- [Host] Let's see how someone might answer this question and I'll be right back with some feedback. - Before passing judgment, it's important to clearly define the transaction in question. All accountants must follow specific guidelines under generally accepted accounting principles, GAAP, or international financial reporting standards, IFRS, to determine the types of transactions that can be expensed or capitalized. Simply put, a transaction meant for long-term growth and its associated costs are capitalized. I would first try to understand why the manager believes that the transactions are best expensed rather than capitalized. I would explain why I believe that transaction should be capitalized under the accounting guidelines and why this is necessary by tax rules. I would also work with the manager to identify the costs that can be capitalized and those that can be expensed. I'd hope that the manager had simply made a…
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.