General accounting treatment lesson.... I know
Post# of 96892
(Total Views: 356)
Posted On: 09/21/2017 11:30:47 AM
General accounting treatment lesson....
I know our statements are not audited, but the posting of this transaction on the recent financials is wrong. Accounting standards require conservatism, meaning companies should be recognizing only contingent liabilities within the numbers themselves. Contingent assets are not to be recorded on the financials, but only in a note.
In the latest filing we created a receivable and a payable. The payable would not exist unless we actually received something. We clearly didn't because it's a receivable. As such, this should be excluded from numbers. Not sure who does their books but this is 100% wrong.
Just my 2 cents, CPA with 15+ years of experience.
I know our statements are not audited, but the posting of this transaction on the recent financials is wrong. Accounting standards require conservatism, meaning companies should be recognizing only contingent liabilities within the numbers themselves. Contingent assets are not to be recorded on the financials, but only in a note.
In the latest filing we created a receivable and a payable. The payable would not exist unless we actually received something. We clearly didn't because it's a receivable. As such, this should be excluded from numbers. Not sure who does their books but this is 100% wrong.
Just my 2 cents, CPA with 15+ years of experience.
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