One of its drawbacks is that it does not correspond to the normal physical flow of most inventories. Also, the LIFO approach tends to understate the value of the closing stock and overstate COGS, which is not accepted by most taxation authorities. If a company uses the LIFO method, it will need to prepare separate […]

However, please note that if prices are decreasing, the opposite scenarios outlined above play out. In addition, many companies will state that they use the «lower of cost or market» when valuing inventory. This means that if inventory values were to plummet, their valuations would represent the market value (or replacement cost) instead of LIFO, […]

To note, however, is that S Corporations are not treated the same in all states. Some states disregard Subchapter S tax status totally, and they do not offer them any tax relief or fiscal advantages. For example, California imposes a 1.5% franchise tax on the net income of S Corps. Some states require additional state-specific […]

Tax preparers do not need specific credentials, but, they do need to file for a Preparer Tax Identification Number (PTIN) with the IRS. To learn more about licensing for financial professionals in Canada, visit the Chartered Professional Accountants Canada website. Collaborate with your peers, support your clients and boost your practice. Trained accountants and bookkeepers […]

Company A would not be able to recognize the full $20,000 as revenue at December 31, 20X9. Through December 31, 20X9, 3% of the drugs have been returned in accordance with policy. The customer has the significant risks and rewards of ownership of the asset… In December 20X8, the drug is approved by the FDA, […]