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See also Accretion (finance). In particular, "accretion expense" is a phrase used in topic 410-20 of the United States GAAP Codification of Accounting Standards (SFAS 143), which describes the reporting of asset retirement obligations. This kind of liability typically has a long and predetermined life on a company's balance sheet, and hence, as ...
In accounting, as part of financial statements analysis, economic value added is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders. EVA is the net profit less the capital charge ($) for raising the firm's capital.
Management accounting is an applied discipline used in various industries. The specific functions and principles followed can vary based on the industry. Management accounting principles in banking are specialized but do have some common fundamental concepts used whether the industry is manufacturing-based or service-oriented.
In discussing the confusion surrounding the lack of common and meaningful management accounting terminology says, "… we are no nearer to being provided with a coherent theory of, if you like, a conceptual framework for management accounting." [12] Choudhury did not; however, propose a management accounting conceptual framework. 2002 ...
In finance, the term accretion refers to a positive change in value following a transaction; it is applied in several contexts. When trading in bonds , accretion is the capital gain expected when a bond is bought at a discount to its par value , [ 1 ] given that, it is expected to mature at par .
Various adjustments to historical cost are used, many of which require the use of management judgment and may be difficult to verify. The trend in most accounting standards is towards more timely reflection of the fair or market value of some assets and liabilities, although the historical cost principle remains in use.
An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees.
Pacioli is regarded as the Father of Accounting. Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business and other organizations. [1] It involves preparing source documents for all transactions, operations, and other events of a business.