Accounting Laws in Puerto Rico

Topics: Generally Accepted Accounting Principles, Income statement, Taxation in the United States Pages: 4 (912 words) Published: June 12, 2011

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 the directors. 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 municipal revenues 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 these businesses 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 is according 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 company must 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 necessary that 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 Legal Resources, 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 with depreciation. Depreciation can be calculated by different method such as, straight line method, accelerated depreciation method and combined method. Second adjustment is related with...
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