Goodwill that works in companies' favour

Article Abstract:

Goodwill is presented in different ways in corporate balance sheets in the United Kingdom and US. It is clearly presented in the US but UK accountants have traditionally not included soft assets like goodwill on balance sheets. Depreciation logically affects goodwill as with other assets and companies prefer not to show this as having an impact on their profits. They prefer to write it off and then it is included in the section of balance sheets relating to stockholder funds which tends not to receive much attention.

United Kingdom, Goodwill (Business)

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Creditors: people who send you bills

Article Abstract:

Liabilities in corporate balance sheets are usually trade creditors and short-term borrowing. Trade creditors are suppliers of services and goods, and include staff wages. Companies can seek to defer payment of many bills to creditors in order to reduce borrowings or to increase the amount of cash that can earn interest. Accruals represent sums due such as rent that does not have to be paid for a while. There is also deferred income which is money spent on goods and services that have to be paid for in advance.

Analysis, Financial statements

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Exposed

Article Abstract:

Stockholders need to examine corporate accounts for signs of creative accounting.

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