Author: Anfisa Dmitrieva

The balance in the petty cash account should now be the same as the amount at which it started. When the cash balance in the petty cash fund drops to a sufficiently minimal level, the petty cash custodian applies for more cash from the cashier. This …

Well, in every lease, whether it be a $3,000,000 piece of manufacturing equipment or a $20,000 car, there is an implicit interest rate that lessees pay to lessors. The interest rate implicit in a lease often incorporates an ‘asset risk premium’ refle…

For physical assets, such as machinery or computer hardware, carrying cost is calculated as (original cost – accumulated depreciation). If a company purchases a patent or some other intellectual property item, then the formula for carrying value is (…

IMA provides a forum for members by promoting forward-thinking research and industry best practices and offering newsletters and journals. For years now, the Institute of Management Accountants salary survey has noted that accountants with both the C…

However, it is the Board that issues Interpretations and narrow scope amendments and the Board that considers and votes on each Interpretation and narrow scope amendment before it is issued. As well as IFRS Standards, the Board has issued an IFRS Sta…

Comparability is the ability to review side-by-side two or more different companies’ financials. Horizontal analysis not only improves the review of a company’s consistency over time directly, but it also improves comparability of growth in a company…

Because of the volatile nature of these items, comprehensive income is more susceptible to change than net income. Comprehensive income takes the company’s net income and adds to it what is termed other comprehensive income. This would include unreal…

Once we have those two pieces of information, we can use them to figure out the approximate cost for any level of production. When using the high-low method, the highest point and the lowest point are used to create the cost formula. The high point i…

The gains and losses derived from an AFS security are not reflected in net income (unlike those from trading investments), but show up in the other comprehensive income (OCI) classification until they are sold. Therefore, unrealized gains and losses …

They are more fixed than selling costs because they include rent or mortgage on buildings, utilities, and insurance. G&A costs also include salaries of personnel in certain departments, other than those related to sales or production. Selling, ge…