• Return to previous page.

Text size:

Printable Version

New BNA Portfolio Explores Financial Accounting Fundamentals

NEWS RELEASE

Contacts:
Mark Carrington
(703) 341-5880

Arlington, Va. (December 18, 2007) – BNA®, publisher of the authoritative and universally recognized Tax Management Portfolios, has released the latest addition to the Accounting Policy and Practice Series – Portfolio 5116-1st Accounting Principles and Financial Statements. The new Portfolio explains the basic accounting of elements of financial statements prepared under U.S. generally accepted accounting principles (GAAP).

This new portfolio discusses how companies provide reliable information about their financial results and conditions to external parties, such as existing and potential shareholders, existing and potential creditors and governmental agencies.

Regulators established numerous principles for financial accounting and provided extensive guidance. Companies, however, have significant discretion in how they apply many of these principles. The primary regulator in the financial accounting arena is the Financial Accounting Standards Board which has developed specific guidance on narrowly defined accounting issues. Other organizations, such as the American Institute of Public Accountants (AICPA) and the Securities and Exchange Commission (SEC), also provide specific guidance on select issues.

In the United States, the principle financial statements are the balance sheet, the income statement and statement of cash flows. Most companies use the accrual method of accounting, which essentially requires that these companies recognize income when they complete a transaction even though they might not collect cash from the transaction until a later date, if at all. This recognition rule has complicated issues that are discussed in this Portfolio. Several complex issues regarding expenses and accounting for inventory and long-term assets are also discussed.

The portfolio concludes with a thorough discussion about the methods accounting professionals and financial analysts use to analyze financial statements, including computing various ratios from financial statements data. By understanding these ratios, financial statements users can better assess the strengths and weaknesses of a company’s financial position.

This Portfolio may be cited as BNA Tax and Accounting Portfolio 5116, Robinson & Marmorstein, Accounting Principles and Financial Statements (Accounting Policy and Practice Series).

Thomas R. ("Tom") Robinson (B.A., University of Pennsylvania; Ph.D., Case Western Reserve) is a certified public accountant, certified financial planner, and chartered financial analyst. He practiced public accounting and financial planning for 10 years, primarily with Deloitte & Touche, and Pritchett Dlusky & Saxe in Columbus, Ohio, and is currently Head of Educational Content in the Education Division of the CFA Institute, where he leads and develops the teams responsible for producing and delivering educational content to candidates, members, and others encompassing CFA Program Content, Professional Development Content, Private Wealth, Publications, University Relations, and Conferences.

Howard Marmorstein (B.S., M.B.A. Wharton School; University of Pennsylvania, Ph.D.; University of Florida); has served as an expert witness and business consultant for both firms and municipalities in the areas of business valuation, eminent domain, trademark infringement, and deceptive advertising. Marmorstein is an Associate Professor of Marketing at the University of Miami where he teaches Marketing Management and Consumer Behavior. His research on consumer decision making has won two national awards and has been published in numerous academic journals.  Professor Marmorstein won the University of Miami Professor of the Year Award in 2003.

# # #

About BNA®
BNA is the foremost publisher of print and electronic news, analysis, and reference products, including the recently launched Accounting Policy & Practice Series.  BNA publications intensely cover legal and regulatory developments for professionals in business and government. BNA is the oldest wholly employee-owned company in the United States, and produces more than 350 news and information services – including Daily Report for Executives and Daily Tax Report – widely respected for comprehensive and objective reporting and analysis.

For more information about the BNA Tax Management Portfolios, call (800) 372.1033.