Category: GAAP / IFRS

Capital Lease Agreement

See Also: Fixed Assets Current Liabilities Long Term Debt Sale and Leaseback Working Capital Secured Claim Capital Lease Agreement A capital lease is a type of long-term lease agreement. A capital lease is recorded on the lessee’s balance sheet. This type of lease typically spans most of the useful life of the asset. In a

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Disclosure of Accounting Changes

See Also: Accounting Principles Probable Losses Subsequent Events Business Segments How to Make Dramatic Changes in Business Planning Your Exit Strategy Percentage Completion Method What Your Banker Wants You To Know Accounting Changes Accounting changes and error corrections are the switch from one principle of accounting to another – like with inventory and recognition of

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Accrual Based Accounting GAAP Rules

See Also: Accrual Based Accounting Accrual Based Accounting GAAP Rules Revenue Recognition Principle — GAAP The revenue recognition principle states that revenue is recognized when earned. In other words, collect the money for services rendered. Revenue is considered earned when the company has fulfilled its obligation to the customer. For example, if a customer orders

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Compare IFRS vs US GAAP for SME’s

Do you want to know what is going to change when the new international standards are adopted? The AICPA has now created a wiki comparing the streamlined and complete version of the international standards using IFRS vs US GAAP for SME’s (Small and Medium Sized Entities). All of the sections of the IFRS will be

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Implementing Activity Based Costing

All of us have used cost allocation as part of our Financial Services offerings since it is required by GAAP. Cost allocation is the process of assigning common costs to ending inventory and cost of goods sold (COGS). Our goal has been to either reduce taxes or increase reported earnings, but this all depends on

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FASB Chief to Propose Accounting Rule Change

In this blog, we look at how the FASB Chief to propose accounting rule change will impact your business. FASB Chief to Propose Accounting Rule Change The Chairman of FASB is set to propose that bank regulators be allowed to make adjustments to the financial statements of banks in order to determine whether those banks

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