Entrepreneursbuzz admin Posts

Criteria for Treatment as a Sale

admin — Sun, 27 Jun 2010 19:31:27 +0000

Before the Accounting Standards Board published additional clarifying rules, it was not untypical for companies to account for transactions as sales, despite continuing interests in and control over the transferred assets (i.e. receivables or financial assets in security lending/repo transactions). In essence those transactions would rather have to be treated as secured borrowings as opposed to sales, and therefore be reported on balance sheet as opposed to off balance sheet. Under Fas 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, a sale occurs if the following three conditions are met:

Legal isolation of transferred assets. The transferred assets should be beyond the reach of the tranferor and its creditors, even in the case of bankruptcy or receivership.
Right to sell or repledge. The transferee (party receiving the assets) has the right to sell or repledge the assets or beneficial interest (debt or equity claim to the cash flows). There should be no conditions that limit the ability to take advantage of this right or give more than a trivial benefit to the transferor.
Effective control. The transferor does not maintain effective control over the transferred assets through a repurchase agreement or redeem them before their maturity or through an ability to unilaterally cause the holder to return specific assets.

Test Mike

admin — Mon, 14 Dec 2009 11:01:16 +0000

Test Mike Test Mike Test Mike

Cost Recovery Method

admin — Mon, 23 Nov 2009 16:50:02 +0000

In the cost recovery method provid is not recognized until the sum of the cash receipts exceed the costs of the asset sold. If for example a company sells a specific assets costing USD 40 000 for the price of USD 60 000 in year one, but the cash receipt is only USD 30 000 in the current year, the revenue will not be recognized until the next year, to the extent that in year two the sales exceed USD 10 000 (cost of 40 000 - cash collected 30 000) . The cost recovery method is used when the collection is so uncertain that even the installment method is not allowed.

Instalment Sales Method

admin — Mon, 23 Nov 2009 13:10:49 +0000

With the instalment sales method revenue is recognized at the point where cash is collected as opposed to when the sale occurs. That way gross profit is deferred and recognized proportionately to the collection of receivables. This method of accounting can only be used in cases where "the collection of the sale price is not reasonably assured" (APB 10).

Clinton urges Myanmar to free Suu Kyi

admin — Thu, 12 Nov 2009 09:27:00 +0000

MANILA (Reuters) - Secretary of State Hillary Clinton called again on Thursday for the unconditional release of Myanmar democracy icon Aung San Suu Kyi, but suggested there could be high-level contacts with the country's military leaders at a summit this weekend.

www.reuters.com

APEC ministers back "market-oriented exchange rates"

admin — Thu, 12 Nov 2009 08:33:00 +0000

SINGAPORE (Reuters) - Pacific rim finance ministers agreed on Thursday to undertake monetary policies based on "market-oriented exchange rates" that reflect underlying economic fundamentals.

http://www.reuters.com/

China warns Obama about Dalai Lama, citing Lincoln on slavery

admin — Thu, 12 Nov 2009 08:30:00 +0000

BEIJING (Reuters) - A Chinese government spokesman said Barack Obama should be especially sympathetic to China's opposition to the Dalai Lama and Tibetan independence, as a black president who lauded Abraham Lincoln for helping abolish slavery.

www.reuters.com

Geithner wants strong dollar, will tackle deficit

admin — Thu, 12 Nov 2009 03:23:00 +0000

TOKYO (Reuters) - Treasury Secretary Timothy Geithner said on Wednesday he believes strongly in the need to maintain a strong dollar and said the United States was determined to get its budget deficit down.

www.reuters.com

Fort Hood probe spotlights Web-savvy preacher

admin — Thu, 12 Nov 2009 03:17:00 +0000

LONDON (Reuters) - A radical Muslim preacher linked by U.S. intelligence to a gunman who killed 13 people at a U.S. Army base is an influential voice in English-language Internet forums increasingly used by militants unfamiliar with Arabic.

www.reuters.com

North Korea warns South it will pay for clash

admin — Thu, 12 Nov 2009 03:08:00 +0000

SEOUL (Reuters) - North Korea said the South will pay "an expensive price" for firing at Pyongyang's retreating patrol boat on Tuesday, keeping up its saber rattling two days after a naval gunfight raised tension between the rivals.

www.reuters.com

Obama pushes for changes in Afghan strategy options

admin — Thu, 12 Nov 2009 02:45:00 +0000

WASHINGTON (Reuters) - President Barack Obama pushed his Afghan war council Wednesday for revisions in strategy options presented to him before he will go ahead with a final decision on boosting troop levels in Afghanistan, a senior U.S. official said.

www.reuters.com

China's Wen reiterates loose policy stance

admin — Thu, 12 Nov 2009 02:24:00 +0000

BEIJING (Reuters) - China will stick to its active fiscal policy and loose monetary measures even though its economic recovery is now on more solid footing, Premier Wen Jiabao said on Thursday.

http://www.reuters.com/

Soros, CIC help Longfor raise $912 million in IPO

admin — Thu, 12 Nov 2009 01:50:00 +0000

HONG KONG (Reuters) - Chinese property developer Longfor Properties Co raised $912 million, pricing its Hong Kong initial public offering at the top end of an indicated range on Thursday, according to two sources close to the deal.

