[mla1169]

So far being an accounting manager suits me just fine. Today I had 2 questions come up that I had to go to our auditor for. (very small privately held company, been around 40 years). First the owner has an investment account (newly opened) that has unrealized gains and losses. Ok so I want an unrealized gains/losses account in OCI. But the company has never had OCI before which I find odd. What to do? Create OCI, (which I’ll never figure out how to do in their Podunk software) or is there a case to be made for something else, that I haven’t thought of?

Then, last year the auditors gave an adjusting entry for a probable loss on a sale that had already been paid in full. The auditors had her debit sales and credit AR other (not what I would have done! I would have created a B/S account for a loss contingency, geez maybe I’m way off) now the customer is no longer asking for a refund I’m thinking I don’t want to touch THIS years sales revenues,but where else can it go?

Just trying to get my head around it, maybe the act of typing it out will give me some clarity…..

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[littlenumberrobot]

Sounds like you know your stuff! Very interesting stuff too 🙂 I'm in public accounting and from some preparing financial statements, I've seen OCI but never loss contigencies. Very cool.

CA CPA - All because of the journey listed below
-----------------------------------------------------------------------
FAR - 53('10), 8/25/12 79 PASSED!
REG - 66('11), 69('12), 12/06/12 77 PASSED!!
BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
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(Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

Ethics 90%

[jenuno01]

Are the investments trading, available for sale or held to maturity? If trading, I believe they are recognized in current earnings? I really have no clue =/

Class of 2012

[mla1169]

They're available for sale securities. I'm just hoping theres something I haven't thought of because I'm telling you I hate this accounting software and setting up a new classification just might drive me over the edge!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mmcgrad1]

Did they elect the Fair Value Option on the securities? If so, then you choose to report unrealized gains/losses in current earnings.

NIU CPA Review Correspondence is awesome!

I passed all four sections on the first attempt

[Author]

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