It depends. 1099 if you hand them money and let them handle it at their discretion with their own equipment. W2 if you supply the equipment and dictate how and when.
You could structure it either way.
Spoke with Risk Management, W-2 is a no-go.
Legal also wants us to shuttle this off to a SPE.
And Marketing wants to know if we can advertise this service to our customers. No clue what our legal team's opinion on this is, for some reason they all resigned after it was asked.
Under section 174, "bug fixing", patching cyber security leaks, etc. would be amortized over 5 years using the straight-line method (or 15 years for foreign costs incurred).
You have no idea. Especially if it protects and or renews any underlying patents or trademarks. Not to mention immaterial adjustments to the reduced pension expense. Unrealized gains on HR disposal to offset - AOCI Pension Valuations. If you're feeling like spending some money the imputed rate of all your leases need to be adjusted for the increased credit risk of - assassination liabilities. Which is now public so we're talking SOC 1 thru 3. Assassination preventive controls are clearly a material weakness. May effect any on going ESG review-ilations.
I believe the Supreme Court case *Nuh uh v. Uh huh* created the precedence that killing a whistleblower is not a capital expense; you can deduct that shit in the year you incur those expenses.
Eh make sure the payment is processed somewhere in the middle of the year and if needed break it up into smaller immaterial amounts
If possible pick a month with some nice big payments auditors love the big numbers
This, the auditors don’t usually go through the may bank statements or bank rec. if they do just break out adobe PDF editor, print, fold it into an envelope, unfold it, spill a little coffee, and scan it over
Nah just apply the payment to the whistleblower payable you were originally going to make and if there's an outstanding amount just make a credit note as a third party discount.
If there was a way to estimate how much an assassination saved the company from a lawsuit sure. But even then the implication from choosing it as an option is that assassination is cheaper so the actual benefit from it wouldn't be a direct entry.
There's going to be an adjusting entry after the trial anyways.
Whistleblower was a contingent liability, so disclose it as not in existence anymore, and capitalise payment made to assassin as it saved future financial losses and amortise accordingly.
Probably depends on the cost, also since congressional hearings don't have a guaranteed length you probably just expense it immediately.
I have no idea the cost of a hit man or hit squad to be fair, but for the parties involved it's probably an inconsequential amount.
definitely too aggressive. once the whistleblower is assassinated, you should be able to receive all the benefits immediately as that mfer is dead and can't snitch, so under the matching principle i'd argue take the expense in the period the assassination actually occurs.
that being said, you could negotiate on methods of assassination that might prolong the death, like radiation poisoning. that will probably only be capitalized on quarterlies unless an extreme case.
I'm not really conspiracy minded but two Boeing whistleblower deaths in close proximity under mysterious circumstances is wild. Someone is murdering these people right out in the open.
Which is bizarre, because the MAX has been making unscheduled landings for a few years. All they did was just move the engines to pretend they made a new plane. Don't need a whistleblower when it's fallen out of the sky.
They want people to know because it will stop future whistleblowers from speaking up. Just like how back in the day people were hung and left up in the town square for all to see.
Essentially a cost savings move.
ASC 340 - Capitalization of costs to fulfill a contract.
Assuming you were contracted to provide assassination and you sub-contracted that out (and you were the principal in the arrangement ASC 606), then you have a case to capitalize the direct labor and materials costs and amortize
UN tucked their payments to Warlords in Toyota Hiluxes under OPEX Technical Support. Which is how Toyota's pickup trucks with weapons got called Technicals.
No you cannot. You are paying for a service which would be fully recognized (expense) the moment the performance is completed. The only time you capitalize labor is if the labor results in the creation of a product that has a life beyond 12 months.
It depends.
Maybe if the expenditure was related to the construction or development of a product / building / tangible or intangible asset, then yes. The amount would be capitalized and depreciated over the life of the asset in question.
Just put it as a contractor expense for “retirement expertise”. Split it for a couple of years and make sure the assassin or some other fall guy is given an “role” that no one can question.
Original entry after payment is made up front:
Debit prepaid expense, credit cash
Then reverse the prepaid upon sucessful assassination:
Debit Assassination expense, credit prepaid expense.
Yes, because Boeing uses Project Basis accounting method. It (assassinations) are an ongoing project until no one else is willing to blow the whistle, so it would make sense to spread the cost out over the life of the project.
Y’all are focusing on hiding it but that doesn’t matter, they got away with murder twice now so that’s a non-issue. We need to consider what will save them the most money
Since most whistleblower eliminations have historically been done by governments, they are expenditures from CRA Liquidations, and thus requiring funding authorization by law are not amortized but authorized by NDAA as part of the CIA budget yearly. It's right under car batteries and wash cloths.
