Accounting laws in puerto rico

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From: ABC
Date: 30th October 2010
Subject: Accounting Laws in Puerto Rico
It is necessary for all persons, who want to establish a business in Puerto Rico that they make a request to thedirectors. It is important that all relevant certificates are acquired by the business such as, certificate from departments of treasury, labor and human resources, state insurance fund and municipalrevenues collection center etc. (Michele’s Legal Resources, 2010). Some business are exempted from these arrangements that are described in § 6014 (a) of this title, so, it is necessary for thesebusinesses that they also provide certificate on this matter.
If XYZ establishes its business as a trust company, then it is necessary for him that he confirms the method of book keeping that isaccording to the Secretary of the Treasury of Puerto Rico. It is necessary for the trust company to make an exact account or keep appropriate book for any payment to court. It includes all records such as,court name, title case and amount money (Michele’s Legal Resources, 2010). Without approval, a trust company cannot use its books for another business. Securities that are purchased by trust companymust be entered on the basis of actual cost in books (Michele’s Legal Resources, 2010).
Puerto Rico law says that if a company develops its branches outside the Puerto Rico, then it is necessarythat it keep separate accounts for both main office and branch office. It is necessary the branch office to provide all relevant information timely and accurately to main office (Michele’s LegalResources, 2010). To compute alternative minimum taxable net income for one financial year, there are some adjustments that are made by companies. These are as follow:
First adjustment is related withdepreciation. Depreciation can be calculated by different method such as, straight line method, accelerated depreciation method and combined method. Second adjustment is related with adjustment of long...
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