The thing with bad contracts is that first off you should try and avoid signing them. That’s for one and should be quite obvious. However, how do you assess a contract and whether it’s bad for business or not. Some are easy to detect and negotiate, but some may seem like reasonable demands at the […]
No doubt you’ve heard the term “investment property” being mentioned or seen such line items on balance sheet’s of other companies. But what is investment property? Should you have investment property on your balance sheet? In a nutshell an investment property is property you’re not using in your own business, that’s for one. You’re not […]
You’re using valuation method to account for the cost of your fixed assets and every now and then you need to value your assets up leaving you with a revaluation surplus as a part of the equity. What happens if you dispose of the asset however? What happens with the revaluation surplus? Regardless of how […]
So what happens if you have revalued an asset and as a result you now have a revaluation surplus on your statements, namely in equity? What happens with the depreciation of the asset and with this surplus over the period the asset is in use?
In your accounting you definitely have specific entries. Now don’t get me wrong, I know that every entry is specific since you use the account names and numbers in your company’s ledger, however I want to focus on those specific entries that you’ve determined for specific transactions, the structure of entries if you may (i.e. […]
You may have noticed that sometimes the income statements of companies include a line named as “Change in inventory”. Why would it be there you might ask since “Inventory” is a balance sheet item and it’s an asset account? Why would it be on the income statement? Matter of fact is that normally it isn’t […]
By definition work in progress is something that’s still in the progress of being finished. It’s no longer raw material and not just yet finished product either. In your accounting you’d refer “work-in-progress” to materials within the production process and partly finished products (i.e. components of finished products). Note that components may be part of […]