This document outlines the standard operating procedures (SOPs) for the finance department of Pak Pap (Pvt) Ltd. It describes procedures for human resources, accounting, internal audit, inventory management, purchases, stock transfers, production, and sales. Key points covered include hiring qualified staff, maintaining accurate payroll and employee records, approving purchases and payments, conducting audits, tracking inventory movement and production, and recording accounting entries for transactions. The SOPs are intended to ensure strong internal controls and that financial activities are carried out appropriately.
This document provides standard operating procedures for petty cash fund management for the Independent Elections Commission of Afghanistan. It details the process for setting up a petty cash fund including requesting approval, establishing a cashbook to record transactions, procedures for disbursements and purchases from the fund, replenishing the fund when it reaches 80% usage, and monitoring requirements including weekly cash counts. Key roles and responsibilities are also outlined.
The internal audit report summarizes observations from the quarterly internal audit of CIM Shipping Inc. Key observations include:
1) Finance department policies and procedures are not properly documented or approved.
2) Inter-company reconciliations are not prepared, resulting in balances not agreeing between entities.
3) Physical inventory counts revealed issues with container placement and maintenance of store records.
The report provides recommendations to address deficiencies in policies, reconciliations, and inventory management. Management responses are requested for each observation.
This standard operating procedure document outlines the processes that members of Orbit Advertising must follow. It details procedures for:
1) Handling jobs and creating a creative brief for each job with a job number.
2) Creating quotations for clients and obtaining quotations from vendors to provide to clients.
3) Preparing and sending invoices to clients after jobs are completed and delivered, and to vendors.
4) Recording all payments received from clients and made to vendors/suppliers in the appropriate modules.
5) Tracking all company expenses and keeping receipts on file.
The capital budgeting process involves several steps:
1) Brainstorming investment ideas from all levels and departments of an organization.
2) Analyzing projects by forecasting cash flows and evaluating profitability.
3) Planning the capital budget by organizing profitable projects strategically and considering timing.
4) Monitoring actual results against forecasts to improve future decisions.
CA NOTES ON COMPNAY ACCOUNTS AND AUDITS
FREE AFFIDAVITS AND NOTICES FORMATS
FREE AGREEMENTS AND CONTRACTS FORMATS
FREE LLB LAW NOTES
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FREE LLB LAW FIRST SEM NOTES
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FREE CA ICWA FOUNDATION NOTES
FREE CA ICWA INTERMEDIATE NOTES
FREE CA ICWA FINAL NOTES
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
This document contains a summary of Mohamed Hanief Mukuddem's professional experience and qualifications. He has over 15 years of experience in finance roles, including as a Group Financial Director, Financial Controller, and Audit Manager. He has worked for various companies across multiple industries, both in commercial and audit roles. His experience includes financial reporting, planning and analysis, internal controls, auditing, taxation, and ERP implementations. He holds qualifications as a Chartered Accountant in South Africa.
Petroleum accounting for tangible and intangible costsHamdy Rashed
1) Tangible drilling costs such as casing, tubing, and wellheads installed in exploratory wells should be capitalized temporarily until reserves are determined. If reserves are found, they become long-term assets; if not, they are expensed.
2) Development well tangible costs are capitalized regardless of the outcome. Support equipment used for multiple wells are also capitalized as long-term assets and depreciated over their useful lives.
3) Drilling materials purchases can be directly expensed to well costs or stored as inventory. Direct expensing is preferred if materials needs are relatively stable and lead times are reasonable.
This document provides standard operating procedures for petty cash fund management for the Independent Elections Commission of Afghanistan. It details the process for setting up a petty cash fund including requesting approval, establishing a cashbook to record transactions, procedures for disbursements and purchases from the fund, replenishing the fund when it reaches 80% usage, and monitoring requirements including weekly cash counts. Key roles and responsibilities are also outlined.
The internal audit report summarizes observations from the quarterly internal audit of CIM Shipping Inc. Key observations include:
1) Finance department policies and procedures are not properly documented or approved.
2) Inter-company reconciliations are not prepared, resulting in balances not agreeing between entities.
