Accounting
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Capex threshold for global company
Our parent company is in China, listed in HongKong, has reporting requirement. Subsidiaries are in the U.S., Netherland, Korea and Japan - these are non public companies, no reporting requirement. All immaterial to parent company in size (from both BS and P&L perspectives) The parent company…
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VAT TOMs
Normally a travel company would have to register for VAT in the country outside the EU so that it can reclaim VAT that is paid when buying a trip from the outside company. Is there a better system for TO`s in the UK? Thanks,
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Are there any accounting or IRS rules that identify it is a bad practice to allow accounting personnel to complete expense reports on behalf of employees?
I work in AP. Despite submitting several drafts of an expense report policy, the CFO hasn't approved anything for release so there is currently next to nothing documented. I suspect this is because this employer runs the business as if it were still small, with lots of trust and very few administr…
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Refund recorded as expense or revenue
An event was canceled, and the customer was given a full refund. Since the event has not happened the money was in a deposit account on the balance sheet. I know I will clear that activity. If I am going to "refund" the customer for more then they have paid would I reduce revenue or book it as a…
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Accounting for rights issue
As of 31 December 2016, Company A holds 160 million shares with a par value of 0.5 per share of Subsidiary A, a publicly listed company (Total investment in Subsidiary A is 80.0 million representing 80% shareholding) (remaining 40.0 million shares is free-floating/ traded in the market) On 30 Se…
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What Extended Illness Bank balance should be accrued?
Our company offers a 50% payout of EIB balance upon termination. At fiscal year end, should we accrue 100% or 50% of the balance? Is there authoritative guidance for this? I would expect to accrue 50%, but I don't have a basis for this apart from long practice.
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Vendor Signing Bonus for Supply Contract
I am working for a company that is purchasing an existing fuel distribution business. While converting their books from cash to GAAP, there is one account that has us scratching our heads. The supplier gives money upfront in exchange for an 10 year exclusive supply contract. Margin is a fixed am…
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Operating Lease
I do the taxes for a partnership in New York. The p-ship has an operating lease for ground floor space in New York. In turn, it sub-leases the space to a restaurant. Basically, it operates by paying rent for the main lease, collecting rent on the sub-lease, and distributing all the net income to…
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How are Standby Letters of Credit accounted for from the beneficiary's perspective?
Hello, I am seeking clarification on the accounting benefits received by banks who lend secured by a Financial Standby Letter of Credit. Specifically in addition to default mitigation, is the SBLC a leveragable asset on their books? Thank You.
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Electronic bill pay
When I bill pay to payee my account is debited right away and then it can take up to 5 days for check to be recieved and cashed by payee. Where is this money for 5 days and who is using it? If is sent electronically there is a 3 day lag from debit to deposit by the payee. I assume ACH to payee acco…
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Research Help - Urgent
Dear colleagues, I am currently crafting the materials for my PhD Dissertation at University of Illinois, and urgently need some help and feedback from professionals and/or students in accounting/finance. Could you spare 30 min of your time and help me trying out this survey? https://illi…
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Accounting for unauthorized options
During the last quarter new stock options were issued to 2 executives and signed off by the CEO. The options were recorded and listed as of year end, but before the financial statements were issued, the final sign off from the board of directors had not been received and not expected to be granted…
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Properly recording Freight out expenses.
Our manufacturing company is fairly new(3 years). I recently came on board to assist with cleaning up their basic processes. Currently they are holding their month end close to try and capture as many AP invoices as possible. One example of this is freight out invoices. The problem I am seeing is t…
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Question regarding pre-incorporation and post-incorporation expensing
Hi everyone, I recently incorporated a business and I'm trying to figure out how to book my expenses. I am the sole owner and incorporated on May 27 of this year. I am still waiting on my business credit card to come so I have been paying everything out of pocket. 1) Am I correct that I shoul…
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Transition to College Teaching
I would like to start teaching college accounting part time. I'm a CPA with a masters in accounting, so according to some job postings I have the minimum requirements to be considered, even though I have no teaching experience. I would like to self-prepare for becoming an educator and wonder what r…
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Ad Agency Media Buys: What Expense Category?
I run a compliance Advertising Agency (we're an LLC) that purchases newspaper print ads (classified job ads) on behalf of clients. What Expanse category do I select in Quickbooks (or generally, in accounting)? 1. Clients pay us the amount of the classified newspaper print ad + a fee. 2. T…
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Provision for RETURNS ( RETAIL COMPANY)
Hi - I have a question regarding sale with the right to return in a retail setting. Of course some provision is necessary as there will be some customers who come in and return product after year end. However, some of the returns will be simply an "exchange" (one size/color) for another. …
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Net Operating Loss Carry Forwards when converting to S-Corp
Can someone tell me how to handle any Net Operating Loss Carryforwards when a sole proprietor (schedule) C decided to convert to an S-Corp? Does the S-Corp absorb these losses?
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Obligation to use IFRS
Hello, could someone please answer my question: In general, is a parent company obliged to use IFRS (instead of, lets say, national accounting system), provided that its subsidiary IS obliged to use IFRS (because of public trading with securities), or isn´t? Thank you very much. Milan
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Tax Implications of Purchases Made Using In-Store Credit
Hello everyone! I have a children’s secondhand store and we buy a ton of inventory everyday. In return I offer in store credit. I spoke with an Enrolled Agent about how to treat the “sales” when trade credit is spent. I feel like I am bartering some of my clothes and items for some of theirs, b…
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Translating product content
We sell simulation products and services to the healthcare market and are sold worldwide. We have to translate the educational content on our products into another language. Since we already capitalized the R&D years ago when we developed the product and did not translate at the time of devel…
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Adjusted Net Income and Adjusted CFO
I am trying to find a proper formula or conceptual understanding of Adjusted net income and adjusted CFO. How should these items be calculated if it is not disclosed in the 10k or 10q statements? This is different from adjusted EBITDA, Thank you
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Can I avoid a capital gains tax on a real estate recap/restructure?
My company will be selling a minority equity position of a real estate asset and using the proceeds to pay off existing senior debt resulting in an unencumbered asset. Our basis in the transaction is fully depreciated and we have been told we may have to pay a huge capital gains tax on this transac…
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Standby Letter of Credit and ASC 842
My company is embarking on a new 5 year office lease this year. As of part of our lease, in lieu of a security deposit, we have established a Standby Letter of Credit (LOC). There is an upfront commitment fee payable to the bank, and the fee will be annually recurring. I'm trying to find guida…
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Assigning standards and variances to correct inventory
I’ve been studying variance analysis and believe that I understand correctly that for a process that generates WIP, that processing costs are absorbed into WIP inventory. And that the r/m portion of the WIP inventory is carried at standard usage until financial reporting is done. And that the r/m…
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