Accounting Tools

OCTOBER 25, 2023

Disclosure Differences Some accompanying disclosures are not required in interim financial statements, or can be presented in a more summarized format. Related Articles Interim Period Interim Reporting The line items appearing in these documents will also match the ones found in annual financial statements.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

OCTOBER 22, 2023

Thus, the information should faithfully represent transactions and other events, reflect the underlying substance of events, and prudently represent estimates and uncertainties through proper disclosure. Related Articles Limitations of Financial Statements The Elements of Financial Statements The Relationship Between Financial Statements

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

AUGUST 7, 2023

Depending on the situation, such events may or may not require disclosure in an organization's financial statements. Related Articles Adequate Disclosure Financial Statement Footnotes Post Balance Sheet Events Supplementary Information The two types of subsequent events are noted below.

Financial Statements 75

Financial Statements Collections Invoicing Accounting 75

Accounting Tools

MAY 21, 2023

Presentation and Disclosure Assertions The following five items are classified as assertions related to the presentation of information within the financial statements, as well as the accompanying disclosures: Accuracy. The assertion is that all asset, liability, and equity balances have been recorded at their proper valuations.

Auditing 75

Auditing Financial Statements General Ledger Accounting 75

Accounting Tools

NOVEMBER 2, 2023

Assertions are the set of representations by a management team that were incorporated into the financial statements and accompanying disclosures that they produced. Classification Transactions have been appropriately presented within the financial statements and accompanying disclosures.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

JULY 10, 2023

Related Courses Investor Relations Guidebook Public Company Accounting and Finance What is Regulation Fair Disclosure? Regulation Fair Disclosure (FD) requires that a company immediately release to the general public any material non-public information that it has disclosed to certain individuals outside of the company.

Accounting 40

Accounting Accounting 40

Accounting Tools

FEBRUARY 8, 2024

Disclosure of Cumulative Preferred Stock The terms associated with cumulative preferred stock may be included in the disclosures that accompany the issuing entity’s financial statements. Terms Similar to Cumulative Preferred Stock Preferred stock is also known as preference shares or cumulative preferred shares.

Financial Statements 40

Financial Statements Corporate Finance Accounting Accounting 40

Accounting Tools

OCTOBER 26, 2023

Disclosure of the Basis of Accounting The basis of accounting being used is typically listed as a disclosure in the footnotes that a business releases to outside parties as part of its financial statements. This concept better represents the financial condition of a business than does the cash basis of accounting.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

OCTOBER 5, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook The general ledger clerk position is accountable for creating journal entries and assembling supporting documentation, as well as for tracking the contents of accounts , creating portions of the financial statements , and writing related disclosures.

General Ledger 40

General Ledger Financial Statements Accounting Accounting 40

Accounting Tools

JUNE 14, 2023

Financial Statement Disclosures When issued to users, the preceding types of financial statements may have a number of footnote disclosures attached to them. This document is not usually included when the financial statements are issued internally, as the information in it is not overly useful to the management team.

Financial Statements 75

Financial Statements Budgeting Auditing Accounting 75

Accounting Tools

JULY 14, 2023

The opinion may also be issued if certain required disclosures do not accompany the financial statements, or if the entity has not prepared its financial statements in conformity with the provisions of the applicable accounting framework.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

JUNE 12, 2023

A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor. The result of this examination is a report by the auditor, attesting to the fairness of presentation of the financial statements and related disclosures. What are the Stages of an Audit?

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

Accounting Tools

DECEMBER 19, 2023

Related AccountingTools Courses New Controller Guidebook Public Company Accounting and Finance The Interpretation of Financial Statements Examples of Financial Statement Footnotes The number of possible footnote disclosures is extremely long. The following list touches upon the more common footnotes, and is by no means comprehensive.

Financial Statements 40

Financial Statements Reconciling Auditing Accounting 40

Accounting Tools

JANUARY 2, 2024

The excessive use of off-balance sheet and derivative transactions, as well as the over-use of technical language in disclosures are examples of black box accounting. A third option is the use of a large number of reserves, for which the justifications for account balances are difficult calculations or assumptions that are hard to prove.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

JUNE 18, 2023

For example, the controller of a business chooses to add information to the financial statement disclosures regarding the cash flows being generated by its newest retail stores. This information is relevant to the decisions of the investment community, because it clarifies for them how well the entity is performing.

Financial Statements 75

Financial Statements Financial Reporting Accounting Accounting 75

Accounting Tools

MAY 10, 2024

Examples of situations that do not trigger an adjustment to the financial statements if they occur after the balance sheet date but before financial statements are issued or are available to be issued are: A business combination Changes in the value of assets due to changes in exchange rates Destruction of company assets Entering into a significant (..)

Financial Statements 40

Financial Statements Collections Invoicing Accounting 40

Accounting Tools

OCTOBER 23, 2023

Following this activity, the auditor then examines entity-level controls, focusing on significant accounts and disclosures, as well as their relevant assertions.

Auditing 40

Auditing Financial Reporting Financial Statements Accounting 40

Accounting Tools

MAY 7, 2024

These issues can be located by examining the disclosures that accompany the financial statements. Financial Statements May Not Be Comparable If a user wants to compare the results of different companies, their financial statements are not always comparable, because the entities use different accounting practices.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

MARCH 8, 2024

External financial reporting includes financial statements , financial summaries, and related disclosures that are issued to users outside of a reporting entity. What is External Financial Reporting? These footnotes include accounting policies, more detail on certain financial statement line items, and significant estimates.