3) Physical inventory counts revealed issues with container placement and maintenance of store records.
The report provides recommendations to address deficiencies in policies, reconciliations, and inventory management. Management responses are requested for each observation.
This standard operating procedure document outlines the processes that members of Orbit Advertising must follow. It details procedures for:
1) Handling jobs and creating a creative brief for each job with a job number.
2) Creating quotations for clients and obtaining quotations from vendors to provide to clients.
3) Preparing and sending invoices to clients after jobs are completed and delivered, and to vendors.
4) Recording all payments received from clients and made to vendors/suppliers in the appropriate modules.
5) Tracking all company expenses and keeping receipts on file.
The capital budgeting process involves several steps:
1) Brainstorming investment ideas from all levels and departments of an organization.
2) Analyzing projects by forecasting cash flows and evaluating profitability.
3) Planning the capital budget by organizing profitable projects strategically and considering timing.
4) Monitoring actual results against forecasts to improve future decisions.
CA NOTES ON COMPNAY ACCOUNTS AND AUDITS
FREE AFFIDAVITS AND NOTICES FORMATS
FREE AGREEMENTS AND CONTRACTS FORMATS
FREE LLB LAW NOTES
FREE CA ICWA NOTES
FREE LLB LAW FIRST SEM NOTES
FREE LLB LAW SECOND SEM NOTES
FREE LLB LAW THIRD SEM NOTES
FREE LLB LAW FOURTH SEM NOTES
FREE LLB LAW FIFTH SEM NOTES
FREE LLB LAW SIXTH SEM NOTES
FREE CA ICWA FOUNDATION NOTES
FREE CA ICWA INTERMEDIATE NOTES
FREE CA ICWA FINAL NOTES
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
This document contains a summary of Mohamed Hanief Mukuddem's professional experience and qualifications. He has over 15 years of experience in finance roles, including as a Group Financial Director, Financial Controller, and Audit Manager. He has worked for various companies across multiple industries, both in commercial and audit roles. His experience includes financial reporting, planning and analysis, internal controls, auditing, taxation, and ERP implementations. He holds qualifications as a Chartered Accountant in South Africa.
Petroleum accounting for tangible and intangible costsHamdy Rashed
1) Tangible drilling costs such as casing, tubing, and wellheads installed in exploratory wells should be capitalized temporarily until reserves are determined. If reserves are found, they become long-term assets; if not, they are expensed.
2) Development well tangible costs are capitalized regardless of the outcome. Support equipment used for multiple wells are also capitalized as long-term assets and depreciated over their useful lives.
3) Drilling materials purchases can be directly expensed to well costs or stored as inventory. Direct expensing is preferred if materials needs are relatively stable and lead times are reasonable.
This document outlines the standard operating procedures for the finance department of Pak Pap (Pvt) Ltd. It details policies for human resources, accounts, internal audit, inventory, purchases, stock transfers, production, and sales. Proper documentation and approval procedures are established to ensure accurate financial reporting and compliance.
This document outlines accounting entries for excise duty and CENVAT credit in SAP FI for procurement, manufacturing, and sales processes in India. Key points include:
1) For procurement of raw materials, entries are made to CENVAT account and clearing accounts during GR and invoice posting. For capital goods, 50% goes to CENVAT and 50% to on-hold.
2) For manufacturing, CENVAT suspense is credited during billing and debited on invoice creation. PLA accounts clear fortnightly.
3) For sales, CENVAT suspense is credited during billing and debited on invoice creation, then cleared to PLA and CENVAT accounts fortn
This document discusses accounting systems, including manual and computerized systems. It defines an accounting system as the methods and procedures used to collect, classify, summarize, and report financial information. A manual system is described as using journals, subsidiary ledgers, and general ledgers to record transactions. Transactions are first recorded in special journals, then posted to subsidiary ledgers which are controlled by a general ledger account. The document provides an example of recording revenue transactions in a revenue journal to illustrate the journalizing and posting process in a manual system.
This document does not contain a summary as it is a collection of fragmented text and does not convey complete ideas or information. The document includes discussions of auditor independence, contingent fees, threats to objectivity, and other audit-related topics but does not integrate these ideas into coherent paragraphs or provide an overall summary.