http://www.reuters.com/

HP to buy 3Com for $3.1 billion

admin — Thu, 12 Nov 2009 00:19:00 +0000

NEW YORK/SAN FRANCISCO (Reuters) - Hewlett-Packard Co is making a move into the network equipment market by striking a $3.1 billion deal for 3Com Corp, in a major challenge to Cisco Systems Inc.

http://www.reuters.com/

AMD expects key business to be profitable in 2010

admin — Thu, 12 Nov 2009 00:14:00 +0000

SUNNYVALE, California (Reuters) - Advanced Micro Devices said it expects to report profits next year from its chip design business, the backbone of a company trying rebuild market share and better compete with rival Intel Corp..

http://www.reuters.com/

Costco CFO: Fingers crossed consumers will spend

admin — Thu, 12 Nov 2009 00:11:00 +0000

NEW YORK/SAN FRANCISCO (Reuters) - Costco Wholesale Corp is hoping that consumers are becoming more comfortable making purchases as the No. 1 U.S. warehouse club operator heads into the year-end holiday shopping season.

http://www.reuters.com/

Credit Card Transactions -- Could They Be Free?

admin — Wed, 11 Nov 2009 23:15:00 +0000

If you had told me a decade ago that I could pay $40 a month for all the phone calls I could make coast to coast, I wouldn't have believed it. I used to routinely have $250 phone bills. But now, as a reporter who frequently needs to call all over the country, I am a prime beneficiary of the new all-you-can-eat calling plans.

What if credit cards could work the same way for small businesses--a flat fee per month for all you can charge? In a thought-provoking article on the retail-tech/e-commerce site Storefront Backtalk, Focus Brands vice president of information technology Todd Michaud opines that there could be. The credit-transaction business, he argues, is ripe for a disruptive new model that would radically lower costs for merchants.

As I'm sure I don't have to tell anyone regular readers of the Daily Dose, credit-card transaction fees are the bane of every retailer's existence. Customers are always coming in to buy a $.95 pack of gum, and wanting to charge it. And the fee erases all the profit in the transaction, and more. It'd be sweet if card fees became more affordable.

How could it be done? Michaud suggests finding sponsors and basically turning card transactions into a marketing opportunity that would cover the costs, rather than retailers having to pay a fee. Card providers could sell ad space on charge receipts, or banner ads on card-signing pads. Merchants could agree to sell their data to sponsors in exchange for discounted rates.

Is the credit-card space ripe for a disruptive new model that could help take the fee burden off retailers? Or is it just a pipe dream? Comment and let us know what you think.

Personally, I smell a great business opportunity for someone with banking experience who could bring all the parties together to create a new model.

Entrepreneur.com

Motorola eyes $4.5 billion home/networks unit sale: sources

admin — Wed, 11 Nov 2009 22:18:00 +0000

NEW YORK (Reuters) - Motorola Inc is in the early stages of looking into a potential sale of its $4.5 billion television set-top box and network equipment business, two sources said on Wednesday.

http://www.reuters.com/

Fort Hood probe spotlights Web-savvy preacher

admin — Wed, 11 Nov 2009 07:22:00 +0000

www.reuters.com

Get ready, America: Here comes Sarah Palin

admin — Wed, 11 Nov 2009 07:15:00 +0000

WASHINGTON (Reuters) - Get ready, America. Like her or not, Sarah Palin is coming to a city near you.

www.reuters.com

Abbas resists U.S. pressure to resume peace talks

admin — Wed, 11 Nov 2009 06:20:00 +0000

RAMALLAH, West Bank (Reuters) - The Palestinian president on Wednesday resisted U.S. pressure for a resumption of peace talks with Israel, repeating his demand for a complete halt to West Bank settlement building before negotiations.

www.reuters.com

United Airlines pilot charged with being drunk

admin — Wed, 11 Nov 2009 05:32:00 +0000

LONDON (Reuters) - A United Airlines pilot has been charged after being arrested at London's Heathrow Airport on suspicion of being drunk shortly before he was about to fly a transatlantic airliner, police said on Wednesday.

www.reuters.com

U.S. aid worker held over Afghan boy's shooting

admin — Wed, 11 Nov 2009 05:27:00 +0000

KABUL (Reuters) - An American aid worker in northern Afghanistan is being held by Afghan authorities over the fatal shooting of an Afghan teenager at his home, a provincial police chief said on Wednesday.

www.reuters.com

NATO expects more resources for Afghan training

admin — Wed, 11 Nov 2009 04:33:00 +0000

LONDON (Reuters) - NATO's secretary-general said on Wednesday he expected alliance members to provide more resources for training Afghan troops and police, but would not comment on exact troop numbers.

www.reuters.com

Madoff's NYC, Palm Beach homes get price cuts

admin — Wed, 11 Nov 2009 04:05:00 +0000

NEW YORK (Reuters) - It's still not cheap, but Livin' La Vida Madoff may now cost a bit less. Asking prices for homes once occupied by now imprisoned Ponzi schemer Bernard Madoff in Manhattan's Upper East Side and in Palm Beach, Florida, have been cut, after about two months on the market.