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MAKERERE University has failed to account properly for funds from private students amounting to sh56b, according to a report from a visitation committee ordered by President Yoweri Museveni. أكثر...

H.E. Engineer Hamad Mubarak Buamim, Director General of Dubai Chamber of Commerce & Industry, inaugurated the World Accounting Summit 2007 being held at Madinat Jumeirah in Dubai on May 27-28 and endorsed by Dubai Chamber. أكثر...

WASHINGTON (MarketWatch) -- U.S. accounting overseers voted Thursday to streamline rules for auditors' assessments of corporate financial statements, in a move that supporters say will save time and simplify burdens imposed by the Sarbanes-Oxley Act. أكثر...

The U.S. Securities and Exchange Commission, responding to complaints that the Sarbanes-Oxley Act has been too costly to implement, approved guidelines that will allow executives to focus their attention on factors most likely to trigger financial misstatements. أكثر...

IBISWorld , recognized as one of the nation's most respected independent publishers of business intelligence research in more than 700 industry reports, 8,000 company profiles, and risk rating reports on virtually every industry, today released revenue and risk projections for America's accounting industry which includes the related fields of auditing services, tax return preparation, ... أكثر...

HOUSTON----GLO CPAs, LLP, a large Houston-based 25 year old leading certified public accounting firm is providing more than financial services for its clients and constituents by hosting seminars and networking sessions at The Houston Club. أكثر...

BEIJING, May 21 /Xinhua-PRNewswire-FirstCall/ -- NetEase.com, Inc. (Nasdaq: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the quarter ended March 31, 2007. أكثر...

THE Securities and Exchange Commission (SEC) has inaugurated an 11- member Committee on auditing and financial reporting standard charged with the responsibility of harmonizing and upgrading financial reporting and auditing practices by quoted companies operating in the country. أكثر...

Thomas J. Linsmeier, the chairman of the accounting department at Michigan State University, was named a member of the Financial Accounting Standards Board yesterday. He said he hoped to work on changing rules for lease accounting. أكثر...

Critics say a 30-year-old standard has enabled companies to leave hundreds of billions in debt off their balance sheets. أكثر...

The rule would have required companies to take a more stringent approach to reporting uncertain tax positions on their financial statements. أكثر...

The Oxford University Press has published Financial Reporting and Global Capital Markets: A History of the International Accounting Standards Committee, 1973-2000, by Kees Camfferman and Stephen A. Zeff. أكثر...

The Treasury Department will study the causes of a sharp rise in corporate financial restatements over the past decade as part of a broader effort to make U.S. capital markets more competitive. أكثر...

The Public Company Accounting Oversight Board on May 24, 2007, will vote on a final standard on auditing internal control over financial reporting, as well as a related independence rule and conforming amendments to the Board’s auditing standards. أكثر...

Paulson called this the first stage of an "action plan" for maintaining the competitiveness of US capital markets. "A transparent financial reporting system and vibrant auditing profession form the backbone of a marketplace investors can trust," Paulson said. أكثر...

Henry M. Paulson Jr. introduced proposals for making the nation?s capital markets more competitive by strengthening financial reporting and auditing procedures. أكثر...

The World Accounting Summit, which takes place at the Madinat Jumeirah, Mina A'Salam Hotel in Dubai on 26-30 May, will examine the progress made to date on the International Accounting Standards Board (IASB) draft and the proposed International Financial Reporting Standard (IFRS) for Small and Medium Enterprises (SMES). More...

WASHINGTON (Thomson Financial) - US Treasury secretary Henry Paulson has asked former Securities and Exchange Commission chairman Arthur Levitt and former SEC chief accountant Donald Nicolaisen to chair a commission on reforming the accounting industry. More...

