ContentIAS 18 — Sales of real estateJoint IASB-FASB discussion paper on revenue recognitionHistory of IAS 11Accounting Resources for ASC 606 and IFRS 15Requirements for the Completed Contract MethodTreatment of Specific Items in a Contract Account This post explores when and how that significant financing component should be recognized. ASC 606 requires us to consider collectibility to determine if a contract exists but what happens if things change after the contract is signed? This post explores if, and when, an entity may need to re-evaluate the collectibility of a contract, and what it means for revenue recognition. The Boards concluded that assurance-type warranties do not provide an additional good or service to the customer (i.e., not a separate performance obligation). By...

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Contents:How do I get a loan for a new business?CompanyJoin 446,005 entrepreneurs who already have a head start.Research Your Competitors and MarketCEO No one will ever be able to predict what could happen tomorrow, so you should spare no expense to keep your business and property protected. I've observed many business owners who regret not purchasing insurance, only after misfortune strikes and their bill comes due. Consult an insurer to find out how to protect yourself and your business. The key is to recruit the best people to help you achieve your goals, but more importantly, people who share your vision. Every teammate might bring a different skill set to the table, but the entire team should always be on the same page about the company’s vision and values. However you...

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ContentAdjusting Journal Entry Definition: Purpose, Types, and ExampleHow to audit Cash and Cash Equivalents: Basic Audit proceduresBusiness License Tax - Deferred ExpensePresentation of Prepaid ExpensesAccruing Interest ExpensePrepaid expenses accountingUnderstanding Adjusting Journal Entries You prepaid a one-year insurance policy during the month and initially recorded it as an asset because it would last for more than one month. By the end of the month some of the insurance expired, so you reduced the value of this asset to reflect what you actually had on hand at the end of the month ($1,100). To transfer what expired, Insurance Expense was debited for the amount used and Prepaid Insurance was credited to reduce the asset by the same amount. Any remaining balance in the Prepaid...

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Contents:What Is Negative Cash Flow?Example of Cash Flow AnalysisWhat does negative cash flow mean for your small business?Download a free statement of cash flows templateThe key elements of a cash flow statement Profit, however, is the money you have after deducting your business expenses from overall revenue. The expenditures for maintenances of assets is only part of the capex reported on the Statement of Cash Flows. It must be separated from the expenditures for growth purposes. This split is not a requirement under GAAP, and is not audited. Therefore, this input to the calculation of free cash flow may be subject to manipulation, or require estimation. Since it may be a large number, maintenance capex's uncertainty is the basis for some people's dismissal of 'free cash...

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Contents:Legal Drafting & AnalysisMismanaging trust accountsBookkeepingIgnoring Professional HelpBest Accounting Software for Law Firms For example, say you deposited a check for $10,000 to the trust account on December 30 but the deposit didn’t clear the bank until January 2. The December 31 bank statement shows a balance that is $10,000 less than your books or the client’s trust ledger due to a timing difference. You would note this in your reconciliation report and ensure your January 31 bank statement includes the deposit. Our firm has used Cashroom for bookkeeping services for several years . The service provided is excellent and the team there are helpful and efficient. We find the service provided is ideal, we do not require an inhouse bookkeeper and we can be guaranteed...

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ContentWhat is the goal of an accounting equation?Introduction to the Accounting EquationLimits of the Accounting EquationWhy is the Accounting Equation Important?What Are the 3 Elements of the Accounting Equation?Call Us Here at Protea Financial to Learn More About the Accounting EquationAssets = Liabilities + Equity For example, if Shanti does not have sufficient cash to pay for the laptop, she may have the electronics store charge her credit card for the purchase. In that case, the credit card company pays the store, and Shanti’s business now owes the credit card company for the amount of purchase . Are items—such as equipment, cash, supplies, inventory, receivables, buildings, and vehicles—that a business owns and derives future use from. Potential investors want to know what...

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Contents:LOSE THE HIGH HOLD PRODUCTSLearn to Stand Up for YourselfApply the product.Experiment with styling Brushing your hair is good for increasing hair growth, because it stimulates the scalp and spreads the natural oils throughout the shaft of each strand of hair. However, there are do’s and don’t’s when it comes to brushing your hair. However, be cautious of brushing your hair too much, as this can pull out hair that you’re trying to grow. Additionally, never brush your hair when it’s wet, because it is most fragile and easy to break in this state. When your hair is healthy, it’s less prone to breakage. However, if you are experiencing hair loss, the most effective way to promote hair growth is with proven medications like minoxidil and finasteride. That’s...

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ContentOrganize Team-Building EventsHow to deal with internal communication barriersBuilding an employee email and internal comms strategyStrategies to Overcome Resistance to Change in an OrganizationDecide which internal communications tools to use Once you’ve inspired your people, explanations about your company’s strategic decisions and the plans for implementing them will have greater impact. Whenever possible, deliver educational messages through dialogue rather than top-down mandates. Consider targeting educational information to smaller groups who can reach their own conclusions and take ownership of the plans they make for carrying out your initiatives. As we’ll discuss later, the medium can play a role in this perception , but in this case it’s less important than the...

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Most expenditures can be claimed back, even if you are self-employed. There are two business expense spreadsheets, one for VAT and one for non-VAT. All the calculations are completed for you once the figures are posted. The budget is set on one page and can be adjusted during the year if your circumstances change. The course is delivered through our online learning platform, accessible through any internet-connected device.To prepare a P&L account, we only need the Sales and other expenses collated.A balance sheet is one of the financial statements and is a legal requirement for submitting your accounts if you run a limited company.You need to know what you want to name the reports and the cells you want to print, and ensure each report is properly time stamped.With a student community...

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ContentJoin PRO or PRO Plus and Get Lifetime Access to Our Premium MaterialsExample of a Contra AccountA final word about contra asset accountsWhat Other Types of Contra Accounts Are Recorded on the Balance Sheet?Allowance for Doubtful Accounts Notes PayableNotes Payable is a promissory note that records the borrower's written promise to the lender for paying up a certain amount, with interest, by a specified date. Discount On Bonds PayableDiscount on bonds payable is the markdown value of a bond's coupon rate or selling price compared to its market interest rate or fair value. Such bonds trade at a lower price than their face value. Need a robust accounting system; else, operational difficulties may arise. The reduction in the sale price of a product due to quality defects or...

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