First, payments on debt interest are tax deductible but payments on equity are not. Second, equity allows shareholders to share the company profits. With that, equity holders now also hold stake in AMSC and share control. Comparatively, debt financiers have little or no impact on control of the company; assuming payments are being made. Profits are also used to pay the debt, however, so how this weighs out as a disadvantage would clearly depends on how well or not
because the Emission and the cost of emission allowances have indetermination lives and inherent in a continuing business , the emission allowance is recognized as expense when incurred. In conclusion: If the emission allowance is recognized as expense when incurred , expense is noncash item, it is reconciled net income in the operating activities so that the
Case 1: Revenue Recognition According to ASC 605-50-25, Revenue recognition - customer payments and incentives “Costs that are directly related to the acquisition of a contract and that would have not been incurred but for the acquisition of that contract (incremental direct acquisition costs) shall be deferred and charged to expense in proportion to the revenue recognized. When is revenue considered to have been earned/realized/realizable in recognition? Revenue is considered earned when a good or service is either delivered or preformed and inflow is received (cash, receivable, etc.). It is is realized when a product is exchanged for cash or claims to cash (something must change hands). There are four main conditions for revenue
It helps us to understand the relationship between the usage of money and the value of returns it provides from a particular venture or avenue based on the time it would take for providing the return and the future value of the return. Opportunity cost is economic decisions based on a limited resources i.e time or money. Opportunity cost is defined as the next best choice available for a person. Opportunity costs are not restricted to monetary costs only. Trade-off is the form of either buying less or a lesser quality item in order to purchase more or a greater quality item.
SEC believes that the removal of this item from Groupon results of operations creates a non-GAAP measure that is potentially misleading to readers. I agree with the SEC’s perspective of Groupon’s usage of ACSOI mislead the readers and its marketing cost should be considered as a recurring operating cash expenditure of the company. It is because according to CON6 characteristics of an expense is that actual or expected cash outflows or the equivalent that have occurred or will eventuate as a result
This ratio is calculated by taking a total of the program expenses and dividing by the total expenses for an organization. It provides a measure of the efficiency of the not-for-profit organization in utilizing its resources to fulfill its mission, rather than the fund-raising an administration. For Lee College, the program expenses total an amount of $13,550,000. This figure is taken from the total of educational and general expenses line of the Statement of Unrestricted Revenues, Expense, and Other Changes in Unrestricted Net Assets. The auxiliary enterprises expenses are not calculated in this amount because they include college operations that are usually intended to be self-supporting.
The expenses used to figure the cost of goods sold, capital expenses, and personal expenses are not considered business expenses and should be separated. The types of expenses that go into figuring the cost of goods sold are the cost of products or raw materials, including freight, storage, direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products, and factory overhead Capital expenses are considered assets in your business. In general, there are three types of costs you capitalize which are Business start-up cost, business assets and improvements. Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts.
Under U.S. GAAP, property, plant, and equipment are reported at historical cost net of accumulated depreciation. These assets are written down to fair value when it is determined that they have been impaired. A number of other countries, including Australia, Brazil, England, Mexico, and Singapore, permit the revaluation of property, plant, and equipment to their current cost as of the balance sheet date. The primary argument favoring revaluation is that the historical cost of assets purchased ten, twenty, or more years ago is not meaningful. A primary argument against revaluation is the lack of objectivity in arriving at current cost estimates, particularly for old assets that either will or cannot be replaced with similar assets or for which no comparable or similar assets are currently available for purchase.
|pays the rest. In this case, the| | |required to pay taxes and this | |organizations do not record the | | |affects their financial statements. | |money gotten from the charges as| | |The ownership of for profit | |revenue as they do not get the | | |organizations can be transferred and | |whole amount just lie for profit| | |thus, financial reports can be | |organizations | | |prepared for the stockholders. | |
There are significant differences between for-profit and governmental accounting and understanding these differences is paramount to measuring management’s performance and the financial success or failure of the organization. In NHLC’s CAFR they have provided accountability under certain procedures and policies allowed by the agencies. The prepared government wide and budget propriety funds statement remains in compliance with the GASB. In the fiscal year 2011 there were decreases in distribution to the Education Trust Fund due to decreases in operating revenues which makes the agencies adjust their budget to accommodate new patient and any other expense that will be reported. This information can then be used to hold the organization accountable for its success or failures.