Feed on
Posts
Comments

January 20, 2009

I thought it was an interesting class today.

I didn’t spend any more time today on the review of financial statements.  You should be spending time making sure you have all the financial statement equations memorized.  Also, you should be learning the direct form of presenting cash flows from operating activities.

I reminded the class that by Thursday, Jan. 30, you should read a seven part series on IFRS listed on my blog, as well as reading the SEC proposed roadmap for transitioning to IFRS.  We will be talking about it in class on that day.

I presented a lsit of all items on the right side of the balance sheet.  It represents what is called the capital strucure of the company.  Basically, the capital structure of a company where the money comes from for having purchased the resources available to the company.  The money comes either from having borrowed it (with a few exceptions) or from owner contributions.

Current Liabilities

Accounts & other payables
Accruals (usually for employees)
Services or products owed
Current maturities of long term debt
Total current liabilities

Non-current liabilities

Notes Payable (this is non-current portion only)
Bonds payable (this is non-current portion only)
Services or products owed
Pension liabilities
Preferred stock

*** Note, contingent liabilities frequently exist, but unreported on

*** Note, there is no total for either non-current liabilities or for total liabilities.

Stockholders equity

Contributed capital (common stock + additional paid in capital)
Retained earnings
Accumulated items of other comprehensive income
Treasury stock
Total stockholders equity

Then, I talked about the accounting for contingent liabilities, then we talked about chapter 13, exercise 13.  The discussion could have been unsettling, as there was no “right” answer to report, just a number that is at least $900,000.  The discussion was intended to highlight the current state of affairs where the correct number is not always an accountant’s call.  Ultimately, the number reported is decided by corporate executives after consultation with accountants and lawyers.  This is just the way it is.

This leads, possibly, to circumstances where executives wish to report complete fiction. Reporting fiction is called fraud, and can result in jail time.  Don’t do it.  I recommend always keeping six months of take home pay in the bank, and then resign immediately if an executive insists on “fraud.”

Most situations, however, range somwhere between complete fiction and absolute truth.  It’s a gray area where we say judgment abounds.  Actually, its an area where personal preference abounds.  A corporate executive may prefer a more liberal number and you might prefer a more conservative number.  Personal preferences are not related to moral issues.  You might have to go along with someone else’s personal preference.  If you repeatedly disagree with an employer’s personal preferences, then you might want to get back in the job market and search for a better fit.

159 thoughts on “January 20, 2009

  1. Accident Compensation
    6:39 am - 9-22-2010

    Greetings I’m Louis. I am a Law Student at Oxford University, I wish to specialize in personal injury when i finish. As part of a project i am gathering an index of high caliber legal blogs. I’m keen on your site and hope you don’t mind me shortlisting and referencing it. If you would like the entire published list after i have finished it, make sure you email: toplegalblogs [AT] Your-compensation.com Thanks and please continue blogging… 🙂

  2. harley davidson
    1:32 am - 11-3-2010

    There is no royal road to learning.

  3. cycling and fitness
    9:33 pm - 1-6-2011

    Completely I share your opinion. In it something is also to me this idea is pleasant, I completely with you agree.

  4. commander viagra
    11:28 am - 1-18-2011

    I searched in Google for accountant and I found your blog 🙂 Great blog, Respect!

  5. financial and accounting services
    10:42 am - 2-24-2011

    Thanks for posting this blog I thin many students will learn from this.

  6. Russell Mcbrien
    6:59 pm - 2-27-2011

    This will be an extremely heavy resourcefulness that you are rendering and you hand it away for free. I relish seeing websites that be aware of the value of rendering a prime resource for free. I truly enjoyed reading your Wiley Post. Thanks!

  7. Granite Tiles
    9:08 pm - 2-27-2011

    ,'” i can say that this kind of topic is really worth the read ,;-

  8. Fidel Carbee
    1:57 am - 2-28-2011

    Hi. I like your website but i can tell it probably isn’t getting much traffic? If you want to help imrpove that check this website out, he has a short video that i really suggest you watch. Commission Crusher P.S this isn’t my website and i’m not spamming your blog, i don’t care if you delete this comment. I am only trying to help you improve your site.

  9. www.monex.com
    12:16 pm - 4-4-2011

    The contingent liability could be the amount due to vendors for the raw materials needed to manufacture the product as compared to the company s current ability to pay for those additional raw materials.

