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Recent Blog Posts

• Compensating balances
  

  Compensating balances refers to the balance that a borrower is required to maintain in an account in order to fulfill the requirements for the loan. Often more favourable interest rates for the borrower are associated with these kinds of loans. ...read full article»

• Cash Equivalents
  

  According to ASC Topic 305, cash equivalents are short-term, highly liquid investments which are readily convertible into cash and have maturities of 3 months or less from the date of the entity has purchased them.  Examples are interest bearing instruments ...read full article»

• Software developed for sale or lease (SFAS 86)
  

  ASC Topic 985 (SFAS 86) outlines the standards to account for internally developed or purchased computer software, which are either leased, sold, or marketed as an individual product or as a part of a process. In summary, internally incurred costs to ...read full article»

• Current Assets (Current Accounts)
  

  Usually cash and other liquid assets (e.g. accounts receivable, inventory, marketable securities) or resources which are realized within an operating cycle (generally 12 months). ...read full article»

• Monopsony
  

  A situation where there is a  single buyer facing many suppliers is called monopsony. It is similar to a monopoly, except that the company acts as a buyer instead of a seller. Since there is only a single buyer it ...read full article»

• Capitalization of Interest
  

  The capitalization of interest as part of the cost is required for certain assets under US GAAP (SFAS 34). Also the IASB was in the process of amending its IAS 23 on borrowing costs in an attempt to bring it closer ...read full article»