The Economics of the Market
Do High Consulting Fees Compromise the Independence of CPA Firms?
Certified public accountants, in many people’s eyes, serve as cops on the Wall Street beat, assuring the accuracy of the financial results reported by U.S. companies. But key components of the audit process – the independence and objectivity of auditors – may be eroding because of the huge fees paid by audit clients for non-audit services.
Content: Article | Source: Knowledge@Wharton | Subjects: Accounting, Ethics
On the Firing Line at Qwest
“It’s two Morgan Stanley analysts vs. the telecom in an unusual feud over accounting”
Though focused on a specific company and time-frame, this article nevertheless offers some useful insight into the delicate relationships between Wall Street, analysts, investors and companies. And it offers glimpses of some interesting accounting “tricks.”
Content: Article | Author: Peter Elstrom | Source: BusinessWeek | Subjects: Accounting, Miscellaneous
Pepe’s Pizza Parlour
A practical lesson in account management from BizEd, Pizza Package provides “both underpinning knowledge and practical worksheets which when complete can provide primary evidence for a portfolio.” Users of this tutorial will explore the accounts of the fictitious Pepe’s Pizza Parlour to learn how to manage each kind of account including trial balance, depreciation, and the balance sheets. Biz/Ed is an English site, so all … [ Read more ]
Content: Online Resource | Source: biz/ed | Subjects: Accounting, Education
Gilding the Supply Chain
Collaboration among manufacturers, suppliers and customers is helping companies drive excess costs out of the supply chain. Mutual trust and accurate cost accounting are the critical links.
Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subjects: Accounting, Operations
Net Income May Not Be The Best Way To Measure All Companies
Over the last few years, it’s become clear that many technology investors don’t know how to value companies that have negative net income. For example, what’s the best way to look at an emerging telecom company that’s building out its network and accruing lots of debt? Net income, when calculated according to U.S. Generally Accepted Accounting Principles, can be distorted and tell an investor little … [ Read more ]
Content: Article | Author: William Schaff | Source: InformationWeek | Subjects: Accounting, Finance
The Second Annual Knowledge Capital Scoreboard: A Knowing Glance
Increasingly, intangible knowledge assets are dwarfing the value of tangible book assets at many companies. But don’t ask for details. While corporate reports heap praise on various efforts to capitalize on knowledge, they fail to supply reliable, objective benchmarks for measuring the values a company gets from its patents, brands, trademarks, capital expenditures, and research-and-development programs.
To assist financial managers in grappling with knowledge assets, … [ Read more ]
Content: Article | Source: CFO Publishing | Subjects: Accounting, Finance
Book-keeping and Accounting Interactive Tutor (BAIT)
The Book-keeping and Accounting Interactive Tour (BAIT), from Biz/Ed, is a helpful collection of exercises for bookkeeping students of all levels. BAIT suggests that students use these worksheets as supplementary lessons to formal accounting classes. Six interactive worksheets on accounting principles offer fill-in-the-blank activities on topics including the accounting equation; double-entry for assets and liabilities, revenues and expenses; and accruals and prepayments. After completing each … [ Read more ]
Content: Online Resource | Source: biz/ed | Subjects: Accounting, Courses / Tutorials, Education
Stock-Based Compensation and the Cost of Capital
Article discusses the controversy of whether companies should estimate the present value of employee stock options, when granted, and then account for them as a current expense. Though the article is a little dated (referring to an old FASB proposal), the issues addressed continue to be relevant.
Content: Article | Authors: Amy P. Sweeney, Patricia M. Dechow, Richard G. Sloan | Source: strategy+business | Subjects: Accounting, Corporate Governance
Trying to Grasp the Intangible
The assets that really count are the ones accountants can’t count–yet. Here’s one way to put a dollar value on corporate knowledge.
Content: Article | Author: Thomas A. Stewart | Source: FORTUNE | Subjects: Accounting, Finance
Was That Auditor’s Opinion Really Independent?
Take a close look at some audit disasters, and you may agree with the SEC’s outgoing chairman, Arthur Levitt: Accounting work and consulting work really shouldn’t be under the same roof.
Content: Article | Author: Elizabeth MacDonald | Source: Forbes | Subject: Accounting
Accounting Change Tempers Impact Of ‘New Math’ On Broadcom
Short article looks at Broadcom’s aggressive (but legal) use of accounting – especially with regard to acquisition-related write-offs and exclusions.
Content: Article | Author: William Schaff | Source: InformationWeek | Subject: Accounting
Historical Cost Vs. Current Cost: Accountants Wrestle with Reporting Question
One of the foundations of American accounting is the Historical Basis approach, under which assets are presented on the balance sheet at their value at the time of acquisition. But in an era marked by the widespread use of complicated financial instruments and risk management strategies that may render yesterday’s prices obsolete, some people are asking if historical cost should be replaced by a current-cost … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subject: Accounting
Accounting Terminology Guide
Created and maintained by the New York State Society of CPAs, the Accounting Terminology Guide is an educational tool for financial journalists. The glossary is a very straightforward alphabetized list of financial terms, from “accelerated depreciation” to “zero-coupon bond.” Terms within definitions that are also included in the Guide are highlighted in capital letters. In addition, the site contains a brief users’ guide and information … [ Read more ]
Content: Online Resource | Source: New York State Society of CPAs | Subject: Accounting
Knowledge Capital Scorecard
The Missing Assets: An Introduction
Article discusses problems associated with accounting for and valuing intangible assets (see related articles by Baruch Lev). Offers some refresher info for those who have forgotten (or yet to take) their accounting course(s).
Content: Article | Author: Phil Weiss | Source: Motley Fool | Subjects: Accounting, Finance | Industry: Investing
Plan to Prohibit Pooling in M&A Accounting Causes Tidal Wave of Controversy
The Financial Accounting Standards Board is proposing to change the way a company accounts for the premium – or payment in excess of fair market value – that it pays to acquire another company. The idea is to give analysts and others more information about merger activity, thereby allowing them to make better investment decisions. But as usual, there is more going on than meets … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subject: Accounting
Manufacturing Masters Its ABCs
A look at the concept of activity-based costing, or ABC and its growing popularity in the manufacturing world.
Content: Article | Author: Hugh Filman | Source: BusinessWeek | Subjects: Accounting, Operations
Where Have All the Accountants Gone?
Article discusses the decline in overall numbers of accountants (and the defection of existing ones from Big 5 firms) due to too many regulations, increased educational requirements.
Content: Article | Author: Nanette Byrnes | Source: BusinessWeek | Subject: Accounting