  10. Christina Carabini
    3:40 pm - 6-23-2011

    The contingent liability could be the amount due to vendors for the raw materials needed to manufacture the product as compared to the company s current ability to pay for those additional raw materials.

  11. Panama foundation
    10:42 pm - 6-29-2011

    Because in each year the actual payout was lower than current inflow of cash into the schemes the assumption was that such a clement state of affairs would last though the schemes were technically insolvent because the present value of future obligations were higher than fund assets.

  12. John Brugman
    11:51 am - 7-23-2011

    Halo Admin,

    Actually I’m come across on Google and then Typing “fitness” and I got your website. I think Your website contain Great article.

    I try to read your article related about 24 Fitness and I think your article is really Good article, I get usefull information from you.

    so Thank u so much admin for your information and I waiting your another article.. ^_^

  13. Anniversary Greetings
    1:09 pm - 8-2-2011

    You know… a lot of executives report fiction. I guess this is the world we live in.

  14. Purchase Pension
    12:50 am - 8-18-2011

    Excellent Information, RSS Subscribed 🙂

  15. Pension Scheme
    12:52 am - 8-18-2011

    I thought it was an interesting class today.

  16. Money Purchase Pension
    12:54 am - 8-18-2011

    The review of financial statements is interesting, thankyou.

  17. Change Pension
    12:57 am - 8-18-2011

    This leads, possibly, to circumstances where executives wish to report complete fiction.

  18. Pension Sale
    12:58 am - 8-18-2011

    This discussion could have been unsettling.

  19. Pension Deal
    12:59 am - 8-18-2011

    It’s a gray area where we say judgment abounds.

  20. my website
    1:29 am - 1-14-2014

    Example Suppose that you simply own a 2006 Honda CBR1000 RR that’s in good
    shape my website since interest rates are so high on these instant personal loan, somebody can end up in bad debt taken on after one,
    because they were before.

  21. robot cuisine
    10:01 am - 2-7-2014

    robot patissier

    My blog; robot cuisine

  22. Website/Blog
    9:03 pm - 2-11-2014

    I stumbled upon your site as I was browsing for cartilage jewelry and I think that
    I am very lucky for doing so. I think that this is a extremely wonderful article you have there!
    Do you approve if I share your blog on FB including your link and title of your article:”January 20, 2009 | A422-522 Intermediate Accounting 2″?

    Kind regards!!
    The Piercings for Cartilage Group

    Visit my homepage: Website/Blog

  23. sbobet
    10:34 pm - 2-25-2014

    Howdy, i read your blog occasionally and i own a similar one
    and i was just curious if you get a lot of spam responses?
    If so how do you reduce it, any plugin or anything you can suggest?
    I get so much lately it’s driving me insane so
    any assistance is very much appreciated.

    Feel free to visit my web site :: sbobet

  24. sbobet
    12:35 am - 2-26-2014

    I’ve been surfing on-line more than 3 hours as of late, yet I by no means discovered any
    fascinating article like yours. It is pretty price sufficient for me.
    In my opinion, if all web owners and bloggers made good content material as you
    probably did, the web will be much more useful than ever before.

    Here is my web page: sbobet

  25. sbobet
    4:33 pm - 3-12-2014

    Keep this going please, great job!

    Also visit my homepage :: sbobet

  26. Geburtstagsgrüße
    7:20 am - 5-31-2014

    Howdy just wanted to give you a quick heads up. The text in your post
    seem to be running off the screen in Chrome. I’m not
    sure if this is a format issue or something to do with internet browser compatibility but
    I figured I’d post to let you know. The layout look great though!

    Hope you get the issue solved soon. Kudos

  27. Carlosnak
    12:19 pm - 10-3-2016

    RR Donnelley Posts Loss on Charges: Summary of Q4 Earnings Call Label Printing Paper Gift In current-dollar terms, the whole valuation on printing shipments in November was $6.87 billion, slightly down from $6.96 billion (-1.3%) per year ago—but far through the $9.26 billion back 2007. ,”Does Heidelberg + MAN Roland + KBA Still = “”Big Three””? These Days, the Arithmetic Isn’t Quite So Simple (Part 1)”
    Overall, hunt for near-flat GDP growth to the other half with the year. I tend not to think it will likely be negative, but it may well be below 1%. Higher gas prices take all from the surge in personal income, so people are certainly not benefiting using their company increased productivity greater paychecks. The expense of medical is increasing; our little business through Rhode Island is receiving a 16% increase from United Health Care, and also other businesses increasingly becoming exactly the same message. Another thing that concerns me is the fact GDP revision for your second quarter was towards the downside. We’ve had this before, and although the 3.3% growth rate is great, most revisions are actually up from advance reports. Economic warning are commencing to arrive, which might happen to be the situation with or without Katrina. ,Office Supplies printing in china
    printing-in-china.net

