Category Archives: Articles

Irreverent, entertaining, incisive articles on a variety of accounting and tax subjects.

How to Implement the Percentage-of-Completion Method of Accounting

The percentage-of-completion method is generally the required method of financial and tax accounting of larger construction companies for long-term contracts. Its justification relies largely on the matching principle in accounting, where revenues and expenses are matched in the applicable accounting … Continue reading

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The IPIC Method Revisited: A Simplified Explanation and Illustration of the Inventory Price Index Computation (IPIC) Method

The inventory price index computation (IPIC) method determines inventory values under the LIFO inventory method by utilizing a calculated inventory price index (IPI) based on the consumer price indexes (CPI) or producer price indexes (PPI) published by the United States Bureau of … Continue reading

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Calculated Value Method of SFAS No. 123R

With the implementation of SFAS123R, the calculated value method is now required for nonpublic companies without an internal market for its stocks or options, or for those unable to identify similar public entities for which share or option price information … Continue reading

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