an auditor takes to complete an audit. It discusses reviewing events after the financial year, ensuring the going concern assumption is appropriate, identifying contingent liabilities, obtaining management representation, performing analytical procedures to review the financial statements, evaluating audit findings, and communicating with the entity. The auditor is responsible for considering subsequent events, accounting for them, and issuing modified reports if necessary. Analytical procedures help form an overall conclusion on the consistency of the financial information.
This document provides an overview of IFRS 11 - Joint Arrangements and Associates. It defines joint arrangements as arrangements where two or more parties have joint control based on a contractual agreement. Joint arrangements are classified as either a joint operation or a joint venture depending on the parties' rights and obligations. For a joint operation, parties account for their share of assets, liabilities, revenue and expenses. For a joint venture, parties account for their interest as an investment using the equity method. Examples of each type of arrangement are also provided.
This document discusses the conceptual framework for financial reporting. It provides an introduction to the group members and then discusses key aspects of the conceptual framework including:
1. The definition, necessity, and objectives of a conceptual framework
2. The history of developing conceptual frameworks including key documents from FASB and IASB
3. Key elements of financial reporting like assets, liabilities, income, and equity
4. Qualitative characteristics that enhance financial reporting such as comparability, verifiability, timeliness, and understandability.
Chapter 3 security part i auditing operating systems and networksTommy Zul Hidayat
This document discusses controls for operating system security and risks. It covers objectives like protecting the operating system from tampering, unauthorized access, and data corruption. Key threats include accidental issues, intentional illegal access for financial gain, and destructive programs. Controls discussed include log-on procedures, access privileges, password policies, antivirus software, system audit trails, firewalls, and encryption. Risks from intranets and the internet like sniffing, denial of service attacks, and natural disasters are also summarized.
The document discusses key definitions and concepts from the Code of Ethics for Professional Accountants in the Philippines. It provides multiple choice questions to test understanding of terms like independence, financial interest, firm, advertising, and definitions of professional accountants in public practice and those in existing practice. The questions cover topics like modifications made to the International Federation of Accountants (IFAC) Code, definitions of assurance engagements and the assurance team, and exceptions to various definitions.
This document summarizes the key aspects of IAS 36 regarding impairment of assets. IAS 36 aims to ensure assets are not carried at more than their recoverable amount. It defines terms like carrying amount, cash-generating units and impairment loss. The standard outlines how to identify impaired assets, measure recoverable amount, recognize impairment losses, allocate losses to cash-generating units including goodwill, and reverse impairment losses. Entities must disclose impairment losses, reversals and reasons for changes in carrying amounts.
This document summarizes IFRS 5, which specifies accounting for non-current assets held for sale and discontinued operations. IFRS 5 outlines criteria for classifying non-current assets as held for sale, including that the sale must be highly probable within one year. Assets held for sale are measured at fair value less costs to sell and are presented separately in financial statements. The standard also provides guidance on presenting discontinued operations and additional disclosure requirements.
This document defines key terms related to revenue recognition under IFRS 15, including revenue, contracts, contract assets and liabilities. It then summarizes the 5-step model for recognizing revenue: 1) identify the contract, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate price to obligations, 5) recognize revenue when obligations are satisfied. Examples are provided for determining variable consideration, allocating transaction price, and principal vs agent considerations. Revenue is recognized over time if criteria are met, otherwise at a point in time.
Corporations raise capital by issuing stock. Equity financing through stock issuance is less risky than debt financing through bonds. When profits are not paid out as dividends, the cash can be reinvested in expanding operations. A corporation is a legal entity separate from its shareholders, with unlimited life, transferable shares, and limited liability for shareholders. Key components include incorporators, shareholders, directors, and officers.
Here are the answers to the practice questions:
1. The three transaction cycles that exist in all businesses are:
- Expenditure cycle
- Conversion cycle
- Revenue cycle
2. The major subsystems of the expenditure cycle are:
- Purchases/accounts payable system
- Cash disbursements system
- Payroll system
- Fixed asset system
3. The physical component of the expenditure cycle is the acquisition of goods or services. The financial component is the cash disbursement to the supplier, which occurs at a later point after the physical receipt of goods/services.
4. A general journal is used to record non-recurring or infrequent transactions. Journal vouchers
IAS 24 outlines disclosure requirements for related party transactions. It requires entities to disclose (1) transactions with related parties, and (2) relationships between parents and subsidiaries, regardless of whether transactions occurred. Related parties include people or entities that control or significantly influence the reporting entity. Disclosures are intended to draw attention to potential effects of related party transactions on the entity's financial position and profit/loss.
1. The document discusses accounting for income taxes and defines key concepts like temporary differences, deferred tax assets and liabilities, valuation allowances, and the asset-liability method.
2. It provides examples of temporary differences that result in future taxable or deductible amounts and discusses the treatment of permanent differences.
3. The presentation of income taxes in financial statements is also summarized, including how deferred tax amounts are classified and reported in the balance sheet and income statement.
The document discusses key aspects of notes to financial statements according to Philippine Accounting Standards. It explains that notes provide additional narrative descriptions and disclosures to supplement the information in the main financial statements. The notes must be presented systematically and disclose important accounting policies, judgments, estimates, related party transactions, and post-reporting events. The document also provides examples of required note disclosures and the accounting treatment for different types of events and transactions.
Point of view: The financial reporting framework - Could changes to the not-f...PwC
The document discusses potential changes to financial reporting standards that may impact both non-profit and for-profit entities. The FASB has proposed changes to non-profit financial reporting and has research projects underway on for-profit performance reporting and cash flows. The changes to non-profit standards may influence the direction of the for-profit projects. For-profit entities are encouraged to comment on areas of the non-profit proposal that intersect with the for-profit research to help the FASB maintain consistency across reporting models.
This interim report provides an overview and status update of the FC6P01 Project being completed by Divan Rasan with supervisor Zhanyuan Hou. It includes sections on the abstract, contents, introduction, background research, work completed so far, further work remaining, a progress review, references cited, and full bibliography. The report indicates work is ongoing, with completion of further tasks and analysis needed to determine if the project remains on target to finish as scheduled.
