Recent content by Praz Finpoint

  1. Praz Finpoint

    FRS 116 Leases (Singapore) illustrative e.g.

    That's cause your calculations of the Present Value isn't correct. You have to take each annual lease payment of $50,000 in each year and divide by (1 + 5%)^n and n here is the year the Payment occurred. For example, in Year 6, payment of $50,000 is $50,000 / 1.05^6, and you do this every year...
  2. Praz Finpoint

    How to record the cost incurred in Tenant renovation of the place?

    You would capitalize all the costs, including installation expenses, of the fire and safety equipment on the Balance Sheet The classification is simply Office Equipment or Furniture & Fittings in Fixed Assets on Balance Sheet Generally speaking, Companies would record each item on the Invoice...
  3. Praz Finpoint

    USA Piggybacking wholesale orders with others

    Well to say that you do not get any margins and profits from this arrangement whereby coin dealers piggyback on your orders is not entirely accurate. Technically you have this arrangement in place to meet a certain minimum order quantity, without which the cost you have had to pay, for not...
  4. Praz Finpoint

    USA Bylaws: Does This Require A Balanced Budget?

    From my perspective, below are my views which you may take into consideration: 1. Cash from donations and grants must ultimately be used to sustain the ongoing operations of the Charity and excess to be used to finance programs for the beneficiaries of the Charity consistent with the mission...
  5. Praz Finpoint

    USA Bylaws: Does This Require A Balanced Budget?

    Recording past income that as of the last financial year-end is an asset in the current financial year as income is a fraud - the organization is double recording the same income twice on the profit & loss in 2 financial years. So this is clearly is not allowed. That said - there are 2 types of...
  6. Praz Finpoint

    USA Way to take 2021ty accel depr on vehicle arriving 2022?

    From an Accounting perspective, recording a Vehicle in 2021 that will only be delivered in 2022 is not allowed, since there is no Vehicle delivered by the vendor. The downpayments made are recorded as Prepayments in the Balance Sheet, and not Property, Plant and Equipment. If it doesn't meet the...
  7. Praz Finpoint

    How to record product samples purchased?

    Then the cost is nil but you would still record it as inventories - in practice I see Companies record such inventories $0.01 in their financials, i.e. close to nil value, in order to record and track inventories of free samples, as part of their overall inventory management
  8. Praz Finpoint

    How to record product samples purchased?

    Samples procured recorded as Inventories - Dr Inventories Cr Accounts Payables Samples given to Customers recorded as Selling or Marketing Expenses, below Gross Profit - Dr Expense Cr Inventories at the time the Samples are distributed
  9. Praz Finpoint

    USA Accounting for used spare parts

    The answer to all your 3 questions is that the procured materials must be recorded as Inventories at cost. While I understand that you may want to expense these items due to their value, it should be capitalized as inventories which will also allow the Company to track and monitor their...
  10. Praz Finpoint

    USA Invoicing and revenue recognition

    Big risk - marking an Invoice as paid when it is not paid will not show up as an Outstanding Accounts Receivable in your Accounts Receivable Ageing Detailed Report, and because the Sales Order paid and not paid cannot be clearly differentiated, it would be a nightmare for the Accounts Team to...
  11. Praz Finpoint

    Foreign Exchange Solution

    So per month paid in advance is CHF 900 and the Invoice billed is CHF 920 - the entry is Dr Accounts payable 920, Cr Advance Payment 900, Cr Exchange Gains and Losses 20 - you have a Forex Gain of CHF 20 since the paid amount is lower than the invoice amount
  12. Praz Finpoint

    USA Recognition of payout business contract

    If the contract is terminated prematurely and a lump-sum pay-out is made, there is no longer a contract that exist or a service that needs to be rendered to the medical research institution further. So, I don't see how you can recognize this lump sum payout as revenue over the remaining term of...
  13. Praz Finpoint

    Canada Clearing the suspense account

    The entry to correct the Suspense Account - its Dr Suspense Account; and Cr whichever Balance Sheet account you had previously Dr to when you did the refund of the entire amount. When you did the refund, it was Cr Bank, Dr what account?
  14. Praz Finpoint

    Canada How to record utilities expense and retroactive payment?

    You may consider the payment by the owner of the utilities expense as a short-term loan from the owner to the Company, instead of going through shareholder's equity.
  15. Praz Finpoint

    Canada Discount rate for long term loan

    As a base minimum it is what a bank would offer a loan of the similar amount, period and terms to the borrower, had the borrower gone to a bank. If the borrower can obtain a quote from the bank on the interest rate the borrower would pay, you could consider using this as the base interest rate.