A new accounting rule for reporting leases goes into effect in 2019 for public companies. Although private companies have been granted a one-year reprieve, no business should…Read More
Archive for the ‘Financial Reporting’ Category
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Internal control testing: What role does sampling play?
Auditors must test the effectiveness of internal controls before signing off on your financial statements. But it’s impossible to analyze every transaction that’s posted to the general…Read More
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Learn the warning signs of earnings “spin”
Management wants to paint the rosiest possible picture of a company’s financial performance. But aggressive earnings management, or “spin,” can mislead investors and lenders. Here are some…Read More
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Corporate culture: Rotten apples could spoil your financials
Auditors often say that the tone at the top of an organization trickles down to every level of the business. Is your company’s work environment ethical and…Read More
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Feeling lucky? How to find a pot of gold in your financials
Every business experiences occasional cash shortages. When this happens, owners often assume they should go out and sell more. But this strategy can sometimes compound money troubles…Read More
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What is job cost reporting?
Custom jobs require ongoing supervision to achieve the best financial results. Whether you’re a general contractor constructing a strip mall, a manufacturer building made-to-order parts or an…Read More
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For-profit vs. not-for-profit: Compare and contrast financial reporting goals
As the term suggests, for-profit companies are driven primarily by one goal — to maximize profits for their owners. Nonprofits, on the other hand, are generally motivated…Read More
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Footnote disclosures are critical to transparent financial reporting
Business owners often complain that they’re required to provide too many disclosures under U.S. Generally Accepted Accounting Principles (GAAP). But comprehensive financial statement footnotes contain a wealth…Read More
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How financial statements can be used to value private businesses
Owners of private businesses often wonder: How much is my business interest worth? Financial statements are a logical starting point for answering this question. Here’s an overview…Read More
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Income statement items warrant your auditor’s attention
Today’s auditors spend significant time determining whether amounts claimed on the income statement capture the company’s financial performance during the reporting period. Here are some income statement…Read More