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Topic: Accounting methods

	"Accounting Methods" Defined & Explained (Site not responding. Last check: 2007-11-05)
		This method stands in contrast to the percentage-of-completion method of accounting and is most often used when significant uncertainty exists with respect to the total cost of performing the contract and, accordingly, the ultimate amount of profit to be recognized thereon.
		PERCENTAGE-OF-COMPLETION METHOD OF ACCOUNTING - A method of revenue recognition for long-term contracts (i.e., contracts which span more than one fiscal period) under which a portion of the total contract revenue, and a share of contract costs, is recorded in each period based on the relative cost or effort applied during that period.
		This method stands in contrast to the completed contract method of accounting, and is considered appropriate when the total cost of performing the contract and, accordingly, the ultimate profit to be recognized thereon, is reasonably determinable and predictable.
	www.lectlaw.com /def/a099.htm (414 words)

	Revised procedures for changing accounting methods.
		Changes in accounting methods do not include corrections for mathematical or posting errors, computational mistakes, and non-timing adjustments, such as the correction of items deducted as business expenses that are really dividends and personal expenses.
		In addition, a change in the method of accounting does not include adjustments to an addition to a reserve for bad debts or to the useful life or basis of an asset.
		Examples of Category A methods would include the use of direct costing in valuing manufacturing inventories or the use of the cash method of accounting for sales and purchases when inventory is a material factor.
	www.nysscpa.org /cpajournal/old/14979911.htm (2382 words)

	Dummies::Understanding Accounting Methods
		In cash-basis accounting, companies record expenses in financial accounts when the cash is actually laid out, and they book revenue when they actually hold the cash in their hot little hands or, more likely, in a bank account.
		Smaller companies that haven't formally incorporated and most sole proprietors use cash-basis accounting because the system is easier for them to use on their own, meaning they don't have to hire a large accounting staff.
		The accounting method a business uses can have a major impact on the total revenue the business reports as well as on the expenses that it subtracts from the revenue to get the bottom line.
	www.dummies.com /WileyCDA/DummiesArticle/id-2841.html (1036 words)

	Accounting Methods - Tax Law (Site not responding. Last check: 2007-11-05)
		IRS has modified its automatic consent to change accounting methods to allow it discretion to except a qualifying taxpayer with $1 million or less in average annual gross receipts from requirement to account for inventories and use accrual method for buying and selling merchandise.
		A taxpayer that uses the cash method of accounting for purposes of its books and records and reports but, on an isolated basis, prepares financial reports using an accrual method (for example, on a one-time basis to obtain a bank loan) will not be considered to violate the conformity requirement.
		Any change in a taxpayer's method of accounting pursuant to this revenue procedure is a change in method of accounting to which the provisions of sections 446 and 481 and the regulations thereunder apply.
	www.pro1040.com /accounting_method.htm (3536 words)

	Accounting Methods - CASH VS. ACCRUAL BASIS, CHANGING ACCOUNTING METHODS
		Accounting methods refer to the basic rules and guidelines under which businesses keep their financial records and prepare their financial reports.
		Under this accounting method, therefore, it is possible to defer taxable income by delaying billing so that payment is not received in the current year.
		If the accounting change is required by the IRS because the method originally chosen did not clearly reflect income, however, the business must make the resulting adjustment during the current tax year.
	www.referenceforbusiness.com /small/A-Bo/Accounting-Methods.html (1173 words)

	Accounting Methods (Site not responding. Last check: 2007-11-05)
		The accounting methods that you choose for your company can have a significant impact on the amount of income tax that you pay and on the amount of earnings that you report in your financial statements.
		Because of this limitation on the ability to change from one method to another, and the limitations described previously on the use of the cash method, it is important before filing your initial tax return to give careful consideration to which method will likely be most beneficial for the long-term, and make your choice accordingly.
		The accounting methods that you choose can have a significant impact on the amount of income that you report for tax and financial statement purposes.
	www.bridgesdunnrankin.com /accounting_methods.htm (598 words)

	Accrual vs. cash basis of accounting (Site not responding. Last check: 2007-11-05)
		An accounting method is a set of rules used to determine when income and expenses are reported.
		Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred.
		The purpose of an accrual method of accounting is to match income and expenses in the correct year.
	www.bankrate.com /brm/itax/tax_adviser/20060615a1.asp (438 words)