IAS 32: Presentation of Financial InstrumentsSohan Al Akbar
The document provides an overview of IAS 32 Presentation of Financial Instruments. It discusses the objectives of IAS 32 which are to establish principles for presenting financial instruments and provide definitions to distinguish between equity and liabilities. It also covers definitions of key terms like financial instrument, financial asset, financial liability, and equity instruments. Additionally, it addresses requirements around compound financial instruments, treasury shares, and offsetting financial assets and liabilities. The document aims to clarify the rules and principles in IAS 32 around the classification and presentation of different types of financial instruments.
The document provides an overview of auditing the business process outsourcing (BPO) industry. It discusses the nature and background of the BPO industry, including how BPO works and the different types of services BPO companies provide. It notes that BPO remains a strong trend and accounts for 10-15% of the global BPO market, with the Philippines consistently ranking among the top destinations. The document outlines the objectives of understanding the specialized industry, learning Philippine statistics and updates, and identifying audit considerations.
This document provides an overview of auditing and internal control. It defines different types of audits, including external financial audits, internal audits, and fraud audits. It describes the roles of external and internal auditors and audit committees. Key aspects of the audit process are explained, including audit risk, management assertions, audit objectives, and audit procedures. The document also provides details on auditing standards and the importance of internal control systems as defined by regulations like Sarbanes-Oxley.
The use of Funds in Governmental Accounting NeveenJamal
Governmental Accounting differs from Business enterprise accounting in three major respects:
1 Use a separate funds to accounts for its activities.
2. Use of current financial resources and modified accrual basis.
3. Incorporates Budgetary accounts into the financial Accounting System.
The main objectives of accounting system in government are to provide accountability for resources and to ensure the compliance with budgetary requirements and limitations.
IFRS 16 introduces significant changes to lease accounting that will primarily affect the accounting treatment of operating leases which were previously off-balance sheet. The new standard requires lessees to recognize a right-of-use asset and lease liability for all leases with a term of more than 12 months, unless the underlying asset is low value. It introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset is of low value. Lessor accounting remains substantially unchanged from IAS 17. The document provides an overview of the key changes and accounting requirements under IFRS 16.
This document provides an overview and introduction to International Financial Reporting Standard 15 Revenue from Contracts with Customers (IFRS 15). IFRS 15 was issued jointly with the FASB's new revenue standard to improve and converge revenue recognition guidance between IFRS and US GAAP. The core principle of IFRS 15 is for an entity to recognize revenue in an amount that reflects the consideration expected in exchange for transferring goods or services to a customer. IFRS 15 provides a five-step model for revenue recognition and includes increased disclosure requirements.
This document provides an overview of financial ratio analysis. It introduces four categories of ratios - liquidity, activity, leverage, and profitability - and discusses specific ratios within each category. These ratios are used to analyze a company's performance in areas like managing working capital and inventory, use of financial leverage, and overall profitability. The document also describes the DuPont system for performing a complete ratio analysis using return on assets and return on equity.
This document outlines the procedures an auditor takes to complete an audit. It discusses reviewing events after the financial year, ensuring the going concern assumption is appropriate, identifying contingent liabilities, obtaining management representation, performing analytical procedures to review the financial statements, evaluating audit findings, and communicating with the entity. The auditor is responsible for considering subsequent events, accounting for them, and issuing modified reports if necessary. Analytical procedures help form an overall conclusion on the consistency of the financial information.
This document provides an overview of IFRS 11 - Joint Arrangements and Associates. It defines joint arrangements as arrangements where two or more parties have joint control based on a contractual agreement. Joint arrangements are classified as either a joint operation or a joint venture depending on the parties' rights and obligations. For a joint operation, parties account for their share of assets, liabilities, revenue and expenses. For a joint venture, parties account for their interest as an investment using the equity method. Examples of each type of arrangement are also provided.
This document discusses the conceptual framework for financial reporting. It provides an introduction to the group members and then discusses key aspects of the conceptual framework including:
1. The definition, necessity, and objectives of a conceptual framework
2. The history of developing conceptual frameworks including key documents from FASB and IASB
3. Key elements of financial reporting like assets, liabilities, income, and equity
4. Qualitative characteristics that enhance financial reporting such as comparability, verifiability, timeliness, and understandability.
Chapter 3 security part i auditing operating systems and networksTommy Zul Hidayat
This document discusses controls for operating system security and risks. It covers objectives like protecting the operating system from tampering, unauthorized access, and data corruption. Key threats include accidental issues, intentional illegal access for financial gain, and destructive programs. Controls discussed include log-on procedures, access privileges, password policies, antivirus software, system audit trails, firewalls, and encryption. Risks from intranets and the internet like sniffing, denial of service attacks, and natural disasters are also summarized.
The document discusses key definitions and concepts from the Code of Ethics for Professional Accountants in the Philippines. It provides multiple choice questions to test understanding of terms like independence, financial interest, firm, advertising, and definitions of professional accountants in public practice and those in existing practice. The questions cover topics like modifications made to the International Federation of Accountants (IFAC) Code, definitions of assurance engagements and the assurance team, and exceptions to various definitions.
This document summarizes the key aspects of IAS 36 regarding impairment of assets. IAS 36 aims to ensure assets are not carried at more than their recoverable amount. It defines terms like carrying amount, cash-generating units and impairment loss. The standard outlines how to identify impaired assets, measure recoverable amount, recognize impairment losses, allocate losses to cash-generating units including goodwill, and reverse impairment losses. Entities must disclose impairment losses, reversals and reasons for changes in carrying amounts.
This document summarizes IFRS 5, which specifies accounting for non-current assets held for sale and discontinued operations. IFRS 5 outlines criteria for classifying non-current assets as held for sale, including that the sale must be highly probable within one year. Assets held for sale are measured at fair value less costs to sell and are presented separately in financial statements. The standard also provides guidance on presenting discontinued operations and additional disclosure requirements.
This document defines key terms related to revenue recognition under IFRS 15, including revenue, contracts, contract assets and liabilities. It then summarizes the 5-step model for recognizing revenue: 1) identify the contract, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate price to obligations, 5) recognize revenue when obligations are satisfied. Examples are provided for determining variable consideration, allocating transaction price, and principal vs agent considerations. Revenue is recognized over time if criteria are met, otherwise at a point in time.
Corporations raise capital by issuing stock. Equity financing through stock issuance is less risky than debt financing through bonds. When profits are not paid out as dividends, the cash can be reinvested in expanding operations. A corporation is a legal entity separate from its shareholders, with unlimited life, transferable shares, and limited liability for shareholders. Key components include incorporators, shareholders, directors, and officers.