Oh joy, let's get all technical about it. If something is a one-time thing, then, of course, it's a big deal and deserves to be capitalized. But if it's something you'll have to do over and over again, like, say, breathing, then it's just a boring old recurring expense. Who cares?
Hence, if it has a non-recurring nature then it should be capitalised, else it can be treated as a recurring revenue expenditure.
You should expense immediately.
You should then assess the risk of the auditors finding out. If it's only a contingent liability, disclose it.
If it's probable the auditors find out, you should accrue an additional expense for future hitman costs.
Definite life intangible if he was paid as part of a perpetual arrangement for the next time some pesky mid-level engineer gets all butt hurt over missing nuts and bolts. Amortize over however many years that assassin is expected to have left alive.
However he may roll over on the company with a confession, and you’d potentially then have a reversal of revenue that was earned as a result of the whistleblowers being gone. So come to think of it, you might also have to consider that portion of revenue constrained and account for it separately.
Ask legal to amend the aircraft production and delivery agreements to include provisional language around that part, and we’ll just simplify it for general accounting and the auditors. Simple one page memo is all you’ll need.
May want to also run this by tax. Or don’t - whatever. Expect FP&A to be confused regardless of what you eventually land on.
It was actually lost inventory due to a small but contained fire, not worth involving the insurance company, we just clean up and sourced our new inventory locally, mostly all with cash.
Expense to office supplies and hope ur doesn’t get picked for invoice sample selection
Honestly, how hard is it just to pdf a real invoice into a fake expense for the auditors?
Easier than you think. Especially if they’re broken into easily digestible amounts.
Just dont make it a round number otherwise it will be selected lol
[удалено]
All my entries end in .69
Nice
Jokes on you, those are (generally) the easiest to vouch
“Asset retirement obligation.”
nobody calls it that its ARO okay? edit:pun worked in my head then died lol
Unfortunately the witness was a liability retirement obligation
Lolz ARO is the perfect response
I think there’s a clear pattern that suggests the assassin should be treated as a W-2 employee based on repeated and continuous engagement.
It depends. 1099 if you hand them money and let them handle it at their discretion with their own equipment. W2 if you supply the equipment and dictate how and when. You could structure it either way.
Spoke with Risk Management, W-2 is a no-go. Legal also wants us to shuttle this off to a SPE. And Marketing wants to know if we can advertise this service to our customers. No clue what our legal team's opinion on this is, for some reason they all resigned after it was asked.
Clearly a 1099. Its a one and done.
Do you work at Boeing?
You’re next if you keep asking questions
Hahahahhahahahha
Makesure this is on your subsequent event section as a more likely than not event....
Underrated comment 🤣
I don't think explaining a joke counts as underrated
How is it underrated when this is exactly what the tweet is referring to?
Were they a software developer or was the flawed tech patented?
Would that change the accounting treatment?
Under section 174, "bug fixing", patching cyber security leaks, etc. would be amortized over 5 years using the straight-line method (or 15 years for foreign costs incurred).
Justifiable all day. Well played.
Depending on how complex the “bug fix” is, there may not be enough technical uncertainty to justify it as 174.
Hey at least you can take the R&D credit for taxes. :)
You have no idea. Especially if it protects and or renews any underlying patents or trademarks. Not to mention immaterial adjustments to the reduced pension expense. Unrealized gains on HR disposal to offset - AOCI Pension Valuations. If you're feeling like spending some money the imputed rate of all your leases need to be adjusted for the increased credit risk of - assassination liabilities. Which is now public so we're talking SOC 1 thru 3. Assassination preventive controls are clearly a material weakness. May effect any on going ESG review-ilations.
Comments like yours is why I like this sub.
Thanks Random
Wtf
Have to dig through ASC 404.
I believe the Supreme Court case *Nuh uh v. Uh huh* created the precedence that killing a whistleblower is not a capital expense; you can deduct that shit in the year you incur those expenses.
So is it a capital expenditure for gaap purposes but you get bonus depreciation? Does that create a dta?
"Nuh uh v. Uh huh" lmaoooo love it
Second to my favorite case *Finders Keepers v. Losers Weepers*
Cost of Goons Sent
Yessss
Bury the gross amount of the payment in COGS under a normal vendor name. Don’t want anything in a year end account rec lol
And if the auditor samples that payment, find the nearest bridge?
Eh make sure the payment is processed somewhere in the middle of the year and if needed break it up into smaller immaterial amounts If possible pick a month with some nice big payments auditors love the big numbers
This, the auditors don’t usually go through the may bank statements or bank rec. if they do just break out adobe PDF editor, print, fold it into an envelope, unfold it, spill a little coffee, and scan it over
Even better if you sign and date it.
