If the agreement with the external entity relates to a revenue-generating activity (e.g., a conference), then the full costs of the activity should be reflected, and support from an external entity would be considered another source of revenue. From time to time I may post a contrarian or even wrong viewpoints (imbued with beliefs I might hold but don’t implement) to stimulate discussion. It increases participation, draws a wider audience into the conversation and actually widens the available point of views. They don’t walk the halls of an elementary school, and they’re not deposited into a bank to earn interest. You can rationalize it all sorts of ways, and you’ve certainly tried, but simply listing a few accounting principles you heard about in Accounting 101 doesn’t justify ignoring others. EITF’s are contained within the GAAP hierarchy as level 3 authoritative guidance and can only be nullified or modified by guidance issued at level 1 or level 2.
- Emilie is a Certified Accountant and Banker with Master’s in Business and 15 years of experience in finance and accounting from corporates, financial services firms – and fast growing start-ups.
- In other words, contra revenue is a deduction from gross revenue, which results in net revenue.
- It is not classified as a liability since it does not represent a future obligation.
- Purchase Discounts, Returns and Allowances are contra expense accounts with a credit balance that reduce the normal debit balance of the main Purchase Expense account in order to present the net value of purchase expenses in a company’s income statement.
It might be more efficient or convenient for the department to initially pay all the expenses; however, the cost of that activity on the university’s books should only reflect its share of the expenses. In these situations, the funds received from the other party should be recorded as a reimbursement of expenses and not as revenue. I have written notes to financial statements that have been filed with the SEC. I’ve audited notes to financial statements, and I’ve consulted with partners at the largest auditing firm in the world on notes to the financial statements. Actually, EITF specifically states that expense reimbursement related to providing services is to be presented as revenue, even if there is no margin.
Amortization Period Offset and Start Offset
We also (again another assumption) don’t spend hours reviewing our writing to make sure we don’t make silly or simple mistakes. Last time I look (or met other Proformative members) we were all human. Footnotes explain the detail behind the numbers, which numbers have been accounted for in accordance with GAAP and the footnotes themselves have bookkeeping for startups specific requirements under GAAP (with the allowance to disclose more if it will help a reader). Their purpose is not to disclose when you account for something inconsistently. The problem with your interpretation of GAAP or GAAP itself is that reimbursement is not revenue (for clarity sake, there is no margin, which would be revenue).
The staffing levels, volume and related revenue have been projected assuming a return to normal operations. The Department’s FY23-24 Recommended Budget is fully balanced i.e., expenses are matched with on-going funding, and assumes all programs in operation in FY22-23 will continue through FY23-24, excluding the expiring Contra Costa CARES program and the transfer of the Public Administrator program (including the $344,000 County General Purpose Revenue allocation) to the Employment and Human Services Department. The FY23-24 Recommended Budget includes general purpose revenue allocation (net County cost) of $231,742,000 inclusive of Measure X funds. Accordingly, since the legislation at issue in the main proceedings impedes fraudulent conduct of the kind described in paragraph 41 above and thus enables the État Belge to exercise its tax jurisdiction in relation to the activities carried out in its territory, that legislation is such as to facilitate the protection of the balanced allocation between Member States of the power to impose taxes.
The client is so happy that she invites Dianna two days before the grand opening to hand-paint the new logo at the venue. Since the restaurant is in another city, Dianna has to stay somewhere overnight. She books a hotel with her personal card (reimbursable business travel expenses). One of the many differences between employees and independent contractors (freelancers) is how solos can deal with reimbursable expenses. Expense reimbursement is also a common practice for regular employees. Depending on the company’s policy you might get money back for work equipment purchases, business travel, public transport passes, professional training courses, etc.