There are now 200 shares of stock and each shareholder holds twice as many shares. There are two methods that are commonly used in accounting for Stock Splits. As a result, the corporation reduces the par value of its stock from $15 to $5 and…
The Securities Exchange Committee (SEC) requires the use of US GAAP by domestic companies with listed securities and does not permit them to use IFRS; US GAAP is also used by some companies in Japan and the rest of the world. Upgrading to a paid…
This part of the allowance is treated as reimbursed under an accountable plan. This chapter covers business expenses that may not have been explained to you, as a business owner, in previous chapters of this publication. If you didn’t deduct a bad debt on your…
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Investors have a lot of information asymmetry and this can lead them to take positions in companies that are not showing them the full picture. So, the principle of conservatism may allow authorities to keep companies in check & safeguard the investors. Businesses are therefore…
With this knowledge, companies can more strategically deploy capital as they have a better sense of what capital is needed to raise certain amounts of revenue. Because COGS is a cost of doing business, it is recorded as a business expense on income statements. Knowing…
Exhibit 3 breaks down the strategy of varying the time horizon of executive pay and, specifically, using time- based grants into three key areas. When setting the time horizon and structure of rewards, the performance period, the vesting period, and any mandatory holding periods are…
Aside from the missed opportunity for better health, spending that $4.50 on a burger could add up to just over $52,000 in that time frame, assuming a very achievable 5% RoR. From an accounting perspective, a sunk cost also could refer to the initial outlay…