Accountancy Presentation 2005

8/8/2019 Accountancy Presentation 2005

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A Short Primer on AccountingA Short Primer on Accounting

Jon AshleyCorinne Mahoney

Sandy Montgomery


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AccountancyAccountancy

DefinitionDefinition

Different types of AccountingDifferent types of Accounting

Rules that Govern AccountancyRules that Govern Accountancy Desirable Characteristics of AccountingDesirable Characteristics of Accounting

InformationInformation


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Types of Accounting QuestionsTypes of Accounting Questions

that a Librarian Might Receivethat a Librarian Might Receive

Accounting as a CareerAccounting as a Career

CPA ExamCPA ExamAuditing: internal and externalAuditing: internal and external

The nature of accounting as a careerThe nature of accounting as a career

Interpretation of StandardsInterpretation of Standards Tax questionsTax questions


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Accounting TermsAccounting Terms

Glossaries:Glossaries:

Accounting DictionaryAccounting Dictionary--Accounting Glossary of Accounting TermsAccounting Glossary of Accounting Terms(VentureLine):(VentureLine): http://www.ventureline.com/glossary.asphttp://www.ventureline.com/glossary.asp

Accounting Terms and Glossary (Finet Holdings):Accounting Terms and Glossary (Finet Holdings):http://www.finet.com.hk/accounting/dictionary.htmhttp://www.finet.com.hk/accounting/dictionary.htm

Blackwell Encyclopedic Dictionary of Accounting : Available at UNC inBlackwell Encyclopedic Dictionary of Accounting : Available at UNC inprint and via NetLibrary as an eBook.print and via NetLibrary as an eBook.


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Accounting Standards

Handbooks and Dictionaries Professional Associations

Indexes/Databases

Websites

Annual Reports

Accounting Resources


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Accounting StandardsAccounting Standards

Definition:Definition:Accounting standards are authoritative statements of how particularAccounting standards are authoritative statements of how particular

types of transaction and other events should be reflected in financialtypes of transaction and other events should be reflected in financial

statements. (definition from International Accounting Standards Board)statements. (definition from International Accounting Standards Board)

AKAAKA

GAAP:GAAP: Generally Accepted Accounting PrinciplesGenerally Accepted Accounting Principles

What do they look like?What do they look like?

FASB Statement No. 34FASB Statement No. 34 FAS 142FAS 142

APB Opinion No. 30APB Opinion No. 30

SOP 03SOP 03--4, Reporting Financial Highlights and Schedule of Investments by4, Reporting Financial Highlights and Schedule of Investments by

Nonregistered Investment PartnershipsNonregistered Investment Partnerships


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Organizations that set orOrganizations that set or

regulate standardsregulate standardsU.S.A.U.S.A.

AICPAAICPAAmerican Institute of Certified Public Accountants: Issues auditing andAmerican Institute of Certified Public Accountants: Issues auditing andother standards for the professionother standards for the profession http://www.aicpa.org/index.htmhttp://www.aicpa.org/index.htm

FASBFASBFinancial Accounting Standards Board: Sets authoritative accountingFinancial Accounting Standards Board: Sets authoritative accountingstandards for the private sectorstandards for the private sectorhttp://www.fasb.org/http://www.fasb.org/

InternationalInternational

IASBIASBInternational Accounting Standards Board:International Accounting Standards Board: The leading promulgator ofThe leading promulgator ofinternational accounting standards.international accounting standards. http://www.iasb.org/http://www.iasb.org/ Information on IASB standards and international accounting is also available at IAS PlusInformation on IASB standards and international accounting is also available at IAS Plus

maintained by Deloitte.maintained by Deloitte. http://www.iasplus.com/http://www.iasplus.com/

Country SpecificCountry Specific

IAS PlusIAS Plus provides a list of authoritative resources by country.provides a list of authoritative resources by country.http://www.iasplus.com/country/country.htmhttp://www.iasplus.com/country/country.htm


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Standards: Print ResourcesStandards: Print Resources

FASB Original Pronouncements Accounting StandardsFASB Original Pronouncements Accounting Standards

AICPA Professional StandardsAICPA Professional Standards

Miller GAAP GuideMiller GAAP Guide (Generally Accepted Accounting Principles): Provides a(Generally Accepted Accounting Principles): Provides a

restatement and interpretation of the FASB standards.restatement and interpretation of the FASB standards.

Miller GAAS GuideMiller GAAS Guide (Generally Accepted Auditing Standards): Provides an(Generally Accepted Auditing Standards): Provides an

overview of common auditing practice.overview of common auditing practice.

Miller Governmental GAAP Guide:Miller Governmental GAAP Guide: Covers government accounting.Covers government accounting.

Wiley'sWiley's Interpretation and Application of International AccountingInterpretation and Application of International Accounting

Standards : IASStandards : IAS: Provides a summary and interpretation of the IASC's: Provides a summary and interpretation of the IASC's

international standards.international standards.


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Accounting Handbooks &Accounting Handbooks &

ManualsManuals AICPA Audit and Accounting Manual:AICPA Audit and Accounting Manual: OneOne--volume manual that explains andvolume manual that explains anddemonstrates useful techniques and procedures for conducting compilation, review, anddemonstrates useful techniques and procedures for conducting compilation, review, and

audit engagementsaudit engagements

Accountants' HandbookAccountants' Handbookby Carmichael, Lilien, and Mellman. Vol. 1: Financialby Carmichael, Lilien, and Mellman. Vol. 1: Financial

Accounting and General Topics; Vol. 2: Specialized Industries and Special Topics.Accounting and General Topics; Vol. 2: Specialized Industries and Special Topics.

