Consolidation Notes: A Comprehensive Guide to Step-by-Step Entries

Consolidation Notes

Step 2 BCVR Entries

Not sold

If Sold – Current Year

If Sold – Prior Year

DR Asset

Inventory:

No entry here – BCVR

CR     BCVR

DR COGS

transferred to RE (Step 3)

CR     DTL

CR     ITE

CR     Transf. from BCVR**

If Accumulated Deprec: DR Accum. Deprec

CR     Asset

CR     DTL CR     BCVR

NCA:

DR CA ofAsset CR     ITE

CR     Transfer from BCVR**

No entry here – BCVR transferred to RE (Step 3)

If Depreciable Asset – following yrs:

DR Deprec Exp (current yr) DR

Read More

Management: Planning, Organizing, Leading, and Controlling

Planning

Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers.

Planning is a process consisting of several steps. The process begins with environmental scanning which simply means that planners must be aware of the critical contingencies

Read More

Deductible Transaction & Casualty Losses in US Taxation

Chapter 8: Transaction Losses

Deductible if Identifiable Event Occurs

Transaction losses not classified as sale or exchange (ordinary loss)-Dfor

-Sale/ExchangeBusiness UseInvestment UsePersonal Use
Sale or Exchange?YESYESYES
Type of Loss?Any typeAny typeNone
Dfor or Dfrom?DforRent/Royalty-Dfor
All others-Dfrom
None
Expropriated, Seized, or Confiscated
Sale or Exchange?YESYESYES
Type of Loss?Any typeAny typeNone
Dfor or Dfrom?DforRent/Royalty-Dfor
All others-Dfrom
None
Abandoned
Sale or Exchange?NONONO
Type of Loss?
Read More

Guide to Taxes in Spain: National, Regional, and Local

Taxes in Spain

Spain’s tax system comprises national, regional, and local taxes. This guide provides an overview of each category.

A. National Taxes

Direct Taxes

Personal Income Tax (PIT)

PIT is an annual direct tax on individual income. The tax base includes employment income, income from assets and liabilities, income from economic activities, and capital gains or losses. It’s a personal tax, considering individual circumstances and offering deductions based on them. The tax rate is progressive.

Wealth
Read More

Stochastic Implications of the Hypothesis of Permanent Income-Life Cycle: Theory and Evidence

Stochastic Implications of the hypothesis of permanent income-life cycle: Theory and Evidence

Robert E. Hall
Center for Advanced Study in the Behavioral Sciences and the National Bureau of Economic Research


The optimization of the consumer is shown to imply that the marginal utility of consumption is developed according to a random motion with trend. To a reasonable approximation, consumption itself should be developed in the same way. In particular, no variable apart from current consumption

Read More

Microeconomics Study Guide: From Basic Principles to Market Dynamics

Economic Science

What is Economics?

Economics is a science that explains the actions of various actors, such as consumers and entrepreneurs, in response to incentives or signals. It studies the effects of these actions and how society can design incentives compatible with social welfare.

What is the Scientific Method?

The scientific method is a disciplined approach to achieving valid and reliable knowledge. It is a pattern that allows researchers to move from point A to point Z with confidence in obtaining

Read More