Category Archives: Uncategorized
Derivatives and Hedging Accounting
Separate and Consolidated Financial Statements
Business Combination
Business Combination as a transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as “true mergers” or “mergers of equals” are also business combinations Structures of Business Combination1.) Horizontal Integration – combination that involves companies with the same industry 2.) Vertical Integration – combination thatContinue reading “Business Combination”
Home Office and Branch Accounting
Agency vs Organization Every lesson takes time to master, so let’s go and study! #CPA
Installment Sales
Definition -Installment sales contract is a special type of credit arrangement which provides for a series of payments over a period of months or years-Usually used by dealers in real estate, home appliances and cars-The seller must wait for a considerable period of time to collect the full amount Accounting ProceduresThe gross profit from anContinue reading “Installment Sales”
Long term construction
Definition Treatment of a contract to last for a period of more than one year. Recognizing the revenue based on PFRS 15 Identify the contract with the customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to the performance obligations in the contract Recognize revenue when the entityContinue reading “Long term construction”
Franchise
DefinitionA contractual agreement with a franchisor to which the franchisor permits the franchisee to use the franchisor’s business name and/or trademark, manufacture or sell the franchisor’s products or services Franchisor and franchisee are not partners, employer and employee, or principal and agent, but separate contracting parties Four types of franchising agreement Manufacturer-retailer Manufacturer-wholesaler Service sponsor-retailerContinue reading “Franchise”
Consignment Sales
What are consignment sales? It is the transfer of possession of merchandise without the transfer of title from the owner. What’s the difference between sales and consignment? Now that we know the differences, let’s talk about the advantages of a consignment Accounting for Consignee Accounting for consignor Learnings/Realizations I think that consignment is quite easyContinue reading “Consignment Sales”
Learnings
My learnings last meeting are as follows 1.) The difference between accounting income and taxable income 2.) Permanent differences does not give rise to deferred tax asset/ liability 3.)Recognition of tax asset / liability 4.) I realized that chapter 16 is about accounting for corporations that is why the rate is always 30% 5.) TheContinue reading “Learnings”
Josh 