By: James
Could you also show how it is presented on the financials or is that in another post? What would be the adjustment to the Income Statement?
View ArticleBy: admin
James, The entry against “Sales” is the Income Statement adjustment. People will often choose to use another Revenue account rather than their Sales Account - perhaps “Billing Adjustments” or something...
View ArticleBy: Evans Komen
question 1. at what stage can we recognize work in progress as part of the assets of a company and how should it be treated while reporting in line with both IFRS and IAS.
View ArticleBy: Kelly R
This is the best explanation for a layperson that I have found for percentage of completion/work in progress accounting. Thank you for your clear language and easily-understood calculations.
View ArticleBy: michelle
When should over unders be booked? We have always done this at year end when we do the CSR and give all of the financials to the CPA. He now wants them done quarterly, at extra expense. Why would he...
View ArticleBy: admin
Michelle, It depends on how often you file your taxes, I suspect the reason your CPA is requiring the over/under booking quarterly is to match your tax filings. In that case I would support your CPA’s...
View ArticleBy: Melissa
Michelle, They should be booked on a monthly basis so your monthly financial statements are more accurate. There can be large ups & downs that make it hard to tell how the company is doing if you...
View ArticleBy: Barry
What (revenue or expenditure) should be manipulated to recognise a loss making job? For example, a six month job, with very tight margins incurs cost overruns prior to any progress claims being made...
View ArticleBy: Jeetendra
In one of our project the value got revised as a result of deletion in scope of work. We have booked an excess revenue in the last FY based on the initial value, however the value got revised in the...
View ArticleBy: Ravi
how will you treat the advance billing say 10% as shown in the payment schedule in the revenue recognition
View ArticleBy: JJ
You removed the posts to each adjusting account of over or under billing, but you did not remove the amount to the sales account. What happens when you do recieve that income and post it to the sales...
View ArticleBy: admin
JJ: Earning the income is a separate issue from receiving it. You make adjustments to the Sales Account each time you make the over/under billing adjustments. So, once you’ve earned the income, you...
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