By Steven M. Bragg
* Discusses concerns no longer lined in different books, together with top practices budgeting, ultimate the books, and keep watch over structures. * comprises curiosity issue tables, pattern kinds for facts access, pattern file codecs for inner in addition to exterior studies. * good points flowcharts and checklists for key keep watch over issues within the significant accounting approaches.
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A potential problem over the long term is that the SEC, which is a prime sponsor of the FASB, wants it to issue standards that are oriented toward publicly held companies, over which the SEC has reporting control. However, this means that the more onerous reporting requirements intended for larger public companies are also being forced upon smaller private firms that do not have the resources to comply with them. Though there would be great inefficiencies involved in setting up a double accounting standard, one for public and one for private companies, this will be an ongoing cause of tension within the FASB as it continues to churn out pronouncements.
Though these two areas comprise the bulk of the transactions, there has also been a long history of delegating asset tracking to the accounting function. This involves all transactions related to the movement of cash, inventory, and fixed assets. Finally, the accounting staff has been responsible for tracking debt, which can involve a continuous tracking of debt levels by debt instrument, as well as the payments made to reduce them. These have been the transaction-based activities of the accounting staff.
Only by understanding the role of accounting within the greater structure of the modern corporation can the accountant see how changes in his or her department can cause issues elsewhere in the company, and vice versa. 3-2 THE CORPORATE ORGANIZATIONAL STRUCTURE The typical corporation is divided into a set of departments, each of which is responsible for a different cluster of tasks. Each department manager reports to a senior-level executive, who in turn reports to the Chief Executive Officer.