News & Insights

Saving Money Through Proper Accounting

The current economic situation makes it a common occurrence for individuals and companies, whether big or small, to look for ways as well as employ measures of saving money. In so doing, they have resulted to reviewing salaries downwards, curtailing unrestricted expenditures, and laying off their employees. But, pursuing these austere measures is a phenomenon that can probably be avoided if the business owners or the entity’s management have an  effective, working, and proper accounting system in place.Proper accounting translates to good business. In line with this, utilizing certain technologies and hiring the right people will not only save enterprises…

Introduction to Income Statement

Overview of Financial Statements Financial statements are used by managers, shareholders, investors, lenders, and the government for different reasons and purposes. Essentially, financial statements show the financial status of an entity and are comprised of income statement, balance sheet, and cash flow statement. The Income Statement Also referred as an earnings statement or a profit and loss (P&L) statement, the income statement details the business’ financial performance for a certain month, quarter, and year. Unlike the balance sheet, the income statement evinces an entity’s business activity over time. In addition, it rehashes the generated income and deducts the incurred expenditures…

Introduction to Accounting Technologies

Historical Background on the Advances in Accounting Technologies Based on archaeological evidence, the ancient civilization employed different methods to keep track of their economic actions. One of the methods involved using small tokens. According to SchmandtBesserat, tokens were kept in clay jars and they embody economic proceedings. For instance, an entity’s balance statement is reflected on the quantity of tokens present in the clay jars. Graphic portrayals were also used in keeping records. Sumerians and Egyptians documented their business transactions on papyri and clay tablets not only to keep track and safeguard their properties, but also to demonstrate that the…

From U.S. GAAP to IGAAP: The Shift to IFRS

In 2008, the Securities and Exchange Commission (SEC) released a discussion roadmap regarding the adoption of International Financial Reporting Standards (IFRS) by U.S. companies in which entities that are interested in IFRS are allowed to file as early as 2011, even if the regular registration commences in 2014. Two years after the publication of the roadmap, the SEC announced that they would start considering the integration of IFRS into the country’s financial reporting system as soon as the specified readiness requirements are met and the U.S. GAAP and IFRS concurs.The Financial Accounting Standards Board (FASB) and the International Accounting Standards…

Getting to Know the Public Company Accounting Board

The enactment of the Sarbanes-Oxley Act (SOX) on July 30, 2002 led to the establishment of the Public Company Accounting Oversight Board (PCAOB). A private-sector, non-profit entity governed and supervised by the Securities and Exchange Commission (SEC), PCAOB was formed to supervise accounting professionals, particularly the auditors of publicly traded corporations, with a view of safeguarding the investors’ interests and to assure the public that companies’ audit reports are informative, trustworthy, and impartial. In addition, the Board oversees broker-dealer audits. These include submitted compliance reports in adherence to federal security laws and policies. Timeline of PCAOB since the Legislation of…