http://accounting-standards.7p.com http://e-accounting.7p.com

[align=left:e5fae15d2d]Financial Statement Basics Understanding of the 3 financial statements – (balance sheet, income statement and statement of cash flows). What does each financial statement represent? The Balance Sheet (BS) presents a firm’s investments and financing at a moment in time.  What is the financial position, or financial health, of a firm? The Income Statement indicates the net income for a period of time (profit margin = net income / revenues).  How profitable is the firm? The Statement of Cash Flow reports the net cash flows derived from operating, investing and financing activities for a time period  Is the firm generating sufficient cash flows from its customers to finance operations and to acquire buildings and equipment or must it seek new funds from lenders or owners? What is the structure of each statement? Balance Sheet Investing Financing Assets = Liabilities + Shareholders’ Equity Assets are economic resources with the ability or potential to provide future benefits to a firm. Current assets (e.g. cash, short term securities, accounts receivable, inventories) are consumed or turned into cash within one year of the date of the balance sheet. Liabilities are creditors’ claims on the assets of a firm and show the sources of the funds used to acquire the assets. Current liabilities require payment within one year, long-term debt within more than one year. Firms typically finance current assets with current liabilities and vice versa. Shareholders’ equity shows the amounts of funds owners have provided and their claims on the assets. Shareholders’ equity comprises contributed capital (e.g. common stock, additional paid in capital) and retained earnings. Income Statement Revenue – Expenses = Net Income Cash Flow Statement 3 sections: Operating Investing Financing What is the link between the three statements? Relation of Income Statement to Balance Sheet Income Statement links the balance sheet at the beginning of the period with the balance sheet at the end of the period. Balance sheet amount for retained earnings represents the sum of prior earnings of a firm in excess of dividends. The amount of net income helps explain the change in retained earnings for the period. Retained Earnings (Start of Period) + Net Income for Period – Dividends Declared and Paid = Retained Earnings (End of Period) Relation of Cash flow Statement to Income Statement and Balance Sheet CFS explains the change in cash between the beginning and the end of the period. The statement of cash flows also sets forth the major investing and financing activities for the period. Thus the statement of cash flows also helps explain changes in various items on the comparative balance sheet. The statement of cash flows parallels the income statement by showing the relationship between net income and cash flow from operations. Income can be rising but cash flow can still decline if the business does not collect cash from its customers. Summary Financial Position – Balance Sheet Profitability – Income Statement Cash generating ability – Statement of Cash Flows Understanding of the basic mechanics of financial accounting – (debits, credits, transaction journal entries, adjusting entries, closing entries, t-accounts, trial balances and financial statements) Accounting Process  Journalizing in General Journal  Periodic Posting to Appropriate Accounts  Preparation of unadjusted trial balance  Correction and adjustment of trial balance  Preparation of financial statements Typical Journal Entry Date Account Debited $Debit Account Credited $Credit Explanation of transaction or event being journalized e.g Date Cash $Debit Equipment $Credit Purchase equipment costing $X in cash. Posting happens periodically (e.g. weekly or monthly). Amounts from General Journal are posted to the General Ledger. T-Accounts are used. Trial Balance Preparation: Lists accounts in general ledger with a trial balance as of a particular date. Equality between sums of debit account balances and credit account balances helps check the accuracy of arithmetic. Trial Balance After Adjustment and Correction: Errors and omissions. Unrecorded events. E.g pre-paid items such as insurance, the costs of which are accrued over the life of the policy. Normally done by preparing a journal entry. Financial Statement Preparation: Can be done after corrections and adjustment. Balance sheet How are assets and liabilities valued on the balance sheet? Asset valuation Methods: Acquisition (historical) cost; current replacement cost, current net realizable value, present value. Monetary assets generally appear on the balance sheet at their net present value, their current cash or cash equiavalent value. E.g. cash, marketable securities, accounts receivable. Noncurrent monetary assets are therefore discounted. Nonmonetary assets (e.g. merchandise inventory, PPE) generally appear at acquisition cost, in some cases adjusted downward to reflect that the firm has consumed some of the assets‘ services and, in others, to recognize some declines in market value. Note impairments, depreciation or holdings losses or mark-to-market. Liability valuation Most liabilities are monetary. Those due within one year or less appear at the amount of cash the firm expects to pay to discharge the obligation. If long term (due in more than one year), e.g long term bonds appears at the present value of the future cash outflows. Nonmonetary liabilities: a liability that involves delivering goods or services other than cash. E.g. a warranty, cash advance. Such a liability appears on the balance sheet at the estimated cost, a cash advance appears at the amount of cash received. What are the components of stockholders’ equity section? Common Stock: amounts received equal to the par or stated share value Preferred Stock: amounts received for stock that has some preferences Additional Paid-in Capital: received amounts in excess of par or stated value Retained Earnings: increase in net assets due to generated earnings. Treasury Shares: the cost of shares reacquired by the firm itself. How is US GAAP different from other countries? Structure of the balance sheet US GAAP Other countries Current assets Noncurrent assets Noncurrent assets Current assets Current liabilities Long-term debt / liab. Shareholders equity Shareholders equity Long-term debt / liab. Current liabilities Terms used for accounts US Other countries - Property, Plant Equipment - Investment in securities - Accounts receivable - Cash - Common Stock - Additional paid-in capital - Retained earnings - Bonds payable - Notes payable to Banks - Accounts payable - Tangible Fixed Assets - Financial Assets - Trade receivables - Liquid funds - Subscribed capital - Capital reserve - Profit reserves, Net income available for distribution - Bonds - Due to Banks - Trade payables Mark to Market versus Historical Cost Some countries allow firms to mark fixed assets (PPE) to market whilst in the US this is only allowed for Marketable Securities (Trading Securities and Available for Sale). Income Statement What is the difference between cash and accrual accounting? Cash accounting: measures the performance of a business from the selling and provision of goods and services based on the cash received from customers. Problems with cash accounting:  Inadequately matches inflows and with the outflows and efforts associated with them.  Unnecessarily delays the recognition of revenues (revenue is recognized only when cash is received).  