This document provides guidance on various practical issues related to tax audits under section 44AB in India. It discusses topics like the objective of tax audits, who is liable for a tax audit, eligibility criteria, appointment of tax auditors, responsibilities of tax auditors, contents of form 3CD, accounting treatments, and other procedural matters. The document aims to help tax auditors properly conduct tax audits and ensure compliance with relevant laws and standards.
Fa term paper sanmeet dhokay - 2015 pgpmx025Sanmeet Dhokay
This document provides an overview of key accounting concepts covered over three days:
- Day 1 discusses accounting mechanics like journals, ledgers, trial balances, and financial statements. It also covers the differences between financial and cost accounting.
- Day 2 asks questions to consider in accounting and discusses accounting approaches, transactions, trial balances, and the balance sheet.
- Day 3 covers inventory, the manufacturing process, profit calculations, depreciation methods, and cash flow statements. It also discusses ratios, returns, and feasibility analysis.
The document aims to introduce fundamental accounting topics and how they relate to recording, classifying, summarizing and interpreting business financial information.
John Cronje has over 30 years of experience in financial management roles in the mining industry. He is currently the Group Financial Manager and Financial Manager of Witkop Fluorspar Mine (Pty) Ltd. He holds a B Com degree from Rhodes University and certificates in mining from Wits Business School and Katelego Fela Consulting. His responsibilities in his current role include financial reporting, budgeting, cash flow management, procurement, production cost control, and ensuring compliance. Prior to his current role, he held financial management positions of increasing responsibility with various gold and copper mining companies.
1. Work in progress (WIP) inventory, which includes raw materials and components that have begun processing but are not finished goods, must be accurately accounted for.
2. Calculating WIP involves adding direct labor costs and overhead costs such as indirect labor, utilities, and depreciation to the value of raw materials based on a bill of materials.
3. Accurate WIP accounting is important for taxation, cash flow and financing, and production planning. Inaccurate WIP values can lead to production errors, tax issues, and lost financing opportunities.
This document discusses Triniti's approach to enabling GCC countries for VAT compliance effective January 1st, 2018. It provides an introduction to GCC VAT, outlines Oracle's landscape for VAT compliance, and describes Triniti's proprietary UI RnR automation tool to strategize and execute GCC VAT enablement projects in the shortest time possible through over 90% automation. The automation improves reliability and reduces project timelines by 60% compared to manual implementations.
Internal financial controls include policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including regulatory compliance and prevention and detection of frauds and errors, thereby covering not only the controls over reliable reporting of financial statements. If you are searching for internal financial controls then you can contact us anytime or you can visit to our website at www.mbgcorp.com/in or can call us on:- +91 88601-90008
This document provides a summary of Anchalee Luckmunkong's personal and professional details, including her education, training courses, and work experience. It outlines her most recent role as the Finance and Operation Manager for Nilfisk-Advance Co., Ltd. from 1999 to December 2005, where her responsibilities included managing the accounting software and IT systems, accounting, finance, taxation, warehouse functions, HR, employee relations, and administration.
Tufail Ahmed has over 10 years of experience working as a Senior Accountant for Balsharaf Group in Saudi Arabia. He has expertise in accounts payable, receivable, costing, inventory management, and financial reporting. Previously, he worked as an accountant for the company's supermarket and agency departments. Tufail Ahmed holds a Bachelor's degree in Accountancy and professional qualifications in accounting packages, computer applications, and cost and works accounting. He is proficient in SAP, Oracle, Tally, and Foxpro systems.
Audit of Internal Financial Control over Financial Reporting (IFCR) A complet...Taufir Alam
Introduction to the Presentation on internal financial control over financial reporting_a complete guide
The Companies Act, 2013 has introduced some new requirements relating to audits and reporting by the statutory auditors of companies.
One of these requirements is given under Section 143(3)(i) of the Act which requires the statutory auditor to state in his audit report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
The section has cast onerous responsibilities on the statutory auditors because reporting on internal financial controls is not covered under the Standards on Auditing issued by the ICAI.
