Comments for Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors http://sealebeers.com/news Small Cap Auditors Thu, 12 May 2011 00:19:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Company Expenses Paid By Others and the Statement of Cash Flows by The Webmaster http://sealebeers.com/news/?p=277&cpage=1#comment-239 The Webmaster Thu, 12 May 2011 00:19:48 +0000 http://sealebeers.com/news/?p=277#comment-239 I was discussing this with another CPA today and developed an allegory that seems pertinent. When an officer is compensated with stock, the entry is: debit stock compensation, credit stock and APIC. On the statement of cash flows, the stock issuance is amongst the reconciling items between Net Income and Net Cash Flow from Operating Activities, and is not a financing cash flow. If, instead of being compensated with stock, the officer's compensation is accrued to be paid later, the credit is made to Related Party Payable rather than Stock/APIC. Why should we now consider the transaction a cash flow from financing activity? I was discussing this with another CPA today and developed an allegory that seems pertinent.

When an officer is compensated with stock, the entry is: debit stock compensation, credit stock and APIC. On the statement of cash flows, the stock issuance is amongst the reconciling items between Net Income and Net Cash Flow from Operating Activities, and is not a financing cash flow.

If, instead of being compensated with stock, the officer’s compensation is accrued to be paid later, the credit is made to Related Party Payable rather than Stock/APIC. Why should we now consider the transaction a cash flow from financing activity?

]]> Comment on Forex Gain/Loss and You – Part 2 by Forex Gain/Loss and You – Part 1 | Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors http://sealebeers.com/news/?p=216&cpage=1#comment-222 Forex Gain/Loss and You – Part 1 | Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors Tue, 17 Aug 2010 16:38:18 +0000 http://sealebeers.com/news/?p=216#comment-222 [...] How GAAP treats forex gain/loss. This entry was posted in Accounting How-to, Forex Gain/Loss, GAAP. Bookmark the permalink. [...] [...] How GAAP treats forex gain/loss. This entry was posted in Accounting How-to, Forex Gain/Loss, GAAP. Bookmark the permalink. [...]

]]> Comment on Forex Gain/Loss and You – Part 1 by Forex Gain/Loss and You – Part 2 | Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors http://sealebeers.com/news/?p=223&cpage=1#comment-221 Forex Gain/Loss and You – Part 2 | Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors Tue, 17 Aug 2010 16:08:34 +0000 http://sealebeers.com/news/?p=223#comment-221 [...] last post demonstrated how forex gain/loss is created. Now we turn to GAAP’s confusing guidance on what to do with forex [...] [...] last post demonstrated how forex gain/loss is created. Now we turn to GAAP’s confusing guidance on what to do with forex [...]

]]> Comment on Small Companies Move Closer to SOX 404(b) Reprieve by admin http://sealebeers.com/news/?p=194&cpage=1#comment-204 admin Tue, 22 Jun 2010 15:18:57 +0000 http://sealebeers.com/news/?p=194#comment-204 Today, the <a href="http://www.thecaq.org/" target="_blank" rel="nofollow">Center for Audit Quality</a> released its <a href="http://www.thecaq.org/publicpolicy/PPM/CAQ_PPM_22June2010.pdf" target="_blank" rel="nofollow">report on the conference committee action last week</a>. Today, the Center for Audit Quality released its report on the conference committee action last week.

]]> Comment on Footnote Notes: Recent Accounting Pronouncements by Su Hauber http://sealebeers.com/news/?p=158&cpage=1#comment-202 Su Hauber Fri, 11 Jun 2010 08:34:08 +0000 http://sealebeers.com/news/?p=158#comment-202 How many accountants does it take to change a light bulb? How much money do you have? hehe How many accountants does it take to change a light bulb? How much money do you have? hehe

]]> Comment on Reprieve For Small/Nano Caps on SOX Section 404 by Audit Fees Skyrocket « Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors http://sealebeers.com/news/?p=121&cpage=1#comment-169 Audit Fees Skyrocket « Seale and Beers, CPAs: PCAOB- and CPAB-Registered Auditors Mon, 02 Nov 2009 06:12:23 +0000 http://sealebeers.com/news/?p=121#comment-169 [...] The government is not scheduling that for nano- and micro-cap companies until audits on year ends later than June 15, 2010. [...] [...] The government is not scheduling that for nano- and micro-cap companies until audits on year ends later than June 15, 2010. [...]

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