Here are the answers to the practice questions:
1. The three transaction cycles that exist in all businesses are:
- Expenditure cycle
- Conversion cycle
- Revenue cycle
2. The major subsystems of the expenditure cycle are:
- Purchases/accounts payable system
- Cash disbursements system
- Payroll system
- Fixed asset system
3. The physical component of the expenditure cycle is the acquisition of goods or services. The financial component is the cash disbursement to the supplier, which occurs at a later point after the physical receipt of goods/services.
4. A general journal is used to record non-recurring or infrequent transactions. Journal vouchers
IAS 24 outlines disclosure requirements for related party transactions. It requires entities to disclose (1) transactions with related parties, and (2) relationships between parents and subsidiaries, regardless of whether transactions occurred. Related parties include people or entities that control or significantly influence the reporting entity. Disclosures are intended to draw attention to potential effects of related party transactions on the entity's financial position and profit/loss.
1. The document discusses accounting for income taxes and defines key concepts like temporary differences, deferred tax assets and liabilities, valuation allowances, and the asset-liability method.
2. It provides examples of temporary differences that result in future taxable or deductible amounts and discusses the treatment of permanent differences.
3. The presentation of income taxes in financial statements is also summarized, including how deferred tax amounts are classified and reported in the balance sheet and income statement.
The document discusses key aspects of notes to financial statements according to Philippine Accounting Standards. It explains that notes provide additional narrative descriptions and disclosures to supplement the information in the main financial statements. The notes must be presented systematically and disclose important accounting policies, judgments, estimates, related party transactions, and post-reporting events. The document also provides examples of required note disclosures and the accounting treatment for different types of events and transactions.
Point of view: The financial reporting framework - Could changes to the not-f...PwC
The document discusses potential changes to financial reporting standards that may impact both non-profit and for-profit entities. The FASB has proposed changes to non-profit financial reporting and has research projects underway on for-profit performance reporting and cash flows. The changes to non-profit standards may influence the direction of the for-profit projects. For-profit entities are encouraged to comment on areas of the non-profit proposal that intersect with the for-profit research to help the FASB maintain consistency across reporting models.
This interim report provides an overview and status update of the FC6P01 Project being completed by Divan Rasan with supervisor Zhanyuan Hou. It includes sections on the abstract, contents, introduction, background research, work completed so far, further work remaining, a progress review, references cited, and full bibliography. The report indicates work is ongoing, with completion of further tasks and analysis needed to determine if the project remains on target to finish as scheduled.
The Balance of Payments is a systematic record of all economic transactions between residents of a country and the rest of the world. It presents classified records of all receipts from exports, services, and capital inflows, as well as payments for imports, services received, and capital outflows. The BOP follows double-entry accounting and reflects changes in assets, liabilities, and net worth over a period of time. A country runs a surplus when receipts exceed expenditures and a deficit when expenditures exceed receipts. The BOP is an important indicator of pressure on a country's foreign exchange rate and market potential.
This presentation on Implementing GASB Statement No. 54 focuses on fund balance reporting and governmental fund type definitions.
In February 2009, the Governmental Accounting Standards Board (GASB) released GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, requiring changes to fund balance reporting in governmental funds for state and local governments. This statement substantially alters the focus and terminology used for fund balance reporting in governmental funds and will result in one of the most significant changes in financial reporting since the implementation of GASB Statement No. 34.
Accounting I: Introduction to University Accounting Accounting I: Introduct...MedicineAndHealth
This document provides an overview and introduction to university accounting concepts. It discusses key accounting terms like assets, liabilities, fund balance and income statements. It also covers accounting standards, the chart of accounts, identifying revenue and expense accounts, and the major financial reports used for reporting and oversight. The goal is for students to understand basic accounting principles and be able to classify university financial transactions.
Financial Records: Income Statement and Balance Sheetmandalina landy
This document discusses financial records including the income statement and balance sheet. It provides steps to develop an income statement and balance sheet, including listing sources of income and expenses over a period of time. The balance sheet consists of assets and liabilities, with net worth calculated as assets minus liabilities. Key financial ratios are discussed to evaluate one's financial situation based on the income statement and balance sheet.
This document provides an overview of financial statement analysis, including definitions of key accounting concepts and types of financial statements. It discusses the balance sheet, income statement, and statement of cash flows. It also covers ratio analysis and types of ratios used in analysis, including liquidity, leverage, activity, and profitability ratios. The document aims to provide a practical approach to understanding and analyzing financial statements.
This document discusses financial statement analysis. It provides an overview of key topics including the purpose of financial statement analysis, the primary tools used, important financial statements and ratios analyzed, sources of financial data, why analysis is needed, and who uses financial statement analysis information both internally and externally. Key ratios discussed include liquidity, leverage, profitability and turnover ratios. Limitations of financial statement analysis are also covered.
The document discusses key accounting concepts such as assets, liabilities, owner's equity, balance sheets, income statements, and statements of cash flow. It provides examples of how to prepare these core financial statements for a small repair shop business. Specifically, it shows how to calculate owner's equity by subtracting liabilities from assets on the balance sheet. It also demonstrates how to organize revenue and expenses to calculate net income on the income statement.
"Fundamentals of Financial Management"
"Introduction to Financial Management"
"An Overview of Financial Management"
It’s hard to define finance - the term has many facets, which makes it difficult to provide a clear and concise definition. The discussion in this section will give you an idea of what finance people do and what you might do if you enter the finance field after you graduate.
The document discusses financial management and management accounting. It defines financial management as measuring and reporting financial and non-financial information to help managers make decisions to fulfill organizational goals. Management accounting also measures and reports this information, but focuses on internal reporting to help managers make decisions. The document outlines the objectives, functions, key themes, and differences between financial and management accounting. It provides examples of a fund flow statement and cash flow statement, explaining their purposes and how they are computed.
Chapter 3: Principles and Practices of Health Care AccountingNada G.Youssef
This document discusses accounting principles for health care organizations. It explains that transactions are recorded in journals and ledgers and used to produce financial statements. External transactions occur between the organization and outside parties, while internal transactions occur within the organization. The document also describes the difference between cash basis and accrual basis accounting and outlines the steps to analyze, record, and report transactions according to accrual accounting principles.
