Cash on hand and cash flow are key indicators of financial health for any company, especially for young  companies which are vulnerable to cash shortages. Although it would seem to be a straight-forward balance to assess and interpret, the cash balance is frequently misinterpreted and manipulated.   Cash Definition The cash balance reported on the […]

When and how much revenue to recognise in a firm’s accounts is one of the most contentious and important issues in financial accounting. The issue is especially acute for tech firms since early-stage tech firms may not yet have reached profitability, thus revenue and revenue growth will be key financial metrics. In addition, technology firms […]

This article was originally published on CoreEarnings.com .   XBRL (eXtensible Business Reporting Language) is a data format for company financial reporting which can be easily consumed by software applications. The ‘Language’ in the name is actually a misnomer, XBRL is simply a data format as opposed to a computer language capable of performing operations. XBRL […]

Firms are at liberty to change the accounting policy applied to their financial results. Changes to accounting policy fall into three main categories: 1. Changes of Accounting Principle 2. Changes in Accounting Estimates 3. Changes in the Reporting Entities Changes of Accounting Principle In preparing their financial accounts, firms may select from several alternative accounting […]

In yet another rebuke of Groupon’s (GRPN) accounting methods, Anthony Catanach drew attention to the intangible assets sitting on Groupon’s balance sheet. Whilst he noted the danger of Groupon’s high intangible assets, it is so serious that it warrants a more in-depth analysis. Intangible assets encompass a wide variety of non-physical assets such as patents […]

This article was originally published on CoreEarnings.com .   What is EBITDA? EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) is a commonly used earnings metric in financial analysis. The central motivation for using EBITDA is that shows a firm’s earnings from its core business activities and it is more of a cash based metric. The […]

This article was originally published on CoreEarnings.com .   In its offering prospectus Groupon billed itself as a ‘local e-commerce’ company which brings ‘the brick and mortar world of local commerce onto the internet’ which clearly defines it as an online tech business. It is therefore nothing less than astonishing to see no Research & Development expense on […]

This article was originally published on CoreEarnings.com    Financial Reporting is primarily focused on providing a detailed view of a firm’s earnings. The accruals concept is applied to both revenues and expenses so that only income/expenses which are earned or occurred in the period are reflected in the accounts irrespective of payments. For example, a […]

This question about selecting data using Entity Framework on StackOverflow got me thinking that a lot of LINQ to Entities code samples show very little consistency in how data is selected. Find(), Single(), SingleOrDefault(), First(), and FirstOrDefault() are often used interchangeably. The first issue to address is using Where() in the data selection statement. Where() […]

Site visitors are conditioned to believe that hitting the browser’s refresh button will simply refresh the page. In reality the browser re-issues the last Http Request. That’s fine if it was just a GET Request which typically only loads a page, but if the request was a POST Request which typically updates values on the […]

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