Joseph

Bonds Payable in Accounting The discount should be what is discount on bonds payable charged to the income statement of the issuer as an expense and amortized during the life of the bond. If a corporation issues only annual financial statements and its accounting year ends on December 31, the amortization of the bond premium … Read more

Shrinkage can have a significant impact on a company’s bottom line, as it reduces profits and can lead to cash flow problems. Businesses should take proactive measures to minimize shrinkage, such as implementing security measures, conducting regular inventory audits, and training employees on proper procedures. While some degree of shrinkage is inevitable, businesses that effectively … Read more

Defining, Accounting, & Reporting For Discontinued Operations Contingent liabilities related to discontinued operations are debts assumed by the buyer of a discontinued operation. These amounts are calculated by determining the net selling prices and carrying amounts of net assets, which are expected to be sold after the operation is sold. Financial statements must include separate … Read more

New discontinued operations guidance de-clutters reporting They complained that too many disposals of assets qualified for discontinued operations presentation, including routine disposals of small groups of assets. The Financial Accounting Standards Board (FASB) has issued guidance that lays out new rules for financial reporting on discontinued operations. The rules reduce the number of asset disposals … Read more