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Infinity Karr
Combat Pigs
0
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Posted - 2011.12.07 22:54:00 -
[1] - Quote
As stated in an earlier post I am studying for my CPA Exam and I figured if I ran my business (trading) according to GAAP (generally accepted accounting principles) it would help me learn the fundamental issues involved in managing all aspects of the business.
Would anyone be interested in seeing my report on how I progress?
I want to keep my corporation private (no shares offered) as I currently do not need any investors and want to keep all the profits to myself. However, if I can provide biweekly/monthly financial statements (Balance Sheet and Income statement) it may allow my company to appear more attractive to investors in the event that additional equity is needed.
Questions:
What asset account should I call skill books when they are purchased since they can never be resold (goodwill)?
Is there a way to export all journal transactions to a spreadsheet?
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Callduron
18
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Posted - 2011.12.07 23:24:00 -
[2] - Quote
I think it would be interesting. Especially if you comment on how your accounting helps you improve your business relative to what you think you would have done had you not been trained. |
Magnu Stormhawk
Stormhawk Enterprises
One Stop Research
0
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Posted - 2011.12.08 09:34:00 -
[3] - Quote
It will be an interesting project for you. You will find that there are many things you come across that are very difficult to account for, as the laws of EVE are different to RL.
If you acquire a skill book, it is inventory until you use it. When you use it, it should hit your income statement as a cost. However if you want to value your character in your accounts, then you could treat the skill book cost as an addition to intangible assets and revalue it as necessary.
You can export the wallet and journal transactions directly on the character management page for your account on the main EVE website. However I would recommend using a third party application to automatically extract the information for you, and they mostly allow you to produce the reports you need for what you want to attempt. Its been a while since I have used any of these and I think some of them have been discontinued, but i found EVE WalletAware to be good.
Good luck. |
The Antiquarian
Imperial Academy
Amarr Empire
129
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Posted - 2011.12.08 12:40:00 -
[4] - Quote
Infinity Karr wrote:As stated in an earlier post I am studying for my CPA Exam and I figured if I ran my business (trading) according to GAAP (generally accepted accounting principles) it would help me learn the fundamental issues involved in managing all aspects of the business.
Would anyone be interested in seeing my report on how I progress?
I want to keep my corporation private (no shares offered) as I currently do not need any investors and want to keep all the profits to myself. However, if I can provide biweekly/monthly financial statements (Balance Sheet and Income statement) it may allow my company to appear more attractive to investors in the event that additional equity is needed.
Questions:
What asset account should I call skill books when they are purchased since they can never be resold (goodwill)?
Is there a way to export all journal transactions to a spreadsheet?
Goodwill is not just merely an intangible asset. It is only created through an acquisition over an entire company and goodwill is derived when your bidding price is above the net value of the company. It is the premium that you pay to purchase another company.
It is an interesting project, but I doubt following GAAP would entice more investors to flock into your project. As you know, EVE market is not comparable to the real market and as such, many of the stringent regulations associated with GAAP will not be providing any additional values to the EVE investors.
Also, huge chunk of GAAP requires you to assess fair values and make valuations on assets. It is simply too time consuming and HUGE SUBJECTIVITY is involved. Using GAAP in EVE without a proper accounting principles and a lack of enforceable entity would only distort the numbers.
Don't forget: the main purpose of GAAP is to make sure that the effort spent in abiding to GAAP adds additional value to you and the investors. Most likely, your effort will not be beneficial for you or third parties. |
Archua Zaul
Black Hawk Security
0
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Posted - 2011.12.08 18:42:00 -
[5] - Quote
You could account for the skill book as a capital asset and just depreciate it when you use it. That way if you can separate the transaction from your main inventory transactions and show on the balance sheet that it's part of a non trade related transactions. |
Shar Tegral
21
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Posted - 2011.12.08 22:16:00 -
[6] - Quote
The Antiquarian wrote:Don't forget: the main purpose of GAAP is to make sure that the effort spent in abiding to GAAP adds additional value to you and the investors. Most likely, your effort will not be beneficial for you or third parties. Unawares I redundantly made this same point in the OP's previous thread.
Excellent point... still.
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trianna Ekanon
Federal Navy Academy
Gallente Federation
3
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Posted - 2011.12.08 22:22:00 -
[7] - Quote
Treat it as a pre paid expense. Calling it good will would be deceptive. |
Ujagar Sommdax
JotunHeim Hird
Moon Warriors
1
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Posted - 2011.12.09 15:24:00 -
[8] - Quote
Skillbooks are indeed able to be resold, thought we were discussing trades? Resell them in distant tradehubs and lowsec for profit. Look into specialization books and cap books |
Shar Tegral
25
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Posted - 2011.12.09 15:55:00 -
[9] - Quote
Ujagar Sommdax wrote:Skillbooks are indeed able to be resold, thought we were discussing trades? Resell them in distant tradehubs and lowsec for profit. Look into specialization books and cap books
I'm not sure what language "Ujagar Sommdax" comes from but does it translate to: Fails to read?
It does now. |
Infinity Karr
Combat Pigs
2
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Posted - 2011.12.09 19:24:00 -
[10] - Quote
Sorry I am talking about skill books I use for example I purchased an Accounting Skill book for 4.5million I do not want to include it in my margin trade revenue/expenses since it is intended to be used by me for a slight competitive advantage (even though most traders have this maxed). I think I will value it as a capital asset and adjust the cost based on the fair market value at the time of my close.
Summary
Will follow GAAP as best I can for extraordinary items I will evaluate the best method to account for expenses/assets for example skill books under 200k Isk will be an expense all rules and exceptions will be posted once I have my first hard close. Current items that are held for resale will be valued/booked as inventory based on the FMV at the time of close. |
Abominare
The Spawning Pool
Team Liquid
0
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Posted - 2011.12.09 20:07:00 -
[11] - Quote
Infinity Karr wrote:Sorry I am talking about skill books I use for example I purchased an Accounting Skill book for 4.5million I do not want to include it in my margin trade revenue/expenses since it is intended to be used by me for a slight competitive advantage (even though most traders have this maxed). I think I will value it as a capital asset and adjust the cost based on the fair market value at the time of my close.
Summary
Will follow GAAP as best I can for extraordinary items I will evaluate the best method to account for expenses/assets for example skill books under 200k Isk will be an expense all rules and exceptions will be posted once I have my first hard close. Current items that are held for resale will be valued/booked as inventory based on the FMV at the time of close.
No, you keep the inventory on the accounting books for what you paid. You do not get to change their values.
Again I would agree the skill books are simply guarantees of being trained, treat them as a pre-paid expense until you inject them then move them to expenses, then you can be fancy and give them a sub account. |
OllieNorth
Recidivists Incorporated
18
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Posted - 2011.12.09 20:54:00 -
[12] - Quote
I agree, it is tradeable up until you inject it, at that point it is something like a training expense. No accountant myself, but that would be my call. |
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