Accounting Practices Regarding Accounting Management...

Tread Lightly through These Accounting Minefields Tremendous pressure is placed upon accountants and executives to provide favorable financial conditions of their organization (Sherman Young, 2001). As such, accounting practices are continually a source of question and concern for many organizations in reporting profits and corporate financial information to shareholders, stock markets, and government filings. Hence, the role of the ethical accountant and executives becomes crucial to the continued success and operation of the organization. Consequently, pitfalls or minefields of questionable accounting practices must be avoided. Said pitfalls include revenue measurement and recognition, provisions for uncertain future costs, asset valuation, derivatives, related-party transactions, and information utilized in bench-marking performance (Sherman Young, 2001). While impossible to fully eradicate the occurrence of questionable, unethical or illegal accounting practices regarding accounting minefields, organizations must implement procedures, controls, and culture to minimize the potential of such practices occurring within their establishments. Revenue Measurement and Recognition Revenue is an increase in a business’ equity resulting from the sale of products or services (Warren, Reeve Duchac, 2012). As such, organizations should recognize revenue upon the completion of transactions resulting in the earning of said revenue allowing for its recognition withinShow MoreRelatedPublic Accounting Vs Private Accounting1059 Words   |  5 PagesMichael Lopez Prof. Lapari 8 March 2017 Accounting 201 Public Accounting vs Private Accounting There are two types of accounting practices are public and private these two types are very distinct. 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