Back to Top Section 884 Taxes Consolidation Act extends the definition of a return to encompass financial statements.This, coupled with the existing e-filing legislation, establishes a statutory basis for the mandatory submission of i XBRL financial statements as part of the tax return.In this world, if we just have to sell off these assets, fine. And the equity guys would get left over with whatever else. Whenever you hear things like book value, and I've done a couple of videos on book value versus market value, but the book value is essentially what you have on your accounting books. But there's a lot of confusion over what it means. It doesn't make sense to have the employees and run the factories. And we will just keep it running, and we'll restructure the company. So maybe we'll cancel some debt and all of that.
A retirement account to which an eligible employee can contribute a certain amount of his or her pretax salary; earnings are tax-deferred.
Some employers may match a stated percentage of employee 401(k) contributions.
Company directors could face the prospect of being prosecuted if found to be trading a company whilst it is insolvent. If your business gets into financial difficulty you do not have a legal obligation to pay your creditors, unless you owe the company money or have signed personal guarantees. Many company shareholders receive advances from their companies in the form of drawings, instead of receiving a wages.
This results in shareholders building up monies that they effectively owe back to the company.
In the last set of videos, we've hopefully familiarized ourselves with the different ways that a company can raise capital. And we learned that debt securities are often called bonds. So there's a couple of ways you can generate assets. That's one way that you can get cash or get capital so that you can buy assets to run your business. So the equity holders are actually the owners of the company. And I left you with a question the last time around. So when we say bankruptcy, bankruptcy is a very common word.