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Accounting & Audits
| Do Accounting Rules Discourage Research & Development? |
By: Michael Sack Elmaleh
Businesses spend billions of dollars trying to develop new and better products, These outlays are referred to as research and development (R & D) costs. Accounting rule makers have struggled with how best to classify such expenditures. Should they be treated as expenses or assets? |
| Energizing your Internal Audits |
By: Robert Badner
This process can help develop a foundation to create a checklist for the internal audit. With your developed checklist you can drive improvement in the quality system with the audit results. |
| Measuring Non Profit Efficiency: The Statement of Functional Expense |
By: Michael Sack Elmaleh
Accounting provides some measure of a firm's economic efficiency on its income statement. A large net income usually tells us that something has gone right, while a large loss indicates that something is amiss. The same cannot be said about a non profit's income statements (usually called the Statements of Revenue and Expense). Since the central goal of a non profit is to provide services, not earn large profits, the absence of a profit is not a mark against the organization. As an alternative to the income statement, accounting attempts to measure a non profit's efficiency on a financial statement called the Statement of Functional Expenses (SFE). |
| Sunk Costs and Loss Aversion |
By: Michael Sack Elmaleh
Cost accounting teaches us to ignore sunk costs. Easier said then done because ignoring sunk costs often entails admitting poor decisions and accepting unrecoverable losses. |
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