Dotcom Accounting: SEC is a Part of Your Life

The media and online news sources have been full of stories about the SEC’s hearings on independence issues, yet one sector that is fully aware of the Commission’s monumental presence—apart from the independence issue—is the dotcom accountant.

Why? The world of the dotcom is about spending money to make money, and the way income or losses are reported is paramount to regulators. There are two basic ways to report: in a profit and loss account or capitalized as an asset.

Perhaps the most high-profile example to date is America Online, who was penalized by the SEC because of the way it capitalized the assets connected with acquiring new customers instead of expensing them. AOL reported this as an asset on the balance sheet because they used the money to fund the marketing program.

What’s next? It’s anyone guess, but suffice it to say that the SEC will be watching start-up dotcoms very carefully in the next several years.

You may like these other stories...

Event Date: August 28, 2014, 2 pm ET Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to...
When you’re running an accounting office, it's easy to become inundated with paper, forms, and email attachments, especially when tax season rolls around. To prevent your office from becoming completely overwhelmed...
It's not a reality—yet—but accounting software is poised to eliminate accountants. We are at a tipping point for many similar professions: online education replacing professors, legal software replacing...

Upcoming CPE Webinars

Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.