Business Planning, Budgeting and Forecasting

Asset-Based Financing Basics: Step-by-Step Examples

Editor's note: Also read "Asset-Based Financing Basics," by Robert A. Modansky, CPA/CFF, and Jerome P. Massimino, CPA, in the August 2011 issue of the JofA. Example 1: GAAP Treatment of Acceleration Clauses and Lockboxes The following is a summary of the provisions of FASB Accounting Standards Codification (ASC) Subtopic 470-10

Scenario Planning: Navigating Through Today's Uncertain World

Imagine you are sitting at your desk in September 2007. The Dow is close to 13,900; U.S. unemployment is 4.5%; and oil is $45 a barrel. You are in the middle of developing your organization’s plans and budgets for 2008. How likely is it that the assumptions in your 2008

Assessing the Allowance for Doubtful Accounts

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

Forecasting Post-Combination Earnings

The acquisition method of financial accounting for business combinations under FASB Statement no. 141(R), Business Combinations, requires the acquiring company to recognize and measure all identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquired company as of the acquisition date at their respective fair values. The assets

States Bite Into Broken Gift Cards

At the peak of the 2008 holiday shopping season, gift card sales are expected to again have a material impact on the financial reports of many retailers. Gift card “breakage,” or the portion of gift card balances that consumers fail to redeem for merchandise, can boost a retailer’s short-term cash

Managing Customer Profitability

All people may be created equal, but the same can’t be said for customers. Everyone knows that some customers are more profitable than others. Conversely, some are downright unprofitable. Knowing which is which is the all-important question. Despite enormous variations in profitability, many companies continue unprofitable relationships with customers, often

Post-Transaction Adjustments

More and more, global companies are discovering that year-end adjustments to intercompany transfer pricing can improve the accuracy of their transfer pricing tax reporting and, potentially, help prevent overpaying taxes by millions of dollars. However, increasing scrutiny by tax authorities in the United States and other key countries makes it

Tools for Financial Analysis

What do you do when a client asks you to look beyond the standard financial statements and help develop financial goals, forecasts and what-if scenarios? If you’re like many accountants, you’d hunker down with a spreadsheet and begin cobbling together an array of custom worksheets. Then you’d probably spend several

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2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

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How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.