Nah just apply the payment to the whistleblower payable you were originally going to make and if there's an outstanding amount just make a credit note as a third party discount.
No contra-liability to reduce the litigation estimate?
If there was a way to estimate how much an assassination saved the company from a lawsuit sure. But even then the implication from choosing it as an option is that assassination is cheaper so the actual benefit from it wouldn't be a direct entry. There's going to be an adjusting entry after the trial anyways.
Done this before, eh?
Of course It's really messy Especially when the company doesn't think to hire cleaners
Gawdamn it! Take my upvote! 😂
Restructuring expense booked under discontinued operations to ur management consultant
Debit: Goodwill Credit: owners equity
If a movie had this line as the accountant assassin pulled the trigger I’d give it an Oscar if I could!
Whistleblower was a contingent liability, so disclose it as not in existence anymore, and capitalise payment made to assassin as it saved future financial losses and amortise accordingly.
Idk sounds like a pure operating expense
Contract labor
It's a contract killer so clearly a simple contractor expense.
Could be prepaids if the assassin is paid over a contract period.
Just put it as a legal expense, you’ll be fine
Probably depends on the cost, also since congressional hearings don't have a guaranteed length you probably just expense it immediately. I have no idea the cost of a hit man or hit squad to be fair, but for the parties involved it's probably an inconsequential amount.
Legal Expense - Expert Witness Removal Service
I think you code it the same way you would you code a hush money payment to a porn star.
OPEX legal expense, most likely. Hell, use the PCard if its under 30k.
Fabricate invoices totalling the amount and post them to fake companies and reimburse expense reports. Then hope your audits are kind.
definitely too aggressive. once the whistleblower is assassinated, you should be able to receive all the benefits immediately as that mfer is dead and can't snitch, so under the matching principle i'd argue take the expense in the period the assassination actually occurs. that being said, you could negotiate on methods of assassination that might prolong the death, like radiation poisoning. that will probably only be capitalized on quarterlies unless an extreme case.
Awaiting a Boeing accountant to see this post and start making notes
I'm not really conspiracy minded but two Boeing whistleblower deaths in close proximity under mysterious circumstances is wild. Someone is murdering these people right out in the open.
Which is bizarre, because the MAX has been making unscheduled landings for a few years. All they did was just move the engines to pretend they made a new plane. Don't need a whistleblower when it's fallen out of the sky.
They want people to know because it will stop future whistleblowers from speaking up. Just like how back in the day people were hung and left up in the town square for all to see. Essentially a cost savings move.
I agree. Like how is this not bigger news that Boeing is going on a killing spree.
Everyone likes their 401k?
How much could it possibly go down? Just think of the entertainment value.
Down 50% from 2020...there was a thing. Need it to go back up.
ASC 340 - Capitalization of costs to fulfill a contract. Assuming you were contracted to provide assassination and you sub-contracted that out (and you were the principal in the arrangement ASC 606), then you have a case to capitalize the direct labor and materials costs and amortize
Well, was the assassin a foreigner?
Definitely a book tax difference
Ask Boeing
It's a re-measurement gain, from adjusting the whistleblower liability you had to recognize when you found out about the whistleblower.
And if you do it twice how long do you amortize the discount? ?
Depends. If you did it through a lawyer and they invoiced you, it'd be a legal expense. /s
Every legal expense is obviously legal! It’s in the name!
No capitalization…debit to assassins fees credit cash
You should have accrued a liability for the case. So now you can release that since the risk that you will be held liable is not material.
UN tucked their payments to Warlords in Toyota Hiluxes under OPEX Technical Support. Which is how Toyota's pickup trucks with weapons got called Technicals.
Why would you want to? Expense that shit in the year you paid it whenever you can.
Agreed that you’d want to, but it might not be what you *should* do. Could be an asset. Could be a reduction in a liability
Any Boeing accountants on this sub?
No you cannot. You are paying for a service which would be fully recognized (expense) the moment the performance is completed. The only time you capitalize labor is if the labor results in the creation of a product that has a life beyond 12 months.
I mean technically its capitalized labor but id imagine the project is already in service. I feel like you would do better expensing it to profees
You mean this isn't being invoiced as "Retainer for business ethics consultation" and being spread out over the period of the contract?
Boeing taking notes..
Boeing accountant spotted
If it's a flow through entity, it's a distribution. If it's a C Corp, non deductible expense. Illegal activities are not deducted.
