No matter how diligent your company might be when it comes to performing credit checks on your customers, you might still sometimes have trouble collecting your receivables. In some industries, bad debt is considered an unfortunate cost of doing business. But there could be a silver lining to bad...
Unless they are required to by a lender or potential investors, small and mid-sized firms often choose not to have their financial statements reviewed or audited. There is not only a financial cost to having an audit performed, but the audit process may require a significant commitment of time...
There are a number of situations and scenarios where the owner of a closely held business might need to conduct a business valuation. These typically include selling the company, passing it on to heirs, drafting a buy-sell agreement, creating an ESOP, going through a divorce, and dealing with taxation...
In 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) announced the creation of a new principles-based revenue recognition model. This new revenue recognition standard, which is referred to as Accounting Standards Update (ASU) 2014-09, will replace the current industry-specific GAAP rules with a single...
Incidences of financial fraud have been growing in both frequency and sophistication among many Los Angeles and Southern California businesses, especially as the economic recovery drags on and some employees give in to the temptation to embezzle funds from their employers. This is one factor that has given rise...
Generally Accepted Accounting Principles, or GAAP, is considered to be the standard for financial accounting in the U.S. GAAP is used to guide accountants through the business of recording, summarizing, and preparing financial statements. One of the most hotly contested issues over the past three decades regarding the development and application...
Though the number of financial restatements has decreased somewhat since 2007, the overall number has risen dramatically over the past decade. Passage of the Sarbanes-Oxley Act in 2002 significantly increased the severity of rules and regulations related to corporate governance and accounting, which in turn has led to a marked...
Along with after-tax profits and EBITDA, revenue is among the most critical measures of a company’s health and growth potential. Therefore, when changes take place in rules governing accounting for revenue, it is a highly significant event. Hence, the importance of the new revenue recognition exposure draft. That is...