Companies that use accrual accounting often end up with deferred expenses on their balance sheets. That's because under accrual accounting, accountants recognize expenses when they occur, not when the ...

How does a company account for cash payments received in advance of delivering its goods or services? Under the "accrual-basis accounting" rules used by most companies, advance payments can't be ...

A new standard FASB issued Friday is designed to improve the way deferred taxes are classified on organizations’ balance sheets. Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): ...

A new accounting standard gives shareholders deeper insight into the company's revenue. ASC 606 is based on the following, very simple premises. In a contract between two parties, it's logical that ...