There are two primary points to review if you are wondering if the IRS considers you a syndicate: Prepaid expenses can be a helpful tool for farming and ranching operations. Save my name, email, and website in this browser for the next time I comment. The adjusting journal entry for a prepaid expense, however, does affect both a companys income statement and balance sheet. While this is all well and good, we sometimes forget that there are some rules to the prepaid expense game. GAAP Rules on Amortization and Capitalization Costs. If not, charge the invoiced amount to expense in the current period. CI submits a . If not, reconcile the two and adjust as necessary. .s5ap8yh1b4ZfwxvHizW3f{color:var(--newCommunityTheme-metaText);padding-top:5px}.s5ap8yh1b4ZfwxvHizW3f._19JhaP1slDQqu2XgT3vVS0{color:#ea0027} References U.S. Internal Revenue Service: Internal Revenue Manual -- Property . In the U.S., these accounting standards have been established by the Financial Accounting Standards Board (FASB) and the American Institute of Certified . Improves Asset & Inventory Management. will have a useful life of more than one year and cost an amount higher than an established threshold amount. How do I import old data into QuickBooks? The landlord requires that Company A pays the annual amount ($120,000) upfront at the beginning of the year. Record the amount of the expenditure in the prepaid expenses reconciliation spreadsheet. Tangible asset purchases less than $2,500 can now be posted directly to an expense account, avoiding the process of setting up fixed assets and adding the item to the depreciation schedule. If a prepaid expense were likely to not be consumed within the next year, it would instead be classified on the balance sheet as a long-term asset (a rarity). UNL web framework and quality assurance provided by the, Apply to the University of NebraskaLincoln, Give to the University of NebraskaLincoln, Institute of Agriculture and Natural Resources, Strengthening Nebraska's Agricultural Economy, Austin Duerfeldt - Former Agricultural Systems Economist Extension Educator. If you have questions feel free to email me, Austin Duerfeldt, at [email protected]. With the transition to ASC 842 under US GAAP, some of the terminology and accounting . [December 13, 2022] Question 100.05. . Thank you for reading CFIs guide to Prepaid Expenses. This policy and procedure applies to all Liberty University expenses: . Advice and questions welcome. Maybe I am missing some but those are the main ones. Were more than 35% of the losses during any period allocated to limited partners or limited entrepreneurs. ", Want to join the conversation? What happens to vested RSUs when issuance or release of shares is deferred? 3. Under prior law, the gross-receipts threshold for the cash method was only $5 million. We use $2K for prepaids and $1K for fixed assets. Here is a look at another example of a prepaid expense. Many times these incentives can include "free rent" at either . If you choose to continue using Xero after your trial, you will be asked to add your billing information, and will be billed monthly from that point. Increase in liabilities. Generally Accepted Accounting Practice in the UK (UK GAAP) is the body of accounting standards and other guidance published by the UK's Financial Reporting Council (FRC). Prepaid Insurance Coverage Example. To review prepaid expense account codes or any other general ledger accounts, use FGITBAL . This chart of accounts is suitable for use with US GAAP. .ehsOqYO6dxn_Pf9Dzwu37{margin-top:0;overflow:visible}._2pFdCpgBihIaYh9DSMWBIu{height:24px}._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu{border-radius:2px}._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu:focus,._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu:hover{background-color:var(--newRedditTheme-navIconFaded10);outline:none}._38GxRFSqSC-Z2VLi5Xzkjy{color:var(--newCommunityTheme-actionIcon)}._2DO72U0b_6CUw3msKGrnnT{border-top:none;color:var(--newCommunityTheme-metaText);cursor:pointer;padding:8px 16px 8px 