Lease accounting
The new standards introduce changes to how companies are required to account for operating leases on the balance sheet. Previously, under ASC 840, companies were required to capitalize their financing leases while leaving their operating leases disclosed in the footnotes. The lease liability is the present value of the future lease payments and is recorded […]
A Tax Rule Change Is Threatening the Survival of Some Businesses
The interest rate, payment frequency, and length of the loan all impact how much interest expense a company will have in any given period. Amortization applies mainly to intangible assets such as patents or copyrights. It involves allocating costs over their expected lifespan rather than deducting them all at once. Businesses are allowed to deduct […]
Net Realizable Value NRV Formula + Calculator
Other companies may be a little more transparent in how they use NRV in determining their inventory level. As part of its 2021 annual report, Shell reported $25.3 billion of inventory, up more than 25% from the year prior. Because it is used in several different situations, net realizable values can tell analysts and accountants […]
See opportunity more clearly
To take that next big step, you have to know where you’re standing. We’ll analyze trends, prepare cost allocations and make industry comparisons, to see opportunity more clearly. Transforming the global economy to benefit all people, communities, and the planet. Use Acuity’s financial playbook, developed over the last 18 years and vetted by over 2,000 […]
Inventory Costing Methods
Cost of goods sold is the allocation of expenses required to produce the good or service for sale. The beginning inventory totaled $200,000 (at cost), purchases were $300,000 (at cost), and sales totaled $460,000 (at retail). It can be limiting, however, since it only takes into account the profitability of the company and not additional […]
Bond Valuation: Calculation, Definition, Formula, and Example
A mortgage calculator provides monthly payment estimates for a long-term loan like a mortgage. Mortgages are long-term liabilities that are used to finance real estate purchases. We tend to think of them as home loans, but they can also be used for commercial real estate purchases. When performing these calculations, the rate is adjusted for […]