Search results
Results from the WOW.Com Content Network
In accounting, the revenue recognition principle states that revenues are earned and recognized when they are realized or realizable, no matter when cash is received. It is a cornerstone of accrual accounting together with the matching principle. Together, they determine the accounting period in which revenues and expenses are recognized. [1]
Depreciation allocates the cost of an asset over its expected lifespan according to the matching principle. For example, if a machine is purchased for $100,000, has a lifespan of 10 years, and produces the same amount of goods each year, then $10,000 of the cost (i.e., $100,000 divided by 10 years) is allocated to each year.
Realization is a trigger for calculating income taxation. It is one of the three principles for defining income under the seminal case in this area of tax law, Commissioner v. Glenshaw Glass Co. [ 1 ] In that case, the Supreme Court interpreted a statute under the tax code and determined that income generally means "undeniable accessions to ...
Recognition is mostly a matter of timing; the issue is not whether income or loss is taken into account, but when. The time of recognition may matter for a number of reasons, including the time value of money and the section 1211(b) limitation on capital losses in a single year.
The accounting for long term contracts using the percentage of completion method is an exception to the basic realization principle. This method is used wherein the revenues are determined based on the costs incurred so far. The percentage of completion method is used when: Collections are assured; The accounting system can: Estimate profitability
The suspect in the New Orleans attack that killed 14 people on New Year's Day is believed to have acted alone in a "premeditated and evil act," the FBI has said. The latest information is counter ...
Eisner v. Macomber, 252 U.S. 189 (1920), was a tax case before the United States Supreme Court that is notable for the following holdings: . A pro rata stock dividend where a shareholder received no actual cash or other property and retained the same proportionate share of ownership of the corporation as was held prior to the dividend by the shareholder was not income to the shareholder under ...
Il Mondiale 2014 in Brasile è iniziato. Controlla gli speciali degli altri HuffPost sul torneo per vedere il calendario e le statistiche di tutte le partite.