8px;text-transform:none}._2DO72U0b_6CUw3msKGrnnT:hover{background-color:#0079d3;border:none;color:var(--newCommunityTheme-body);fill:var(--newCommunityTheme-body)} the end of the taxable year following the taxable year in which the payment is made. It will not matter whether the invoice/payment is $1 or $10k. If the useful life is one year, as you state, then such costs 12th each month over the course of said year. If material, these amounts are recorded as assets until the related expenses have been incurred, contract terms are met, or goods or services are received. Initial journal entry for prepaid insurance: Adjusting journal entry as the prepaid insurance expires: We will look at two examples of prepaid expenses: Company A signs a one-year lease on a warehouse for $10,000 a month. Once all amortizations have been completed, verify that the total in the spreadsheet matches the total balance in the prepaid expenses account. Is the company more focused on the P&L or cashflow management? (Note: General Accounting reserves the right to adjust this threshold based on analysis of activity). Company A signs a one-year lease on a warehouse for $10,000 a month. February 24, 2023. As you use the prepaid item, decrease your Prepaid Expense account and increase your actual Expense account. Prepaid expenses represent expenditures that have not yet been recorded by a company as an expense, but have been paid for in advance. In a simplified example, if you had $100,000 in deductible non-prepaid expenses in 2018, you could only deduct $50,000 in prepaid expenses. If you are purchasing seed corn in late fall to take advantage of discounts, that fits this test. If private, how frequently does the ownership / banks / senior management receive audited and/or independently reviewed financials? In the firm's balance sheet, such an expense is shown as an asset. Joined Sep 8, 2016 Messages 1 Reaction score 0 Country. University has set the following thresholds: Prepaid: Purchases for services less than or equal to $10,000 per year The adjusting journal entry is done each month, and at the end of the year, when the lease agreement has no future economic benefits, the prepaid rent balance would be 0. Basic periodical subscriptions.I don't bother. The materiality of Company A = 0.08%. How do I check my BBPS transaction status. 1. Now, we already understood the key definitions of prepaid expenses and amortization. The new rule, FASB ASU (Accounting Standards Update) 2016.02, will require that all leases with a term over one year must be capitalized effective for years beginning after 12/15/2021. Provides Real Time Data. Does anyone else use a threshold and do you have an authority I could reference? Email [emailprotected] Basic COA (.xlsx) Advanced COA (.xlsx) Expanded COA (.xlsx) COA with XBRL cross references (.xlsx) So one firm may have a different threshold for the same client. Also, by paying expenses in advance, the business can save them from the inflating cost of the expense, thereby saving the business money. The establishment of a prepaid expenditure as a legitimate business purpose in agriculture is straightforward. I agree it might be too high or too low and wondering if there was some guidance. (Note: General Accounting reserves the right to adjust this threshold based on analysis of activity).Click to see full answer. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. You can pay for a prepaid expense in the current financial year and use it in the next financial year until and unless it is valid. . Stand out and gain a competitive edge as a commercial banker, loan officer or credit analyst with advanced knowledge, real-world analysis skills, and career confidence. Prepaid Expenses Example. