Author Archives: Karl

Factored receivables with nonrecourse

We have now discussed factoring agreements with recourse however what if the risks prevailing are indeed transferred? If you’ve signed on an agreement where you’re in fact selling the receivables and you’re no longer and will not be in future responsible or taking risks in relation to the collection of the invoices, you’ve in fact sold them receivables for good and you can account for the actual collection of the receivables once you’re being paid by the financing company (i.e. bank).  Continue reading →

Importance of financial reporting

Importance of financial reporting arises from the needs of the investors, employees, suppliers and other stakeholders of the company; it arises from the needs of those who are somehow dependent on the performance of the entity. It may not be dependence how you’ve accustomed to see it, i.e. without the company they could not exist, however its dependence in the way that they have results, their everyday life depending on how your company is doing.  Continue reading →

Period end financial statements

Your period end financial reporting (or financial statements) is something that comprises of the most significant statements for your company. When I say “period end” I mean both each reporting period, i.e. a month, a quarter, and the whole reporting period you prepare your Annual Report for (normally a year).   Continue reading →