ACCOUNTING
Debit and credit
accounting for all..
PHRASES:
Accounting for her success
Accounting is one of those things that we experience feelings; on the one hand, when we understand and know what it's love, it becomes the best friend of our company, he becomes its guardian and protector, but when he speaks flatly in another language and do not understand much, we began to isolate or hire a translator to help us know what we want to say but what really will translate well ?, you want to communicate with her direct or decide to hire an interpreter is required to speak the language of business: financial accounting. This way you can communicate directly and fluently or be sure that the interpreter is doing a good job.
ALAN WATTS
“El dinero es algo del mismo orden real que los centímetros, gramos, metros, kilos o líneas de latitud y longitud. Es una abstracción. Es un método de contabilidad para obviar el incómodo procedimiento del trueque. Pero nuestra cultura, en realidad toda nuestra civilización, está completamente colgada de la noción de que el dinero cuenta con una realidad propia independiente”.
RAMON GOMEZ DE LA SERNA
“El contable es un señor con el que no se cuenta casi nunca” .
GEORGE LUCAS :
"When we took over, agents, lawyers and accountants, it was people who read the Wall Street Journal and he cared less that action films, everything went to hell."
ACCOUNTING FOR THE REAL WORLD
26/05/2015
Students graduate college with accounting degrees, but that doesn’t mean they’re ready to be accountants. I spoke with Ben Mulling, CMA, CPA, CITP, who became CFO of TENTE Casters Inc. at the age of 28, about the gap between what students learn and employers require, and how educators should begin accounting for the real world in their curricula.
You can also read my earlier interview with Ben: “CFO at 28: Career Advice from a Seasoned Professional.”
This interview has been edited and condensed.
Jeff Thomson: Does a skills gap exist between what accounting educators teach and what CFOs need from their staff?
Ben Mulling: Yes, I think schools need to build in more management accounting principles, as opposed to just focusing on public accounting. They aren’t teaching enough basic management accounting terminology, strategy, decision support, and organizational management from an accounting point of view. Too often, the curriculum isn’t connecting how accounting and finance actually work within an organization. It’s rules-based, which is important for public accounting, rather than principles-based, which is needed in management accounting.
JT: How does this gap influence professionals in organizations in the real world?
BM: I think it requires accounting professionals and organizations as a whole to be very aggressive in their continuing education approaches. You can’t be satisfied just getting an accountant right out of school and then building basic technical skills as they do their job.
Companies need to bring students in to show them the on-the-job skills that aren’t taught in school. Most students have no idea that, as a management accountant for a manufacturing company, they need to work IT, engineering, production and operations. It’s not even about technical accounting skills. The link between accounting and IT is especially critical and accountants need to learn how to work with that department in order to access important information for making business decisions.
MY READINGS FOR YOU
WHAT IS MEANT BY MATERIALITY IN ACCOUNTIG?
01/05/2015
The Financial Accounting Standards Board (FASB) defines materiality as "The magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement."
In other words, if accounting information (or its omission) can influence economic decisions of accounting information users, it is considered to be material.
For instance, if a company had overstated its revenues by $5 million, when its total revenues are $15 billion, it is likely that the $5 million misstatement would not make a significant difference to investors (e.g., creditors, management). However, the same $5 million overstatement is likely to be considered material when the company's total revenues equal $40 million.