Accounting & Finance Resources

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Financial accounting standards establish the ground rules for how we account for and report the activities of our businesses.  These standard setters are the Financial Accounting Standard Standards Board (FASB) governing reporting under US GAAP and the International Accounting Standards Board (ISAB) for reporting under international accounting standards.  The links below provide direct links to each.

Link: FASB

Link:  IASB

Link: IFRS Standard for Small to Medium Enterprises

According to the Corporate Finance Institute, "Managerial accounting is the process of “identification, measurement, analysis, and interpretation of accounting information” that helps business leaders make sound financial decisions and efficiently manage their daily operations."  

Managerial accounting information is aimed at helping managers within the organization make well-informed business decisions, while financial accounting is aimed at providing financial information to parties outside the organization.  The governing organization of management accounting is the Institute of Management Accountants (IMA).  In support of this effort, the IMA publishes a list of Statements on Management Accounting.  The link to these statements can be found below.

Link: IMA

The Committee of Sponsoring Organizations’ (COSO) was formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting.  The COSO Framework has created the preeminent authority on internal control and compliance with the Sarbanes Oxley (SOX) Act.

Link: COSO

In today's rapidly changing world its influences on businesses, greater attention is being made towards the evaluation of a business' ability to continue as a going concern into the coming year.  In this connection, it is critical that a formal and unbiased approach be taken to the assessment and documentation supporting the business' ability to continue and justify the going concern method of accounting and reporting.

The Financial Reporting Council (FRC) of the UK has develop an advisory document laying out such an approach.

Link:

Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks

Reporting unit fair value determination for goodwill impairment testing under ASC 350 or IAS 36 typically utilizes earnings multiples or discounted cash flow (DCF) modeling to determine fair value.  DCF calculations utilize a discount rate in the calculation.  The discount rate can be developed using the Capital Asset Pricing Model (CAPM) which incorporates industry and market value risk premiums.  An independent source for earnings multiples and risk premiums can be found at the following site.

Link: Damodaran Online

Data capture and reporting of metrics on Environmental, Social and Governance  (ESG) has become from and center on a global scale.  The major accounting firms have be very active in understanding the trajectory of the standards being proposed, the timeline for adoption and the impact on businesses.  Below are links to knowledge bases developed by PWC and KPMG providing an overview  ESG and insights on the status of reporting requirements.

Link: PWC - ESG Reporting

Link: KPMG - ESG Reporting

Although the projected timing of adoption for public and private companies is yet to be determined, the data requirements and metrics are sure to be complex.  As such, familiarity with the standards being proposed and the impact on your business should begin to be considered.