Standard accounting procedure - page 2.

bitcoinbear

hero member

Activity: 518

Merit: 500

Quote from: SgtSpike on October 03, 2012, 03:50:00 PM

Quote from: kjj on October 03, 2012, 03:36:29 PM

Quote from: SgtSpike on October 03, 2012, 03:33:45 PM

No need to reinvent the wheel here people. Use GAAP. It exists for a reason, and there's no reason it doesn't apply to business conducted using Bitcoins vs business conducted using other financial instruments.

The only item in your list that GAAP doesn't apply to is #2. And to that, I really don't even understand what you are requesting. Company funds are not to be mixed? Mixed with what? Why?

In the real world, mixing personal and corporate funds is called commingling. It lands you in prison, typically.

If that's what he meant, then I agree, unless the person is on the sole-propriety level of business. If they are actually incorporated, then yes, the funds absolutely need to be kept separately. If they are a sole-proprietor or equivalent, they can mix their funds between business and personal.

If you are listed on the exchange you are no longer on the level of sole-proprietor.

If people want to invest somewhere that mixes business and personal funds, they can go to The Bank of Dank.

jborkl

sr. member

Activity: 246

Merit: 250

Team Heritage Motorsports

I did mean personal and company funds need to be separate.

Being on a exchange means public company to me, so funds need to kept apart.

If hardware is paid for in USD or expenses incurred in USD then a exchange rate needs to accounted for at the time the expense is incurred.

$80 electric bill being paid for by shareholder operating expenses needs to be $80/Gox last at the time of the bill

If expenses are in Yen, then Yen/GOX.

A mining company should have to report operating equipment and the hash rate it operates at.

What if someone says 100 ghash farm but they are only outputting 80 ghash?

That is not a viable business, that is taking money from the future to pay dividends today.

It is very easy to show what your output is

SgtSpike

legendary

Activity: 1400

Merit: 1005

Quote from: kjj on October 03, 2012, 03:36:29 PM

Quote from: SgtSpike on October 03, 2012, 03:33:45 PM

No need to reinvent the wheel here people. Use GAAP. It exists for a reason, and there's no reason it doesn't apply to business conducted using Bitcoins vs business conducted using other financial instruments.

The only item in your list that GAAP doesn't apply to is #2. And to that, I really don't even understand what you are requesting. Company funds are not to be mixed? Mixed with what? Why?

In the real world, mixing personal and corporate funds is called commingling. It lands you in prison, typically.

If that's what he meant, then I agree, unless the person is on the sole-propriety level of business. If they are actually incorporated, then yes, the funds absolutely need to be kept separately. If they are a sole-proprietor or equivalent, they can mix their funds between business and personal.

kjj

legendary

Activity: 1302

Merit: 1026

Quote from: SgtSpike on October 03, 2012, 03:33:45 PM

No need to reinvent the wheel here people. Use GAAP. It exists for a reason, and there's no reason it doesn't apply to business conducted using Bitcoins vs business conducted using other financial instruments.

The only item in your list that GAAP doesn't apply to is #2. And to that, I really don't even understand what you are requesting. Company funds are not to be mixed? Mixed with what? Why?

In the real world, mixing personal and corporate funds is called commingling. It lands you in prison, typically.

SgtSpike

legendary

Activity: 1400

Merit: 1005

No need to reinvent the wheel here people. Use GAAP. It exists for a reason, and there's no reason it doesn't apply to business conducted using Bitcoins vs business conducted using other financial instruments.

The only item in your list that GAAP doesn't apply to is #2. And to that, I really don't even understand what you are requesting. Company funds are not to be mixed? Mixed with what? Why?

paladon

member

Activity: 85

Merit: 10

I would gladly help if needed. To make reporting more transparant.

bitcoinbear

hero member

Activity: 518

Merit: 500

There should definately be more stringent reportin for companies around here. It would be nice if the GLBSE had a way to publish financial statements. It would also be nice if people around here used standard financial statements. It does not have to be too complicated, there should be a (monthly, quarterly, yearly, as specified in the asset) statement showing profit, loss, current assets, current liabilities, outstanding shares. Why should bitcoinland be different than other places? we should be given the same statements using the same rules for accounting.

jborkl

sr. member

Activity: 246

Merit: 250

Team Heritage Motorsports

Ok, we'll that looks great right off the bat.

Why don't you promote people using that?

And btw I know what treasury stock is, the problem is people are using their own rules on here.

EskimoBob

legendary

Activity: 910

Merit: 1000

Quality Printing Services by Federal Reserve Bank

here is a nice statement of what is going on:

Quote from: paladon on August 13, 2012, 04:57:55 PM

FAQ

Q:
What is the link to your public spreadsheet?
A:
Check https://docs.google.com/spreadsheet/pub?key=0AkzS_thDsmwudHVKcFdMRXg5cjY3eklqNmxHeGlIeXc&single=true&gid=0&output=html (beta-version)

EskimoBob

legendary

Activity: 910

Merit: 1000

Quality Printing Services by Federal Reserve Bank

Company shares? If you mean Co's own shares, the those are called treasury stock.

Treasury Stock:
The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders; or it may have never been issued to the public in the first place. These shares don't pay dividends, have no voting rights, and should not be included in shares outstanding calculations.

Look up cash flow statement. There is no need to invent the wheel
https://www.google.ee/search?q=cash+flow+statement

Same for all the other statements, that give full picture of what's going on.
Publishing only portfolio holdings is not enough.

jborkl

sr. member

Activity: 246

Merit: 250

Team Heritage Motorsports

https://docs.google.com/spreadsheet/ccc?key=0AndZm7GH6-UzdE1jRjFnX0J3aFNRdUlhYUp5X0xUdWc

There is no standard accounting in Bitcoin, so we as a community need to develop one to keep people honest.

1. Equipment is USD, so exchange rate needs to be accounted for - so people don't skim
2. Company money needs to help in a second wallet/funds are not to be mixed. - publish the wallet and balance information to be verified
3. Outstanding shares/float needs to be kept current
4. Expenses need to be kept/accounted for in current exchange rate

This needs work but I see that people are asking for it.

My hashrate formula is really weird. I need help with that - I Frankensteined it together

I tried to put it all on one sheet, people lose interest if it is complicated.

The best type of accounting is easy accounting.

I used figures from Bakewells IPO- these are not correct and need to be adjusted once people put in some suggestions/work

Topic: Standard accounting procedure - page 2. (Read 3038 times)