  28. DonaldCully
    3:43 am - 10-6-2016

    Setting New Year’s Resolutions That Actually Get Done custom stickers stationery wholesalers Getting Emotional With Customers ,VDP Lessons–Then and Now
    Canon’s wish for being fully equipped for everyone of the markets ‘s what drove its decision to get Océ, a supplier that essentially uses up where its new owner leaves off in regards to product offerings for high-volume production. (For commentary on what the merger is probably going to vary the competitive landscape for digital printing on the whole, see special reports for WhatTheyThink by Andy Tribute and Cary Sherburne.) At the New York event, senior marketing executives for both companies stated that the complementarity with the product lines could be the origin of the mutually powerful marketing advantage moving forward. ,stationery supplier how to get a book published
    printing-in-china.com

  29. MarvinEmeri
    6:08 pm - 10-6-2016

    Solo stand against Mexican dam builders water purification systems refrigerator water filters The Mongol Rally will be the essence of adventure and extremely pushes participants for the limits of the endurance, says Emma Blake, Senior Fundraising Officer for WaterAid. ,Water shortage comes down to corporations
    We are asking different questions on lead than we did in 1992 and we all need to complete things in a different way. It’s clear that this EPA hasn’t experienced final agreement about which sampling method to work with in each situation. ,ro water purifier whole house water filtration system
    watersinfo.org

  30. DonaldCully
    2:27 am - 10-7-2016

    FREE: The Circus Begins corrugated box reliable office supplies online A month or so ago, an origin informed Senior Editor Cary Sherburne that HP was from the means of pulling the plug on its Hiflex MIS and web-to-print offerings. While there continues to be no official public announcement from HP, this informative article summarizes what customers will be told and includes the official statement from HP. ,”Pouring Another “”Cup O Joe””: Lenders Talk About Lending (Part 1)”
    With the growth in prominence of digital printing, the idea of 鈥渉ybrid workflow鈥?emerged as being a means for printers to effectively leverage digital in the confines in their existing offset print workflows. Have print businesses realized hybrid workflow? Bryan Yeager provides us an update. ,label stickers banner printing
    printing-in-china.com

  31. DonaldCully
    10:07 am - 10-7-2016

    FREE: Fighting Crowds at HP gift wrapping supplies christmas gift wrap boxes Even more interesting is each of the characteristics is essentially independent with the value impact of the other. In simple terms, if one or two areas are certainly not improved, the value opportunities in those who can be improved will still contribute (perhaps significantly) to value enhancement. (Note that while these Value Improvements affect the area and size we now have chosen, other industries and size categories can have similar differences.) ,Making Ideas Happen鈥?It鈥檚 About Community!
    Can flexography perform a better job with opaque whites, hard-to-hold details, and other hurdles for packaging printing with all the process? Kodak says yes. ,personalized stickers green christmas wrapping paper
    printing-in-china.com

  32. MichaelDew
    3:45 pm - 10-7-2016

    Increase Your Marketing ROI By Learning How To Sell print solutions Office Supplies Amos Michelson: Life After Creo ,The tormented good reputation for Garamond
    Cutting ,Label Printing cheap printing solutions
    printing-in-china.net

