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Is depreciation half year convention GAAP?
No. Half life is a tax concept only. It has nothing to do with GAAP. People get confused... don't be one of them.
Why is depreciation necessary?
Depreciation is an incentive for investment in equipment. It encourages businesses to buy equipment that will be used to provide employment.Depreciation is effectively a tax credit. It reduces the profits and therefore the taxes due.Depreciation cost is a term used to account for the loss of value in an item over time. There are four methods of depreciation that are approved for use under the generally accepted accounting principles or GAAP. The most commonly used methods are straight-line depreciation, declining balance and percentage of use.
Definition of full costing method?
a.k.a. Absorption Costing, is a method that includes direct manufacturing costs as well as indirect manufacturing costs such as machine depreciation and factory. (GAAP Required)
Does GAAP allow for the use of both methods at the same time?
NO it is not practical nor allowed to use both methods a company must pick just one jamie c
Are there different types of GAAP General accepted accounting principles?
GAAP is nothing but a set of principles followed by a company which helps it to manage effectively and compare the profits and losses of different accounting periods.there are many such principles.
Is depreciation half year convention GAAP?
No. Half life is a tax concept only. It has nothing to do with GAAP. People get confused... don't be one of them.
Why is depreciation necessary?
Depreciation is an incentive for investment in equipment. It encourages businesses to buy equipment that will be used to provide employment.Depreciation is effectively a tax credit. It reduces the profits and therefore the taxes due.Depreciation cost is a term used to account for the loss of value in an item over time. There are four methods of depreciation that are approved for use under the generally accepted accounting principles or GAAP. The most commonly used methods are straight-line depreciation, declining balance and percentage of use.
What is gaap?
Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. One key aspect of GAAP is an emphasis of "general" as a conceptual realization of variables in method. Far from suggesting that all accounting exercises employ the same method and generate the same results, GAAP accommodates variation in applied accounting methods as long as the methods generally adhere to this set of principles, which are more broad than specific. Pursuant to the foregoing, not only therefore does this provide for variation in method, the natural conclusion is GAAP creates an environment in which financial reporting results can vary depending on purpose. One company in one fiscal year can produce different reports, all completed within GAAP, for different audiences or different purposes, and all these reports can be considered correct.
What does GAAP stand for?
Generally Accepted Accounting Principles. There are different types of GAAP in todays world. For example, there is U.S. GAAP (generally accepted acccounting principles in the United States) and U.K. GAAP (generally accepted accounting principles in the United Kingdom).
What is the XBRL term for sales and for gross profit?
It depends which GAAP you are referring to. The answer would be different for US GAAP, Canadian GAAP or IFRS. If you mean US GAAP, you can look it up at http://xbrl.us/Pages/US-GAAP.aspx - the answer(s) would probably be SalesRevenueNet and GrossProfit, respectively.
Definition of full costing method?
a.k.a. Absorption Costing, is a method that includes direct manufacturing costs as well as indirect manufacturing costs such as machine depreciation and factory. (GAAP Required)
Does GAAP allow for the use of both methods at the same time?
NO it is not practical nor allowed to use both methods a company must pick just one jamie c
Where GAAP is implementing in Pakistan?
gaap
Are there different types of GAAP General accepted accounting principles?
GAAP is nothing but a set of principles followed by a company which helps it to manage effectively and compare the profits and losses of different accounting periods.there are many such principles.
Why are generally accepted accounting principles needed?
GAAP allows for the fair comparison of accounting information. GAAP allows the work of the accountant to be scrutinized and analyzed on an even level with other similar firms. It allows for greater transparency in accounting practices.
Is installing wood floors a capital improvement?
By most accounting rules wood flooring is a cap improvement, if it is a replacement floor there may be a depreciation schedule offset to the original to consider, but likely not. At this point it is more an GAAP question
Summarize the different ways to report the gain or loss on the various types of investments and explain how this treatment is in compliance with GAAP principles?
Please summarize the different ways to report the gain or loss on the various types of investments and explain how this treatment is in compliance with GAAP principles.