The document discusses the preparation and format of a fund flow statement. It explains that a fund flow statement can be prepared using either the direct method, which calculates funds from operations directly, or the indirect method, which makes adjustments to net profit in the income statement. The fund flow statement is important because it identifies changes in working capital and reveals how business activities have affected the flow of funds, providing useful information for planning future activities not shown in other financial statements.
Chapter 2: Health Care Financial StatementsNada G.Youssef
This document provides an overview of key financial statements and accounting principles for health care entities. It discusses the balance sheet, statement of operations, and accounting standards set by FASB, GASB and GAAP. The balance sheet presents assets, liabilities and net assets at a point in time. The statement of operations summarizes revenues and expenses over an accounting period using the accrual basis. The document also provides examples of components that make up each statement.
The document discusses key accounting principles including the four main financial statements, the basic accounting equation, and different types of accounts. It also covers topics like accrual versus cash accounting, depreciation, financial analysis methods, and financial ratios used to evaluate business performance and health. The document is intended to provide an overview of basic accounting concepts.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
The document discusses presenting financial statements clearly through balance sheets, current financial reports, forecasts, and dynamic models. It provides tips for each:
1) For balance sheets, focus on liquidity, changes in cash, timing of assets/liabilities, and key line items and ratios.
2) Current reports should include a financial dashboard and template-driven monthly reports with relevant charts.
3) Forecasts should answer "what if" questions and have the same format as reports, with assumptions driving the model.
4) Dynamic models allow real-time analysis of changes and are best for communicating forecast updates.
The document discusses the analysis of financial statements. It covers key topics such as the nature and essential qualities of financial statements, tools for analysis including comparative statements, common size statements, trend analysis and ratio analysis. It also discusses the interpretation of analysis and interested parties in analyzing financial statements such as management, investors, banks and others. Common financial ratios are outlined including liquidity, activity, profitability, leverage and coverage ratios.
An introduction to the three main financial statements using a tree analogy. If you like this, just imagine what I can do in person at your next event. Go to www.geniwhitehouse.com or www.evenanerd.com for more information and my list of topics, expertise, and nerdy obsessions.
My next deck is going to include basset hounds (see my post from 2023). That is a promise.
The document provides answers to questions about accounting for not-for-profit entities such as universities, hospitals, voluntary health and welfare organizations. It addresses topics such as how to account for tuition scholarships, restricted and unrestricted net assets, the accounting standards that apply to public vs. private universities, how to account for restricted contributions, donated services and equipment, and financial statement presentation for various types of not-for-profit organizations.
Solution Manual Advanced Accounting Baker 9e Chapter 19Saskia Ahmad
This document provides answers to questions about accounting for not-for-profit entities. It discusses how different types of not-for-profits, like hospitals, voluntary health organizations, and other nonprofits, account for donations, contributed services, and restricted contributions. It also provides examples of how specific transactions would be recorded, such as donations of cash or capital assets. Additionally, it discusses accounting requirements for public colleges and how their financial reporting differs from private colleges.
This document provides answers to questions about accounting for not-for-profit entities. It discusses how different types of not-for-profits, like hospitals, voluntary health organizations, and other nonprofits, account for donations, contributed services, and restricted contributions. It also provides examples of how specific transactions would be recorded, such as donations of cash or capital assets. Additionally, it discusses accounting requirements for public versus private colleges and differences in how governmental and standards-setting bodies provide guidance for different types of not-for-profits.
PFRF for Coops webinar 2020 CDA Regional Office Ijo bitonio
e-Forum of CDA and PICPA Pangasinan Chapter
Aug 19, 2020
on CDA Issuances, Statutory Reserves, MC 2020-18, Journal Entries and Philippine Financial Reporting System
This document provides an overview and agenda for an upcoming course on the new accounting standards under FASB ASU 2016-14 for nonprofit financial statement presentation. The course will cover key changes such as consolidating net asset classes, requiring analysis of expenses by both nature and function, enhanced liquidity and investment return disclosures, and transition guidance. It outlines the objectives of the new standards to improve usefulness of nonprofit financial statements and compares current requirements to the new guidance. The document concludes with contact information for the course presenters.
Governmental entities special funds and government wide financial statementssellyhood
This chapter discusses the various fund types used in governmental accounting including governmental funds (general fund, special revenue funds, debt service funds, capital projects funds, permanent funds), proprietary funds (enterprise funds, internal service funds), and fiduciary funds (pension trust funds, investment trust funds, private-purpose trust funds, agency funds). It covers the financial statements required for each fund type and introduces the government-wide financial statements required under GASB 34, including the statement of net assets and statement of activities. The chapter concludes with a discussion of auditing requirements for governmental entities.
Legal Developments Supporting Social Entrepreneurship and Impact InvestingAdamConnatser
Legal developments supporting Social Entrepreneurship and Impact Investing. Program Related Investments, Mission Related Investments, Benefit Corporations and their Kin, Hybrid For Profit/Non Profit Structures
1. The document discusses accounting standards and financial reporting for governmental and non-profit entities. It covers topics such as the objectives of financial reporting, differences between business and non-profit organizations, and accounting standards setting bodies like GASB, FASB, and IPSASB.
2. Key standards discussed include IPSAS, which are the international standards for public sector accounting, and IFRS which are the standards for private sector companies. The document compares IPSAS and IFRS, noting areas where IPSAS has adapted IFRS principles for the public sector context.
3. Recognition and measurement of assets, revenues and other accounting items are also compared between IPSAS and IFRS standards.
This document provides an overview of advanced nonprofit accounting topics according to ASC 958 standards, including complex contribution agreements, endowment accounting, split-interest agreements, donated goods and services, and forward currency contracts. Specific examples are given of stock donations to universities, superseded pledges, endowment required disclosures, and accounting entries for split-interest agreements. Donated goods, services, and the use of assets are also addressed. The purpose of forward currency contracts for nonprofits is explained through an example.
IAS 1 provides the requirements for presenting general purpose financial statements to ensure comparability. It sets out guidelines for the structure of financial statements and minimum requirements for content. Financial statements must include a statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows. Notes to the financial statements must also be presented. IAS 1 specifies the components that must be presented in each financial statement and note disclosure requirements.
This document discusses the classification of assets according to International Financial Reporting Standards (IFRS). It defines key asset types like inventory, property, plant and equipment, intangible assets, investment property, financial assets, biological assets, and non-current assets held for sale. For each type, it provides the definition, discusses recognition criteria, and gives examples requiring judgment in classification. The overall aim is to classify assets according to their nature and use within a business to portray how they will generate future economic benefits.
