Hi,
I work as a Project Accountant for a large organisation.
We have acquired a smaller Co. and i have been asked to combine the P&Ls for both the company i work for and the smaller Co.
As a Project Accountant, the main lines i deal with on the P&L are Gross revenue less sub consultant & expenses costs = Net Revenue. From the Net Revenue line, all the overheads are deducted to give the bottom line profit figure.
I work on the basis that we work 1,950 hours per annum. This includes all holidays etc as it is based on 52 weeks per year. An employee's direct cost rate takes this into consideration. E.g £20,000pa salary / 1,950 hours = £10.25. The company we are acquiring works on 1,650 hours per annum taking into consideration holidays etc and has a higher cost rate. e.g £20,000 / 1,650 hours = £12.12.
Would it be fair to say, that i can easily combine the labour costs on the P&L without there being any implications? I am thinking i have missed something.
Your help will be appreciated
Thanks
I work as a Project Accountant for a large organisation.
We have acquired a smaller Co. and i have been asked to combine the P&Ls for both the company i work for and the smaller Co.
As a Project Accountant, the main lines i deal with on the P&L are Gross revenue less sub consultant & expenses costs = Net Revenue. From the Net Revenue line, all the overheads are deducted to give the bottom line profit figure.
I work on the basis that we work 1,950 hours per annum. This includes all holidays etc as it is based on 52 weeks per year. An employee's direct cost rate takes this into consideration. E.g £20,000pa salary / 1,950 hours = £10.25. The company we are acquiring works on 1,650 hours per annum taking into consideration holidays etc and has a higher cost rate. e.g £20,000 / 1,650 hours = £12.12.
Would it be fair to say, that i can easily combine the labour costs on the P&L without there being any implications? I am thinking i have missed something.
Your help will be appreciated
Thanks