In this lesson, Nick Palazzolo, CPA, dives into the intricacies of purchase commitments, shining a light on their non-recognition in financial statements while underscoring the necessity of disclosure. He paints a clear picture of what happens when an organization enters into a binding agreement to purchase goods that cannot be canceled and how this should be reported. Paying particular attention to scenarios where a loss is anticipated from executing a contract, Nick explains how and when to record such losses, using relatable examples like microchip procurement to illustrate these accounting principles.
Lesson: Purchase Commitments
Instructor: Nick Palazzolo
In this lesson, Nick Palazzolo, CPA, dives into the intricacies of purchase commitments, shining a light on their non-recognition in financial statements while underscoring the necessity of disclosure. He paints a clear picture of what happens when an organization enters into a binding agreement to purchase goods that cannot be canceled and how this should be reported. Paying particular attention to scenarios where a loss is anticipated from executing a contract, Nick explains how and when to record such losses, using relatable examples like microchip procurement to illustrate these accounting principles.
Updated: Oct. 20, 2021 Create an account
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Module:
8 Concepts,
74 Lessons
Fair Value Hierarchy
3:40
Purchase Commitments
0:37
Goodwill Impairment
5:20
Loss Contingencies
3:10
Gain Contingencies
1:54
Leases Summary
0:38
