Acquisition Cost The cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software includes those development costs capitalized in accordance with generally accepted accounting principles GAAP. Ancillary charges, such as taxes, duty, protective in transit insurance, freight, and installation may be included in or excluded from the acquisition cost in accordance with the non-Federal entity's regular accounting practices.
In contrast, employee expenses reimbursed under a nonaccountable plan are considered income to the employee and are subject to withholding. An accountable plan is a reimbursement or other expense allowance arrangement that satisfies three basic requirements: The requirements of an accountable plan are applied on an employee-by-employee basis.
To satisfy the business connection component, the business expenses covered by the plan: Allowances under the plan may include per diem allowances, allowances for meals and incidental expenses, and mileage allowances.
To satisfy the substantiation component, an accountable plan must require employees to furnish adequate substantiation of reimbursed expenses to the employer or other payor.
The specific type of substantiation required under an accountable plan depends on the nature of the reimbursed expense, but in any case must be done in a reasonable amount of time. Certain types of expenditures are covered by other special rules.
If the arrangement contains the requisite provision for return of excess amounts, but an employee fails to return amounts received in excess of substantiated expenses within a reasonable period, the amounts paid to the employee that exceed the properly substantiated expenses are treated as paid from a nonaccountable plan.
Special rules apply when an arrangement provides per diem allowances for ordinary and necessary business expenses of traveling away from home excluding transportation costs to and from the destination or mileage allowances for ordinary and necessary expenses of local transportation or travel away from home.
They are instead deductible as business expenses by the employer, subject to any limitations on the deduction of the particular type of expense. Note that there are exceptions to this rule for expenses that are either more or less than the reimbursed amounts.
Expenses attributable to amounts included in gross income are deductible by the employee, subject to all applicable limitations.An unnamed ruling party official has told Reuters that Japanese Prime Minister Shinzo Abe is finalizing details for a summit to be held with US President Donald Trump on April The purpose of the meeting, which will be held at Trump’s Mar-a-Lago estate in Florida, is reportedly to discuss strategy before a planned meeting between Trump and North Korean leader Kim Jong-un in May.
To be treated as an accountable plan, all of the following three conditions must be satisfied: Expenses reimbursed under the plan must have a business connection (a condition that is usually easily satisfied). Affordable Papers is an online writing service which has helped students from the UK, US, and Europe for more than 10 years.
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Under An Accountable Plan Introduction organization’s reimbursement arrangement must meet three requirements (Reg.
§‐2(c)(2)(i)): 1. the amounts reimbursed must have a business connection, Reimbursements Made to Employees Under an Accountable Plan.
What Is an Implementation Strategy? To gain an understanding of implementation strategy, we must first define a strategic plan.A strategic plan is the process of defining the strategy by which you (or a team or organization) will accomplish certain goals or make decisions.
Closely related in place. You can generally consider your move closely related in place to the start of work if the distance from your new home to the new job location isn't more than the distance from your former home to the new job location.