Accounting period

About: Accounting period is a research topic. Over the lifetime, 157 publications have been published within this topic receiving 2245 citations.

Accounting policies on inventories according to IAS 2 and their impact on financial results

Abstract: Inventories are the most significant item in most companies. Therefore, the problem of their evaluation is of the great importance, not only in accounting theory, but also in accounting practice. The main issue regarding inventories is the question of their initial and additional measurement. It is generally accepted that inventories should be initially measured at their cost. But, at the end of particular accounting period, cost of inventories should be compared with their net realisable value and inventories measured at the lower value. There are also several accounting methods regarding inventories and each of them has a different impact on financial results of the particular accounting period. In order to avoid great differences in inventory evaluation between public companies, IAS 2 recommends certain methods to be used for external financial reporting. IAS 2 was issued in December 2003 and is applicable to annual periods beginning on and after 1 January 2005. In this article, it is presented how recommended methods can reflect on a financial position and profitability of a company.

Essentials of Health Care Organization Finance: A Primer for Board Members

Abstract: List of Exhibits. Foreword. Preface. About the Authors. 1. Governing. Obligations. Responsibilities. Roles. Governance Work. Governance "Enablers". In the Boardroom. 2. Financial Responsibilities. Objectives. Plans. Monitoring and Assessing. Controls and the Audit. Organization. In the Boardroom. 3. Health Care Industry Financial Structure and Dynamics. The Big Picture. Health Insurance. Voluntary Health Insurance. Social Insurance (Medicare). Welfare Insurance (Medicaid). Health Maintenance Organizations. 4. Accounting Basics. Accounting Principles. Accounting Entity. Accounting Period. Monetary Unit. Objectivity. Accrual Accounting. Materiality. Full Disclosure and Transparency. Conservatism, Consistency, and Comparability. Accounting Value. Accounting Equation. Revenues. Expenses. Summary. 5. Reading Financial Statements. Revenue/Expense Summary. Balance Sheet. Statement of Cash Flows. In the Boardroom. 6. Analyzing Financial Statements and Overseeing Financial Performance. Horizontal and Vertical Analyses. Ratio Analysis. Financial Oversight. In the Boardroom. 7. Looking Forward: Vision, Strategies, Financial Plans, and Budgets. The Vision and Strategic Planning. Financial Planning. Budgeting. In the Boardroom. 8. Source of Funds: Financing. Capital Structure. Creditworthiness. Long-Term Debt Financing. In the Boardroom. 9. Use of Funds: Capital Investment. Approaches. Types of Capital Investment. Financial Analysis of Capital Projects. In the Boardroom. 10. Financial Integrity and Credibility. Audit Committee. The Audit. Internal Controls. Emerging Expectations and Standards. In the Boardroom. 11. The Finale. Admonitions. Checklist. Resources. Appendix A: E. Polley Francis Hospital, Traditionally Configured Financial Statements. Appendix B: Executive Summary of Sarbanes-Oxley Act Provisions and NYSE Governance Rules. Appendix C: E. Polley Francis Hospital, Illustrative Code-of-Conduct Provisions. Index.

Current Purchasing Power and Its Utilisation on Annual Reports of the Companies (with Special Reference to Indian Steel Companies)

Abstract: This paper investigates the use of inflation accounting by current purchasing power method and its effects on financial statements of steel companies in India. Therefore the annual reports of 8 steel companies listed in Bombay Stock exchange, India has been collected. All the companies prepare the annual reports in historical cost method; therefore conversion to Current Purchasing Power (CPP) has been done. Then the ratios were calculated on both historical cost and CPP of financial statements to form two sets of ratios. An analysis of paired sample t test has been conducted on some financial ratios of these companies to see the differences between two methods. At the end the results show that a significant difference between adjusted cost based financial ratios and historical cost based financial ratios occurs only for return on equity (ROE) and return on asset (ROA) and there is no significant change in operating profit ratio (OPR), current ratio (CR) and quick ratio (QR).Keywords: inflation accounting, CPP, annual reports, Steel Companies.INTRODUCTION:Financial statements are usually reported in the traditional accounting framework commonly referred to as historical cost accounting, in which money is based as a unit of measures. In times of inflation the purchasing power of money is falling and thereby, this unit of measures does not have a constant value. As such, in accounts based on historical cost income, expenditure, assets and liabilities have a mixture of value depending on the date at which each item was originally brought into the accounts. During a period of rising prices, financial statements based on historical cost do not adequately portray financial position. There are three potentially serious problems:- An erosion of the equity base may not be clearly recognized;- The assets of the business will tend to be understated; and- Any gains and losses from holding monetary items will not be recognized.The distorting effects of inflation on the conventional financial statements can be severe. Even relatively low inflation rates can have a significant cumulative effect overtime. To combat the problem, various methods of accounting for inflation have been proposed and there has been much debate as to which should be adopted. At the heart of the debate lies the problem of equity maintenance and, in particular, how equity maintenance should be defined. By resolving this problem, other problems, such as the way in which profit is measured and how assets should be reported, can then be resolve financial transactions occurring at different dates will be expressed in terms of their purchasing power at a single, common date - the end of the accounting period. This is done by adjusting for the change in the price index between the date of the transaction and the end of the accounting period. Profit available for distribution will be derived by expressing both the revenue received and the cost of the goods sold for the period in terms of their current (end-of-accounting-period) purchasing power. The cost of assets acquired will also be expressed in terms of their current purchasing power.The sales revenue is already expressed in terms of current purchasing power as the sale of inventories took place on the last day of the accounting period. The cost of sales figure is adjusted as the inventories were acquired at an earlier date. Where there are lots of sales and purchases that accrue evenly over the period, an average index for the period is used.Cash has not been adjusted as it is a monetary item that stays fixed irrespective of changes in the purchasing power of the monetary items. (There is no loss on holding cash during the period as it was received at the end of the month.) The CPP approach is often commended for its reliability. The historic cost of items is normally used as the basis for making adjustments and the adjustments are made using an objective index. …

Analysis of transmission-embedded cost allocation schemes in open electricity markets

Abstract: Transmission services have to be provided as a separate item in a deregulated or vertically restructured electricity supply industry Methods for transmission line fixed-cost allocation among the transmission transactions accounting for line capacity use are presented Cost allocation to each transaction will be according presented Cost allocation to each transaction will be according to the capacity use patterns throughout an accounting period in to the capacity use patterns throughout an accounting period in an equitable manner The allocation problem is approached from the point of view of a cooperative game theory

1 – Financial data

Abstract: Publisher Summary This chapter presents the concepts of financial data and recording procedures. It discusses the profit statement, known as the trading and profit and loss account, and the balance sheet. The profit statement is produced from the annual income and expenditure for the year, while the balance sheet represents the assets and liabilities of the business as at a particular accounting date. The word business has wide scope. It covers a variety of organizations that exists to trade in any area of the commercial environment. A business can be a small independent trader selling from a market stall, a writer working from home or a large international conglomerate with an annual turnover of billions of pounds. Taxation is the amount because of the government on the year's profit. The dividend is the shareholders' reward for investing in the company. The dividend for the preference shares is fixed. An interim dividend will already have been paid during the accounting period, so that the balance is the final portion of the dividend. The rate of ordinary dividend is at the discretion of the directors.