https://ameblo.jp/laserotakusystem/ こうなったら、とことん楽しい事だけやって生きていきます。 ja Conceptual Framework and Convergence
The FASB アメリカ　and IASB アメリカ　are attempting to converge and enhance the conceptual framework that guides standard setting. The framework consists broadly of the following:

● Objectives—to provide information useful to investors, creditors, and others.

● Qualitative Characteristics—to require information that is relevant, reliable, and comparable.

● Elements—to define items that financial statements can contain.

● Recognition and Measurement—to set criteria that an item must meet for it to be recognized as an element; and how to mea- sure that element.



Point: State ethics codes require CPAs who audit financial statements to disclose areas where those statements fail to comply with GAAP. If CPAs fail to report noncompliance, they can lose their licenses and be subject to criminal and civil actions and fines.

英語で金の仕組み。ひひひ。
ゼイトゲイスト（ガイスト？） ]]> https://ameblo.jp/laserotakusystem/entry-11337893649.html Sat, 25 Aug 2012 22:31:31 +0900
An asset’s carrying value on the balance sheet is the difference between its purchase price and accumulated depreciation.

A company buys an asset for $5,000 that has a five-year lifespan and zero salvage value. The company uses straight-line depreciation, and the asset depreciates at a rate of $1,000 per year.

In year one, depreciation will be $1,000, as will accumulated depreciation, and carrying value of the asset will be $4,000.

In year two, depreciation will be $1,000, accumulated depreciation will be $2,000 ($1,000 from the current year + $1,000 accumulated from previous years) and carrying value will be $3,000.

Each subsequent year will follow the same process.

]]> https://ameblo.jp/laserotakusystem/entry-11332729960.html Sun, 19 Aug 2012 21:05:02 +0900 Cash flow statements provide more transparent information for them who can then avoid intrinsic risk, the risk even good companys sometime fail to manage cash flow for growth. ]]> https://ameblo.jp/laserotakusystem/entry-11332326032.html Sun, 19 Aug 2012 11:24:35 +0900 shareholders' equity.

Consider a couple with the following assets - primary residence valued at $250,000, an investment portfolio with a market value of $100,000 and automobiles and other assets valued at $25,000. Liabilities are primarily an outstanding mortgage balance of $100,000 and a car loan of $10,000. The couple's net worth would be therefore be $265,000 ([$250,000 + $100,000 + $25,000] - [$100,000 + $10,000]). Assume that five years later, the couple's financial position is as follows - residence value $225,000, investment portfolio $120,000, savings $20,000, automobile and other assets $15,000; mortgage loan balance $80,000, car loan $0 (paid off). The net worth would now be $300,000. In other words, the couple's net worth has gone up by $35,000 despite the decrease in the value of their residence and car, because this decline is more than offset by increases in other assets (such as the investment portfolio and savings) as well as the decrease in their liabilities.

People with a substantial net worth are known as high net worth individuals, and form the prime market for wealth managers and investment counselors. Investors with a net worth (excluding their primary residence) of at least $1 million - either alone or together with their spouse - are considered as "accredited investors" by the Securities and Exchange Commission, for the purpose of investing in unregistered securities offerings. A company that is consistently profitable will have a rising net worth or book value, as long as these earnings are not fully distributed to shareholders but are retained in the business. For public companies, rising book values over time may be rewarded by an increase in stock market value.

]]> https://ameblo.jp/laserotakusystem/entry-11332281282.html Sun, 19 Aug 2012 10:17:36 +0900 Revenue

Investopedia
The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.

Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.

Revenue is also known as "REVs".

Revenue is the amount of money that is brought into a company by its business activities. In the case of government, revenue is the money received from taxation, fees, fines, inter-governmental grants or transfers, securities sales, mineral rights and resource rights, as well as any sales that are made.

Wiki
In business, revenue or turnover is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover. Some companies receive revenue from intereer, Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time, as in "Last year, Company X had revenue of $42 million." Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, revenue is often referred to as the "top line" due to its position on the income statement at the very top. This is to be contrasted with the "bottom line" which denotes net income.[2]

For non-profit organizations, annual revenue may be referred to as gross receipts.[3] This revenue includes donations from individuals and corporations, support from government agencies, income from activities related to the organization's mission, and income from fundraising activities, membership dues, and financial investments such as stock shares in companies.

