Dissecting the Half-Year Convention for Depreciation
Category Archives: Accounting News
Dissecting the Half-Year Convention for Depreciation
Depreciation can help a business realize tax benefits, maintain compliance with financial reporting requirements, and project asset replacement. The half-year convention for depreciation is an important practice to understand. For fixed assets, depreciation is recognized and recorded on a 50 … Continue reading
Understanding the Differences Between FCFF and NOPAT
When it comes to financial analysis, there are two metrics that internal stakeholders and external users, such as investors and analysts, can use to assist with analyzing a business’s operations. Free cash flow to the firm (FCFF) is used as … Continue reading
Dissecting Bookings and Annual Recurring Revenue
With the number of Amazon Prime member subscribers growing from 58 million in 2016 to 180 million in 2024, according to Statista, there’s a sustained recurring subscription model that one of America’s most successful retailers has increased more than 200 … Continue reading
How Reporting Might be Less Complex in 2025
A Dec. 3 proposal from FASB’s Accounting Standards Update (ASU) might provide some flexibility for private businesses and select nonprofits. “Financial Instruments – Credit Losses (Topic 326)” looks at measuring credit losses for contract assets and accounts receivable for these … Continue reading
Understanding Carbon Accounting
Also known as greenhouse gas (GHG) accounting, carbon accounting is a way for managers and analysts to measure a company’s total carbon emissions. It’s a comprehensive approach to analyze how a company uses energy for its buildings, offices, conveyances and … Continue reading
Breaking Down Bill-and-Hold Arrangements
Looking at accounting and journal entry considerations, if accounts receivables are debited and revenue is credited, it can be interpreted as the business recognizing revenue without the customer paying. As such, the U.S. Securities and Exchange Commission (SEC) sees the … Continue reading
How to Account for Stranded Assets
With more than 14 million electric vehicle (EV) registrations in 2023 worldwide and 2023 seeing an increase in EV sales over 2022 by 35 percent, manufacturers are probably happy – but not those producing the traditional internal combustion engine (ICE) … Continue reading