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Demystifying GAAP: Accounting Principles Generally Accepted in the US

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In this episode, the Wheeler team discusses Accounting Principles Generally Accepted in the United States of America (GAAP). GAAP is a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. Sound complicated? Not to fear! Matt and Michael answer their clients’ questions in this lively Q&A.

Listen in and learn how to capitalize software implementation costs, how to record commissions, how to record grants to nonprofit organizations, how the new tax law will affect deferred tax assets and liabilities, and accounting treatment for unlimited paid time off policies.

Related: Tax Season: Questions and Answers

Questions answered by the Wheeler team:

  • How do we capitalize software and implementation costs?
  • How should a non-profit organization record grants?
  • Do we need to defer commission expense related to sales of software and maintenance?
  • How are the new tax rates going to affect deferred tax assets and liabilities?
  • When using the Black-Scholes Model to record our stock compensation, how should we handle forfeitures of stock options during the year?
  • What should we consider if we change to an unlimited Paid Time Off (PTO) policy? Is it possible to put an accrual cap on PTO?
  • What would be the impact to my financial statements with respect to leasehold improvements now that we have to move?