5 Key Aspects of Technical Analysis of Shares
Technical analysis is one of the most widely used approaches for evaluating and predicting stock price movements. Unlike fundamental analysis, which focuses on a company’s financial statements and overall business health, technical analysis relies on historical price data, trading volumes, and chart patterns to anticipate future trends. The main idea is that market prices reflect […]
What is an Initial Public Offer (IPO)?
An Initial Public Offer is the process by which a private company sells its shares to the public for the first time and become a publicly traded company. The process not only provides a company with access to vast funding opportunities but also offers investors a chance to own a part of a growing business. […]
Only 2 GST Rates Now – Relief for Consumers and Businesses
In a major move, the Goods and Services Tax (GST) Council has approved a plan to reduce the number of GST rates to just two: 5% and 18%. This change, which is expected to go into effect on September 22, will eliminate the 12% and 28% rates for most items. The decision is aimed at […]
What is the Matching Concept in Accounting
Accounting as a profession is based on a structure of principles and concepts that introduce consistency and dependability into financial statements. Amongst these, the Matching Concept plays a unique role, particularly under the accrual accounting method. The Matching Concept is the concept that all expenses should be accounted for in the same period as the […]
Why Forensic Audit Was Initiated at IndusInd Bank?
Concerns raised over specific derivative transactions have placed IndusInd Bank, the leading private sector lender in India, under regulatory scrutiny. It is claimed that the Reserve Bank of India (RBI) has called for a forensic audit focused on the bank’s operations concerning the design, disclosure, and risk management of the derivatives. While the bank has […]
Operating Profit vs. Gross Profit vs. Net Profit
While reviewing an income statement, you probably noticed the terms gross profit, operating profit, and net profit. But do you understand what differentiates one from the other? Profitability metrics are vital for analyzing a company’s financial condition. Each one of these profits are calculated and tracked at different levels within the income statement and provide […]
Differences Between Events and Transactions
In accounting, the terms events and transactions are often used interchangeably by those unfamiliar with their technical distinctions. Yet, for accountants and finance professionals, knowledge of the distinctions between these two concepts is central to proper record-keeping, financial reporting, and adherence to accounting standards. Although both transactions and events affect an organization’s financial position, they […]
Creative Accounting and Its Effects on Financial Reporting
Creative accounting is a financial strategy that involves manipulating financial statements to present a more favourable image of a company’s financial health. Although it does not always entail unlawful actions, it tends to test the limits of ethical financial accounting. Firms employ creative accounting in order to overstate earnings, conceal losses, or minimize tax burdens, […]
What is Cash Book? Features and Objectives
The cash book, in its simplest form, is a chronological record of all cash transactions (receipts and payments) made by a business. It serves as a primary book of entry, meaning transactions are recorded here first before being transferred to other ledgers. Essentially, it’s a detailed account of the business’s cash flow, providing a real-time […]
What is a Common-Size Financial Statement in Accounting?
A common-size financial statement is a type of financial statement where each line item is presented as a percentage of a base figure. The base figure is typically total assets or total revenue. Common-size financial statements are useful for analyzing trends over time. For example, if a company’s total assets increase from $100,000 to $200,000, […]