Discussion:Related Party Payable - ST vs. LT
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 01:32, 10 March 2007 Natalie (Talk | contribs) (You have a note) ← Previous diff |
Revision as of 16:19, 12 March 2007 JCCPA (Talk | contribs) (I discussed this) Next diff → |
||
| Line 14: | Line 14: | ||
| {{ForumReplyPost|UserID=Natalie|Date=March 10, 2007|Text=You have a note payable but no terms? What type of entity? If no terms are noted, do you have an imputed interest issue with respect to the tax return? How did client have it classified? The conservative treatment would be to put it in short-term liabilities. }} | {{ForumReplyPost|UserID=Natalie|Date=March 10, 2007|Text=You have a note payable but no terms? What type of entity? If no terms are noted, do you have an imputed interest issue with respect to the tax return? How did client have it classified? The conservative treatment would be to put it in short-term liabilities. }} | ||
| + | |||
| + | {{ForumReplyPost|UserID=JCCPA|Date=12 March 2007|Text=I discussed this item with another CPA colleague of mine - we could not find anything that discusses this - his conclusion on another client that he worked on was to treat it as long-term since there is no guarantee that it would be paid within twelve months of the year end...}} | ||
Revision as of 16:19, 12 March 2007
Discussion Forum Index --> Accounting Questions --> Related Party Payable - ST vs. LT
| 9 March 2007 | |
| Hi All:
I have a new audit client with a related party payable of approx. $46k. There are no stated repayment terms on the note - the only evidence is a note payable. I cannot find anywhere the proper balance sheet classification - whether this should be disclosed as Short Term vs. Long Term. Any pointers would be helpful. Thanks in advance!!! | |
| March 10, 2007 | |
| You have a note payable but no terms? What type of entity? If no terms are noted, do you have an imputed interest issue with respect to the tax return? How did client have it classified? The conservative treatment would be to put it in short-term liabilities. | |
| 12 March 2007 | |
| I discussed this item with another CPA colleague of mine - we could not find anything that discusses this - his conclusion on another client that he worked on was to treat it as long-term since there is no guarantee that it would be paid within twelve months of the year end... | |