NBFCs play an important role in consumer finance and factoring in India. They provide financial services like loans, acquisition of financial instruments, leasing, hire purchase, and insurance to those underserved by banks. While they perform bank-like functions, NBFCs cannot accept demand deposits and do not have the same deposit insurance and payment system access as banks. To operate legally, NBFCs must register with the RBI and meet requirements on net owned funds, public deposit acceptance, and credit ratings. NBFCs help expand access to credit for consumers and small businesses.
The document discusses non-banking financial companies (NBFCs) in India. It defines NBFCs as financial institutions that are registered under the Companies Act and engage in financial activities like lending but do not hold banking licenses. NBFCs play important roles like providing credit to sectors that banks may neglect, generating employment, and financing economically weaker sections. The document outlines the regulatory framework for NBFCs, including requirements for registration with the Reserve Bank of India, rules around accepting public deposits, and prudential norms on liquidity and reporting.
This document discusses the principles of accounting and financial reporting for governmental activities. It outlines three types of services governments provide - government, business, and fiduciary - and the corresponding principles for each. For governmental activities, fund accounting is used with the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. Proprietary funds use accrual accounting and include enterprise and internal service funds. Fiduciary funds account for assets held in trust and include pension, investment, private purpose, and agency funds. The key principles discussed are fund accounting, the basis of accounting and measurement focus, and budgetary accounting.
In 2006, the Uniform Prudent Management of Institutional Funds Act (abbreviated to “UPMIFA”) was passed. This law has since been ratified by all of the 50 states, and provides guidance in the management of institutional funds and endowments.
Presented by Dr. Nissar Ahmed Yatoo at the 4th Annual East Africa Finance Summit
1.Interest Free Transactions
2.Sharing of associated risks and profits
3.No scope for uncertainty
4.Emphasis on Ethical Investment
5.Tangible and identifiable underlying assets to back-up financial transactions
This document outlines the requirements for preparing a statement of cash flows under Indian Accounting Standard 7. It discusses the objective to provide information on an entity's cash generation and usage. The standard requires classification of cash flows as operating, investing or financing activities. It provides definitions for key terms and guidance on treatment of items like foreign currency cash flows, interest and dividends, taxes and non-cash transactions.
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a professionally managed, diversified portfolio with the potential for growth or income depending on the type of fund. Risk and potential returns vary depending on the fund's investment objectives and strategy.
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a professionally managed, diversified portfolio with the potential for growth or income depending on the type of fund. Risk and potential returns vary depending on the fund's investment objectives and strategy.
Governmental entities introduction and general fund accountingsellyhood
This document discusses key differences between governmental entities and for-profit entities, including that governmental entities collect resources and make expenditures to meet social needs rather than for profit. It also defines various types of funds used in governmental accounting, such as general funds, special revenue funds, and proprietary funds. The document explains the measurement focus and basis of accounting used for different funds, with governmental funds using modified accrual basis and proprietary/fiduciary funds using accrual basis. It concludes by discussing operating budgets and the appropriation process in governmental accounting.
This chapter discusses financial difficulties faced by companies and alternatives available to address them. It covers reasons for financial difficulties, alternative courses of action like debt restructuring and bankruptcy, and different types of bankruptcy proceedings. Under Chapter 11 reorganization, a company receives protection from creditors to restructure its debts and operations while continuing as a business. In Chapter 7 liquidation, a trustee sells the company's assets and uses proceeds to pay creditors, resulting in the business ceasing operations. The chapter provides accounting guidance for companies in financial difficulty or bankruptcy proceedings.
Completing the tests in the sales and collection cycle accounts receivablesellyhood
This document discusses audit procedures for testing accounts receivable balances. It describes identifying risks and assessing inherent and control risks. Tests of controls and substantive tests are designed for the sales and collection cycle. Analytical procedures and tests of details are used to test the accounts receivable balance, including confirmations, subsequent cash receipts testing, and alternative procedures. The results are evaluated to conclude if sufficient evidence was obtained.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
Audit sampling for tests of details of balancessellyhood
There are 14 steps required for audit sampling for tests of details of balances. The steps are similar for sampling tests of controls and transactions, with the main differences being that sampling for balances tests for monetary errors rather than exceptions. Stratified sampling is most commonly used to divide the population into subgroups and select independent samples from each. Sample size is determined based on tolerable misstatement, and statistical or nonstatistical methods can be used to analyze results and determine if the population should be rejected. Monetary unit sampling is an innovative statistical method developed for auditors that samples at the individual dollar level.
Audit sampling for tests of controls and substantive tests of transactionssellyhood
This document discusses audit sampling techniques for tests of controls and substantive tests of transactions. It defines key sampling concepts such as representative samples, sampling risk, nonsampling risk, statistical versus nonstatistical sampling, and probabilistic versus nonprobabilistic sample selection. The document provides details on specific sample selection methods and guidelines for determining tolerable exception rates, acceptable risk of assessing control risk too low, and expected population error rates when planning a sample. It also outlines the steps for selecting a sample, performing tests, and evaluating results to generalize to the population. The most commonly used statistical sampling method for these audit tests is attributes sampling which is based on the binomial distribution.
The document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions like hiring, timekeeping, payroll preparation, payment, and tax filings. It outlines the objectives of understanding internal controls, assessing risks, and designing tests of controls and substantive procedures to audit the payroll accounts and transactions.
Audit of the inventory and warehousing cyclesellyhood
This document provides an overview of auditing the inventory and warehousing cycle. It describes the key functions and documents in the cycle including purchasing raw materials, transferring materials through production to finished goods, and shipping finished goods. The document outlines eight learning objectives which cover topics like how e-commerce affects inventory, the five parts of the audit cycle, testing cost accounting, analytical procedures, physical inventory observation, and pricing/compilation testing. It also demonstrates how the various audit tests are integrated and relate to each other across the acquisition, payroll, inventory, and sales cycles.
