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发帖数: 552 | 1 If at FY2009, a company reserved $200,000 of bonus expenses for key
accounting and operations personnel, who are aware of the proposed
transaction. Bonuses will be paid contingent on this transaction occurring.
Is the $200,000 reserves going to be recorded as an expense for FY 2009?
Is this follow FAS 5: Accounting contingencies?
Thanks | R*********4
发帖数: 27 | 2 If it is probable to pay (ie. >50% chance), company needs to accrue the
bonus expenses in 2009. If expect pay within 1 year, current liabilities +
book an estimate of payroll taxes and its related expenses, say 10% of bonus
expenses. If expect pay more than 1 year, long-term liabilities + discount
the whole amount you accrued.
Open for discussion. |
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