Before you jump headfirst into the year-end financial reporting process, review the role independent audit committees play in providing investors and markets with high-quality, reliable financial information. Recent Securities and
Most businesses report financial performance using GAAP. But the income-tax-basis format can save time and money for some private companies. Here is information to help you choose the financial reporting
The use of so-called ‘profits interest’ awards as a tool to attract and retain skilled workers has increased as more companies are being structured as LLCs rather than as corporations.
In financial reporting, investors and business owners tend to focus on four key metrics: 1) revenue, 2) net income, 3) total assets, and 4) net worth. But, when it comes
Business assets are generally reported at the lower of cost or market value. Under this accounting principle, certain assets are reported at fair value, such as asset retirement obligations and
Financial reporting generally focuses on the results of continuing operations. But sometimes businesses sell (or retire) a product line, asset group, or another component. In certain situations, such a disposal
The standard for valuing certain assets and liabilities under U.S. Generally Accepted Accounting Principles is ‘fair value.’ This differs from other valuation standards that may apply when valuing a security
In recent years, external auditors have focused more attention on related party transactions. Although related party transactions are not necessarily bad, they do raise some concerns about the risk of
Businesses often enter into so-called ‘collaborative arrangements’ when they partner with another entity on a major project. Unfortunately, the current guidance for these types of arrangements under U.S. Generally Accepted
