How does your accounting department measure up?
Article Abstract:
The National Association of Accountants surveyed 179 companies to elucidate the accounting operations of business. Of the responding firms, 169 were small- to medium-sized companies. The survey results indicate that the resources devoted to accounting operations increase as the revenues of the firm grow for both private and publicly-listed companies. Public companies spend more on accounting than do private companies, but typically they do not have much larger accounting staffs. Smaller firms devote a larger proportion of their resources to their accounting operations than do mid- to large-sized firms as there seems to be semi-fixed or fixed costs associated with the accounting function. The survey indicates that custodial functions make the greatest demands on accounting operations, leaving little time for accounting personnel to devote to improving the efficient use of their firms' capital.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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ABC in France: French companies give a Gallic shrug to popular cost method
Article Abstract:
The concept of activity-based accounting (ABC) has not been received very well by French companies. Reasons cited for the lack of enthusiasm showed by the French for ABC include fears about the high cost of implementation, poor economic conditions, hostility to change and cultural factors. To determine whether French resistance to ABC techniques was due to factors unique to France or to characteristics of the ABC concept itself, two large French companies with annual turnover exceeding $1 billion were examined. Both companies, one a subsidiary of a US company and the other a French company with many overseas units, had adopted ABC on a trial basis. Results showed that while both companies experienced problems in implementing ABC, the obstacles were considerably greater at the French company. Factors that contributed to the difficulties experienced in both companies are discussed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1995
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Corporate liquidations after TRA '86
Article Abstract:
A major change in accounting practices brought about by the Tax Reform Act of 1986 is that companies are now required to recognize gains or losses relating to a corporate liquidation. Limits have been placed on the recognition of losses in cases where the distribution is not pro rata, or if 'disqualified' property is distributed. There are transition rules and 'grandfather' provisions of the Act that provide partial relief for some 'qualified' corporations that are liquidated before 1989. Corporations that are planning to liquidate may be able to limit tax liability by: limiting the consideration paid for assets to $5 million, or making a non-liquidating distribution of property that is rapidly appreciating prior to the liquidating distribution. The new corporate alternative minimum tax may further complicate a liquidation.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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