Foreign-denominated income from a local company
Suppose a company domiciled locally and whose shares I own distributes income to its shareholders in a foreign currency, i.e. USD. Should I treat this as local or foreign dividend income for accounting...
View ArticleShowing total returns income on charity SOFA
If, at the start of the financial year, a charity decided to draw down total returns of 5% from its permanent endowment fund that year (based on portfolio value at prior year end)... and received a...
View ArticleIntangible assets
Hi everyone, I would like to ask , can a boat builder company capitalised their boat drawing as an intangible assets ?? Thank you in advance.
View ArticleRecord Condo Insurance Premium Financing?
I just joined our condo association’s finance committee. While reviewing our contracts, I found a financing agreement related to our insurance premiums. Our balance sheet does not show the loan. The...
View ArticleIFRS 2 Share-Based Payment - Estimating Forfeiture Rates
When recording equity compensation expenses under IFRS 2, companies are asked to estimate forfeiture rates. When no historical forfeiture information is available, how can I reasonably estimate the...
View ArticleIAS 21 — The Effects of Changes in Foreign Exchange Rates
Have a question about the correct calculation of foreign exchange rate differences Example: UK ltd Company (having functional and presentation currency: GBP) gave a loan to the client on 1/1/2022 in...
View ArticleAccounting for terribly conducted transactions.
My business is using a site for certain services where the only payment option is by crypto. We can upload any amount of credit to our account there and then use that, we don’t have to pay separately...
View ArticleDodgy Dealing?
A Company I work for is providing services to a client who owns 2 companies, investment and developer. My company invoices the investment co and ( presumably) funds are transferred, we then issue a...
View ArticleOutgoing shareholder and payment to him
Hi I have a client company which has 4 Ordinary shares of £1 each. There were two shareholders and one shareholder has now departed (retired), leaving one shareholder. The outgoing shareholder was paid...
View ArticleProvisions in Nestle SA Financial Statements of 2014
In Nestle SA Consolidated Financial Statements of 2014, in Note 12 Provisions made during the year are 920 but it is not visible in its income statement. May be it has been included in Restructuring...
View ArticleACCOUNTING TREATMENT ON DUAL PURPOSE PROPERTY
The company owns and operate a hotel property. Half of the rooms are leased out on long term lease and balance rooms operates on short term rental. Short term guests are provided with breakfast and...
View ArticleOwnership structure
If my company owns 100% of the common shares of Company A while another unrelated company owns 100% of the preference shares of Company A, and my company and the unrelated company have a side agreement...
View ArticleUnknown Exercise/Strike Price at Grant Date
This query relates to employee share based payments within the scope of IFRS 2. Option type: European Market (‘Spot’) price at 1 January 20X2: $1 Volatility: 25% Grant date: 1 January 20X2 Vesting...
View ArticleRelated Parties Profit Sharing
Profit sharing from regional office to local entity, (MNC structure) There's a global parent entity (Parent), there's a regional office (RO) and there's local entity (LE). all are LLC companies. RO...
View ArticleASC340-40 - Amortization of Sales Commissions
Does anyone familiar how to implement (technically) this accounting guidance? Any template or instructions you can share? Thanks.
View ArticleGovernment Welfare Payments (non taxable)
Hi, I'm self employed and the first two years of trading I received a weekly support payment from the government (a social welfare payment). This is not taxable income. I'm not an accountant but I am...
View ArticlePrepaid software licenses
Over the last 3 years, we have purchased some software licenses and record into "Prepayment". Latest assessment is that we are unable to utilize all the licenses so we will have to write them off into...
View ArticleDid not record opening balance when switched to new accounting system
When the company switched to a new accounting system two years ago, they did not record the opening balance for a liability. They have not been able to reconcile to the bank statement this whole time....
View ArticleOther comprehensive income and tax
I saw that most of the time comprehensive is reported net of tax. I am confused since I thought other comprehensive income consists only of unrealized gains and loss, therefore there should be no...
View ArticleGST on international flights
Hi, we have booked some international flights on behalf of a client, and the client has mentioned that these will be GST free (which is stated on the flight invoices). But we have previously spoken to...
View ArticleHow to record the gain from a company investing my assets?
Hello, I am a little confused about how to perform the accounting for the following scenario and would appreciate any guidance. This should be under IFRS. Scenario Description: Firm "The_Client"...
View ArticleIFRS 21 Financial statements currency conversion
Hi I have a question that relates to converting financial statements from local currency (ZAR in this case) to USD. The company reports in its registered country in ZAR but have a foreign shareholder...
View ArticleFormula to Compute Early Settlement Discount/Rebate
I have an Excel spreadsheet and the payment amount in cell A1, the end of month date in C1 , the early settlement date in C2 (this must be the 22nd or earlier) and the int rate in D1 The manual formula...
View ArticleBike bought in my name / Cycle to Work for Director LMTD
Hello, I am Director of my LTD. I recently bought a bike, in France in my name.I mainly use this bike to go to work / to visit clients. I'd like to pass on the cost of the bike to my company. Possibly...
View ArticleWhat is the right term for that operation/exercise? and what is the right way...
Hi, I am working as an accountant, and part of my job involves financial analysis. Here is the situation: My company is a governmental institute, that provides a license for different companies in the...