Audit of the acquisition and payment cyclesellyhood
The document discusses the acquisition and payment cycle. It covers the key accounts and transactions in the cycle including acquisitions of goods and services, cash disbursements, and purchase returns and allowances. The document also describes the related business functions like processing purchase orders and cash disbursements. It discusses how e-commerce has impacted the cycle through electronic data interchange and business-to-business transactions over the internet. Finally, it outlines the audit procedures for the cycle including understanding internal controls, assessing risks, and designing tests of transactions and account balances like accounts payable.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
This chapter discusses the expenditure cycle, which involves ordering, receiving, and paying for goods and services. It describes the basic activities in the cycle as ordering, receiving/storing items, and payment. It also discusses important decisions like inventory levels and vendor selection. Finally, it covers different inventory control methods like EOQ, MRP, and JIT as well as the role of IT in improving purchasing functions through tools like EDI, vendor-managed inventory, reverse auctions, and procurement cards.
This chapter discusses accounting issues related to foreign currency transactions and financial instruments for multinational companies. It covers how to record and report transactions involving foreign currencies, the different types of exchange rates used to translate balances, and how to account for imports/exports and hedging strategies using financial instruments. The key aspects are translating foreign currency transactions and balances to the reporting currency, managing foreign currency risk, and designating hedges as either fair value, cash flow, or net investment hedges for accounting purposes.
The document discusses concepts related to internal control and accounting information systems. It provides an overview of key control concepts such as safeguarding assets, maintaining accurate records, and complying with regulations. Control frameworks like COSO and COBIT are described which help companies develop effective internal control systems. The document also discusses legislative reactions to fraud like the Sarbanes-Oxley Act and how it aims to strengthen internal controls in public companies. Specific control activities like authorization of transactions, segregation of duties, and independent checks are explained.
Accounting information system introductionsellyhood
This document discusses processing integrity controls for accounting information systems. It describes five categories of controls: source data controls, data entry controls, processing controls, data transmission controls, and output controls. Within each category, specific controls are defined, such as forms design and pre-numbered forms for source data controls, and field checks and limit checks for data entry controls. Examples are provided of how these controls would be implemented in batch processing and online processing systems.
This chapter discusses accounting information systems and key related concepts. It addresses what an accounting information system is, why they are important to study, and how they provide information for decision making. The chapter also explores the concepts of systems, data, and information; the role of an AIS in an organization's value chain; and how an AIS's design is influenced by information technology, corporate strategy, and culture.
The document summarizes key aspects of systems development, including:
- The systems approach involves viewing an organization as a system and analyzing its parts, identifying alternative solutions, and selecting the best one.
- The systems development life cycle (SDLC) applies this approach to developing information systems and includes phases like planning, analysis, design, and implementation.
- Common SDLC methodologies are the traditional waterfall model, prototyping, rapid application development, phased development, and business process redesign.
- Project management oversees development projects through hierarchical structures like steering committees and uses tools like Gantt charts and network diagrams.
Mc leod9e ch06 database management systemssellyhood
This document provides an overview of database management systems and concepts. It discusses database structures like hierarchical, network and relational models. Key concepts covered include data organization, normalization, keys, relating tables, and entity relationship diagrams. It also discusses using databases through queries, forms and reports. Personnel roles like database administrators and important considerations around implementing database management systems are presented.
This chapter discusses how various types of information systems within organizations use data to support decision making. It describes transaction processing systems that manage daily operational data and how that data is then used in other systems. Customer relationship management systems are discussed as are data warehousing systems, which accumulate data over time for analysis. The chapter also outlines marketing information systems, human resources information systems, executive information systems, and how data mining and analytics are used to discover new insights within large data sets.
Dokumen tersebut membahas tentang struktur teori akuntansi yang terdiri dari tujuan laporan keuangan, postulat akuntansi, konsep-konsep teoritis akuntansi, prinsip dasar akuntansi, dan standar akuntansi. Tujuan laporan keuangan adalah menyediakan informasi keuangan perusahaan untuk pengambilan keputusan ekonomi, sedangkan postulat akuntansi mencakup entity, going concern, unit of measure, dan accounting period.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
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Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
2. Not-For-Profit (NFP)
• This chapter presents the accounting and
financial reporting principles used by both
governmental (public) and nongovernmental
(private) colleges and universities, and by
health care providers.
• Health care providers would include: hospitals
and nursing homes, voluntary health and
welfare organizations such as the Red Cross
and United Way, and other not-for-profit
organizations such as professional or
fraternal associations.
19-2
3. 19-3
NFP--GASB and FASB
• The accounting and financial reporting for
governmental, nonprofit entities is controlled
by the GASB.
• Accounting and financial reporting for
nongovernmental, non profit entities is
controlled by the FASB.
• Thus, it is important to determine the role
the government has in the organization.
4. 19-4
Private NFP Entities
• Private, not-for-profit entities follow the
accounting and reporting standards
established by the FASB.
• Private, not-for-profit entities must report
their net assets in accordance with Financial
Accounting Concepts Statement No. 6,
“Elements for Financial Statements” (FAC 6).
5. 19-5
Private NFP Entities
• FAC 6 specifies three mutually exclusive classes
of net assets (assets less liabilities):
• Unrestricted Net Assets
• Temporarily Restricted Net Assets
• Permanently Restricted Net Assets
• It is very important to properly account for, and
report, each class of net assets.
6. 19-6
Private NFP Entities
• Unrestricted net assets are used for the general
operations of the entity.
• Unrestricted net assets include all assets and
liabilities that do not have externally imposed
restrictions on their use, that is, this class of net
assets is not restricted by a donor.
7. 19-7
Private NFP Entities
• Temporarily restricted net assets have donor-imposed
time or purpose restrictions.
• A time restriction means that the assets will not
be available for use until after a specific time
has passed.
• A purpose restriction means that the resources
may be used only for specific purposes.
8. 19-8
Private NFP Entities
• Permanently restricted net assets—This class
of net assets includes permanently restricted
contributions (such as regular endowments) for
which the principal must be preserved into
perpetuity.
9. 19-9
Private NFP Entities
• Some NFP entities use a fund structure to
account for each type of net asset class to
obtain the account discipline that fund
accounting provides.
• These entities would have funds such as the
general fund, specific purpose fund, building
fund, endowment fund, and so on.
• But, other NFP entities only maintain an
accounting record to show the amounts in
each net asset class.
10. 19-10
Private NFP Entities
• The specific identification of any restricted asset
must be made at the time the asset comes into
the entity, generally by donation or bequest.
• The gifting agreement must be examined fully to
determine if there are any donor-imposed
restrictions on the principal of the gift, and/or on
the income generated from the principal.
11. 19-11
Private NFP Entities
• A key concept is that revenue should be
recognized only once, and only by the
appropriate receiving net asset class.
