Archive | Debt

Intercompany Debt Transactions and Consolidation Process | Accounting

The explored the consolidation procedures required by the intercompany transfer of inventory, land, and depreciable assets. In consolidating these transactions, all resulting gains were deferred until earned through either the use of the asset or its resale to outside parties. Deferral was necessary because these gains, although legitimately recog­nized by the individual companies, were unearned from the perspective of the [...]

By |2018-05-19T09:41:33+00:00May 19, 2018|Debt|Comments Off on Intercompany Debt Transactions and Consolidation Process | Accounting

Trade Debt | Receivables Management

The below mentioned article provides a study note on trade debt. There is a time lag between provision of goods and services and the receipt of cash for them. This time lag can result in a firm's working capital requirements from banks. Any increase in time lag, will cause serious liquidity problems and sometimes can cause insolvency of the firm. [...]

By |2016-12-12T08:06:12+00:00December 12, 2016|Debt|Comments Off on Trade Debt | Receivables Management
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