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. All payments of invoices for goods or services with a value of $1,000 or more, which cross . This test is to determine whether the transaction is a purchase or a deposit. @keyframes _1tIZttmhLdrIGrB-6VvZcT{0%{opacity:0}to{opacity:1}}._3uK2I0hi3JFTKnMUFHD2Pd,.HQ2VJViRjokXpRbJzPvvc{--infoTextTooltip-overflow-left:0px;font-size:12px;font-weight:500;line-height:16px;padding:3px 9px;position:absolute;border-radius:4px;margin-top:-6px;background:#000;color:#fff;animation:_1tIZttmhLdrIGrB-6VvZcT .5s step-end;z-index:100;white-space:pre-wrap}._3uK2I0hi3JFTKnMUFHD2Pd:after,.HQ2VJViRjokXpRbJzPvvc:after{content:"";position:absolute;top:100%;left:calc(50% - 4px - var(--infoTextTooltip-overflow-left));width:0;height:0;border-top:3px solid #000;border-left:4px solid transparent;border-right:4px solid transparent}._3uK2I0hi3JFTKnMUFHD2Pd{margin-top:6px}._3uK2I0hi3JFTKnMUFHD2Pd:after{border-bottom:3px solid #000;border-top:none;bottom:100%;top:auto} Costs that are capitalized are recorded as assets rather than expenses that reduce income for the accounting period. For revenue to be earned, a product or service must have been completed. Minimizes Errors. Then, over time, as the asset provides its value, it gets recorded as an expense (on the income statement) during the same accounting period as when the asset delivers its value. Generally speaking, prepaid rent can be deducted by a cash basis taxpayer in the year of payment so long as the lease agreement calls for rent to be prepaid prior to the beginning of the month to which the rent payment relates. Usually thresholds are determined on a per client basis and a per firm basis. changing the basis of accounting for revenue or expenses in a non-GAAP performance measure from an accrual basis in accordance with GAAP to a cash basis. If consumed over multiple periods, there may be a series of corresponding charges to expense. If the company makes a one-time payment of $24,000 for an . The prepaids concept is not used under the cash basis of accounting, which is commonly used by smaller organizations. Insurance As a Prepaid Expense . In addition, for tax years beginning after 2017, the TCJA modifies Section 451 of the Internal . to submit your question today. Here are some examples to keep in mind. Plus, I don't see it as material within the 12 months. Primarily for accountants and aspiring accountants to learn about and discuss their career choice. Generally Accepted Accounting Principles (GAAP) are a set of rules, guidelines, and principles that U.S. companies of all sizes and across industries adhere to. All expenditures, expenses, encumbrances, payables, prepaid items and deferred outflows of resources are to be accounted for in accordance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). According to Generally Accepted Accounting Principles (GAAP), accrual accounting requires expenditures to be charged to the fiscal year and period in which goods are received or services are performed, regardless of when budget or cash is available. Read More Accounting billing time software how toContinue, Let me guide you how: Download and install a trial version of the latest QuickBooks Desktop. My personal preference is a combo of $$ threshold and typenot just $$ amount alone. ._1QwShihKKlyRXyQSlqYaWW{height:16px;width:16px;vertical-align:bottom}._2X6EB3ZhEeXCh1eIVA64XM{margin-left:3px}._1jNPl3YUk6zbpLWdjaJT1r{font-size:12px;font-weight:500;line-height:16px;border-radius:2px;display:inline-block;margin-right:5px;overflow:hidden;text-overflow:ellipsis;vertical-align:text-bottom;white-space:pre;word-break:normal;padding:0 4px}._1jNPl3YUk6zbpLWdjaJT1r._39BEcWjOlYi1QGcJil6-yl{padding:0}._2hSecp_zkPm_s5ddV2htoj{font-size:12px;font-weight:500;line-height:16px;border-radius:2px;display:inline-block;margin-right:5px;overflow:hidden;text-overflow:ellipsis;vertical-align:text-bottom;white-space:pre;word-break:normal;margin-left:0;padding:0 4px}._2hSecp_zkPm_s5ddV2htoj._39BEcWjOlYi1QGcJil6-yl{padding:0}._1wzhGvvafQFOWAyA157okr{font-size:12px;font-weight:500;line-height:16px;border-radius:2px;margin-right:5px;overflow:hidden;text-overflow:ellipsis;vertical-align:text-bottom;white-space:pre;word-break:normal;box-sizing:border-box;line-height:14px;padding:0 4px}._3BPVpMSn5b1vb1yTQuqCRH,._1wzhGvvafQFOWAyA157okr{display:inline-block;height:16px}._3BPVpMSn5b1vb1yTQuqCRH{background-color:var(--newRedditTheme-body);border-radius:50%;margin-left:5px;text-align:center;width:16px}._2cvySYWkqJfynvXFOpNc5L{height:10px;width:10px}.aJrgrewN9C8x1Fusdx4hh{padding:2px 