Accounting

Under Section 197, all intangibles thus recognized are amortized over 15 years. The depreciation and amortization of all asset write-ups and intangibles, including goodwill, identified in the purchase price allocation then become tax-deductible expenses. Since the transaction is treated as an asset deal, IRC Section 197 applies and all intangible assets, including goodwill, recognized in the transaction are thus amortized over 15 years for tax purposes. Then the target corporation shall be trea […]

For example, a four-year car loan would have 48 payments (four years × 12 months). Amortization can demonstrate a decrease in the book value of your assets, which can help to reduce your company’s taxable income.
While borrowers pay more each month with a 15-year loan, they’ll end up paying less overall than they would if paying the same loan over 30 years. Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set peri […]

Ind AS 41 was adopted by the International Accounting Standards Board in 2000 as International Accounting Standard 41, or IAS 41. Although the International Financial Reporting Standards Foundation now manages most international accounting standards, IAS 41 remains relatively intact as the final word on how to handle biological assets. The aggregate gain or loss that arise during the current period on initial recognition of biological asset and agricultural produce. A company’s biological […]

After you apply the dollar limit to determine a tentative deduction, you must apply the business income limit to determine your actual section 179 deduction.. If you buy qualifying property with cash and a trade-in, its cost for purposes of the section 179 deduction includes only the cash you paid. Generally, you cannot claim a section 179 deduction based on the cost of property you lease to someone else. However, you can claim a section 179 deduction for the cost of the following property. Off […]

On one side, non-cash expenses reduce generated profit figure while on the other side, it may also lead to a reduction or lowering of asset balance. For example, writing off debtors will have a negative impact on P&L A/c on one hand and a reduction in the value of debtors from the balance sheet on the other hand. It’s also important to remember that non-cash expenses only affect your income statement, where they have a direct impact on taxable income for your business. To properly re […]

In this statement, the economic view is understood to be part of the legal system and only to exist within the context – and therefore, language game – of the legal system. The consensus today is that the economic view is a general juridical method of teleological interpretation of law (e.g. Beisse, 1981; Florstedt et al., 2015). In other words, in the German system the production of an institutional fact that reduces a multitude of collective intentionalities to one “acceptable” is […]