Improving cost management

Article Abstract:

Companies can improve their cost management process by using cash flow reporting and forecasting to analyze the consequences of investment decisions. Implementing a cash flow reporting and modelling approach necessitates the use of unique transactional cost accounting and general ledger systems. Transactional systems must be able to capture cash flows by many variables, including function, activity, product line, and project code, and use the financial model rather than the transactional database as the basis for managerial reporting. Life-cycle costing is an ideal basis for cash flow reporting and forecasting systems for it allows managerial accountants to de-emphasize the reporting of cost and profitability, and allows product lines with short life-cycles to be accounted for as projects.

Cash flow

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Financial instruments: what should be disclosed?

Article Abstract:

The Financial Accounting Standards Board (FASB) has issued an exposure draft of a proposed statement, 'Disclosure about Financial Instruments'. The purpose of the draft is to improve reports about an entity's financial instruments, and the importance and risks associated with those instruments. The exposure draft also attempts to treat the relatively new financial instruments such as financial futures contracts, and interest rate and currency swaps. The draft on disclosure is intended for non-financial businesses as well as financial institutions. The impact of the proposed requirements on unrecognized financial instruments is discussed.

Standards, Financial statements, Financial Accounting Standards Board

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