8px}._1wj6zoMi6hRP5YhJ8nXWXE{font-size:14px;padding:7px 12px}._2VqfzH0dZ9dIl3XWNxs42y{border-radius:20px}._2VqfzH0dZ9dIl3XWNxs42y:hover{opacity:.85}._2VqfzH0dZ9dIl3XWNxs42y:active{transform:scale(.95)} GAAP also allows companies to capitalize on improvements to fixed assets such as land and equipment, if they are not part of routine maintenance. That is hardly material. And while we're talking about rent, you should also consider the impact of the new accounting standard on leases, ASU 2016-02, Leases, effective beginning in 2020 for private calendar-year companies (2019 for SEC filers). As you use the prepaid item, decrease your Prepaid Expense account and increase your actual Expense account. Size of company.2, Your accounting software functionality/ies - the amount of effort to amortize. To extend this concept further, consider charging remaining balances to expense once they have been amortized down to a certain minimum level. Upon signing the one-year lease agreement for the warehouse, the company also purchases insurance for the warehouse. Accrued expenses are the opposite of prepaid expenses. Companies can only recognize interest expense as they incur expenses to construct the asset. Here, we'll assume that a company has paid for insurance coverage in advance due to the incentives offered by the provider. July 16, 2022. GAAP requires that revenues be realized or realizable and earned. If you can expense a $700 dollar laptop, you can can expense a subscription (or whatever type). ._3bX7W3J0lU78fp7cayvNxx{max-width:208px;text-align:center} You can only deduct one-half of this rent as an expense in 2021. Submit an answer or ask a question by emailing us at [emailprotected]. Advances, prepaid expenses and other assets are reported as current assets on the IRS balance sheet. 2, Your accounting software functionality/ies - the amount of effort to amortize. . Software subscriptions, then $ amount matters.also see number 3. Not only can the company capitalize the purchase price of the press, it can also capitalize the cost of transporting the equipment from Germany. File your paper bills in a designated place. Select Open or Restore Company. Another main difference between expenses and depreciation is the tax benefits associated with each. To keep learning and advancing your career, the following CFI resources will be helpful: A free, comprehensive best practices guide to advance your financial modeling skills, Get Certified for Commercial Banking (CBCA). Refer to the first example of prepaid rent. There are three tests for prepaid expenses. Intent - a repair or building expense needs to add to the useful life or the services of an . The landlord requires that Company A pays the annual amount ($120,000) upfront at the beginning of the year. Presentation and disclosure requirements for prepaid assets and other current and noncurrent assets vary depending on the nature of the asset and the underlying guidance. Change in net equity due to differing rate of reduction between lease assets and liabilities. ._1LHxa-yaHJwrPK8kuyv_Y4{width:100%}._1LHxa-yaHJwrPK8kuyv_Y4:hover ._31L3r0EWsU0weoMZvEJcUA{display:none}._1LHxa-yaHJwrPK8kuyv_Y4 ._31L3r0EWsU0weoMZvEJcUA,._1LHxa-yaHJwrPK8kuyv_Y4:hover ._11Zy7Yp4S1ZArNqhUQ0jZW{display:block}._1LHxa-yaHJwrPK8kuyv_Y4 ._11Zy7Yp4S1ZArNqhUQ0jZW{display:none} 3. If you can expense a $700 dollar laptop, you can can expense a subscription (or whatever type).4. My company doesn't have a lower bound threshold, so we try to get everything (to my dismay), it's a $700mm business and we have $36 vehicle registrations in prepaid, but on a class basis vehicle registrations are close to $1mil a year. As you use the prepaid item. There might also need to be an exception for report timing - for a calendar-year company, a $20k January expense might be fine, while a $15k December expense could be problematic. The relationship between the expenditure and past purchases. FASB studies AI use in financial data analysis. Here are the things you need to keep in mind before writing that check. There are some