Archive for the ‘book’ tag
Company Books
Accounting for Software Companies: Time to Bring About Uniformity and Consistency
With the revolution in Information Technology, software companies have seen unprecedented growth in the last twenty years with companies offering IT-based solutions in diverse areas of business activities. Software companies are providing customized solutions for companies world over, automating the business operations and making the processes efficient, user-friendly, cost-effective, time saving bringing about a complete metamorphosis in the way business is conducted. Accounting for software companies bringing about this change is a new domain for most of the economies across the globe, throwing challenges before the accounting standards supervisory bodies to formulate policies and guidelines for these companies so as to correctly reflect the overall health of these firms from different perspectives.
Software companies are involved in various activities in the process of providing solutions for their clients. There are business transactions of different nature carried out by these firms at different stages, and a policy statement prescribing sound accounting for software companies requires taking care of all these business transactions that the companies are involved in at every stage of the project development and execution is very essential. The most important issue concerning accounting for software companies is the way these software companies book income from software products developed by them and the various IT services supplied to customers.
There are also problems of inconsistencies in accounting standards related to these companies if they are operating at a global level. For instance, as per US rules, revenue can be included in a company’s accounts only after software and services have been supplied in full, whereas a UK company can book revenues for supplying services even before the work is finished. This implies that a company based in Britain, but listed in US Exchange and filing its accounts under the US rules, will be substantially overstating its UK gross margin or revenue. Multinational companies may find it very hard to comply with dual standards. Sometimes, these inconsistencies are so sharp that a company may have to break the basic spirit of one accounting standard to comply with the other.
There are a number of issues that are interpreted differently by the companies to report their profits or losses on accounting books. There are some companies that capitalize their software development costs and there are others who expense these development costs. Moreover, aprt from the Research and Development costs, which are always reported separately in financial statements, most other intangible investments go unreported, such as employees training, brand enhancement, information technology investments, etc. Thus, there is a complete lack of transparency in case of most intangible investments, and this is true not only in United States, but in different degrees worldwide. Accounting for software companies must take care of this issue to bring about more transparency in the system.
The way software companies report their accounting statements, mainly profit and loss statement has become very important after various technology companies were involved in various kinds of accounting frauds and blunders in the past few years. Accounting for software companies has become critically important especially after the Enron scandal, and most economies are trying very hard to bring about a uniformity and consistency in the reporting standards.
About the Author
Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about accounting outsourcing, retail accounting, Accounting for software companies, small business accounting and accounting help visit www.impacctusa.com
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Deluxe Leather Photo Album with Faux Suede Interior Lining – Stores 300 Pictures $42.95 You’ve taken the photos, now it’s time to showcase and share them. You memories are precious and how you store them should be no less. The classy, bonded leather photo album by Old Town holds up to 300 photos with dimensions 4 x 6 inches (10.2 cm x 15.2 cm). The album also accommodates photos with dimensions 4 x 12 inches. A great addition to your shelf or library, you’ll enjoy viewing and sharing… |
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Genuine Leather Rustic Rider Photo Album – Stores 100 4×6 Photos $42.95 The Rustic Rider Leather Photo Album by Rustic River Leather provides that special place for storing your family outings, adventures, or wildlife photos. This hand-crafted photo album stores up to 100 4×6 inch photos and is not only a great way to store photos, it’s a great way to present photos. The Rustic Rider Album closes with a thick leather wrap. Store your pictures with pride with the RUSTI… |
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European Leather Photo Album with Archival, Acid Free Paper $34.95 Store your photos and record notes about your memories in this European Bonded Leather Photo Album. The album holds 300 4×6″ photos and can accommodate 4×12″ panoramic prints. Utilizing archival and photo safe paper, photos are protected in an Acid-free, lignin-free, and PVC-free environment. Within the album, photos can be displayed horizontally or vertically for better placement and easier viewi… |
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Alone in IZ World $10.76 The artist behind Facing Future, the top-selling Hawaiian album of all time, the late Israel “IZ” Kamakawiwo’ole was possessed of a voice so sweet, so tender, and so lovely that it continues to deeply stir those who hear it long after he died. Lovingly assembled and notated by producer Jon de Mello, Alone in IZ World is comprised of both alternate versions of Kamakawio’ole’s best-loved song… |
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Fraggle Rock: Complete Series Collection $47.94 Follows the adventures of a group of furry creatures called Fraggles who live underground with their neighbors the Doozers and the Gorgs…. |
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Sid the Science Kid: Change Happens $7.30 Studio: Ncircle Entertainment Release Date: 07/17/2009… |
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Oliver & Company [VHS] $2.49 Disney does Dickens in this animated version of Oliver Twist, in which a homeless New York City cat falls in with a bunch of mischievous dogs under the leadership of the appealing scoundrel Fagin. The roots of Disney’s success with animation in the ’90s begins with this clever, energetic, atmospheric movie, which succeeds in capturing the grim world Dickens conjured. Lyricist Howard Ashman (The Li… |
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Strangers in Good Company [VHS] $7.95 This touching, 1991 Canadian film directed by Cynthia Scott takes the unusual step of casting nonprofessional actors, and the gamble pays off very well indeed. The story concerns eight elderly women whose tour bus breaks down driving through the wilderness. While waiting to be rescued, they find an abandoned house and look for food. The days and nights they end up spending away from civilizati… |
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Swiss Family Robinson [VHS] $14.98 The Disney touch is all over this grand, colorful version of the Johann Wyss adventure of a European family set off for the new world of New Guinea. The film opens on a ship jostled and torn by a raging storm while a family struggles to make it through alive. Tossed into a reef near a deserted tropical island, father John Mills takes charge and the family soon turns their island prison into a veri… |
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3M Document Wedge 3.75 in x 4.5 in x 2 in $5.50 Holds documents vertically for easy viewing. Helps reduce neck and eye strain by placing documents where you need them. Main FeaturesManufacturer: 3MManufacturer Part Number: DH140Manufacturer Website Address: www.3m.comPackaged Quantity: 36Product Type: Copy HolderDimensions: 4.5″ x 3.6″ x 1.7″… |