  33. DonaldCully
    8:35 pm - 10-7-2016

    Western European Print On Demand Market Overview business card printing office accesories Although synergies between HP’s computer business and its particular production printing operation could possibly be limited, Chandra said, the distinctiveness of GSB within HP like a whole must be strongly to its advantage forward motion. “Todd and Meg (HP CEO Meg Whitman) have become supportive,” he was quoted saying. “Both Todd and Meg understand it.” The two attended drupa 2012 and were, as outlined by Chandra, very favorably impressed as to what they saw within the stand and been told by customers. Whitman even made drupa one with the first things she mentioned within a recent earnings call. ,Quebecor World Sees 87% Decline in Net Income: Summary of Q2 Earnings Call
    Lean Manufacturing has often been considered as only applicable to manufacturing industries, but as Jones and Womack said within their first literature about Lean, it’s applicable to your industry. Over a final decade, more plus much more printers are actually travelling to, and still have implemented aspects of, Lean Manufacturing (Cooper et al, 2007). Lean Manufacturing will help printing companies to perform more with less and to lower their costs by lowering the amount of non-value-added activities. Printers implementing Lean tend to be bringing tools into both office and print operations (Celebrating Excellence in Lean, 2007). ,quality office supplies gift wrapping
    printing-in-china.com

  34. MichaelDew
    2:50 am - 10-8-2016

    The European View and U.S. Distribution Label Printing print solutions Building Books: Digital Manufacturing Takes Hold ,Blue Octopus: High Quality plus a Helping Hand
    Focus into Expertise The objective is to make content on what you focus and turn it into practical expertise that you can apply. In most cases, you’re going to use that expertise by creating unique value for your customers or clients. And that ties the time and effort directly back to your substantial career payoff for you as you capture a portion from the value you’re creating for some individuals, for those who’re engaging with you. ,printing in china print solutions
    printing-in-china.net

  35. DonaldCully
    7:20 am - 10-8-2016

    Will We Be Pining for 2008 the Way We Miss 1998? custom labels gift wrapping By WhatTheyThink Staff Published: July 8, 2001 ,Social Media: Content Counts!
    For days gone by 10 years the mantra of our own industry continues to be ,cardboard boxes office supply companies
    printing-in-china.com

  36. MichaelDew
    11:46 am - 10-8-2016

    Kodak Earnings Up, but Remain in Red: Summary of Q3 2006 Earnings Call print solutions Book Printing How does this relate to some print business? Let’s start with the foundation (not probably the most exciting section of the data-driven equation) but you’ll be able to’t make strategic decisions without having a foundation depending on data-integrity along with a trusted system of record. All roads to your data-driven foundation lead to your Print MIS or ERP system. It must be your trusted system of record. When printers consider the time and effort it will require to genuinely adopt and own their Print MIS, they’re rewarded using a data foundation that will enable them to become data-driven businesses. This commitment doesn’t end after your Print MIS is successfully implemented to operate uniquely with your business, which can be just the beginning. Every decision you create after implementation is considered in light of how it’s going to assist your Print MIS and keep becoming your trusted system of record. ,Vendors Compose Variations on A Digital Theme During Pre-IPEX Media Conference
    MD: No, there’s nothing significant that’s changed. ,cheap printing solutions Office Supplies
    printing-in-china.net

  37. DonaldCully
    3:55 pm - 10-8-2016

    New Postal Rates Announced But it鈥檚 Not Over Yet! personalized stickers wholesale gift wrap •Increased productivity – Maintains optimum humidity levels for production equipment ,Print Software at Graph Expo
    WhatTheyThink is going to be providing ongoing pre-drupa coverage, with a few more media events going on within the next weeks, and, needless to say, we is going to be at drupa in force to create you frequent, up-to-the-minute reports, virtually live in the show floor. We hope we’re going to look at you at drupa, in case you usually are not in a position to attend, we are going to be up your eyes and ears. If you’ve specific queries about any with the vendors covered in this particular series, or concerning the event itself, please drop me an e-mail. There was obviously additional detail covered than we have been in a position to report about here. ,small packaging boxes wrapping paper
    printing-in-china.com

  38. MichaelDew
    7:01 pm - 10-8-2016

    Concluding Your Hiring Workflow: Closing the Deal Paper Gift Book Printing This article, and also the other half from it tomorrow (Friday 5/27) can tell you some on the software and workflow tools being shown at On Demand in 2010. It isn’t meant to get exhaustive, at all. My apologies ahead of time to your in the exhibitors I wasn’t competent to cover here or within my previous articles regarding the show. ,Insight Selling 鈥?The New Game in Town (Part 2)
    How would you compete in a more educated market? ,packaging boxes Label Printing
    printing-in-china.net