exceptions to this limit that you can find in IRS Publication 225. Prepaids are generally 1 year or less, otherwise you have some kind of long-term asset. Click to see full answer Is MS Excel an accounting package? Do you have a question you would like answered by your peers in the Proformative community? Press question mark to learn the rest of the keyboard shortcuts. NAIC - Supporting Insurance, Regulators, & Public Interest Pre-Paid and Accrued Items. Prepaid expenses are payments made in advance for goods and services that are expected to be provided or used in the future. The financial reporting framework in the UK is effective from 1 January 2015. The basic accounting for a prepaid expense follows these steps: Upon the initial recordation of a supplier invoice in the accounting system, verify that the item meets the company's criteria for a prepaid expense (asset). Under this limit, if your prepaid expenses equal 50% or more of your deductible non-prepaid expenses for the taxable year, the prepaid expenses are only deductible as the purchased items are consumed. One common example of an early prepayment is insurance coverage, which is often paid upfront to cover multiple future periods. These should be put to A180 when entered into Concur as well. Your problem is actually the nuisance and not the threshold level. A company pays $60,000 in advance for directors and officers liability insurance for the upcoming year. For small and midsized groups the threshold amount is usually set at $750 or $1,000. This will cover existing leases and early adoption is permitted. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? How do I import bank transactions into QuickBooks Desktop 2021? The following are some of the ways in which IFRS and GAAP differ: 1. However, preparation of carve-out financial statements can result in adoption of an accounting principle or a change in accounting principle due to (1) materiality differences between the parent entity and the carve-out business, (2) newly issued . All kinds of prepaid expenses are recorded in the accounting book of an entity and presented in the current assets section in the Balance Sheet. Net income. Therefore, prepaid rent must be adjusted: Note: One month corresponds to $10,000 ($120,000 x 1/12) in rent. (Note: General Accounting reserves the right to adjust this threshold based on analysis of activity). We have all witnessed the prepaid December scramble: a farmer running all over town writing checks because a tax preparer just advised that an additional $40,000 in expenses would be beneficial. Sit down at the set time and review your bills. Revenue should be recognized with the debit to accounts receivable or contract assets. ._12xlue8dQ1odPw1J81FIGQ{display:inline-block;vertical-align:middle} Under the cash method of accounting, you cannot deduct a prepaid expense amount (other than for inventory) relating to a . Types of Advances, Prepaid Expenses and Other Assets. Because the benefit (aka insurance policy) does not go past a 12-month period or beyond the end of the taxable year following the year the payment was made, the 12-month rule applies. Answers. As a business owner, GAAP concepts - a comprehensive set of detailed rules on how to keep your accounting books - can feel a lot like a curfew for your business. Can you file a section 168 bonus depreciation for a Tesla purchased for business purposes? Set up the accrual as an automatic recurring entry in your accounting system for 12 months. One-time deduction vs. reducing tax burden. ._3Z6MIaeww5ZxzFqWHAEUxa{margin-top:8px}._3Z6MIaeww5ZxzFqWHAEUxa ._3EpRuHW1VpLFcj-lugsvP_{color:inherit}._3Z6MIaeww5ZxzFqWHAEUxa svg._31U86fGhtxsxdGmOUf3KOM{color:inherit;fill:inherit;padding-right:8px}._3Z6MIaeww5ZxzFqWHAEUxa ._2mk9m3mkUAeEGtGQLNCVsJ{font-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:18px;color:inherit} If a business were to not use the prepaids concept, their assets would be somewhat understated in the short term, as would their profits. The time of year in which the expenditure was made. If your accounting software allows auto amortization at