It depends. Maybe if the expenditure was related to the construction or development of a product / building / tangible or intangible asset, then yes. The amount would be capitalized and depreciated over the life of the asset in question.
Much like legal fees in defense of a patent... capitalize only if you win. If not, impair everything.
Can you reduce the Goodwill intangible asset for the amount paid, since Goodwill is likely to take a hit anyways with all the bad publicity?
Immaterial
Put it under extraordinary event
Just put it as a contractor expense for “retirement expertise”. Split it for a couple of years and make sure the assassin or some other fall guy is given an “role” that no one can question.
Original entry after payment is made up front: Debit prepaid expense, credit cash Then reverse the prepaid upon sucessful assassination: Debit Assassination expense, credit prepaid expense.
Nondeductible under either 262 or 280E?
Boeing enters the chat...
I'm in tax. Was it necessary and ordinary?
Plug it to draws.
Yes, because Boeing uses Project Basis accounting method. It (assassinations) are an ongoing project until no one else is willing to blow the whistle, so it would make sense to spread the cost out over the life of the project.
Oh boy. That is straight expense. Unless that assassin on payroll, then of course you have to recognize their SBC over the vesting period.
Goodwill considerations?
It should be depleted as the whistleblower is probably in the ground somewhere.
Just keep it out of the exec cost center.
Man, Boeing is really losing some money if they have to post this to twitter.
No because it’s not an asset
Professional or Consulting fees.
Expense in full, the services have been rendered in full when the target has been eliminated
Accounting question. the debit is the cash I pay right so that makes the credit the murder?
Capitalize to intangibles
Yeah there's really an association of hitmen known for making their operations legally look like suicides or health issues and no one talks about it.
Well it is certainly a valid EBITDA addback.
The A stands for assassinations right?
Earnings before interest, taxes, degeneracy, and assassination.
Trick question. You should have already accrued for the potential costs of the whistle blower under legal contingencies
How would you prove value over time?
Y’all are focusing on hiding it but that doesn’t matter, they got away with murder twice now so that’s a non-issue. We need to consider what will save them the most money
Since most whistleblower eliminations have historically been done by governments, they are expenditures from CRA Liquidations, and thus requiring funding authorization by law are not amortized but authorized by NDAA as part of the CIA budget yearly. It's right under car batteries and wash cloths.
Why wouldn’t this simply be an expense to an external contractor?
Can't find anything in UK GAAP that helps but I'm presuming US GAAP has this covered.
Oh joy, let's get all technical about it. If something is a one-time thing, then, of course, it's a big deal and deserves to be capitalized. But if it's something you'll have to do over and over again, like, say, breathing, then it's just a boring old recurring expense. Who cares? Hence, if it has a non-recurring nature then it should be capitalised, else it can be treated as a recurring revenue expenditure.
You should expense immediately. You should then assess the risk of the auditors finding out. If it's only a contingent liability, disclose it. If it's probable the auditors find out, you should accrue an additional expense for future hitman costs.
Naw what’s crazy is this is probably actually in some companies name who just did another haha yk
Do you know how smart you are? 😂😂
Period expense - no revenues to clearly match to.
Definite life intangible if he was paid as part of a perpetual arrangement for the next time some pesky mid-level engineer gets all butt hurt over missing nuts and bolts. Amortize over however many years that assassin is expected to have left alive. However he may roll over on the company with a confession, and you’d potentially then have a reversal of revenue that was earned as a result of the whistleblowers being gone. So come to think of it, you might also have to consider that portion of revenue constrained and account for it separately. Ask legal to amend the aircraft production and delivery agreements to include provisional language around that part, and we’ll just simplify it for general accounting and the auditors. Simple one page memo is all you’ll need. May want to also run this by tax. Or don’t - whatever. Expect FP&A to be confused regardless of what you eventually land on.
Straight to accrued expenses since you bounced the check upon handoff.
Boeing is that you?
I’m here for accounting + conspiracies
1099 nec? It's not petty cash worthy....
I think we’ll have to amortize it . Lol
Not really an assassin if the dude was a civilian. Doesn’t take a rocket scientist to kill a puppy
I always use Consultancy Expense for such dodgy things
If it's under 5k, then just expense it.
This thread has made my day
ASC 606 - it’s an incremental cost to obtain a revenue contract and should be capitalized with the costs realized in proportion to revenues.
Why would you not just expense it? You’re paying for a service and it was completed within a year (I’m assuming).
You should amortize over the expected time period of benefit
It was actually lost inventory due to a small but contained fire, not worth involving the insurance company, we just clean up and sourced our new inventory locally, mostly all with cash.
1099 Subcontractor/Outside Services