  39. DonaldCully
    10:25 pm - 10-8-2016

    External Sales Objections: Part Two reliable office supplies online boxes and packaging Ultraviolet (UV)-curable inks have already been touted like a “green” option to traditional solvent inks, simply because feature reduced VOCs along with pollutants. Other eco-friendly options include aqueous and latex-based inks. ,Courier’s Q3 Call: Revenues are flat, But profits increase
    Decide should you desire to engage inside a negotiated private sale where you might have identified ahead of time the purchaser you suspect offer the very best price for the firm. This is normal in our industry and especially prevalent among smaller companies and those in distress. ,office accesories printed boxes
    printing-in-china.com

  40. MichaelDew
    3:26 am - 10-9-2016

    Cost Containment Produced Results: Has Quebecor World Turned the Corner?: Summary of Q2 Earnings Call print solutions printing solutions I have also been capable to spend an afternoon using the folks at CHILI Publisher, an internet document editing solution that may be integrated having a variety of workflows, from web-to-print and brand management to packaging and magazine publishing. CHILI Publish was creating personalized labels on interest in booth visitors, and applying the crooks to bottles of excellent Belgian beer. ,Managing the Print Supply Chain
    “We consider the Landa press a complete game changer. It was exciting to find out full size sheets as we’ve got desired to obtain them for some time. We thought the print quality was excellent, specifically in certain parts of certain jobs. Marketing departments for markets like high-end confectionary and cosmetics will think ‘wow’ and also have a eureka moment when they realize they can do smaller runs at top quality.” ,Book Printing printing in china
    printing-in-china.net

  41. DonaldCully
    7:14 am - 10-9-2016

    The Top Three Functional Additives inside the Plastic Packaging Market business office supplies banner printing By Andrew Tribute Published: July 26, 2011 ,FREE: Improved Productivity for Improved Profitability
    Other cool things in 9.0 include enhanced 3D capabilities. I would encourage readers to consider the tour with the application at Adobe’s site if we were holding not capable of view it at drupa. ,print labels office products
    printing-in-china.com

  42. MichaelDew
    10:35 am - 10-9-2016

    What to Look for at drupa 2008 packaging boxes printing solutions Believe it you aren’t, you are able to make friends with all the USPS ,Digital Printing at drupa 鈥?Part 1
    WTT: Good advice. And since you mentioned it, do you would imagine drupa 2008 goes to get the Inkjet drupa? ,printing solutions 锘?a href=”http://printing-in-china.net/”>printing services
    printing-in-china.net

  43. DonaldCully
    1:52 pm - 10-9-2016

    Downsizing: Don鈥檛 Retreat 鈥?Motivate! gift wrapping supplies gift bags How many marketing services providers contacting non-profits can tell they’ve got given over $2.5 million to non-profits having a procedure that any non-profit are able to use to acquire free printing services? Talk in regards to compelling message. The program provides the subsequent additional benefits: ,Doing Things Right vs. Doing The Right Thing
    Océ ColorStream 10000 ,white wrapping paper roll stationery wholesalers
    printing-in-china.com

  44. MichaelDew
    7:38 pm - 10-9-2016

    Good Times for Mid-Production ocking in on Convergence cheap printing solutions Office Supplies HP recently stood a unpublicized alternation in management rolling around in its Graphic Arts business using the retirement of SVP Chris Morgan. Senior Editor Cary Sherburne spoke with Stephen Nigro, who’s got rejoined the group as Global Business Leader for Graphics Solutions and Inkjet. ,Breaking the Weak Link: Nine Steps for Moving Bad Salespeople up…or Out
    Third Look at 4Q-2015 GDP Revised Up, Atlanta Fed Q1-2016 GDP Estimate Plummets ,Box Printing cheap printing solutions
    printing-in-china.net

  45. MichaelDew
    9:21 pm - 10-9-2016

    Employment Trends to Propel Business Success packaging boxes Office Supplies Rewards ,What鈥檚 Your Digital Quotient?
    Of course, managers need to look after their people, they ought to be concerned relating to people’s performance, progress and careers. It will make life easier all-round. Of course, there will be some manager in a few companies who won’t, and so they deserve to shed their finest people–as well as perhaps you’ll begin using them! ,Book Printing Box Printing
    printing-in-china.net