point of input and does not require additional steps. The advantages of prepaid expenses are as follows: First, the prepaid expenses help in income tax deductions. There should also be no right to refund the payment nor substitute for other goods or services. Your fixed asset $$ threshold should affect this. For example, a company uses leased . Prepaid insurance is insurance paid in advance and that has not yet expired on the date of the balance sheet. Click to see full answer What are two responsibilities involved in practice, Read More What is meant by practice management?Continue, 7 Main Benefits of Using an Accounting System in Your Company Saves Time and Costs. If you are prepaying anhydrous so you have the required quantity at the time of application, it fits this test. The FASB (link: asc.fasb.org) does not define a US GAAP COA. In other words, it is a future expense whose payment is made in advance. Thanks Emerson.This is in regard to things like hardware/software maintenance/service contracts and small health department licenses. 1. To recognize prepaid expenses that become actual expenses, use adjusting entries. Generally Accepted Accounting Principles - GAAP: Generally accepted accounting principles (GAAP) are a common set of accounting principles , standards and procedures that companies must follow . Where the system amortizes the expense automatically. If you have questions or would like more information, please contact Bella Wang at [email protected] or 844.4WINDES (844.494.6337). There are six key factors to look at with your tax preparer when working through this test: In addition to the testing process, there are two rules/limits to keep in mind. At the end of the accounting period, create an adjusting entry that amortizes the predetermined amount to the most relevant expense account. ._1EPynDYoibfs7nDggdH7Gq{margin-bottom:8px;position:relative}._1EPynDYoibfs7nDggdH7Gq._3-0c12FCnHoLz34dQVveax{max-height:63px;overflow:hidden}._1zPvgKHteTOub9dKkvrOl4{font-family:Noto Sans,Arial,sans-serif;font-size:14px;line-height:21px;font-weight:400;word-wrap:break-word}._1dp4_svQVkkuV143AIEKsf{-ms-flex-align:baseline;align-items:baseline;background-color:var(--newCommunityTheme-body);bottom:-2px;display:-ms-flexbox;display:flex;-ms-flex-flow:row nowrap;flex-flow:row nowrap;padding-left:2px;position:absolute;right:-8px}._5VBcBVybCfosCzMJlXzC3{font-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:21px;color:var(--newCommunityTheme-bodyText)}._3YNtuKT-Is6XUBvdluRTyI{position:relative;background-color:0;color:var(--newCommunityTheme-metaText);fill:var(--newCommunityTheme-metaText);border:0;padding:0 8px}._3YNtuKT-Is6XUBvdluRTyI:before{content:"";position:absolute;top:0;left:0;width:100%;height:100%;border-radius:9999px;background:var(--newCommunityTheme-metaText);opacity:0}._3YNtuKT-Is6XUBvdluRTyI:hover:before{opacity:.08}._3YNtuKT-Is6XUBvdluRTyI:focus{outline:none}._3YNtuKT-Is6XUBvdluRTyI:focus:before{opacity:.16}._3YNtuKT-Is6XUBvdluRTyI._2Z_0gYdq8Wr3FulRLZXC3e:before,._3YNtuKT-Is6XUBvdluRTyI:active:before{opacity:.24}._3YNtuKT-Is6XUBvdluRTyI:disabled,._3YNtuKT-Is6XUBvdluRTyI[data-disabled],._3YNtuKT-Is6XUBvdluRTyI[disabled]{cursor:not-allowed;filter:grayscale(1);background:none;color:var(--newCommunityTheme-metaTextAlpha50);fill:var(--newCommunityTheme-metaTextAlpha50)}._2ZTVnRPqdyKo1dA7Q7i4EL{transition:all .1s linear 0s}.k51Bu_pyEfHQF6AAhaKfS{transition:none}._2qi_L6gKnhyJ0ZxPmwbDFK{transition:all .1s linear 0s;display:block;background-color:var(--newCommunityTheme-field);border-radius:4px;padding:8px;margin-bottom:12px;margin-top:8px;border:1px solid var(--newCommunityTheme-canvas);cursor:pointer}._2qi_L6gKnhyJ0ZxPmwbDFK:focus{outline:none}._2qi_L6gKnhyJ0ZxPmwbDFK:hover{border:1px solid var(--newCommunityTheme-button)}._2qi_L6gKnhyJ0ZxPmwbDFK._3GG6tRGPPJiejLqt2AZfh4{transition:none;border:1px solid var(--newCommunityTheme-button)}.IzSmZckfdQu5YP9qCsdWO{cursor:pointer;transition:all .1s linear 0s}.IzSmZckfdQu5YP9qCsdWO ._1EPynDYoibfs7nDggdH7Gq{border:1px solid transparent;border-radius:4px;transition:all .1s linear 0s}.IzSmZckfdQu5YP9qCsdWO:hover ._1EPynDYoibfs7nDggdH7Gq{border:1px solid var(--newCommunityTheme-button);padding:4px}._1YvJWALkJ8iKZxUU53TeNO{font-size:12px;font-weight:700;line-height:16px;color:var(--newCommunityTheme-button)}._3adDzm8E3q64yWtEcs5XU7{display:-ms-flexbox;display:flex}._3adDzm8E3q64yWtEcs5XU7 ._3jyKpErOrdUDMh0RFq5V6f{-ms-flex:100%;flex:100%}._3adDzm8E3q64yWtEcs5XU7 .dqhlvajEe-qyxij0jNsi0{color:var(--newCommunityTheme-button)}._3adDzm8E3q64yWtEcs5XU7 ._12nHw-MGuz_r1dQx5YPM2v,._3adDzm8E3q64yWtEcs5XU7 .dqhlvajEe-qyxij0jNsi0{font-size:12px;font-weight:700;line-height:16px;cursor:pointer;-ms-flex-item-align:end;align-self:flex-end;-webkit-user-select:none;-ms-user-select:none;user-select:none}._3adDzm8E3q64yWtEcs5XU7 ._12nHw-MGuz_r1dQx5YPM2v{color:var(--newCommunityTheme-button);margin-right:8px;color:var(--newCommunityTheme-errorText)}._3zTJ9t4vNwm1NrIaZ35NS6{font-family:Noto Sans,Arial,sans-serif;font-size:14px;line-height:21px;font-weight:400;word-wrap:break-word;width:100%;padding:0;border:none;background-color:transparent;resize:none;outline:none;cursor:pointer;color:var(--newRedditTheme-bodyText)}._2JIiUcAdp9rIhjEbIjcuQ-{resize:none;cursor:auto}._2I2LpaEhGCzQ9inJMwliNO,._42Nh7O6pFcqnA6OZd3bOK{display:inline-block;margin-left:4px;vertical-align:middle}._42Nh7O6pFcqnA6OZd3bOK{fill:var(--newCommunityTheme-button);color:var(--newCommunityTheme-button);height:16px;width:16px;margin-bottom:2px} WAY too much work. One stop will be to the chemical company, another stop to the machinery dealer, and then maybe, if more is necessary, there will be a stop at the oil company to contract some fuel. Materiality - entities generally have a capitalization threshold policy which expenses need to exceed before being considered for leasehold improvements or capitalization and 2. ._2FKpII1jz0h6xCAw1kQAvS{background-color:#fff;box-shadow:0 0 0 1px rgba(0,0,0,.1),0 2px 3px 0 rgba(0,0,0,.2);transition:left .15s linear;border-radius:57%;width:57%}._2FKpII1jz0h6xCAw1kQAvS:after{content:"";padding-top:100%;display:block}._2e2g485kpErHhJQUiyvvC2{-ms-flex-align:center;align-items:center;display:-ms-flexbox;display:flex;-ms-flex-pack:start;justify-content:flex-start;background-color:var(--newCommunityTheme-navIconFaded10);border:2px solid transparent;border-radius:100px;cursor:pointer;position:relative;width:35px;transition:border-color .15s linear,background-color .15s linear}._2e2g485kpErHhJQUiyvvC2._3kUvbpMbR21zJBboDdBH7D{background-color:var(--newRedditTheme-navIconFaded10)}._2e2g485kpErHhJQUiyvvC2._3kUvbpMbR21zJBboDdBH7D._1L5kUnhRYhUJ4TkMbOTKkI{background-color:var(--newRedditTheme-active)}._2e2g485kpErHhJQUiyvvC2._3kUvbpMbR21zJBboDdBH7D._1L5kUnhRYhUJ4TkMbOTKkI._3clF3xRMqSWmoBQpXv8U5z{background-color:var(--newRedditTheme-buttonAlpha10)}._2e2g485kpErHhJQUiyvvC2._1asGWL2_XadHoBuUlNArOq{border-width:2.25px;height:24px;width:37.5px}._2e2g485kpErHhJQUiyvvC2._1asGWL2_XadHoBuUlNArOq ._2FKpII1jz0h6xCAw1kQAvS{height:19.5px;width:19.5px}._2e2g485kpErHhJQUiyvvC2._1hku5xiXsbqzLmszstPyR3{border-width:3px;height:32px;width:50px}._2e2g485kpErHhJQUiyvvC2._1hku5xiXsbqzLmszstPyR3 ._2FKpII1jz0h6xCAw1kQAvS{height:26px;width:26px}._2e2g485kpErHhJQUiyvvC2._10hZCcuqkss2sf5UbBMCSD{border-width:3.75px;height:40px;width:62.5px}._2e2g485kpErHhJQUiyvvC2._10hZCcuqkss2sf5UbBMCSD ._2FKpII1jz0h6xCAw1kQAvS{height:32.5px;width:32.5px}._2e2g485kpErHhJQUiyvvC2._1fCdbQCDv6tiX242k80-LO{border-width:4.5px;height:48px;width:75px}._2e2g485kpErHhJQUiyvvC2._1fCdbQCDv6tiX242k80-LO ._2FKpII1jz0h6xCAw1kQAvS{height:39px;width:39px}._2e2g485kpErHhJQUiyvvC2._2Jp5Pv4tgpAsTcnUzTsXgO{border-width:5.25px;height:56px;width:87.5px}._2e2g485kpErHhJQUiyvvC2._2Jp5Pv4tgpAsTcnUzTsXgO ._2FKpII1jz0h6xCAw1kQAvS{height:45.5px;width:45.5px}._2e2g485kpErHhJQUiyvvC2._1L5kUnhRYhUJ4TkMbOTKkI{-ms-flex-pack:end;justify-content:flex-end;background-color:var(--newCommunityTheme-active)}._2e2g485kpErHhJQUiyvvC2._3clF3xRMqSWmoBQpXv8U5z{cursor:default}._2e2g485kpErHhJQUiyvvC2._3clF3xRMqSWmoBQpXv8U5z ._2FKpII1jz0h6xCAw1kQAvS{box-shadow:none}._2e2g485kpErHhJQUiyvvC2._1L5kUnhRYhUJ4TkMbOTKkI._3clF3xRMqSWmoBQpXv8U5z{background-color:var(--newCommunityTheme-buttonAlpha10)}