Accounting Trends & Techniques:Accounting Trends & Techniques: annual survey of accounting practices from theannual survey of accounting practices from the

AICPAAICPA


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Professional AssociationsProfessional Associations

American Accounting Association (AAAAmerican Accounting Association (AAA):): http://aaahq.org/index.cfmhttp://aaahq.org/index.cfm

American Institute of Certified Public Accountants (AICPA):American Institute of Certified Public Accountants (AICPA):

http://www.aicpa.org/index.htmhttp://www.aicpa.org/index.htm

Institute of Management Accountants (IMA):Institute of Management Accountants (IMA): PublishesPublishes Statements onStatements on

Management AccountingManagement Accountinghttp://www.imanet.org/ima/index.asphttp://www.imanet.org/ima/index.asp

National Association of Small Business Accountants:National Association of Small Business Accountants:

http://www.smallbizaccountants.com/http://www.smallbizaccountants.com/

List of Associations available on Rutgers University Libraries AccountingList of Associations available on Rutgers University Libraries Accounting

Research Guide:Research Guide:

http://www.libraries.rutgers.edu/rul/rr_gateway/research_guides/busi/account.shthttp://www.libraries.rutgers.edu/rul/rr_gateway/research_guides/busi/account.sht

ml#Cml#C


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Accounting LiteratureAccounting LiteratureAccounting Specific:Accounting Specific:

Accounting & Tax Index (Print):Accounting & Tax Index (Print): Comprehensive list ofComprehensive list ofbooks, articles, government documents, and professionalbooks, articles, government documents, and professionalreports about accounting, auditing and taxation.reports about accounting, auditing and taxation.

Accounting Research Network:Accounting Research Network: Indexes working papersIndexes working papersin Accounting.in Accounting.

Taxation:Taxation:

CCH Tax Research NetWorkCCH Tax Research NetWork

Federal Tax Code:Federal Tax Code:http://assembler.law.cornell.edu/uscode/html/uscode26/uschttp://assembler.law.cornell.edu/uscode/html/uscode26/usc

_sup_01_26.html_sup_01_26.html

General Business Resources with coverage of Accounting:General Business Resources with coverage of Accounting:

ABI/Inform GlobalABI/Inform Global

Business & IndustryBusiness & Industry

FactivaFactiva

Lexis/Nexis AcademicLexis/Nexis Academic

MergentO

nline*MergentO

nline*


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Accounting WebsitesAccounting Websites

Rutgers Accounting Web:Rutgers Accounting Web: Excellent portal to accountingExcellent portal to accountingresources on the Internetresources on the Internet http://accounting.rutgers.edu/raw/http://accounting.rutgers.edu/raw/

CPAnet:CPAnet: a resource directory of websites that are of interest toa resource directory of websites that are of interest tothe accounting profession. CPAnet includes over 800 links tothe accounting profession. CPAnet includes over 800 links tovarious accounting related websitesvarious accounting related websites http://www.cpanet.com/http://www.cpanet.com/

Tax Links:Tax Links: IRS revenue rulings since 1954IRS revenue rulings since 1954http://www.taxlinks.com/http://www.taxlinks.com/

AICPA State:AICPA State: Link to resources at the state levelLink to resources at the state levelhttp://www.aicpa.org/states/stmap.htmhttp://www.aicpa.org/states/stmap.htm


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Company ReportsCompany Reports

SEC Filings & Forms (EDGAR):All companies, foreign and domestic, are

required to file registration statements, periodic reports, and other forms

electronically through EDGAR. Anyone can access and download this

information for free. http://www.sec.gov/edgar.shtml

Barrons Annual Report Service:A free service that provides quick access

to annual reports and other information on select companies.

http://barronsonline.ar.wilink.com/asp/BAR5_search_ENG.asp


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ChallengesChallenges

The way we use our numbers can haveThe way we use our numbers can have

large consequences. For example:large consequences. For example:

EnronEnron Arthur AndersenArthur Andersen -- WorldComWorldCom HealthSouthHealthSouth --

TycoTyco -- ParmalatParmalat MirantMirant Duke EnergyDuke Energy GlobalGlobal

CrossingCrossing -- HalliburtonHalliburton AdelphiaAdelphia LucentLucent

TechnologiesTechnologies XeroxXerox -- Shell OilShell Oil -- Fannie MaeFannie Mae --Freddie MacFreddie Mac -- Social SecuritySocial Security


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PR problemPR problem how can we trust ourhow can we trust our

numbers?numbers?

Independent and trustworthy auditorsIndependent and trustworthy auditors Greater transparencyGreater transparency

More government oversight (?)More government oversight (?)

SarbanesSarbanes--Oxley & recent backlashOxley & recent backlash

Proactive vs. reactive accountingProactive vs. reactive accounting


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How to account for derivatives?How to account for derivatives?

How to measure fair value?How to measure fair value?

How to expense stock options?How to expense stock options? How to account for rises and losses inHow to account for rises and losses in

pensions?pensions?

What constitutes real earnings?What constitutes real earnings? Pressure for nonPressure for non--profits to conform toprofits to conform to

SarbanesSarbanes--Oxley standardsOxley standards


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Relationship to OtherTopicsRelationship to OtherTopics

Accounting in some way influences theAccounting in some way influences the

following:following:

NonNon--ProfitsProfits Government AgenciesGovernment Agencies

Mergers & AcquisitionsMergers & Acquisitions

Decision MakingDecision Making

SecuritiesSecurities

TaxationTaxation

Executive compensationExecutive compensation

Corporate governanceCorporate governance

Government Policy andGovernment Policy and

RegulationsRegulations

Entrepreneurship & NewEntrepreneurship & NewBusiness VenturesBusiness Ventures

Documents

Accountancy Presentation 2005