Since the concept of reporting on internal financial controls is still new in India this new reporting requirement has thrown up many challenges for the members.
To help the members properly understand and perform the various aspects of this reporting responsibility, the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has brought out this Guidance Note on Audit of Internal Financial Controls Over Financial Reporting.
The Guidance Note covers aspects such as Scope of reporting on internal financial controls under Companies Act 2013, essential components of internal controls, Technical guidance on the audit of Internal Financial Controls, Implementation guidance on the audit of Internal Financial Controls.
I have presented the above guidance note into a presentation that will have a complete guide for those who are planning to go for Audit of Internal financial control over financial reporting. this presentation will cover all the relevant aspects and also provide the standard operation process for the efficient conduct of the IFCR Audit. You don't need to read the complete Guidance note.
This document briefly describes each and every stage of accounting cycle with appropriate rules. rules followed are based on type of account.it also includes the proforma of journal,ledger,trail balance, final account statements.
Introduction to Accounting
Theory base of Accounting
Recording of Transactions – I
Recording of Transactions – II
Bank Reconciliation Statement
Trial Balance and Rectification of errors
Depreciation, Provisions and Reserves
Bill of Exchange
Financial Statements -I
Financial Statements -II
Accounts from Incomplete Records
Application of Computers in Accounting
Computerised Accounting System
The document discusses key accounting concepts and principles such as Generally Accepted Accounting Principles (GAAP), Accounting Standards, International Financial Reporting Standards (IFRS), the going concern concept, accrual concept, accounting entity concept, measurement in monetary terms, accounting period concept, cost concept, dual aspect concept, realization concept, and matching concept. It provides explanations and examples for each concept.
study objectivesAfter studying this chapter, you should be a.docxhanneloremccaffery
study objectives
After studying this chapter, you should be able to:
1 Explain the revenue recognition principle and the expense
recognition principle.
2 Differentiate between the cash basis and the accrual basis of
accounting.
3 Explain why adjusting entries are needed, and identify the
major types of adjusting entries.
4 Prepare adjusting entries for deferrals.
5 Prepare adjusting entries for accruals.
6 Describe the nature and purpose of the adjusted trial balance.
7 Explain the purpose of closing entries.
8 Describe the required steps in the accounting cycle.
9 Understand the causes of differences between net
income and cash provided by operating activities.
chapter
ACCRUAL ACCOUNTING
CONCEPTS
4
● Scan Study Objectives
● Read Feature Story
● Scan Preview
● Read Text and Answer
p. 175 p. 180 p. 185 p. 189
● Work Using the Decision Toolkit
● Review Summary of Study Objectives
● Work Comprehensive p. 197
● Answer Self-Test Questions
● Complete Assignments
● Go to WileyPLU S for practice and tutorials
● Read A Look at I FR S p. 224
● the navigator
Do it!
Do it!
✓
162
c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162
feature story
163
The accuracy of the financial reporting system de-
pends on answers to a few fundamental questions. At
what point has revenue been earned? At what point
is the earnings process complete? When have ex-
penses really been incurred?
During the 1990s, the stock prices of dot-com com-
panies boomed. Many dot-com companies earned most
of their revenue from selling advertising
space on their websites. To boost re-
ported revenue, some dot-coms began
swapping website ad space. Company
A would put an ad for its website on company B’s web-
site, and company B would put an ad for its website on
company A’s website. No money ever changed hands,
but each company recorded revenue (for the value of
the space that it gave up on its site). This practice did
little to boost net income and resulted in no additional
cash flow—but it did boost reported revenue. Regula-
tors eventually put an end to the practice.
Another type of transgression results from compa-
nies recording revenue or expenses in the wrong year.
In fact, shifting revenues and expenses is one of the
most common abuses of financial accounting. Xerox
admitted reporting billions of dollars of lease revenue
in periods earlier than it should have been reported.
And WorldCom stunned the financial markets with its
admission that it had boosted net income by billions
of dollars by delaying the recognition of expenses un-
til later years.
