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How to Combine Bookkeeping Contract

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In this video, Morgan from finepoints.biz provides guidance on creating an employment contract for a bookkeeping business, a highly requested topic. She encourages viewers to subscribe for weekly bookkeeping videos. Morgan suggests establishing an LLC and operating as an independent contractor to diversify and maintain control over one's business. She emphasizes the importance of having a contract or engagement letter that clearly outlines expectations for both the contractor and the client. Although she acknowledges that legal documents can be intimidating, she promises to share tips and tricks for drafting a contract, but will not disclose her own personal contract template.

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What is the criterion for a contract to be accounted for using IFRS 15?

A contract with a customer will fall within the scope of IFRS 15 when all the following criteria are met: The parties to the contract have approved the contract; Each partys rights in relation to the goods or services to be transferred can be identified; The payment terms and conditions for the goods or services

What is catch-up adjustment?

Catch-up adjustments involve accounting for, and recognizing, the cumulative effect of an error in current periods earnings and ending net assets, without recasting/ restating prior period figures.

What are the 2 methods of revenue recognition?

Different revenue recognition methods include: Sales-basis method: Revenue is recognized at the time of sale, which is defined as the moment when the title of the goods or services is transferred to the buyer. Completed-contract method: Revenues and expenses are recorded only at the end of the contract.

In which of the following scenarios would IFRS 15 require the entities to combine the contracts and account for them as a single contract?

Under IFRS 15, a company is required to combine two or more contracts and account for them as a single contract if they are entered into at or near the same time and meet one of the following criteria: the contracts were negotiated as a package with one commercial objective the amount paid under one contract is

What is a contract modification in accounting?

A contract modification could change the scope of the contract, the price of the contract, or both. A contract modification exists when the parties to the contract approve the modification either in writing, orally, or based on the parties customary business practices.

What is a multiple contract?

Multiple award contracts means a procurement process resulting in the award of a contract to more than one person, which may be for an indefinite quantity of a procurement item.

What is cumulative catch-up?

The cumulative catch-up adjustment is calculated by applying the revised measure of progress to the revised transaction price, which could result in an immediate increase to or a reduction of revenue in the period of the modification.

What is combining contracts?

Combined Contracts means any contracts, arrangements or agreements that apply to the Assets and to any other business or asset of Sellers and their Affiliates. Combined Contracts means contracts between Seller and Customers that include Managed Services and Other Services in the same contract.

What is the core principle of IFRS 15 revenue from contracts with customers?

The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

When should contracts be combined?

Contracts should also be combined if the performance provided under one contract affects the consideration to be paid under another contract. This would be the case when failure to perform under one contract affects the amount paid under another contract.

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Combine Bookkeeping Contract