Introduction and Conclusion for Accounting Paper - Essay Example

ACCOUNTING Introduction The current report looks at a plan for explaining to a client why an accountant would require various reports. Accountants must make on the job decisions regarding matters which may seem dense or too technical for other organizational staff members. This is why it is important for accountants to know about dealing with the problems of adjusting lower cost of market inventory, capitalizing interest on building construction, recording gain or loss on asset disposal, and adjusting goodwill for impairment.

Relative to adjusting cost of market inventory, the report argues that it is vital for companies today to pay attention to issues which affect their bottom line of gross profit, taxes, and net income. The report reviews FASB standards for valuing inventory, at or below market value, which the accountant must do. Supervision of inventory is something that falls into accountants’ responsibilities and job duties, along with when and where to capitalize interest on construction projects being done by the firm.

Perhaps the most important accountancy duty covered in the current investigation, however, remains recording gain or loss on asset disposal—accuracy in this accounting duty is integral to the firm’s success, as well as good reputation. The report proposes the straight-line, declining-balance, and sum-of-years approaches, while giving real world examples of equations which may be used in this most important part of accounting. It is also important to consider the importance of adjusting goodwill for impairment in a way that can provide the company with valuable information relative to future investment planning, in order to again, optimize profits and revenues for the firm.

Conclusion The current report has looked at why an accountant would require various documentation from a client, and has also shown real world demonstrations of equations used for recording gain or loss on asset disposal (one of the most important required tasks for accountants, and one which can be done in a variety of ways). The report has also looked into issues of adjusting lower cost of market inventory, capitalizing interest on building construction, and adjusting goodwill for impairment.

Each of these functions has its separate use for accountancy, and these various uses form a holistic picture of what may be expected from on-the-job performance tasks. Some of the tasks, such as adjusting inventory, may be very long and complex, depending on the depth and age of the company’s inventory stocks. The accountant must present these issues in a professional manner, because many management and other office staff members consider accounting vocabulary dense and confusing, but expect definite and consistent results, in order to optimize profits and revenues.

Paying attention to the bottom line is of the utmost importance to firms, and the financial bottom line in many cases is provided in an accounting issue such as the ones presented in the current report. The accountant must act as a sort of go-between for other office staff members, and many of these tasks, especially regarding inventory maintenance and interest depreciation, may go unseen and unnoticed by other office staff. However, accountancy is vital, because it provides the economic framework and structure for the organization, and provides a blueprint for success in the future.