	STUDENTS: Course Information
		Accounting analysis describes the extent to which the use of different accounting methods affects reported results.
		While no accounting methods beyond those contained in MGT 870 and 871 are presented, we will make extensive use of the material from that course.
		An intermediate accounting text, cases and other materials based on actual financial statements, articles, and short lectures are used as a basis for class discussion.
	www.som.yale.edu /students/courses/elective/Accounting-Electives-2000-01.asp (966 words)

	Stanford GSB: Sloan Program: Financial Accounting Course
		Accounting is the measurement of economic activity in value terms for decision-making.
		I also assign several articles from the financial press to develop your understanding of the environment in which accounting standards are set, and the implications for different constituencies of alternative methods.
		They are based on corporate financial statements and illustrate the issues associated with various accounting methods and the manner in which the related information is disclosed.
	www.gsb.stanford.edu /sloan/academics/courses/financial_accounting.html (502 words)

	DRS: 12-708-6, Accounting methods
		The term "method of accounting" refers not only to the overall method of accounting (such as cash or accrual), but also to the accounting treatment of particular items of income, gain, loss or deduction.
		If such a method does not clearly reflect income, the computation of taxable income shall be made in a manner which, in the opinion of the Commissioner, clearly reflects such person’s income.
		(2) A method of accounting which consistently applies generally accepted accounting principles in a particular trade or business, in accordance with recognized conditions or practices, shall ordinarily be regarded as clearly reflecting income, provided all items of income, gain, loss and deduction are treated consistently from year to year.
	www.ct.gov /drs/cwp/view.asp?A=1512&Q=269608 (331 words)

	Accounting methods - SmallBusiness - Small Business Resources
		Cash-basis accounting is a method of bookkeeping that records financial events based on cash flows and cash position.
		It is the accounting method used by most individuals, and by some businesses that have limited payables or receivables or whose income and expense cash flows are closely associated with each other in time.
		Using accrual-basis accounting, receivables and payables are recognized when a sale is agreed to, even though as yet, no cash has been received or paid out.
	www.smallbusiness.com /wiki/Accounting_methods (1067 words)

	Accounting
		Intermediate Accounting I. A study of financial accounting, financial statements, and annual reports with an emphasis on the use of GAAP.
		Auditing I. The primary purpose of this course is to assist students of accounting in understanding the work of the public accountant and to apply the methods and procedures followed in conducting an audit.
		Emphasis is on the students’ ability to understand the processing of accounting data in a computerized accounting environment and the controls that are necessary to assure the accuracy and reliability of the information processed by the accounting system.
	www.simpson.edu /courses/acct.html (628 words)

	Accounting methods - Wikipedia, the free encyclopedia
		Additionally, cash-basis accounting is not viable for cost accounting in manufacturing operations because expenses cannot always be correctly associated with product costs.
		Accrual-basis accounting records financial events based on events that change your net worth (the amount owed to you minus the amount you owe others).
		For the creditors and stockholders of large enterprises, cash basis accounting is financially inadequate.
	en.wikipedia.org /wiki/Accounting_methods (927 words)

	Accounting Depreciation Methods
		The two straight-line, alternate ACRS methods are essentially the same, except that rounding in the IRS tables produces small differences from the formula calculation in the recovery amount per period.
		Declining-balance depreciation is a method that depreciates an asset at a higher rate in the earlier years of the asset's life than straight-line depreciation.
		If you choose the remaining value over remaining life method for an asset in the year you placed the asset in service, and if you placed the asset in service on or before the 15th of the month, the depreciation calculated is identical to that calculated using the straight-line method.
	www.depreciationmanagement.com /depreciation_methods.html (2779 words)

	Accounting Depreciation Methods
		The two straight-line, alternate ACRS methods are essentially the same, except that rounding in the IRS tables produces small differences from the formula calculation in the recovery amount per period.
		Declining-balance depreciation is a method that depreciates an asset at a higher rate in the earlier years of the asset's life than straight-line depreciation.
		If you choose the remaining value over remaining life method for an asset in the year you placed the asset in service, and if you placed the asset in service on or before the 15th of the month, the depreciation calculated is identical to that calculated using the straight-line method.
	www.fixedassetsoftware.com /depreciation_methods.html (2768 words)

	Accounting methods - Orlando Sentinel :
		Under the cash method, you report the transaction (income or expense) the year payment is made or received.
		If the normal accounting conventions were followed, you would deduct the purchase price for these items in the year you paid for them or accrued the obligation to pay.
		Inventory is a special accounting device for accumulating costs for goods you sell and deducting them only when you sell them.
	www.orlandosentinel.com /chi-adviser-accounting,0,63233.story (632 words)

	Codification of Staff Accounting Bulletins: Topic 12: Oil and Gas Producing Activities
		Accordingly, the Commission stated that changes from the full cost method to the successful efforts method would not require a preferability letter because of the position expressed in Statement 25 that successful efforts is considered preferable by the FASB for accounting changes.
		Interpretive Response: No. The use of different methods of accounting in the consolidated financial statements by a parent company and its subsidiary would be inconsistent with the full cost requirement that a parent and its subsidiaries all use the same method of accounting.
		This disclosure is expected to address each area of accounting that is impacted or expected to be impacted and should specifically address each way that the company's application of full cost accounting has changed as a result of adoption of Statement 143.
	www.sec.gov /interps/account/sabcodet12.htm (5781 words)

	Accounting Methods
		An accounting method is a set of rules used to determine when and how to report income and expenses in your books and on your income tax returns.
		Selection of an appropriate accounting method is very important as it can have a major impact on the taxes you pay as well as your ability to obtain financing for your business.
		A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item.
	www.kulzick.com /accmeth.htm (480 words)

	Record Keeping Workshop (Site not responding. Last check: 2007-11-05)
		With this method of accounting, you generally report income in the year it is earned and deduct or capitalize expenses in the year they are incurred.
		Under the accrual method of accounting, you generally include income in your gross income for the tax year that you invoice your customer regardless of when payment is received.
		You cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until you make the payment and the amount is included in the related person's gross income.
	www.tax.utah.gov /training/records/AccountingMethodsandPeriods.html (1404 words)

	SVA Business Advisory Services - Accounting
		Frequently, companies are unaware that changing an accounting method can provide a tremendous benefit from a cash flow perspective.
		Many accounting methods used by companies are not efficient from a tax perspective resulting in missed opportunities within the current statutory environment to maximize cash flow.
		Understanding the regulatory provisions and the changes in accounting methods can be difficult and confusing—it requires knowledge of the ever-changing tax law and the experience of a seasoned tax champion.
	www.sva.com /services/bas-accounting.aspx (572 words)

	Cash vs Accrual Accounting - American Express Business Resources
		The best method for your company depends on a variety of factors which include the nature of your business, its legal business structure, and whether or not you extend credit.
		In cash method, you report an expense when it is paid, and record income when it is received.
		If you want to change your business' accounting methods, you may need to get permission from the IRS, which is concerned you might be seeking an unfair tax advantage.
	www10.americanexpress.com /sif/cda/page/0,1641,6113,00.asp (768 words)

	Accounting Methods - Accounting
		It is also very important for business owners as the choice of accounting method will have a very definite effect on the bottom line net income or loss generated by the company.
		The method of accounting is used to determine not only when items of income and expense are recognized but also the treatment of specific line items such as inventory.
		My next article will discuss the accrual method of accounting and will continue on to an Excel chart to shown the effect of income and expenses under both methods.
	www.bellaonline.com /articles/art29339.asp (436 words)

	Configuring Accounting
		Named accounting method lists enable you to designate a particular security protocol to be used on specific lines or interfaces for accounting services.
		Method lists enable you to designate one or more security protocols to be used for accounting, thus ensuring a backup system for accounting in case the initial method fails.
		Accounting method lists must be applied to specific lines or interfaces before any of the defined methods will be performed.
	www.cisco.com /univercd/cc/td/doc/product/software/ios122/122cgcr/fsecur_c/fsaaa/scfacct.htm (5655 words)

	Accountancy - Wikipedia, the free encyclopedia
		The accounting practices were influenced by the Roman and the Persian civilizations that Muslims interacted with.
		Application of International Accounting Standards originating in International Accounting Standards Board headquartered in London and bearing more resemblance to UK than current US practices is often advocated by those who note the relative stability of the UK accounting system (which reformed itself after scandals in the late 1980s and early 1990s).
		Accounting reform of a far more comprehensive sort is advocated by those who see issues with capitalism or economics, and seek ecological or social accountability.
	en.wikipedia.org /wiki/Accounting (2037 words)

	Current IRS Themes for the Construction Industry (Site not responding. Last check: 2007-11-05)
		Accounting method change issues are important to contractors because of the numerous and various correct accounting methods available (and incorrect methods used).
		Due to this environment, contractors will change their accounting methods several times over their existence, especially in the years in which they are classified as a small contractor and into the years in which they evolve to a large contractor.
		The contractor can select or choose a method, but the advisor must know what a permitted method is, what is the best method for tax avoidance or recognition delay, and how to change methods.
	accounting.smartpros.com /x43431.xml (1573 words)

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