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The repurchase of shares refers to a situation where a company repurchases its outstanding shares from the open market by using the funds that the company has accumulated. By doing so, the company will be able to reduce the outstanding shares presented on the balance sheet (Also see Accounting – Preparation of Balance Sheet) of … Read moreWhy Do Companies Repurchase Their Own Shares?

A profit organisation, or a for-profit organisation, is a legal entity that runs its operation intending to generate profit for its owner. Conversely, a non-profit organisation has an objective of serving society. Hence, it is clear that the profit organisations have a profit motive, whereas non-profit organisations have a service motive. One may run a … Read moreAre Accounting Treatments for Profit and Non-profit Organisations the Same?

When it comes to the recognition of revenue earned and expenses incurred, the accountants from the accounting firms in Johor Bahru will use some accounting concepts. Accruals and deferrals are probably two of the most important concepts that help in ensuring that the financial statements of a company can reflect the real picture of it. … Read moreAccounting – Accrual and Deferral

Paid-in capital is the capital that the investors have contributed to a company by purchasing the stock from that company in the primary market, but not from the secondary market. This is because if the investors buy the shares directly from the company, the party that receives the fund is the company, and the sum … Read moreDo You Know What is Paid-in Capital?

In accounting, a historical cost refers to a measure of value, where a company will record the value of an asset at the price it acquired that asset on its balance sheet. Most companies would record most of their long-term assets at historical costs. The concept of historical costs follows the conservatism principle in accounting … Read moreUnderstanding Historical Costs