GAAP is a framework of accounting rules and standards that companies must follow when preparing financial statements. These principles help ensure that financial information is presented fairly and consistently, reducing the risk of errors, fraud, and misinterpretation. GAAP, the acronym for generally accepted account principles, is a set of commonly accepted accounting principles, procedures, and...
Bookkeeping
Filing late or not filing at all can have a ripple effect on your financial health. It can affect your credit score, make it harder to secure loans, and even impact your eligibility for certain benefits. You will have to contact the IRS or a tax professional by calling them. Using a dedicated hotline, you will have to confirm to them that you only have to go back sick years for some of your unfiled...
Fair value represents the price at which an asset could be exchanged between knowledgeable and willing parties, while the value in use reflects the present value of expected future cash flows generated by the asset. For most long-lived assets under US GAAP, a two-step process is used for impairment testing. First, the asset’s carrying amount is compared to the undiscounted future cash flows it is...
EXAMPLE 2 – Calculating the payments to buy PPEAt 1 January 20X1, Crombie Co had PPE with a carrying amount of $10,000. During the year, depreciation charged was $2,000, a revaluation surplus of $6,000 was recorded and PPE with a carrying amount of $1,500 was sold for $2,000. My Accounting Course is a world-class educational resource developed by experts to simplify accounting, finance, &...
Under this slot, you’ll see “tax amount.” That’s the exact tax value that you would have to collect from the customer on top of the product’s price. In Excel, you would input these formulas into the cells where you want to display the tax amount and the price before tax. This calculation helps ensure that you're charging the correct amount at the store and helps to understand the overall...
Firm deadlines for expense report submissions encourage timely reporting and reduce processing delays, ensuring prompt submission petty cash of reimbursement requests. We welcome you to CalATERS Global, a web-based solution for travel advance and expense reimbursement processing. Some states, like California, require businesses to pay employees back for work-related expenses, like using their personal...
Xero and QuickBooks have some differences that make each platform unique and suitable for different applications. To learn more about each platform, hit the link to each provider review in the table above. And to learn more about how we test accounting software, check out our accounting software ratings methodology. Xero vs QuickBooks: Which Accounting Software Is Right for Your Business? When it comes...
Importantly, expected losses must be recognized immediately under CCM, maintaining conservative accounting principles. Construction companies must keep detailed documentation proving contracts qualify for CCM and that alternative methods would not provide better financial information. CCM causes income volatility with large revenue spikes at project completion, complicating financial planning. It limits...