In this video, learn how to discuss the current cutting-edge financial accounting issues. Not all issues are cut and dry in accounting.
- Imagine a company that compensates a key employee … with first, a cash salary of $80,000. … Second, a new car with a value of $30,000. … And third, an option to become a 5% owner of the company … at the end of three years in exchange for an investment … of $200,000 at that time. … - Now if the company does well in the coming three years … the company will increase in value, … the $200,000 price tag for 5% ownership … will look like a great deal, … and the employee will exercise the option. … - If the company does poorly it will decline in value, … the $200,000 price will be too much … and the employee will just throw the option away. … - The company also sells these ownership options … to interested outside investors for $25,000. … - Okay, so how would you summarize in one number … the company's compensation expense … associated with this employee? … - Now we all agree to include the $110,000, … $80,000 plus $30,000 compensation expense … from the cash salary and the new car. … - So what about the option? …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Jim Stice1h 29m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
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