In general usage, revenue is income received by an organization in the form of cash or cash equivalents. Sales revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers.

In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Two common accounting methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or International Financial Reporting Standards.

In a double-entry bookkeeping system, revenue accounts are general ledger accounts that are summarized periodically under the heading Revenue or Revenues on an income statement. Revenue account names describe the type of revenue, such as "Repair service revenue", "Rent revenue earned" or "Sales". ]]> https://ameblo.jp/laserotakusystem/entry-11330660743.html Fri, 17 Aug 2012 12:30:16 +0900
In accounting, the concept of a freight expense account can be generalized as a payment for sending out a product to a customer. It falls under the umbrella category of expenses and is treated like other expense accounts in relation to the accounting equation, however, under generally accepted accounting rules, if the freight is considered part of the cost of an asset it is recorded as part of the value of the asset on the balance sheet as laid down cost. Freight expense has a normal debit balance. Increases are recorded as debits while decreases are recorded as credits. In relation to other accounts, the Freight Expense account is similar to the "Cost of Sales-Freight" account, but are two totally different entities. While the Freight Expense account is increased for payments towards outgoing goods, the Cost of Sales-Freight account is increased for payments towards incoming goods.

For example, suppose you have a business that imports and exports a type of product. When you deliver goods to customers and you pay for the delivery costs, you increase the Freight Expense account with a debit and the Cost of Sales-Freight is unaffected. However, when you purchase goods from a supplier and you pay for the delivery costs, you increase the Cost of Sales-Freight account and the Freight Expense account is unaffected.

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery, payment when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.
The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms (such as the American Uniform Commercial Code), but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.
It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

]]> https://ameblo.jp/laserotakusystem/entry-11326481588.html Sun, 12 Aug 2012 10:06:44 +0900
At the start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners. Businesses can be considered, for accounting purposes, sums of liabilities and assets; this is the accounting equation. After liabilities have been accounted for the positive remainder is deemed the owner's interest in the business.

Investopedia
The term's meaning depends very much on the context. In finance, in general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company

1. A stock or any other security representing an ownership interest.

2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity".

3. In the context of *margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.

4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.

5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.


Wiki
A residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists.

*Margin Trading
Imagine this: you're sitting at the blackjack table and the dealer throws you an ace. You'd love to increase your bet, but you're a little short on cash. Luckily, your friend offers to spot you $50 and says you can pay him back later. If the cards are dealt right, you can win big and pay your buddy back his $50 with profits to spare. But what if you lose? Not only will you be down your original bet, but you'll still owe your friend $50. Borrowing money at the casino is like gambling on steroids: the stakes are high and your potential for profit is dramatically increased. Conversely, your risk is also increased.
]]> https://ameblo.jp/laserotakusystem/entry-11326431939.html Sun, 12 Aug 2012 08:57:44 +0900
One is that I don't care if the blog hasn't been updated for long time.
Furthermore don't even care if the subject I decided to write turned out to be boring enough to kill myself.

Fxxk.

]]> https://ameblo.jp/laserotakusystem/entry-10918191655.html Thu, 09 Jun 2011 18:57:51 +0900 Accounting process and bookkeeping

The process of accounting is one of identifying, measuring, and communicating economic information about an entity for decision making by a variety of users, bookkeeping is simply recording, summarising of financial transactions and the preparation of basic financial statement.

Role of accounting in decision making

Accounting information is an important part of the information used by individuals and entities in decision making regarding investment and other business opportunities. The internal users (That is, management) use accounting information to make decisions concerning sales mix which product to make or buy, and opportunities for expansion. Stakeholders (for example, investors, consumers, banks, suppliers, and regulatory body) require accounting information to help decide whether to lent money to the entity, whether to invest in the entity, and whether to purchase item from the entity.


Business transaction and how does it relate to the accounting process

Business transaction can be defined as external exchanges between the entity and another entity or individual, that affects the assets, liabilities, and owners' equity items in an entity. The accounting process is the identifying, measuring, and communicating of economic information about an entity to a variety of users for decision-making purpose.

