Search Results

September 2009 |  BY MARK E. RILEY, CPA, PH.D., WILLIAM R. PASEWARK, CPA, PH.D. |  Article

Calculating estimates of the collectibility of accounts receivable and auditing those estimates is difficult. This article describes three techniques for assessing allowance for doubtful accounts estimates and complying with Statement on Auditing Standards (SAS) no. 57 and AU section 342, Auditing Accounting Estimates, which suggest auditors compare prior accounting estimates with subsequent results to evaluate the reliability of the process used to develop estimates.

August 2009 |  BY KENNETH A. MERCHANT, TATIANA SANDINO |  Article

In casual, everyday language, it is often said a corporation’s primary role is to generate profits. However, the primary role of a corporation is not to generate profits it is to create shareholder value. When corporations focus their internal performance measurement systems on shortterm profits or accounting returns—not shareholder value—bad things often happen.

April 2009 |  Article

A sound business strategy is important no matter what the state of the economy. As you work with clients to determine the best methods of surviving the recession, be sure to discuss the following critical points for seizing opportunities to refocus, contain expenses and reassure customers. Take a fresh look at your budgetary and revenue needs.

February 2009 |  Article

The Professional Accountants in Business Committee of the International Federation of Accountants has developed a sustainability framework for businesses. The free Webbased framework tool is designed to support professional accountants and their organizations in integrating a sustainable way of thinking and working in all business processes. The framework, which is designed from the perspectives of business strategy, internal management, financial investors and other stakeholders, illustrates how a commitment to sustainability can help improve an organization’s products or services, motivate its people, lower its

December 2008 |  Article

Accounting and business leaders from around the world will meet Wednesday, Dec. 17, in London for a forum on accounting for sustainability hosted by Prince Charles. The forum will include remarks from Prince Charles, HSBC Holdings Plc. Chairman Stephen Green and BP Plc. CEO Tony Hayward. The AICPA will also participate in the forum.

October 2008 |  Article

Harvard Business School professor Robert S. Kaplan is codeveloper of both activitybased costing and the balanced scorecard. In 2006, Kaplan was elected to the Accounting Hall of Fame, and received the Lifetime Contribution Award from the Management Accounting Section of the American Accounting Association. In 2008, the Institute of Management Accountants honored him with a Lifetime Award for Distinguished Contribution to Advancing the Profession of Management Accounting.

August 2008 |  BY Donald J. Carroll Jr. |  Article

The Journal of Accountancy ’s May 2008 discussions of fair value “accounting” (“The Role of Fair Value Accounting in the Subprime Mortgage Meltdown,” page 34), more correctly described as fair market valuation, are interesting. Each opinion on this subject presents a compelling argument. Fair Value vs. The Audit Debates on fair market valuation—for years— seem to dissolve habitually into monographs, with each opinion eloquently supporting itself by referring to incredibly detailed, and narrow, facts and circumstances.

August 2008 |  BY David C. Burns, J. Timothy Sale, Jens A. Stephan |  Article

EXECUTIVE SUMMARY Returnonequity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The advanced version of the DuPont model remedies the original model’s failure to cleanly separate the effects of operating and financing decisions.

July 2008 |  BY Jan P. Brosnahan |  Article

EXECUTIVE SUMMARY Lean accounting concepts are designed to better reflect the financial performance of a company that has implemented lean manufacturing processes. These may include organizing costs by value stream, changing inventory valuation techniques, and modifying financial reports to include nonfinancial information. Value stream management (VSM) is a different way of measuring and evaluating a company’s results and involves changes to decisionmaking processes.

December 2007 |  BY Larry Bildstein |  Article

EXECUTIVE SUMMARY Direct marketing has become a popular and successful form of CPA firm marketing with the following potential benefits The process encourages you to define a very specific target audience of prospects most likely to buy your services. The format enables you to develop a specific message for your target audience.