In summary, proper accounting and reporting of foreign currency translation adjustments allows financial statement users to accurately assess a company’s financial health and business performance across borders. Careful analysis of these adjustments is key for both internal and external stakeholders. In summary, foreign currency refers to money from another country that has an exchange rate … Read more

The depreciable base is the value that is divided by the service life of the asset. In this example, it’s $5 million, divided by, let’s say, 10 years that the building is estimated to be useful. The choice of depreciation method depends on several factors, including the nature of the business, the expected useful life … Read more

Cash-basis accounting is often used for income tax reporting while accrual-basis is usually better for financial statements. The difference between the accrual and cash accounting methods is a bookkeeping fundamental that all bookkeepers should understand. With cash basis accounting, your revenue and expenses are recorded when cash is received or paid out, not when invoices … Read more