Provides opportunity to distort the measurement of operating performance (by delaying payments to suppliers at the end of an accounting period, for example) Hence, we use accrual accounting, which recognizes revenue when a firm sells goods or renders services. Expenses are measured using the matching principle, whereby cost expirations are matched to revenues (or economic benefits). When do I record revenues under accrual accounting? Revenues are recorded when they are earned and realizable. This is defined as follows: Earned: A firm has performed all, or most of, the services it expects to provide. Realizable: The firm has received cash or some other asset such as a receivable, whose cash equivalent can be measured with reasonable precision. The above is taken from Stickney and Weil. Another variation of the definition is that revenues are recognized when it is ‘realized or realizable and earned’. To achieve this standard the following criteria must be met:  Persuasive evidence of a sales agreement exists  Delivery has occurred or services have been rendered  The selling price is fixed or determinable  Collection is reasonably assured. The above points come from SEC Staff Accounting Bulletin 101, which was issued in 1999. When I record revenue should I record other things as well? If a firm recognizes revenues in a period before it receives cash it should also take the following factors into account in determining how much of the total revenue to recognized. Uncollectible accounts; i.e. some people will not pay – estimate how many will likely not pay based on previous experience. Sales Discounts and Allowances – Some customers may be provided with discounts for prompt or early payment. Sales returns – Some customers may return the goods for refund. Each of the above must be reliably estimated and the amount of revenue recognized is reduced as appropriate. When do I record expenses under accrual accounting? As assets provide future benefits to a firm, expenses measure the assets consumed in generating revenue. Expenses are ‘expired costs’ or gone assets. Criteria for expense recognition:  Matching principle – If particular revenue causes an asset to expire, that expiration becomes an expense in the period when the firm recognizes the revenue. This treatment – the matching principle – matches cost expirations with revenues.  If no particular revenue causes an asset to expire, that expense becomes an expense of the period in which the firm consumes the benefits of that asset in its operations. Examples… Product costs: Cost of goods sold is recognized as an expense when a firm sells the goods. A firm which buys raw materials and through its operations transforms them into a finished product only recognizes the direct material cost, direct labor cost and manufacturing overhead cost as expenses when the goods are sold, not when they are purchased and paid for. (Matching principle.) Marketing costs: Relate primarily to the revenues of the period and these are thus recognized as expenses in the period that they occur. They are thus referred to as period expenses. It could be argued that certain marketing costs (e.g. advertising) produce a future benefit and should thus be treated as an asset (AOL famously did this in the mid 1990’s and was later sued by the SEC). Hence most accountants have a problem to quantify the future benefit (if there is one at all), hence in normal situations marketing costs are recognized as expenses in the period in which they are incurred. They are normally classified under Sales and General Administrative Expenses (SG & A) by US listed companies. Administrative costs: E.g. presidents salary, accounting and IT system costs are recognized in the same way as marketing, i.e. as period expenses and are also generally classified under SG&A. When do I record asset impairment charges under accrual accounting? Asset impairment – GAAP require a three-step measurement process for measuring impairment on assets other than intangibles not requiring amortization. 1. Compare undiscounted future cash flows from the assets with their book value (e.g. a property which is rented out). The impairment loss is the amount of the book value, which exceeds their fair value (either present value of the future cash flows or market value). 2. Compare book value to market value. Impairment loss is the excess of book value over market value. 3. At the time the firm judges an impairment loss has occurred, the firm writes down the book value of the asset to fair value. Fair value being 1) market value or 2) if the firm cannot assess market value, the net present value of the expected future cash flows. The journalizing process is as follows: Date Accumulated depreciation $Total amount of Accumulated Depreciation attributed to the asset since acquisition Asset e.g. Building – (New Valuation) $New value of the building Loss on impairment $Difference between book value and fair value Asset e.g. Building – (Book Valuation) $Current book value of asset (normally acquisition cost of asset minus any impairment losses recognized previously) Effect on different statements: Balance Sheet Decreases assets by amount of impairment loss Decreases shareholders equity. (Retained earnings?) Income statement Appears a loss on income statement Cash flow statement Need to increase net income by amount of impairment loss since its not a cash flow When do I record restructuring charges under accrual accounting? Restructuring charges are constructive liabilities. A constructive liability arises not from an obligation but from management intent. For example, intent to close a plant, layoff employees and to make severance payments in amounts not yet determined. These are often referred to as restructuring charges and journalized as follows: When liability is recognized: Date Restructuring Charges $Total amount expected to be incurred in the event Liability for severance pay to employees $Total amount expected to be incurred in the event When liability is incurred (i.e. paid) Date Liability for severance pay to employees $Total amount consumed by the event Cash $Total amount consumed by the event Sometimes, a constructive liability may be overestimated. In that case, the following is done to reverse part of the initial charge. Date Liability for severance pay to employees $Total amount expected to be incurred in the event Reversal of Restructuring Charges $Total amount expected to be incurred in the event Reversal appears in income at the end of the year and is hence open to abuse by management. Some companies take a ‘big bath’ by overestimating restructuring charges associated with a planned event and afterwards reverse the amount not required in the restructure to boost income in a subsequent period. Analysts and investors hence do not like to see companies do this and are generally pleased to see a company make accurate estimates of restructuring charges. Effect on different statements of constructive liabilities can be summarized as follows: Statement At estimation of liability When liability is incurred At estimation of liability Balance Sheet Increase liabilities by amount estimated Decreases shareholders equity (through retained earnings) Decreases liabilities Decreases cash Decreases liabilities Decreases shareholders equity (through retained earnings) Income statement Appears a loss on income statement No effect (already accounted for as an expense when estimated) Increases net income Cash flow statement Need to increase net income by amount of estimated. Need to decrease net income by actual amounts of cash paid. Need to increase decrease net income by amount of reversal. [/align:e5fae15d2d]

السادة أعضاء المنتدى المحترمين هناك أحد المشاريع التي أفكر بها و أريد أن آخذ برأيكم بخصوصها أنه مشروع ITAS أو أختصار لـ Information Technology Accounting Standards كمعايير نقوم نحن أعضاء الموقع بأستقائها من معايير المحاسبة الدولية و معايير التقارير المالية الدولية و أهم المعايير في الدول العربية مثل معايير المحاسبة السعودية و الخليجية و أية معايير تخص أي دولة بالفعل نحن في حاجة إلى إصدار معايير محاسبية نضع فيها كل ممارساتنا المقبولة بالنسبة للبيئة العربية ككل و يمكن عن طريقها معرفة الممارسات الصحيحة طبقاً لما يتم التوصل إليه أو الصورة النهائية لكل معيار فمثلاً إذا أردنا أن نقوم بعمل معيار ITAS يتعلق بـ المخزون مثلا سوف يقوم السادة الأعضاء بمدارسة كل شئ يتعلق بالمخزون و مدارسة جميع المعايير لمحاسبية المتاحة كندية أسترالية أمريكية سعودية مصرية خليجية دولية أياً كانت هذه المعايير و نحاول أن نستقي الخلاصة الخاصة بهذه المعايير طبقاً لمناقشاتنا و أذا أردنا أضافة شئ على المعيار نضيفه قبل ذلك يجب أن يتم تسجيل كل عضر في كل معيار بحيث أن الموافقة على كل نقطة يتم مناقشتها في المعيار تتم بأخذ أصوات المشاركين لا يهم كم من الوقت سيأخذ هذا المعيار و لكن المهم أن هناك معيار تم مناقشته بطريقة علمية من جميع الجوانب لتوحيد الممارسات المحاسبية و الأسترشاد بهذه المعايير في نهاية المطاف معايير المحاسبة و تكنولوجيا المعلومات سوف تهتم أيضاً بوضع معايير تخص تكنولوجيا المعلومات على سبيل المثال المعايير التي يجب أتباعها عند تصميم الحلول المالية و أمن الحلول المالية و أمن المعلومات التي تحتويها و معايير جودة الحلول المالية كان هناك مشروع للمعايير المحاسبية في منتدى دليل المحاسبين قديماً و لكني بالفعل لم أدري ما هي فكرة هذا المشروع و لعلي هنا تذكرت هذا المشروع و قمت بطرح النقاط و الرؤية الخاصة به من وجهة نظري و لعلكم تشاركوني في الرأي للأسترشاد

http://www.angelfire.com/ab7/dr-husam-alkhadash/My%20Accounting%20stuff..html

i have applied to the accounting office, and there will be an exam and i ask would you think will be the nature of the exam??? thanks

http://www.ventureline.com/glossary_J.asp

http://en.wikipedia.org/wiki/List_of_accounting_topics