Unfortunately, revelations such as
these have become all too common in
the corporate world. It is no wonder that
the U.S. Trust Survey of affluent Ameri-
cans reported that 85 percent of its respondents be-
lieved that there should be tighter regulation of finan-
cial disclosures, and 66 percent said they did not trust
the management of publicly traded companies.
W.
The document discusses the requirements and procedures for tax audit under the Income Tax Act of India. It explains that tax audit is mandatory if the gross turnover or receipts of a business exceed Rs. 1 crore or gross receipts of a profession exceed Rs. 25 lakhs. It outlines the key forms used in tax audit reporting, the objectives of tax audit to assist the tax department, and the main procedures auditors must follow, including applying audit standards and techniques to verify tax compliance. The document also provides guidance on specific clauses in the tax audit report form related to the nature of business, books of accounts, inventory valuation, depreciation, and other income and expense items.
Muhammad Naeem Shams is an ACMA certified accountant with over 15 years of experience in finance, accounting, and auditing. He has held several managerial roles, including Manager of Finance and Commercial, Internal Audit, and Accounts. Currently he is the Manager of Finance and Commercial at Tuwairqi Steel Mills Limited, where he oversees accounting, financial reporting, cash management, and ensuring compliance with tax and construction contract regulations. He has extensive skills in accounting, financial modeling, cost analysis, and ERP systems.
This document outlines the standard operating procedures for the finance department of Pak Pap (Pvt) Ltd. It details policies for human resources, accounts, internal audit, inventory, purchases, stock transfers, production, and sales. Proper documentation and approval procedures are established to ensure accurate financial reporting and compliance.
This document outlines accounting entries for excise duty and CENVAT credit in SAP FI for procurement, manufacturing, and sales processes in India. Key points include:
1) For procurement of raw materials, entries are made to CENVAT account and clearing accounts during GR and invoice posting. For capital goods, 50% goes to CENVAT and 50% to on-hold.
2) For manufacturing, CENVAT suspense is credited during billing and debited on invoice creation. PLA accounts clear fortnightly.
3) For sales, CENVAT suspense is credited during billing and debited on invoice creation, then cleared to PLA and CENVAT accounts fortn
This document discusses accounting systems, including manual and computerized systems. It defines an accounting system as the methods and procedures used to collect, classify, summarize, and report financial information. A manual system is described as using journals, subsidiary ledgers, and general ledgers to record transactions. Transactions are first recorded in special journals, then posted to subsidiary ledgers which are controlled by a general ledger account. The document provides an example of recording revenue transactions in a revenue journal to illustrate the journalizing and posting process in a manual system.
This document does not contain a summary as it is a collection of fragmented text and does not convey complete ideas or information. The document includes discussions of auditor independence, contingent fees, threats to objectivity, and other audit-related topics but does not integrate these ideas into coherent paragraphs or provide an overall summary.
This document provides guidance on various practical issues related to tax audits under section 44AB in India. It discusses topics like the objective of tax audits, who is liable for a tax audit, eligibility criteria, appointment of tax auditors, responsibilities of tax auditors, contents of form 3CD, accounting treatments, and other procedural matters. The document aims to help tax auditors properly conduct tax audits and ensure compliance with relevant laws and standards.
Fa term paper sanmeet dhokay - 2015 pgpmx025Sanmeet Dhokay
This document provides an overview of key accounting concepts covered over three days:
- Day 1 discusses accounting mechanics like journals, ledgers, trial balances, and financial statements. It also covers the differences between financial and cost accounting.
- Day 2 asks questions to consider in accounting and discusses accounting approaches, transactions, trial balances, and the balance sheet.
- Day 3 covers inventory, the manufacturing process, profit calculations, depreciation methods, and cash flow statements. It also discusses ratios, returns, and feasibility analysis.
The document aims to introduce fundamental accounting topics and how they relate to recording, classifying, summarizing and interpreting business financial information.
