Canada: Accounting industry grows

The country's accounting industry continued its strong growth in 2006, Statistics Canada said yesterday. The federal agency said accounting operating revenues grew 12.1 per cent to $11.1 billion in 2006. That followed 13.7- per-cent growth the previous year. Most of the revenues in 2006 came from traditional accounting services such as auditing and assurance (30 per cent), taxation (25 per cent), and bookkeeping and payroll (11 per cent).

Source : http://www.canada.com/

New Accounting Guidance for Earnings-per-share

Set to take effect at the end of the year, FASB clarifies the accounting treament for share-based payment awards.

The staff of the Financial Accounting Standards Board (FASB) has, it seems, increased the rate at which accounting guidance is being issued. The latest offering involves a clarification of the manner in which earnings per share (EPS) is calculated for entities which have issued "participating securities," in addition to common stock,

Indeed, FAS 128, Earnings Per Share, defines EPS as "the amount of earnings attributable to each share of common stock." The board decided to require, with respect to the computation of EPS, the use of the so-called "two class method" in the case of enterprises with participating securities. The two-class method (see paragraph No. 59 of FAS 128) is an earnings allocation formula that determines EPS for each class of common stock and participating securities according to dividends distributed and participation rights in undistributed earnings.

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2008 Review of Small Business Accounting Systems

Helping SMBs Achieve Success: Programs Enhance Accountant Controls & Data Integrity Features

Accountants who provide services to small businesses frequently find themselves in the role of diagnostician, trying to find out why a particular client is hemorrhaging cash and what the short- and long-term chances of survival are for the company. They also assist in determining what strategies will best brace the entity and help develop financial processes that are sound and grounded in solid accounting practices. This is a critical role because when challenges are recognized early enough, problems can be averted or minimized.

But still, a 2007 study by the Bureau of Labor Statistics cites that more than half of small businesses (56 percent) fail before lasting four years. Among the most failure-likely industries are hospitality (particularly restaurants and bars), transportation and apparel. While these sectors may stand out as the most vulnerable, all small businesses are at risk since they face a myriad of challenges such as cash flow, budgeting and strategic planning. And they frequently rely upon individuals with limited financial and business management experience.

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