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 production processes. Carbon accounting examines firsthand, secondhand and tertiary energy uses. Environmental, Social & Governance […]
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 potential for intentional manipulation of earnings. It is important to review this type of transaction […]
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) vehicles. This is according to the International Energy Agency’s Global EV Outlook 2024: Trends in […]
Accounting for Convertible Debt Instruments
According to EY, the convertible debt market saw whipsaw action in issuances. Between 2015 and 2019, average issuance varied between $40 billion and $45 billion. However, it dropped to $22 billion in 2022 but re-accelerated to $52 billion in 2023. While the levels of issuance varied, the way this type of debt is accounted for […]
Understanding 1031 Exchanges: How Our Firm Can Ensure Your Tax Reporting is Spot On
If you’re a real estate investor, you’re likely familiar with the powerful tax-deferral strategy known as the 1031 exchange. This tool allows investors to defer capital gains taxes when they sell a property by reinvesting the proceeds into a new “like-kind” property. While 1031 exchanges can be highly beneficial, the tax implications are complex, and […]
How to Report for Comprehensive Income
Comprehensive income (CI), which is defined as the sum of net income (NI) and other comprehensive income (OCI), gives both the internal and external audiences a 30,000-foot perspective of a company’s valuation. Understanding how it’s broken down, how it’s accounted for, and how it’s interpreted by different audiences is essential to making favorable impressions. In […]