in General Accounting Q&A by
retagged by
Check out companies like dialog semiconductor.
Their margins are half of their US competitiors (even though they use the same manufacturing flow and customer base).

Please log in or register to answer this question.

1 Answer

0 like 0 dislike
by Level 2 Member (4.3k points)
 
Best answer
Neither IFRS nor US GAAP specifies the margin that a company should maintain. It is up to the management of the company to decide. Both IFRS & US GAAP requires the use of accrual method of accounting which is essentially derived from the matching principle. That means if you recognize some revenue you have to recognize the corresponding expenses also regardless of the time of cash outflow.

Related questions

3 answers
asked Jan 22, 2013 in General Accounting Q&A by anonymous
1 answer
1 answer
asked Feb 7, 2013 in General Accounting Q&A by anonymous

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers on Accounting-related questions.

Get AccountantAnswer App



...