Accounting

YTD stands for “year to date” — again, from the beginning of the current year, up to but not including today. Once again, make sure you know whether your company goes by the calendar year or the fiscal year, as the latter may not begin on January 1st. Why not just analyze the sales from the last six months with the sales from six months before? Comparing the same period from one year to the next can give a more accurate picture of how a company is actually doing. Some governments an […]

But before we dive deeper into those common explanations for negative net income, I want to tell you a story about my experience with negative earnings. Business activities are activities a business engages in for profit-making purposes, such as operations, investing, and financing activities. However, at the bottom of the statement, highlighted in green, the company posted a positive cash position of $181 million. To understand where your cash has gone, you must first understand the relationsh […]

Re-use ZBB models for routine FP&A process. FP&A teams should adapt the model as needed to support the annual budgeting process and rolling re-forecasts, which will become more efficient and deliver greater insight. Repurposing models in this way means ZBB is no longer a standalone exercise, but an initial step in transforming enterprise planning and budgeting that could lead to fully integrated business planning. The success of ZBB depends on having detailed insight into the operatio […]

In late 1980, Transtate went out of business and its lease with Rakus was terminated. In 1981, Michal Rakus, Inc. merged with another S corporation, Rakus & Sons, of which Sislik was again the sole shareholder. On his tax returns in 1981 and 1982, Sislik claimed losses of $79,988.86 and $81,236.97, respectively. The IRS disallowed the deductions on the grounds that the aircraft leasing business was not entered into for profit but was, instead, designed to generate tax savings for Sislik. A […]

For instance, if a tenant is unable to access utilities or appliances for a significant period of time, they may file a claim against the landlord. The noun lessee is an individual or legal entity that obtains the right to use a lessor’s property through a lease agreement. Unlike a lessor, a lessee does not own the property, but they are responsible for lease payments and property maintenance for the duration of the lease. Throughout the course of the leasing agreement, the lessor still p […]

However, they have not reached consistent conclusions about some elements of the model. International Financial Reporting Standards , the accounting standards established by the IASB, are followed by almost 110 countries. The FASB is an active contributor to the development and creation of the IFRS, along with maintaining GAAP, its own accounting standards. However, others from within the accounting profession assert that the mark-to-market system in fact provides greater transparency and stabi […]