Assets and Liabilities are what make up the balance sheet of a corporation. Being able to understand these numbers can help you make better decisions. Assets are generally what a company owns. This breaks down into various categories: cash, inventories, and any investments. Total assets should remain about the same...
Last month we discussed accounting for current liabilities, those obligations which were expected to be met within one year. The second chapter of the liability story concerns long-term liabilities, those that will not be satisfied within the year. Often found long-term liabilities are notes, bonds and mortgages payable, lease obligations,...
Working capital is the total of current assets such as cash, inventory, and receivables that are not being financed by the current liabilities such as accounts payable or short-term credit. It should be sufficient to pay any current liabilities as they come due and cover the financing of daily operations....
The American Association of Certified Public Accountant's AICPA Accounting Standards Executive Committee issued Statement of Position SOP (1996) No. 96-1, Environmental Remediation Liabilities, to help entities recognize certain environmental costs. The SOP requires that in measuring their allocable liabilities for a specific site, entities should consider enacted laws, existing regulations,...
Under AICPA Statement of Position 82-1, Accounting and Financial Reporting for Personal Financial Statements, assets are reported at estimated current values and liabilities are reported at estimated current amounts. Additionally, a provision for estimated income taxes on differences between these reported amounts and tax bases of assets and liabilities is...
After Senate leaders reached an agreement on proposed pension reforms last week, the full Senate is expected to take up a compromise bill soon. The key provisions of the measure are: * Pension plan liabilities would have to be amortized over seven years, considerably...
Current ratio is a measure of liquidity, which compares a company’s current assets with its current liabilities.Current ratio is a favored test among banks and lenders because it reveals whether a company is generating enough cash to pay its short-term creditors. What to DoThe ratio divides current assets by...
ABSTRACTThe author reviews the positions of major accounting and actuarial bodies on the issue of whether the holder's own credit standing should be reflected in the fair value of its liabilities, identifying certain anomalies, both in the current GAAP treatment of debt and in the FASB approach to the fair...
The Financial Accounting Standards Board is proposing rules that would require companies to accurately account for their assets and liabilities. Under current rules, banks can manipulate their accounting through practices such as collecting on securities with rising values and hiding losses from others. America's Federal Reserve...
Sustained large U.S. current account deficits have led some economists and policymakers to worry that future current account adjustment could occur through a sudden and disruptive depreciation of the dollar and a sharp drop in U.S. consumption. Two factors that, to date, have cast doubt on such concerns are the...
NASHVILLE, Tenn. -- American Retirement Corporation (NYSE: ACR), a leading national provider of senior living housing and care, announced today it will restate its financial statements for 2002 through 2004. After consultation with KPMG LLP and the staff of the SEC regarding new interpretations of accounting guidance for entrance fee...
At its June 28, 2000, meeting, the Financial Accounting Standards ABoard FASB reached tentative conclusions related to its longstanding project on distinguishing between liabilities and equity (the "project"). Those conclusions are still tentative and do not change current accounting. While the effective date of any final pronouncement may be years...
Standard & Poor's Rating Services has published two commentaries giving its thoughts about the current accounting framework for retirement and other post-retirement liabilities in the US. Standard & Poor's Rating Services has published two commentaries giving its thoughts about the current accounting framework ...
Assets and Liabilities are the two core elements that make up the balance sheet of a corporation. Being able to understand these numbers can help you make better decisions. And you should be able to do better than say "Assets are on the left; liabilities are on the right of...
The two accounting standard bodies IASB and FASB announced an agreement to collaborate on a new insurance accounting standard. Since both bodies have invested considerably in the conceptual development of fair value, it is likely that the standard will be based on the fair value approach to measuring financial assets...
OLDWICK, N.J.--BUSINESS WIRE--Sept. 10, 1997--Declining estimates of the property/casualty insurance industry's ultimate asbestos and nvironmental liabilities do not mean these liabilities have ceased to be a concern for insurers, A.M. Best Co. says in a report released this week.
Working capital, defined as current assets CA minus current liabilities CL, is often measured using the current ratio CA divided by CL, or the quick or "acid test" ratio (CA minus inventory, divided by CL). Good performance was tradit Working capital, defined as current assets CA...
FASB is inviting comment on Selected Issues Relating to Assets and Liabilities with Uncertainties to help it analyze issues impacting the role of probability and uncertainty in defining, recognizing and measuring assets and liabilities. That role varies among FASB standards and Concepts Statements, as well as between FASB and...
Under U.S. regulatory requirements, Lloyd's next month will have to fund 100 percent of its gross liabilities from the World Trade Center attack--a price tag of [pound]1.3 billion ($1.9 billion at current exchange rates), or the equivalent of 12 perc Under U.S. regulatory requirements, Lloyd's next...
More than ever before, pension fund and life insurance liabilities are sensitive to changes in mortality. In the UK, annuity and deferred annuity liabilities of pension schemes and insurers amount to over ú1 trillion. Historically much attention has been paid to investment risks but increasingly recognition is being given to...