View ArticlePPV FX Help needed
Hi. We were trying to understand at my work all t account entries related attached file. Norway entity buys Iodine material for $61USD in Period 1. Functional currency for Norway is NOK. Inventory will...
View ArticlePrudence concept and Bank loan Interest for terms more than 1 year
I am confused about a journal entry that may seem silly to most. A company takes 1 million bank loan for 3 years, at 9% interest. To me According to the prudence concept, the entire amount due on...
View ArticleRecording a Partial Impairment to a Fixed Asset
What is the typical approach for recording a Partial Impairment for a Fixed Asset. For instance, if the Carrying Value/NBV of a Fixed Asset is $750, but the Recoverable Amount is now $700, would you...
View ArticleAccounting for contractor work supporting a free trial (COGS or OPEX?)
Hello, My company engages contractors to support our offering to our customers. This contractors work is classified as COGS as it is directly supporting revenue, and we could not earn the revenue...
View ArticleHow to record vehicle expenses for a sole-trader?
Hello. I'm a UK sole-trader and wanted to know how I would record my purchase of a second-hand car (80% business use) and expenses like petrol, parking and so forth?
View ArticleReporting net income for a registered charity in Canada
Hello I just started volunteering for a registered charity. When reviewing their financials i found that the accounting firm who manages their accounting prepare a year end journal entry to reduce...
View ArticleLife Insurance transfer and gifting - basis question
I have a client that had their partnership take out a whole life insurance policy on a key employee in 2013. The partnership owned the policy and was the beneficiary of the policy. This employee moved...
View ArticleIFRS9: Expected Credit Losses (ECL) for Fair Value through Other...
Hello the community, I found this illustration on Expected Credit Losses (ECL) for Fair Value through Other Comprehensive Income (FVOCI) instruments from a PwC doc (photos below or link – p21). I am...
View ArticleValuation
Under what scenario the NAV method should be used to do a valuation of a company? What items in the balance sheet should be included in the NAV calculation?
View ArticleValuation
Under what scenario the NAV method should be used to do a valuation of a company? What items in the balance sheet should be included in the NAV calculation?
View ArticleJournal entries for both buyer and seller for free services
A buyer gets $50 in free lawn cutting service. Seller does not expect payment. What are the journal entries for both buyer and seller?
View ArticleRecording Sale of Auto Loans - Participation Loan
I have a Credit Union that just sold a pool of auto loans. Total loan balance outstanding is $1,400,945.22 and they are selling 90% (retaining 10%). Here is the info. This is the calc they used:...
View ArticleOption expense (IFRS treatment)
Assume we have granted 1,000 options to an employee on Jan 1 2022 at $30@ vesting over 3 years, my understanding is that the option expense should be recorded at $10,000 in 2022, 2023 & 2024. In...
View ArticleOption expense (IFRS treatment)
Assume we have granted 1,000 options to an employee on Jan 1 2022 at $30@ vesting over 3 years, my understanding is that the option expense should be recorded at $10,000 in 2022, 2023 & 2024. In...
View ArticleRetail, Matching sales with actual vendor invoices
Hello, I have a new upholstery l client whose POS system automatically enters a 50% COGS (for labor) when a sale is made. Every month, they enter any bills that have come in from the labor they...
View ArticleSimple Breakeven question?
Hi all I'm sure I'm just overthinking this one and it's very simple in reality. I'm trying to work out a breakeven point but it's for an online gaming business. So while I can obviously split out my...
View ArticleSimple Breakeven question?
Hi all I'm sure I'm just overthinking this one and it's very simple in reality. I'm trying to work out a breakeven point but it's for an online gaming business. So while I can obviously split out my...
View ArticleAccounting for Savings
John has a choice between 2 apartments. John rents apt A for $800/mo instead of Apt B which is exactly the same but costs $1000/mo. Therefore john has saved $200 in monthly rental costs. using GAAP,...
View ArticleReserve Accounting
I have a client who owns a commercial real estate property. They have a bank loan which requires them to maintain a specific balance for future tenant improvement allowances. If they spend from that...
View ArticleCapitalization of Labor Cost
We are a startup large power generation company, and all our projects are in predevelopment phase, and we have multiple people working on different projects, hence my question is can I capitalize their...
View ArticleCapitalization of Labor Cost
We are a startup large power generation company, and all our projects are in predevelopment phase, and we have multiple people working on different projects, hence my question is can I capitalize their...
View ArticlePatent Costs
We incurred legal expenses related to a patent. These need to be capitalized. The fees were incurred in 2023 but not invoiced until 2024. Normally, I would accrue for these fees, but being that they...
View ArticlePatent Costs
We incurred legal expenses related to a patent. These need to be capitalized. The fees were incurred in 2023 but not invoiced until 2024. Normally, I would accrue for these fees, but being that they...
View ArticlePatent Costs
We incurred legal expenses related to a patent. These need to be capitalized. The fees were incurred in 2023 but not invoiced until 2024. Normally, I would accrue for these fees, but being that they...
View ArticleHelp with Disable Daughter Social Security
My daughter is an adult, and disabled, but she is high functioning. She has always worked in her adult life. The last few years she has been working more and more, her job loves her and keeps giving...
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