• Some NFP entities use the terms “net assets
released from restriction” instead of
“reclassification” when the resources are
released from a restricted net asset class and
assigned or transferred to another asset class.
12. Private NFP Entities
• It is very important to note that the restricted
asset classes, either temporarily or permanently,
do not report expenses on the organization’s
statement of activities.
• The restricted asset classes (temporarily or
permanently) would report restricted contribution
revenue and any restricted investment
income/losses, but cannot report any expenses.
• Expenses are reported only in the unrestricted
asset class.
19-12
13. 19-13
Private NFP Entities
• The FASB has issued five standards that have
direct applicability to private, not-for-profit
entities (continued on next slide):
• FASB 93, which guides depreciation.
• FASB116, which guides accounting for
contributions.
14. 19-14
Private NFP Entities
• FASB 117, which establishes financial display
requirements.
• FASB 124, which establishes the accounting for
investments.
• FASB136, which guides the accounting for
transfers of assets to a not-for-profit organization
that raises or holds contributions for others.
15. 19-15
Private NFP Entities
• Depreciation must be recognized on long-lived
tangible assets, other than works of art or
historical treasures that have cultural, aesthetic,
or historical value that is worth preserving
perpetually and whose holders have the ability to
preserve that value and are so doing.
16. Private NFP Entities
• The depreciation is reported as an expenditure
of the fund that uses the tangible long-lived
assets during the period.
• FASB 93 requires disclosure of the following
items: (1) depreciation for the period, (2) the
balance of the major classes of depreciable
assets, (3) the accumulated depreciation at the
balance sheet date, and (4) the method used to
compute depreciation for the major classes of
depreciable assets.
19-16
17. Private NFP Entities
• Contributions can be of cash, other assets, or a
promise to give (a pledge).
• The general rule is that contributions received
are measured at their fair value and are
recognized as revenues or gains in the period
received.
• The contributions are reported as unrestricted
support or, if there are donor-imposed
restrictions, as restricted support
19-17
18. 19-18
Private NFP Entities
• A private not-for-profit entity does not need to
recognize contributions of works of art, historical
treasures, and similar assets if the donated
items are added to collections that (1) are held
for public exhibition, education, or research; (2)
are protected, cared for, and preserved; and (3)
has an organizational policy in existence that
proceeds from the sales of collection items are
to be used to acquire other items for collections.
19. Private NFP Entities
• Contributions of services are recognized as a
revenue, with an equivalent amount recorded as
an expenditure, if the services received (1)
create or enhance nonfinancial assets or (2)
require specialized skills, are provided by
individuals possessing those skills, and would
typically need to be purchased if not provided
by donation.
• Examples of contributed services would be
specialized skills provided by accountants,
architects, doctors, teachers, and other
professionals.
19-19
20. 19-20
Private NFP Entities
• Some religious-based colleges record revenue,
with an offsetting amount to an expenditure, for
the fair value of contributed lay teaching
services.
• This recognition is made to report the full cost of
the teaching mission of these private colleges.
21. Private NFP Entities
• FASB 124 extended to not-for-profit
organizations the basic standard of fair value
for investments that was presented in FASB
115 on investments.
• FASB 124 specifies that fair value should be
the measurement basis for investments in all
debt securities and in equity securities that
have readily determinable fair values (other
than those equity securities that are accounted
for under the equity method in accordance with
APB 18).
19-21
22. Private NFP Entities
• Note that FASB 124 requires that debt securities
should be valued at fair value.
• Changes in fair value of investments in
temporarily restricted or permanently restricted
net assets should be recognized in accordance
with donor restrictions as to the income.
• Otherwise, investment income would be
reported as a change in unrestricted net assets.
19-22
23. Private NFP Entities
• FASB 117 specifies the financial display
standards for private not-for-profit entities.
• The three major financial statements are (1) a
statement of financial position, (2) a statement
of activities, and (3) a statement of cash flows.
• The unique features of the statement of financial
position and statement of activities for not-for-profit
organizations will be presented in greater
19-23
detail in the following discussions.
24. 19-24
Private NFP Entities
• While some flexibility exists in the presentation
of financial statements under FASB 117, a major
feature of the statement of financial position is
the combined presentation of all assets and
equities in a single, simplified statement.
• In addition , the net assets are separated into
those that are (1) unrestricted, (2) temporarily
restricted, and (3) permanently restricted.
25. 19-25
Private NFP Entities
• FASB 136, issued in 1999, establishes the
accounting for contributions made to foundations
or other similar organizations that raise
resources for not-for-profit entities. FASB 136
defines three parties to the typical contribution
process: the donor; the recipient organization;
and, the beneficiary.
26. 19-26
Private NFP Entities
• The donor is the initial provider of the resources.
The recipient organization received the assets
from the donor. And the beneficiary is the entity
that that eventually receives the assets through
the recipient organization, as specified by the
donor.
27. 19-27
Private NFP Entities
• Many not-for-profit, private colleges and
universities have a foundation that is responsible
for raising financial support from alumni and
other donors. Typically, these foundations are
institutionally related to the college or university
and uses its assets for the benefit of the college
or university.
28. 19-28
Private NFP Entities
• In most cases, at the time of the contribution of
assets for the donor to the foundation (the
recipient organizations), the foundation will
record an increase in assets and a contribution
revenue for the fair value of the donation.
Usually these assets are temporarily restricted
until the foundation transfers them to the college
or university.
29. 19-29
Private NFP Entities
• Some recipient organizations, such as United
Way, do fundraising that will benefit a number of
not-or-profit organizations. Donors may direct
the specific recipient of their gifts, or the donor
may give to United Way without a restriction as
to where the gift should be used.
30. 19-30
Private NFP Entities
• In those cases in which the donor specifies the
beneficiary, then United Way would recognize
an increase in its assets and record a liability to
the specified beneficiary. The organization
specified by the donor would record an increase
in its net assets, usually as a receivable, and
record contribution revenue at the time of the
donation.
31. 19-31
Private NFP Entities
• For those donations that are unrestricted, and
for which United Way may determine the best
uses of the resources, United Way would record
an increase in its assets and record the
unrestricted gifts as contribution revenue. Then,
when the assets are distributed, United Way
would record the expense and the decrease in
its assets, and the beneficiary would record
contribution revenue for the fair value of the
assets transferred.