John Cronje has over 30 years of experience in financial management roles in the mining industry. He is currently the Group Financial Manager and Financial Manager of Witkop Fluorspar Mine (Pty) Ltd. He holds a B Com degree from Rhodes University and certificates in mining from Wits Business School and Katelego Fela Consulting. His responsibilities in his current role include financial reporting, budgeting, cash flow management, procurement, production cost control, and ensuring compliance. Prior to his current role, he held financial management positions of increasing responsibility with various gold and copper mining companies.
1. Work in progress (WIP) inventory, which includes raw materials and components that have begun processing but are not finished goods, must be accurately accounted for.
2. Calculating WIP involves adding direct labor costs and overhead costs such as indirect labor, utilities, and depreciation to the value of raw materials based on a bill of materials.
3. Accurate WIP accounting is important for taxation, cash flow and financing, and production planning. Inaccurate WIP values can lead to production errors, tax issues, and lost financing opportunities.
This document discusses Triniti's approach to enabling GCC countries for VAT compliance effective January 1st, 2018. It provides an introduction to GCC VAT, outlines Oracle's landscape for VAT compliance, and describes Triniti's proprietary UI RnR automation tool to strategize and execute GCC VAT enablement projects in the shortest time possible through over 90% automation. The automation improves reliability and reduces project timelines by 60% compared to manual implementations.
Internal financial controls include policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including regulatory compliance and prevention and detection of frauds and errors, thereby covering not only the controls over reliable reporting of financial statements. If you are searching for internal financial controls then you can contact us anytime or you can visit to our website at www.mbgcorp.com/in or can call us on:- +91 88601-90008
This document provides a summary of Anchalee Luckmunkong's personal and professional details, including her education, training courses, and work experience. It outlines her most recent role as the Finance and Operation Manager for Nilfisk-Advance Co., Ltd. from 1999 to December 2005, where her responsibilities included managing the accounting software and IT systems, accounting, finance, taxation, warehouse functions, HR, employee relations, and administration.
Tufail Ahmed has over 10 years of experience working as a Senior Accountant for Balsharaf Group in Saudi Arabia. He has expertise in accounts payable, receivable, costing, inventory management, and financial reporting. Previously, he worked as an accountant for the company's supermarket and agency departments. Tufail Ahmed holds a Bachelor's degree in Accountancy and professional qualifications in accounting packages, computer applications, and cost and works accounting. He is proficient in SAP, Oracle, Tally, and Foxpro systems.
Audit of Internal Financial Control over Financial Reporting (IFCR) A complet...Taufir Alam
Introduction to the Presentation on internal financial control over financial reporting_a complete guide
The Companies Act, 2013 has introduced some new requirements relating to audits and reporting by the statutory auditors of companies.
One of these requirements is given under Section 143(3)(i) of the Act which requires the statutory auditor to state in his audit report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
The section has cast onerous responsibilities on the statutory auditors because reporting on internal financial controls is not covered under the Standards on Auditing issued by the ICAI.
Since the concept of reporting on internal financial controls is still new in India this new reporting requirement has thrown up many challenges for the members.
To help the members properly understand and perform the various aspects of this reporting responsibility, the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has brought out this Guidance Note on Audit of Internal Financial Controls Over Financial Reporting.
The Guidance Note covers aspects such as Scope of reporting on internal financial controls under Companies Act 2013, essential components of internal controls, Technical guidance on the audit of Internal Financial Controls, Implementation guidance on the audit of Internal Financial Controls.
I have presented the above guidance note into a presentation that will have a complete guide for those who are planning to go for Audit of Internal financial control over financial reporting. this presentation will cover all the relevant aspects and also provide the standard operation process for the efficient conduct of the IFCR Audit. You don't need to read the complete Guidance note.
This document briefly describes each and every stage of accounting cycle with appropriate rules. rules followed are based on type of account.it also includes the proforma of journal,ledger,trail balance, final account statements.
