Accounting, Payroll & Pension Issues/New hire bonus

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Expert: - 4/8/2011


Question
We made an offer in March that included a sign on bonus, that is material. Can I accrue the sign on bonus in March, although acceptance and start were in April? What FASB should I be looking at for this information?

Thanks for your guidance.

Answer
I expect that the bonus cannot be accrued before the event upon which it is based takes place. Thus I expect that the bonus should accrued in April.

I am not aware of which FASB to look for regarding this. I would suggest asking your CPA regarding this matter if a definitive answer is needed.  

Accounting, Payroll & Pension Issues

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Arthur Naman

Expertise

General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.

I cannot answer questions pertaining to pension or retirement planning.

This is not a forum to have homework answered. Please do your own homework.

Experience

30 years' experience doing tax and accounting work

Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA

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