/biz/ - Business & Finance

Hi there!

Really nice of you to take time out what I am sure is a, very busy schedule!

Do you think that IFRS will be coming to the US? If so, when? If not, why?

Also, could you explain arguements from both sides on leasing.

Thanks,

Sincerly,

Dylan Masters

>>577038

What's a simple yet somewhat precise way of valuing a company?

>>577043
>Do you think that IFRS will be coming to the US?
I'm not American and I don't think the IFRS will be coming to the US anytime soon, you got a retarded GAAP, the only reason you don't make the IFRS and IAS mandatory is because without them you're less likely to be able to commit fraud or making up accounting registries.

>Also, could you explain arguements from both sides on leasing.
Well, the proper way of recognizing the leasing is registering it as any other amortizable asset, acording to IFRSs.

I'd understand that you might want to register the monthly/periodical payments as "expenses", but the truth is that you're acquiring an asset.

So if you're leasing a building, you debit the Building, credit the account payable and you depreciate the building as any other amortizable asset. Registering every monthly payment as an expense and NOT recognizing the building as an asset sounds retarded as fuck.

To be honest I'm not very well versed in American GAAP, all I've heard is that it's needlessly complicated and retarded.

>>577050
It depends on the market/industry of the company. There are financial ratios but I don't know their names on English.

Basically you divide all assets by all liabilities to calculate the company's liquidity. Dividing the Property, Plan and Equipment of a company by the net profits will tell you how much profit you'll get from every dollar of Property, Plant and Equipment you have.

This topic is more about finance, finance is my weakness.

>>577050
It's better to be generally right than precisely wrong.

pls keep questions going.

Any doubt with a specific line of a financial statement?

I'm doing a problem on recording impairment loss. There is a given fair value in the problem. Do I use that amount or the amount I have calculated by subtracting the future expected net revenue from the carrying value?

>>577076
You register an impairment loss ONLY when the realizable net value is lower than the cost of adquisition of an asset. "Fair Value" is just the market price.

In other words, if the estimated sell price of your asset minus its sales costs (realizable net value) is lower then the cost of the asset, you have an impairment loss.

A more specific example, let's say you sell cars, all the cars you sell cost you 8k, and you sell all your cars on 10k BUT the economy has been shit and your sale costs are 3k per car, you have an impairment loss of 1k per car.


>Cost
8k

>Net realizable value
10k car sale
-3k sales costs
7k net realizable value


Also, just read the IAS 36, it's easy as fuck.

Please keep them coming, this shit is fun, it's not like in real life where you're afraid of saying a bad answer and risk your colleagues thinking you're a drooling retard.

How do I solve number 5?

>>577095

Come on man, at least rotate the picture

>>577095
Not OP, but the initial transaction is Credit Cash 104,000 and Debit R&D Expense 104,000

>>577106
fucking rottate thats 6

>>577096
>>577106
>>577111
Sorry guys, my bad. here it is. Thank you in advance!

>>577038
3.2 GPA sophmore, with a connection at a big 4, person is a senior auditor, how are my chances at getting a interview/internship?

>>577122
Sounds like asset impairment to me, unless you have a reasonable grounds for appeal. Write that shit down to some nominal amount and record the rest as an impairment loss. The legal fees are just going to be expensed, there is no grounds for capitalization.

IFRS/ASPE approach.

>>577208
or should I combine the two into one larger amortization sum? I'm stuck because I don't know how losing the case impacts the patent amortization. Anyway thanks for the advice

>>577211
Hmm,
The Accountant above you is right. In GAAP you'd write it off as an impairment loss, and if you were disclosing to external decision makers you'd have to discuss the impairment in the footnotes of the financial statement, since it's affecting your income statement (The reason for amortizing patents in the US under GAAP is because they're good for 20 years, you don't have the patent here according to the courts, hence no amort`)

Oh and yes you incurred quite the amount of legal fees there. Expense em, or if you're paying later make a journal entry to credit cash and debit prepaid expenses

What would it suggest to you if a company's inventory turnover ratio was the exact same as their Accounts Payable Turnover ratio?

If I made mostly C's in my accounting classes, but made A's in intermediate 1 and cost, what kind of accounting job should I look for upon graduating?

>>577038
>Accountant here.
>Please ask me anything,
>accountant

what is stopping you from killing yourself?