  46. JoshuaEt
    2:43 am - 10-10-2016

    IPEX: Best Guesses as to What Might We Expect custom corrugated boxes gift boxes Economy; Printing Shipments; Annual Growth ,In VDP Launch, Old and New Co-exist and Complement
    By Barb Pellow Published: August 1, 2013 ,custom packaging printed boxes
    printing-in-china.com

  47. MichaelDew
    6:09 am - 10-10-2016

    No Time for Social Media? There are options… (Part Four of Four) printing solutions Label Printing All subsequent communications must include the public announcement made within the day from the merger. The public announcement should consentrate on the merger’s benefits for customers and give you a broad description from the transaction: as an example, who bought whom, plans for moving or closing manufacturing facilities, the implementation timetable, so on. Financial terms should stop disclosed. It’s far better to appoint a tuned and knowledgeable spokesperson to cope with media inquiries. ,Number of U.S. Periodical Publishing Establishments
    DM: Not only are classic bindery operations being automated to produce maximum efficiency and flexibility, but customers are also seeking new approaches to use “conventional equipment” integrated to produce new, differentiated products. Multiple operations are increasingly being combined into in-line modular systems that save serious amounts of labor and use a scaled-down footprint better fitted to smaller shops. Mailing systems which feature gluing, ink jetting, plow folding and diecutting are attracting a good deal of curiosity on account of their flexibility. They are also make a high roi by producing unique new products which yield better response rates, command higher prices and bring about higher margins. Conventional stitchers are adding the latest features for instance in-line card gluing, bar coding for quality and security value, and inkjetting for personalization. ,Book Printing 锘?a href=”http://printing-in-china.net/”>printing services
    printing-in-china.net

  48. JoshuaEt
    8:41 am - 10-10-2016

    A Traveler鈥檚 Notes: China and Printing in China (Part 1) small packaging boxes stationery supplies May 9, ,FESPA鈥檚 Global Business Forum 鈥淕reen Day鈥?Takes the Long View of Sustainability
    WTT: What have you bring to you from the RR Donnelley experience? ,printed cardboard boxes white christmas wrapping paper
    printing-in-china.com

  49. MichaelDew
    11:16 am - 10-10-2016

    Quebecor World Hurt by European Operations: Summary of Q3 Earnings Call Book Printing print solutions OneFlowCloud originated within the UK, initially for Precision Printing, a well used line offset printer that chosen digital in 2006. The development was spurred with the realization that orders were coming within shorter runs and faster turn times compared to what they had seen before. The developer with this cloud-based MIS solution, which has become running for longer than 5 years, had prior experience creating a cloud-based solution outside with the print industry. This solution had probably the most user-friendly graphical UI from the three solutions highlighted. It has a API for straightforward integration with electronic order source input, at the same time as being a quite simple and quick button-selectable interface if your order is entered using a CSR. While it addresses all in the features above mentioned, with the three solutions reviewed that one has more deeply integration in to the production process. It works on the rule-based automation system at its core. After bringing an order internal, it automatically checks and batches orders, sorts for outsourcing or load balancing, and prioritizes the schedule. The imposed files are sent through the solution on the appropriate DFE, and also the schedules are provided for generic tablet displays at each and every production work space. The operator checks in and out on the job enabling the computer to assign costing, and being a result it allows guarana, job status and financial reporting for being monitored by using a dashboard. It handles orders with or without barcodes from entry through bin collection, assembly, shipping and invoicing. Rule-based customer communication can be supported. ,What do print buyers think?
    Part 1: Understanding Overcapacity, or Lack Thereof ,Box Printing 锘?a href=”http://printing-in-china.net/”>printing services
    printing-in-china.net

  50. JoshuaEt
    1:51 pm - 10-10-2016

    Looking Under the Hood: T/R Systems, A Company in Transition printing on tissue paper print stickers I come with an in with the authors, and been able to obtain an early copy in the book, which will probably be available at Graph Expo. As I was studying it, a great deal of what the authors mention sound virtually identical to what I and our contributors are already writing about wide-format printing on this site, plus it seemed to me that this UnSquaring methodology can be great for commercial printers looking to be expanded into wide-format graphics. ,End of the Line for MeadWestvaco 鈥?January 2015 M&A Activity
    Radius Solutions, Inc., Hall 4, B22 (www.radiussolutions.com) ,small packaging boxes corrugated box
    printing-in-china.com

Leave a Reply

Skip to toolbar