Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
Equity offering costs reduce additional paid-in capital, never earnings; debt issuance costs amortize into interest expense. Entries, authorities, and mistakes.
Your broker can lend your fully paid shares to short sellers and split the fee — but lent shares lose SIPC cover, voting rights, and qualified-dividend rates.
SaaS gross margin should clear 75–80%, with subscription margins near 90% — but AI inference costs are dragging AI-native products toward 50–60%.
Under U.S. GAAP, ASC 606 books expected returns as variable consideration: revenue only for what you keep, plus a refund liability and recovery asset.
Preferred equity sits between senior debt and common equity: a fixed 10–18% pref paid before common, with control rights but no foreclosure.
A note receivable is a signed promise to pay principal plus interest — book the principal as an asset swap, accrue interest monthly, act fast on dishonor.
MIRR fixes IRR by compounding interim cash at a realistic reinvestment rate — a 21.7% IRR becomes an honest 17.8% you can actually earn.
A locked box freezes the price on an old balance sheet, so interim profit goes to the buyer; closing accounts true it up at closing. Which side each favors.
Elect LIFO for tax and every owner and lender statement must use LIFO too — Section 472 lets the IRS terminate the election over one FIFO report.
2-and-20 means a 2% management fee plus 20% of profits — but hard vs. soft hurdles and high-water marks decide what you actually keep.
A dividend stock is worth next year's dividend divided by required return minus growth — the Gordon Growth Model, plus the two-stage fix.
ASC 820 ranks fair-value inputs in three levels — market quotes, observable inputs, unobservable models — and the lowest significant input sets the level.
