For WizardKim-DPR1 T2

For this discussion, I selected the ASC 720-15: Other Expenses-Startup Costs

ASC 720-15 provides guidance on financial reporting of start-up costs and organization costs and requires such costs to be expensed as incurred. Start-up costs are defined as one-time activities related to opening a new facility, introducing a new product or service, conducting activities in a new territory, pursuing a new class of customers, initiating a new process in an existing facility, or some new operation. Those costs are variously referred to as preopening costs, pre-operating costs, organization costs, and start-up costs. Routine ongoing efforts to improve the existing quality of products, services, or facilities are not start-up costs. (Bragg, 2011)

Other costs outside the scope are: store advertising, coupon giveaways, uniforms, furniture, cash registers, obtaining licenses, deferred financing costs, related to construction activities, such as security, property taxes, insurance, and utilities. (Flood, 2015)

The input form that I created was designed to track the start-up costs of a new store in a new territory.

The field enables in the form were designed according to the need to control this type of expense, keeping a detailed record of each cost incurred. This report facilitates the audit work, as well as the identification of deductible expenses in the tax return.

The form also contributes to the internal control of the entity by registering the reference number (receipt #, Invoice #, or Payroll Period), the employee who carried out the transaction and who authorized it, as well as the payment instrument used.

 References:

Bragg, S. M., & Bragg, S. M. (2011). Wiley GAAP 2012: Interpretation and application of generally accepted accounting principles. ProQuest Ebook Central https://0634g30ut-mp01-y-https-ebookcentral-proquest-com.prx-keiser.lirn.net/lib/keiseruniversity-ebooks/reader.action?docID=818854&ppg=1&query="720-15" 

FASB. (n.d). 720 Other Expenses -15 Start-Up Costs. https://asc.fasb.org/subtopicviewall&trid=2122524?

Flood, J. M. (2015). Wiley GAAP 2016: Interpretation and application of generally accepted accounting principles. ProQuest Ebook Central https://0634g30ut-mp01-y-https-ebookcentral-proquest-com.prx-keiser.lirn.net/lib/keiseruniversity-ebooks/reader.action?docID=4107755&ppg=1&query=GAAP%202016%20Interpretation%20and%20Application%20of%20Generally%20Accepted%20Accounting%20Principles

Start-Up Costs

Track Form.xlsx