Accounting
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Revenue or Contra Expense
Let's say Company A is working on a project to partner up with Company B. Company A incurs expenses (payroll, capital expenditures, development, etc.) to meet the requirements of Company B. Later, Company B determines that the costs incurred by Company A were significant and agrees to give Company …
19
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Leasehold Improvements
Is it appropriate to capitalize leasehold improvements that were paid for by the landlord? The improvements include general construction for office space build out
1
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Requesting a chart of accounts for Medical Device company
I recently was engaged by a Medical Device company. I have worked with Life Science clients - drug development companies - but not medical device. This client is in the early stages of development with several products but is moving towards commercialization with a CE mark product ready for sale in…
5
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Manufacturing Costs
I sometimes struggle deciding when to put items below and above the line. Currently I have a number of administrative managers below the line (CFO, COO, etc), but have production managers above the line. Is there any best practices or guidelines that I should be aware of?
1
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Accounting for credit card fees
Is anyone aware of an accounting policy statement supporting treatment of credit card fees as an offset against revenue (e.g., cost of services sold) as opposed to an operating expense? Our company treats credit card fees this way but I need to pull together a policy memorandum supporting that tr…
25
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Accounting For Software Development: Expensed or Capitalized?
I have a client who is paying an outsourced development firm on a monthly basis to develop a proprietary software platform. Total time will be 24 months at #240K total, and then contiued maintenance updates and additional development as needed. My question is on how the monthly amounts should eith…
7
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Where should a vendor rebate I receive go on my income statement? Revenue or COGS reduction?
I currently show a revenue line on my income statement line for "Vendor rebates." I see GAAP guidance that VENDORS should record rebates as a reduction in their sales prices, but how should those of us receiving them record them? Should I offset my COGS by the rebate received, or just show it as it…
12
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Sample accounting career objectives for accounting resume needed
If anyone has a good example or sample accounting career objectives, that would be much appreciated. I'm also interested in any strategy involved. For instance, do I adjust it for every job I apply to? In what ways can this part of the resume help or hurt my application? When they say "career obje…
4
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Can software licenses be capitalized?
My company is currently looking at several SaaS FP&A applications, and some vendor mentioned that while you don't have hardware to capitalize, you can do it with your licenses. Never heard about this before, anyone have any insights on this? or have done something similar? Thanks!
3
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Capitalization of manufacturing variances
What is the proper way to capitalize manufacturing variances (US GAAP)? Have you set a threshold and only capitalize variances over a certain amount? Do you capitalize the entire variance and amortize based on inventory days or do you expense certain variances in the current period (such as unfavor…
6
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Capitalizing Spare Parts
Quick question that's in dispute: Are spare parts capitalizable? My position is that unless they meet the definition of "extending the life or capabilities" of an asset (ie capitalizable in the first place), they are a prepaid expense until the time the spare is installed.
9
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Accounting For Fixed Assets Under U.S. GAAP
I am doing some work to cleanup our accounting for fixed assets and want to train some junior accounting people in the process. Does anyone have any material they would recommend that would provide good guidance for beginners to follow?
6
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Sublease Accounting (Loss on Sublease)
Sublease Question: Company A which is not involved in Real Estate renting or leasing in any way subleases space to Company B, at a loss of $5K per month. On top of the difference in base rent, it will pay the rent related taxes passed through by the (over) landlord. There are also Cost of Living …
8
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What is the proper accounting treatment for a signing bonus received?
Our company is to receive a signing bonus for entering into a multi-year contract with a vendor. When do we recognize the signing bonus received? Do we take it all at once or over the life of the contract?
16
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Who pays business property tax on leased equipment?
Who pays business property tax on leased equipment? We are about to lease a piece of equipment for our manufacturing process. It's an expensive machine and the lease extends to 36 mo's. As it is a lease, should we the Lessee be responsible for the BPP's to the County Tax Assessor? I have seen thi…
7
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What's the correct depreciable life for perpetual licenses purchased in stages?
Hello, My company is going through a large implementation of software. We are a multi site company so the software is being rolled out to the various sites over time. When the sites go live, a perpetual license is purchased for the site. The main piece of the implementation has been placed into ser…
3
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Contract accounting, billing, unbilled, deferred revenue, ar aged
Contract is $500k on 1/1/14 Billed $250k on 1/10/14 reccognized revenue of $100k on 1/31/14 Do we set at contract signing date of 1/1/14 the following: Debit Unbilled Revenue $500k Credit deferred revenue ($500k) On 1/10/14 record invoice into AR AGED: Debit AR AGED $250k Credit Unbilled revenue ($…
9
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Accounting for gift card cost
Is anyone aware of an accounting policy statement supporting the treatment of gift card cost, including the cost of the gift card and the package? Should the cost go above gross margin or below margin? Currently my company treat it as a selling expense(below margin). I need to pull together a pol…
9
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Revenue recognition on early contract buy-out
My company recognizes revenue monthly on a recurring revenue basis. A customer is ending their contract early and buying out their remaining term (all in 2012) at a discount. Since no additional services will be provided, can I recognize all of the revenue in 2011?
7
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Amortize or Expense a Trademark?
This isn't a question I have had to deal with n few years and it seems to have changed, I am working with an early stage consumer products company, that has established a brand for themselves in their industry. In reviewing their books they are amortizing their trademark over 5 years. I have talked…
4
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Accounting For Foreign Currency Loss
Do i need to add back the loss on translation of foreign currency loan at balance sheet date to Profit after taxes in Cash Flow Statement
6
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Looking to change auditors
Hi, looking for some input from those of you who has gone through the change of auditors. Would be interested in feedback on reasons to change, RFI process, timing, selection criteria.
14
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Capitalizing Web Development Costs
We have a web site which includes a viewer so our customers can look at images. This viewer was developed using Flash. It has become necessary for us to add an additional viewer written in HTML 5, so our customers with tablets can also view the images. As I read the literature relative to capital…
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