32. 19-32
Private NFP Entities
• Therefore, the key issues are the relationship
between the recipient organization and the
beneficiary, and whether or not the donor placed
any use restrictions on the donation. In the case
of nonfinancial assets such as artwork, the
recipient organizations may choose whether or
not to record the fair value of these nonfinancial
assets in its books. However, all financial assets
must be recorded at their fair values.
33. 19-33
Colleges and Universities
There are more than 3,000 colleges and
universities in the United States. Public colleges
and universities receive a significant portion of
their operating resources from state
governments. Private not-for-profit colleges and
universities receive most of their resources from
tuition and fees.
34. Tuition and Fees
• In college and university accounting, the full
amount of the standard rate for tuition and fees
is recognized as revenue. If a student receives
a university-sponsored scholarship that does not
require any employment-type of work to be given
to the university, then the university accounts for
this as a deduction from revenue (i.e., reduces
revenue). In contrast, if the student must
provide employment-type work to the university,
then the university accounts for the scholarship
as an expense.
19-34
35. 19-35
Tuition and Fees-Continued
• Colleges and universities account for
reimbursements of tuition and fees as a
reduction of revenue. Also, colleges and
universities account for the tuition and fees
collected for a term of instruction as revenue in
the fiscal year in which the term is predominantly
conducted, along with all expenses incurred to
finance that term.
36. 19-36
Public Colleges and Universities
• The accounting and reporting for public colleges
and universities is specified by the GASB 35.
• GASB 35 requires that these institutions follow
the standards for governmental entities as
specified in GASB 34. Most public institutions
will be special-purpose government entities,
engaged in only business-type activities, thus
GASB 34 applies.
37. 19-37
Private Colleges and Universities
• The FASB specifies the accounting and financial
reporting standards for private colleges and
universities. Although many private colleges
and universities are not-for-profit entities, some
private colleges are profit-seeking, such as the
University of Phoenix. Accounting for profit-seeking
educational entities is similar to
accounting for any commercial entity and is not
covered in this chapter.
38. Health Care Providers
• The health care environment is currently
undergoing a revolution.
• Rapidly growing costs of providing medical care
are forcing hospitals to merge at an increasing
rate in order to consolidate the types of services
offered.
• The cost of new technology is also requiring
health care providers to reevaluate their
missions to the communities they serve.
19-38
39. 19-39
Health Care Providers
• Although the major focus of this section of this
chapter is on hospitals, the accounting and
financial reporting guidelines for hospitals are
the same as those used by all health care
providers included within the scope of the
AICPA’s audit and accounting guide for Health
Care Organizations.
40. 19-40
Health Care Providers
• The AICPA periodically revises its audit and
accounting guides for specialized industries. The
2001 Audit and Accounting Guide for Health
Care Organizations, which includes hospitals,
revises and supersedes the earlier audit guides
for hospitals.
41. 19-41
Hospitals
• Hospitals may be classified as (a) investor-owned
businesses, or (b) not-for-profit entities
that cover their costs by generating fees from
their activities, or (c) governmental entities.
• Private-sector hospitals use the FASB’s
accounting guidelines and requirements while
public-sector (governmental) hospitals follow the
GASB’s accounting guidance.
42. 19-42
Hospitals
• In this chapter, it is assumed that the hospital is
a separate, not-for-profit reporting entity, and is
not a component unit of any government.
• The focus of this chapter is on not-for-profit
hospitals because of the large number of these
hospitals and because of their special
accounting and financial reporting issues.
43. 19-43
Hospital Accounting/Reporting
• The major operating activities of a hospital take
place in the general fund. The restricted funds
are holding funds that transfer resources to the
general fund for expenditures upon satisfaction
of their respective restrictions.
• The accrual basis of accounting is used in the
general fund to fully measure the revenue and
costs of providing health care.
44. 19-44
Hospital Accounting/Reporting
• Patient services revenue is reported at gross
amounts measured at standard billing rates.
• A deduction for contractual adjustments is then
made to arrive at net patient services revenue.
• Other revenue is recognized for ongoing non-patient
services, such as cafeteria sales and
television rentals, and donated supplies and
medicines.
45. 19-45
Hospital Accounting/Reporting
• Charity care services are presented only in the
footnotes; no revenue is recognized for them.
• Operating expenses in the general fund include
depreciation, bad debts, and the value of
recognized donated services that are in support
of the basic services of the hospital.
46. 19-46
Hospital Accounting/Reporting
• Donated property and equipment is typically
recorded in a restricted fund, such as plant fund,
until placed into service, at which time it is
transferred to the general fund.
• Donated assets are recorded at their fair market
values at the date of gift.
47. Voluntary Health and Welfare
Organizations (VHWOs)
• Voluntary health and welfare organizations
(VHWOs) provide a variety of social services.
• Examples of such organizations are the United
Way, the American Heart Association, the March
of Dimes, the American Cancer Society, the Red
Cross, and the Salvation Army.
• These organizations solicit funds from the
community at large and typically provide their
services for no fee, or they may charge a
nominal fee to those with the ability to pay.
19-47
48. VHWOs—Accounting/Reporting
• Primary activities of the VHWO are reported in
the unrestricted asset class.
19-48
• Resources restricted by the donor for specific
operating purposes or future periods are
reported as temporarily restricted assets.
• Those assets contributed by the donor with
permanent restrictions are reported as
permanently restricted assets.
49. VHWOs—Accounting/Reporting
• The accrual basis of accounting is used for
financial reporting purposes.
• A VHWO provides four financial statements: (1)
statement of financial position, (2) statement of
activities, (3) cash flow statement, and (4)
statement of functional expenses.
• The statement of functional expenses is required
of all VHWOs as a means of providing an
analysis of all expenses for the organization,
including depreciation.
19-49
50. 19-50
Other Not-For-Profit Entities
• There are many types of not-for-profit entities in
addition to hospitals and voluntary health and
welfare organizations.
• Examples: fraternal organizations and social
clubs; labor unions and professional
associations; political and trade associations;
libraries and private elementary and secondary
schools; research and scientific organizations;
and, zoological and botanical societies.
51. 19-51
Other Not-For-Profit Entities
• Accounting for ONPOs is similar to accounting
for VHWOs.
• The accrual basis of accounting is used for
financial reporting purposes.
• A statement of financial position, a statement of
activities, and a statement of cash flows are
required for financial reporting purposes.
52. 19-52
You Will Survive This Chapter !!!
• I bet that you never thought that
fund accounting would be this fun !!!