Financial Reporting 40

Financial Reporting Financial Statements Auditing Accounting 40

Accounting Tools

SEPTEMBER 25, 2023

However, it is possible to describe the nature of the gain in the disclosures that accompany the financial statements , as long as the description is not misleading regarding when the gain might occur. Related Articles Contingent Liability Contingent Loss

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

APRIL 18, 2024

If the zoning commission had not indicated the company’s liability, it may have been more appropriate to only mention the loss in the disclosures accompanying the financial statements. Related Article Contingent Liability

Accounting 75

Accounting Accounting Financial Statements Auditing 75

Accounting Tools

NOVEMBER 9, 2023

The use of OCBOA may apply when financial statements are needed for a specific purpose, or when the preparer wants to use a simpler system than GAAP that requires fewer disclosures. Related Articles Applicable Financial Reporting Framework Special Purpose Framework

Financial Statements 40

Financial Statements Accounting Accounting Financial Reporting 40

Accounting Tools

AUGUST 4, 2023

Its primary responsibility is to generate financial statements and the related disclosures that fairly reflect the financial results and condition of the organization. Related Articles The Difference Between Public and Private Accounting The Different Types of Accountants What Does a CPA Do? What is Accountancy?

Accounting 75

Accounting Accounting Financial Statements Auditing 75

Xero

FEBRUARY 12, 2023

Our team are here to help — visit Xero Central for learning articles, support and more. After 31 July 2023, we’ll be adding foreign currency disclosure notes in all new reports that apply. We’ve answered some of your most common questions, so you can feel confident about switching to new reports before 31 July 2023.

XERO 263

XERO Budgeting Financial Analysis Budgeting Manager 263

Accounting Tools

SEPTEMBER 12, 2023

Related Articles Adequate Disclosure Financial Statement Footnotes Segment Reporting Summary of Significant Accounting Policies Supplementary Information

Financial Statements 40

Financial Statements Financial Reporting Accounting Accounting 40

Accounting Tools

AUGUST 7, 2023

Related Articles Earnings Guidance Forward Looking Statements (podcast) Regulation Fair Disclosure For example, the safe harbor rule allows a public company to make forward-looking statements , as long as they are preceded by a specifically-worded disclaimer.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 11, 2023

Related Articles Accounting Department Responsibilities Basic Accounting Concepts Debit and Credit Rules Full Cycle Accounting The Basis of Accounting Types of Transaction Cycles in Accounting These are usually considered to be managerial reports, rather than the financial reports issued to outsiders.

Financial Statements 75

Financial Statements Accounting Accounting Financial Reporting 75

Accounting Tools

MARCH 5, 2024

Related AccountingTools Courses GAAP Guidebook International Accounting Related Articles Adequate Disclosure Relevant Information

Financial Statements 40

Financial Statements Financial Reporting Accounting Accounting 40

Accounting Tools

SEPTEMBER 9, 2023

Accounting postulates are generally not stated in the disclosures that accompany a reporting entity’s financial statements. Related Articles Applicable Financial Reporting Framework Other Comprehensive Basis of Accounting The Differences Between GAAP and IFRS

Accounting 40

Accounting Accounting Financial Statements Financial Reporting 40

Accounting Tools

FEBRUARY 13, 2024

A company omits the existence of a lawsuit from its financial statement disclosures that indicates the potential for a large settlement that could bankrupt it. Any current asset or current liability amounts resulting in a ratio of less than 2:1 would be considered material, since the loan could then be called by the lender.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

AUGUST 7, 2023

A registration statement is a disclosure statement that a business files with the Securities and Exchange Commission (SEC) when it wants to sell equity securities to the public. Related Articles Form S-3 Piggyback Registration Prospectus Seasoned Issue Stock Registration The Initial Public Offering

Accounting 40

Accounting Accounting 40

Accounting Tools

NOVEMBER 3, 2023

Substance over form is the concept that the financial statements and accompanying disclosures of a business should reflect the underlying realities of accounting transactions. Related Articles Accounting Principles Objectives of Financial Reporting The Characteristics of Useful Accounting Information The Key Accounting Assumptions

Financial Statements 75

Financial Statements Financial Reporting Bookkeeping Billing 75

Accounting Tools

JUNE 6, 2023

Presentation of Appropriated Retained Earnings Any retained earnings appropriation should be clearly stated either within the body of the balance sheet or in the accompanying disclosures.

Financial Statements 74

Financial Statements Accounting Accounting 74

Accounting Tools

APRIL 14, 2024

Presentation of Restricted Retained Earnings The amount of any restricted retained earnings should be stated separately as a line item on the balance sheet , and should also be stated in the disclosures that accompany the financial statements. Related Articles Appropriated Retained Earnings Unappropriated Retained Earnings

General Ledger 40

General Ledger Financial Statements Accounting Accounting 40

Accounting Tools

JULY 15, 2023

The exact status of a contingent liability is important when determining which liabilities to present in the balance sheet or in the attached disclosures. Thus, you should review the disclosures accompanying a company's financial statements to see if there are additional risks that have not yet been recognized.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

JULY 8, 2023

Investment Decisions by External Investors In this situation, a financial analyst or investor reviews the financial statements and accompanying disclosures of a company to see if it is worthwhile to invest in or lend money to the entity. This type of analysis applies particularly well to the situations noted below.

Financial Analysis 75

Financial Analysis Financial Statements 75

Accounting Tools

JUNE 9, 2023

The term can also refer to the disclosure of additional information that accompanies a company’s financial statements, such as a schedule of remaining lease payments, or revenues and expenses by business segment, or fixed asset types. Related Articles Audit Documentation Audit Strategy Audit Trail Lead Schedule Work Papers

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Financial Statements Auditing Accounting Accounting 40