Introduction to Accounting
Theory base of Accounting
Recording of Transactions – I
Recording of Transactions – II
Bank Reconciliation Statement
Trial Balance and Rectification of errors
Depreciation, Provisions and Reserves
Bill of Exchange
Financial Statements -I
Financial Statements -II
Accounts from Incomplete Records
Application of Computers in Accounting
Computerised Accounting System
The document discusses key accounting concepts and principles such as Generally Accepted Accounting Principles (GAAP), Accounting Standards, International Financial Reporting Standards (IFRS), the going concern concept, accrual concept, accounting entity concept, measurement in monetary terms, accounting period concept, cost concept, dual aspect concept, realization concept, and matching concept. It provides explanations and examples for each concept.
study objectivesAfter studying this chapter, you should be a.docxhanneloremccaffery
study objectives
After studying this chapter, you should be able to:
1 Explain the revenue recognition principle and the expense
recognition principle.
2 Differentiate between the cash basis and the accrual basis of
accounting.
3 Explain why adjusting entries are needed, and identify the
major types of adjusting entries.
4 Prepare adjusting entries for deferrals.
5 Prepare adjusting entries for accruals.
6 Describe the nature and purpose of the adjusted trial balance.
7 Explain the purpose of closing entries.
8 Describe the required steps in the accounting cycle.
9 Understand the causes of differences between net
income and cash provided by operating activities.
chapter
ACCRUAL ACCOUNTING
CONCEPTS
4
● Scan Study Objectives
● Read Feature Story
● Scan Preview
● Read Text and Answer
p. 175 p. 180 p. 185 p. 189
● Work Using the Decision Toolkit
● Review Summary of Study Objectives
● Work Comprehensive p. 197
● Answer Self-Test Questions
● Complete Assignments
● Go to WileyPLU S for practice and tutorials
● Read A Look at I FR S p. 224
● the navigator
Do it!
Do it!
✓
162
c04AccrualAccountingConcepts.qxd 8/3/10 1:50 PM Page 162
feature story
163
The accuracy of the financial reporting system de-
pends on answers to a few fundamental questions. At
what point has revenue been earned? At what point
is the earnings process complete? When have ex-
penses really been incurred?
During the 1990s, the stock prices of dot-com com-
panies boomed. Many dot-com companies earned most
of their revenue from selling advertising
space on their websites. To boost re-
ported revenue, some dot-coms began
swapping website ad space. Company
A would put an ad for its website on company B’s web-
site, and company B would put an ad for its website on
company A’s website. No money ever changed hands,
but each company recorded revenue (for the value of
the space that it gave up on its site). This practice did
little to boost net income and resulted in no additional
cash flow—but it did boost reported revenue. Regula-
tors eventually put an end to the practice.
Another type of transgression results from compa-
nies recording revenue or expenses in the wrong year.
In fact, shifting revenues and expenses is one of the
most common abuses of financial accounting. Xerox
admitted reporting billions of dollars of lease revenue
in periods earlier than it should have been reported.
And WorldCom stunned the financial markets with its
admission that it had boosted net income by billions
of dollars by delaying the recognition of expenses un-
til later years.
Unfortunately, revelations such as
these have become all too common in
the corporate world. It is no wonder that
the U.S. Trust Survey of affluent Ameri-
cans reported that 85 percent of its respondents be-
lieved that there should be tighter regulation of finan-
cial disclosures, and 66 percent said they did not trust
the management of publicly traded companies.
W.
The document discusses the requirements and procedures for tax audit under the Income Tax Act of India. It explains that tax audit is mandatory if the gross turnover or receipts of a business exceed Rs. 1 crore or gross receipts of a profession exceed Rs. 25 lakhs. It outlines the key forms used in tax audit reporting, the objectives of tax audit to assist the tax department, and the main procedures auditors must follow, including applying audit standards and techniques to verify tax compliance. The document also provides guidance on specific clauses in the tax audit report form related to the nature of business, books of accounts, inventory valuation, depreciation, and other income and expense items.
Muhammad Naeem Shams is an ACMA certified accountant with over 15 years of experience in finance, accounting, and auditing. He has held several managerial roles, including Manager of Finance and Commercial, Internal Audit, and Accounts. Currently he is the Manager of Finance and Commercial at Tuwairqi Steel Mills Limited, where he oversees accounting, financial reporting, cash management, and ensuring compliance with tax and construction contract regulations. He has extensive skills in accounting, financial modeling, cost analysis, and ERP systems.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
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Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs