Category: GAAP / IFRS

Statement of Financial Accounting Standards (SFAS)

The Statement of Financial Accounting Standards (SFAS) describes standards for professional accounting practices and procedures in the United States. Furthermore, it is published by the Financial Accounting Standards Board (FASB). The document lists standard rules and regulations – including many from GAAP – for preparing financial statements. In addition, the FASB intended for these standards to

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Scrap Value

See Also: Adjusted Present Value (APV) Asset Market Value vs Asset Book Value Future Value Going Concern Value Customer Analysis Scrap Value Definition The scrap value definition, also known as salvage value, is the value of an asset after it is fully depreciated. Once an asset reaches the point where it is fully depreciated, has

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Research and Development

Research and Development Definition Research and development (R&D) in business refers to activities geared towards new product development or current product improvement. It typically involves conceptualizing and designing new products and then tailoring them to meet the needs of the target market. R&D is often a line item on a company’s income statement. Technology and

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Net Operating Loss Carryback and Carryforward

Net Operating Loss Carryback and Carryforward What is a net operating Loss carryback and carryforward? A net operating loss occurs when a company’s operating expenses and allowable tax deductions exceed its operating income for an accounting period. Companies pay taxes on operating income. When companies incur an operating loss, there is no taxable income, so

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Prepare an Investor Package

See Also: How to Prepare a Breakeven Analysis Contribution Margin Cost Volume Profit Model ProForma Financial Statements Net Profit Margin Analysis Prepare an Investor Package The Investor Package serves as a medium to visually communicate to the Owner/Management financial information which they might otherwise have difficulty digesting in financial statements. This is not unusual since

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International Financial Reporting Standards (IFRS)

See Also: Financial Instruments Finance Beta Definition Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB) Financial Ratios International Financial Reporting Standards (IFRS) The International Financial Reporting Standards (IFRS) are a set of rules and standards for preparing financial statements. An organization called the International Accounting Standards Board (IASB) issued the IFRS. The goal

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Goodwill Accounting Term

See Also: Accounting Income vs Economic Income Depreciation Cash Flow Statement Income Statement Generally Accepted Accounting Principles Goodwill Accounting Term The goodwill accounting term is an intangible asset. It represents non-physical assets, such as brand name and reputation, and shows up on the asset side of a company’s balance sheet. A company often acquires goodwill

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Full Disclosure Principle

See also: Accounting Principles 5, 6, and 7 Accrual Based Accounting GAAP Rules Generally Accepted Accounting Principles (GAAP) What is GAAP? Full Disclosure Principle Definition As one of the principles in Generally Accepted Accounting Principles (GAAP), the Full Disclosure Principle definition requires that all situations, circumstances, and events that are relevant to financial statement users

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Financial Accounting Standards Board (FASB)

See Also: International Financial Reporting Standards Financial Ratios Financial Instruments Finance Derivatives Finance Beta Definition FASB Lease Accounting Changes Financial Accounting Standards Board (FASB) The Financial Accounting Standards Board (FASB) is the organization that is responsible for both establishing and interpreting the standards of financial accounting and reporting practices in the U.S. One may know

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Deferred Revenue

See Also: Deferred Income Tax Deferrals Income Statement Accounting Principles Generally Accepted Accounting Principles (GAAP) Deferred Revenue Definition Deferred revenue is considered a liability to companies that contain them. It occurs because a customer has paid for a product or service, but the company has yet to provide the product or perform the service. Deferred

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Double-Declining Method Depreciation

See Also: Double-Declining Depreciation Formula Accelerated Method of Depreciation Double-Declining Method Depreciation Straight-Line Depreciation Depreciation GAAP Fixed Assets – NonCurrent Assets Double Declining Depreciation: Definition Double-declining depreciation, defined as an accelerated method of depreciation, is a GAAP approved method for discounting the value of equipment as it ages. It depreciates a tangible asset using twice

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Cost Accounting

See Also: Accrual Based Accounting The Future of the Accounting Workforce Absorption vs Variable Costing Implementing Activity Based Costing Process Costing Management Accounting Cost Accounting Definition The common cost accounting definition is accounting which seeks to create then compare a budget to the actual cost of doing business. In cost accounting, budgeting aids in decision making

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