RE:RE:RE:RE:RE:RE:Interview with Doug on Jan. 3alemyre wrote: Well, it will affect cash but not P&L. Otherwise it wouldn't have been accrued as at Aug 31, 2023. Let's see if Doug is confirming this on his next interview with Cameron. :)
This reference would concur with your thoughts:
Bonus and profit-sharing payments to employees are
a)not determined until after the financial statements are issued for the relevant period.
b)usually reported as current liabilities at the reporting date.
c)are a distribution of profit, so are debited directly to retained earnings.
d)not considered to be wages and salary expense.
https://www.cliffsnotes.com/tutors-problems/Financial-Accounting/48030898-Bonus-and-profit-sharing-payments-to-employees-are-anot/