Critical Accounting Policy

	Critical Accounting Policy In public corporate finance, a critical accounting policy is a policy of a firm or industry which is considered to have a notably high subjective element, and that has a material impact on the organization's financial statements. Such policies are often mandated to be described in detail in specific sections of a company's annual or quarterly reports. Adopting specific accounting policies and procedures (such as Sarbanes Oxley) is one method organization's use to ensure adequate controls and transparency in financial reporting, to minimize the risk of fraud. Many accounting policies necessarily involve the subjective valuation of different items in order to give observers the best possible "snapshot" of a company's finances by looking at a single balance sheet or profit and loss statement. For example, a bank that has just made a lot of new loans would look good on one report, but if many of those borrowers later failed to repay then a subsequent report would look very bad. So gene ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
picture info	Corporate Finance Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to Shareholder value, maximize or increase valuation (finance), shareholder value. Correspondingly, corporate finance comprises two main sub-disciplines. Capital budgeting is concerned with the setting of criteria about which value-adding projects should receive investment funding, and whether to finance that investment with ownership equity, equity or debt capital. Working capital management is the management of the company's monetary funds that deal with the short-term business operations, operating balance of current assets and Current liability, current liabilities; the focus here is on managing cash, inventory, inventories, and short-term borrowing an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Sarbanes Oxley Sarbanes may refer to: Paul Sarbanes (1933–2020), former United States Senator from Maryland Janet Sarbanes, American writer John Sarbanes (born 1962), Member of the U.S. House of Representatives from Maryland's 3rd district and son of Paul Sarbanes Sarbanes–Oxley Act The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, (), also known as the "Public Company Accounting Reform and Investor Protecti ... , a United States federal law sponsored by Paul Sarbanes and Michael G. Oxley {{disambig ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Generally Accepted Accounting Principles Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms operate on the cash method of accounting which can often be simple and straight forward. Larger firms most often operate on an accrual basis. Accrual basis is one of the fundamental accounting assumptions and if it is followed by the company while preparing the Financial statements then no further disclosure is required. Accounting standards prescribe in considerable detail what accruals must be made, how the financial statements are to be presented, and what additional disclosures are required. Some important elements that accounting standards cover include: identifying the exact entity which is reporting, discussing any "going concern" questions, specifying monetary units, and reporting time frames. Limitations The notable limitations of accounting ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Creative Accounting Creative accounting is a euphemism referring to accounting practices that may follow the letter of the rules of standard accounting practices, but deviate from the spirit of those rules with questionable accounting ethics—specifically distorting results in favor of the "preparers", or the firm that hired the accountant. They are characterized by excessive complication and the use of novel ways of characterizing income, assets, or liabilities, and the intent to influence readers towards the interpretations desired by the authors. The terms "innovative" or "aggressive" are also sometimes used. Another common synonym is "cooking the books". Creative accounting is oftentimes used in tandem with outright financial fraud (including securities fraud), and lines between the two are blurred. Creative accounting practices are known since ancient times and appear world-wide in various forms. The term as generally understood refers to systematic misrepresentation of the true income and asse ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Mortgage Servicing Rights A mortgage servicer is a company to which some borrowers pay their mortgage loan payments and which performs other services in connection with mortgages and mortgage-backed securities. The mortgage servicer may be the entity that originated the mortgage, or it may have purchased the mortgage servicing rights from the original mortgage lender. The duties of a mortgage servicer vary, but typically include the acceptance and recording of mortgage payments; calculating variable interest rates on adjustable rate loans; payment of taxes and insurance from borrower escrow accounts; negotiations of workouts and modifications of mortgage upon default; and conducting or supervising the foreclosure process when necessary. Many borrowers confuse their mortgage servicer with their lender. A mortgage servicer may be a borrower's lender, but often the beneficial rights to the payment of principal and interest on mortgages are sold to investors such as Fannie Mae, Freddie Mac, Ginnie Mae, FHA, a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Bad Debts ''Bad Debts'' (1996) is a Ned Kelly Award-winning novel by Australian author Peter Temple. This is the first novel in the author's Jack Irish series. Dedication "For Anita and Nicholas : true believers." Awards Ned Kelly Awards The Ned Kelly Awards (named for bushranger Ned Kelly) are Australia's leading literary awards for crime writing in both the crime fiction and true crime genres. They were established in 1996 by the Crime Writers Association of Australia to reward ... for Crime Writing, Best First Novel, 1997: joint winner Notes Also published in USA (in 2005 by MacAdam/Cage), in Canada (in 2006 by Anchor Canada), in the UK (in 2007 by Quercus) and in the Netherlands, in a Dutch-language edition (in 2002 by De Boekerij) with a translation by Paul Witte. * Adapted into an Australian television movie Jack Irish: Bad Debts Reviews * "Australian Crime Fiction Database 1996 Australian novels Novels by Peter Temple Novels set in Melbourne Ned Kelly Award-winning ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
picture info	Depreciation In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used (depreciation with the matching principle). Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span. Businesses depreciate long-term assets for both accounting and tax purposes. The decrease in value of the asset affects the balance sheet of a business or entity, and the method of depreciating the asset, accounting-wise, affects the net income, and thus the income statement that they report. Generally, the cost is allocated as depreciation expense among the periods in which the asset is expected to be used. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]