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All issues, step 1: initial factual development (cont’d) accounting for intangibles and services associated with the sale of tangible property outbound . taxpayers may shift income outside the u.s. on controlled sales of tangible goods to related parties by failing to properly t ake into account associated intangibles or services. 4 provides a step by st ep illustration of the accounting process. section 5 explains the consequences of timing differences between the elements of a transaction. section 6 provides an overview of how information flows through a business’s accounting system. section 7 introduces the use of financial reporting in security analysis. a summary. Steps in the accounting cycle. financial information is ultimately presented in reports called financial statements (step 7). but before financial statements can be prepared, accountants need to gather information about business transactions, then record and collate them to come up with values to be reported (steps 1 6).
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