Quantcast
Channel: Technical Queries
Browsing latest articles
Browse All 961 View Live

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 Article



Showing 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 Article

Intangible 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 Article

Record 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 Article

IFRS 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 Article


IAS 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 Article

Accounting 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 Article

Dodgy 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 Article


Outgoing 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 Article


Provisions 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 Article

ACCOUNTING 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 Article

Ownership 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 Article

Unknown 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 Article


Related 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 Article

ASC340-40 - Amortization of Sales Commissions

Does anyone familiar how to implement (technically) this accounting guidance? Any template or instructions you can share? Thanks.

View Article


Government 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 Article

Prepaid 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 Article


Did 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 Article

Other 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 Article

GST 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 Article

How 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 Article


IFRS 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 Article


Formula 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 Article

Bike 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 Article

What 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 Article


PPV 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 Article

Prudence 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 Article

Recording 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 Article

Accounting 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 Article



How 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 Article

Reporting 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 Article

Life 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 Article

IFRS9: 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 Article


Valuation

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 Article

Valuation

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 Article

Journal 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 Article


Image may be NSFW.
Clik here to view.

Recording 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 Article


Option 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 Article

Option 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 Article

Retail, 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 Article

Simple 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 Article


Simple 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 Article

Accounting 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 Article


Reserve 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 Article

Capitalization 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 Article


Capitalization 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 Article

Patent 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 Article

Patent 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 Article

Patent 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 Article


Help 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...

View Article

Browsing latest articles
Browse All 961 View Live




Latest Images