Strategies to mitigate risks, such as diversifying revenue streams or using financial derivatives, can protect financial health and maintain stakeholder confidence. Businesses can similarly benefit from equity in managing their debt obligations. A business’s equity is often a critical gauge for lenders and investors assessing the financial health of a company. A firm with a...Read More

When the insurance premiums are paid in advance, they petty cash are referred to as prepaid. The amount of the insurance premiums that remain prepaid at the end of each accounting period are reported in the current asset account, Prepaid Insurance. The balance in this account will be combined with the balances in other prepaid...Read More

The consolidated statement of cash flows (consolidated statement of changes in funds) shows cash inflows and outflows for an entity and its subsidiaries. For majority-owned subsidiaries (over 50% ownership), their cash flows are fully consolidated into the parent’s statement. For minority interests (less than 50% ownership), dividends are reflected in the cash flows of the...Read More

Information on provisioningwill help most if it is related in a systematic and credible way to expected losses – not just those alreadyincurred. Accounting standard setters are working toward agreement on an expected loss impairmentapproach – it is important that they be successful. Financial integrity is “paramount to the success of the 2030 Agenda”, the...Read More