Hence, due to the lack of objectivity income arrived at may not be correct in certain cases. The provisions of various laws such as Companies Act, Income Tax and GST Acts require the submission of various statements, i.e., annual account, Continue reading →

It’s a key component of a company’s financial statement, particularly the balance sheet, where it’s reported as a negative asset. Selling a fully depreciated asset above its tax basis triggers recapture from the IRS, which is taxed at ordinary income Continue reading →

Unlike for-profit entities that focus on shareholder equity, nonprofits emphasize net assets to reflect their ability to fulfill their mission and sustain their programs. This distinction underscores the importance of understanding how net assets are managed and reported within the Continue reading →

The Accounting Research Bulletins were superseded by the Accounting Standards Codification (ASC) which became effective after September 2009. However, some of its points have been integrated into Generally Accepted Accounting Principles (GAAP). ARB No. 43, along with other ARBs, played Continue reading →