The first component of the process is the identification of business transactions which are then measured and communicated to the different users of financial report.


Financial accounting and management accounting

In differentiating between financial accounting and management accounting, it is important to consider the users of financial information - both internal and external users. Financial accountants prepare and report information for external users (for example, prospective investors or the tax office) and as such are subjected regulatory from GAAP, the Corporation Act and in some cases the ASX(Australian Stock Exchange) through their Listing Rules.

Management accountants are concerned with effective use of an entity's resources, and in so doing assist the manager/s (i.e internal users) of the entity in achieving their goal of enhancing customer and stakeholder value.
Therefore the management reports generated need to be up to date to be effective. Regulation in management accounting is much less formal and in some areas rules are basically non-existent.

Ultimately there will be interaction between financial accounting and management accounting areas. The information provided by the management accountants will provide information for internal users will be reflected in the financial reports used by the external users.


sales mix

A sales mix is the proportions of sales coming from different products or services. Changes in sales mix often affect profits because different products often have different profit margins, therefore a change in the sales mix can have an impact on profits even if total revenues are unchanged.

Selling less of a more profitable product but making up the sales with a less profitable product still leaves one with lower profits.
]]> https://ameblo.jp/laserotakusystem/entry-10911038874.html Thu, 02 Jun 2011 09:54:36 +0900 Acquisition

A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both.

Acquisitions can be either friendly or hostile. Friendly acquisitions occur when the target firm expresses its agreement to be acquired, whereas hostile acquisitions don't have the same agreement from the target firm and the acquiring firm needs to actively purchase large stakes of the target company in order to have a majority stake.

In either case, the acquiring company often offers a premium on the market price of the target company's shares in order to entice shareholders to sell. For example, News Corp.'s bid to acquire Dow Jones was equal to a 65% premium over the stock's market price.

acquisition accounting
取得会計


Matching principle

According to the principle, expenses are recognized when obligations are (1) incurred (usually when goods are transferred or services rendered, e.g. sold), and (2) offset against recognized revenues, which were generated from those expenses (related on the cause-and-effect basis), no matter when cash is paid out.
-wiki

The matching principle requires that when preparing financial reports, a business must determine the revenue earned for a particular period and then determine the costs that were incurred in earning that revenue. Costs must then be matched or subtracted from the revenue to determine the profit for the period. It is not always possible to determine a precise association between a particular item of revenue and an expense. In these cases accountants need to make subjective decisions that will ensure that all costs incurred in a particular period are indeed recognised during that period.

Reviewing the above conventions makes it clear that accounting is far from a precise science. While it is based on widely recognised and accepted conventions and principles there is nevertheless a degree of professional judgement required.
-Swinburne

A fundamental concept of accrual basis accounting that offsets revenue against expenses on the basis of their cause-and-effect relationship. It states that, in measuring net income for an accounting period, the costs incurred in that period should be matched against the revenue generated in the same period.
-BD

引用：会計用語英和辞典
営業活動によって生み出された成果（収益）と、そのための努力（費用）は結びつけられて認識されなければならない、という原則。売上原価の計算や減価償却といった会計処理は、この考えに基づいている。


Accrual accounting is based on the matching principle.


Theory; recognizing expenses
Expenses need to be recognized at the time the economic benefit is used up regardless of whether or not a physical payment had been made


Minority interest

1. A significant but non-controlling ownership of less than 50% of a company's voting shares by either an investor or another company.

2. A non-current liability that can be found on a parent company's balance sheet that represents the proportion of its subsidiaries owned by minority shareholders.

1. In accounting terms, if a company owns a minority interest in another company but only has a minority passive position (i.e. it is unable to exert influence), then all that is recorded from this investment are the dividends received from the minority interest. If the company has a minority active position (i.e. it is able to exert influence), then both dividends and a percent of income are recorded on the company's books.

2. If ABC Corp. owns 90% of XYZ inc, which is a $100 million company, on ABC Corp.'s balance sheet, there would be a $10 million liability in minority interest account to represent the 10% of XYZ Inc. that ABC Corp does not own. ]]> https://ameblo.jp/laserotakusystem/entry-10908101714.html Mon, 30 May 2011 20:03:44 +0900