Question:

Anyone know how to file 1099 forms now?  I went to fill download and fill them out at the irs website and it said something about you can’t just print them out on the computer like you could in past years.  So how do I file one?

Response:

Anyone know how to file 1099 forms now?  I went to fill download and fill them out at the irs website and it said something about you can’t just print them out on the computer like you could in past years.

They didn’t let you do it last year, either. So how do I file one?

1099s were due by January 31. You may have to check to see what you have to do to file them late. IRS offices have copies of the 1099 and associated forms, but you might have to ask for them specially since you are late in filing.

Response:

Anyone know how to file 1099 forms now?  I went to fill download and fill them out at the irs website and it said something about you can’t just print them out on the computer like you could in past years.  So how do I file one?

You could not just print them out on a computer in the past either. Special red ink forms are needed. Go to your local office supply store and purchase a package of the 1099 forms you require. Fill them out and mail.

Response:

So how come i was able to do it two years ago?  At that time I generated them in turbo tax.  Didn’t need to file them last year which is why need to find out why I can’t file them this year.

Response:

Anyone know how to file 1099 forms now?  I went to fill download and fill them out at the irs website and it said something about you can’t just print them out on the computer like you could in past years.  So how do I file one?

On Monday, pick up the phone and call IRS at 1 800 829-3676 and ask for them to send you Form 1099 and Form 1096.  You should have them within 7 to 10 days. Wayne Brasch, CPA, M. S. Taxation

Response:

Just because you were physically able to send the IRS a form that you printed directly from Turbo Tax two years ago does not mean that it was proper to do so. You probably sent them the recipient copy.  IRS has for many years required the use of a special form that can’t be generated from computer software. You either get it from the IRS or purchase it from a forms vendor.

– Hide quoted text — Show quoted text – So how come i was able to do it two years ago?  At that time I generated them in turbo tax.  Didn’t need to file them last year which is why need to find out why I can’t file them this year.

Response:

Question:

Amortizing start-up costs over 5 years may be applicable in the US or other countries, but not in Canada so far as I know. I strongly agree that he should get some professional help immediately.

– Hide quoted text — Show quoted text – Hello,  I’ve just incorporated earlier this year, however, I’m just a begginer in accounting (I’m using Simply Accounting). If someone can kindly answer the following questions…  Do I include my incorporation costs in my accounting software & statements, including my name search (NUANS) fee?  Prior to incorporating, I had a logo designed for my incorporated company. Are costs for logo design included in my accounting statements?  And finally, how do I determine values (assets, I guess) for software and my computer for my newly incorporated company, especially since I’ve owned both before incorporating?  Thanks in advance, Dipesh S. all these costs definitely go into the accounting records however some appear to be "start-up" costs and for tax purposes they are amortized over 5 years. The contributed or donated fixed assets and software is handled differently using fair market values and depreciated but since they were "personal" items before the business they also get special tax treatment!    It would be to your financial advantage to have some professional help setting up your business before you get much further —

Response:

Did not know he was located in Canada until I read his later post. — Regards, Mark X Rigotti

– Hide quoted text — Show quoted text – Amortizing start-up costs over 5 years may be applicable in the US or other countries, but not in Canada so far as I know. I strongly agree that he should get some professional help immediately. Hello,  I’ve just incorporated earlier this year, however, I’m just a begginer in accounting (I’m using Simply Accounting). If someone can kindly answer the following questions…  Do I include my incorporation costs in my accounting software & statements, including my name search (NUANS) fee?  Prior to incorporating, I had a logo designed for my incorporated company. Are costs for logo design included in my accounting statements?  And finally, how do I determine values (assets, I guess) for software and my computer for my newly incorporated company, especially since I’ve owned both before incorporating?  Thanks in advance, Dipesh S. all these costs definitely go into the accounting records however some appear to be "start-up" costs and for tax purposes they are amortized over 5 years. The contributed or donated fixed assets and software is handled differently using fair market values and depreciated but since they were "personal" items before the business they also get special tax treatment!    It would be to your financial advantage to have some professional help setting up your business before you get much further —

Response:

Get thyself to a CPA or EA STP (Sooner Than Possible) – specifically one familiar with Sections 351 & 357 of the Internal Revenus Code.  These sections cover the specific circumstances that you find yourself in. Basically, transferring assets and liabilities from personal to a corporation in a tax-free manner. This post does assume that you wish to accomplish this in a TAX FREE manner and not have to recognize DRY INCOME. — Regards, Mark X Rigotti

– Hide quoted text — Show quoted text – Hello,  I’ve just incorporated earlier this year, however, I’m just a begginer in accounting (I’m using Simply Accounting). If someone can kindly answer the following questions…  Do I include my incorporation costs in my accounting software & statements, including my name search (NUANS) fee?  Prior to incorporating, I had a logo designed for my incorporated company. Are costs for logo design included in my accounting statements?  And finally, how do I determine values (assets, I guess) for software and my computer for my newly incorporated company, especially since I’ve owned both before incorporating?  Thanks in advance, Dipesh S. — Using M2, Opera’s revolutionary e-mail client: http://www.opera.com/m2/

Response:

- Hide quoted text — Show quoted text – Hello,  I’ve just incorporated earlier this year, however, I’m just a begginer in accounting (I’m using Simply Accounting). If someone can kindly answer the following questions…  Do I include my incorporation costs in my accounting software & statements, including my name search (NUANS) fee?  Prior to incorporating, I had a logo designed for my incorporated company. Are costs for logo design included in my accounting statements?  And finally, how do I determine values (assets, I guess) for software and my computer for my newly incorporated company, especially since I’ve owned both before incorporating?  Thanks in advance, Dipesh S.

all these costs definitely go into the accounting records however some appear to be "start-up" costs and for tax purposes they are amortized over 5 years. The contributed or donated fixed assets and software is handled differently using fair market values and depreciated but since they were "personal" items before the business they also get special tax treatment!    It would be to your financial advantage to have some professional help setting up your business before you get much further —

Response:

Hello,  I’ve just incorporated earlier this year, however, I’m just a begginer in accounting (I’m using Simply Accounting). If someone can kindly answer the following questions…  Do I include my incorporation costs in my accounting software & statements, including my name search (NUANS) fee?  Prior to incorporating, I had a logo designed for my incorporated company. Are costs for logo design included in my accounting statements?  And finally, how do I determine values (assets, I guess) for software and my computer for my newly incorporated company, especially since I’ve owned both before incorporating?  Thanks in advance, Dipesh S. — Using M2, Opera’s revolutionary e-mail client: http://www.opera.com/m2/

Response:

You may want to tell everyone that you are in Canada or they may give answers that apply in the US but not Canada. Ima Goodlay —– – Hide quoted text — Show quoted text -Hello, I’ve just incorporated earlier this year, however, I’m just a begginer in accounting (I’m using Simply Accounting). If someone can kindly answer the following questions… Do I include my incorporation costs in my accounting software & statements, including my name search (NUANS) fee? Prior to incorporating, I had a logo designed for my incorporated company. Are costs for logo design included in my accounting statements? And finally, how do I determine values (assets, I guess) for software and my computer for my newly incorporated company, especially since I’ve owned both before incorporating? Thanks in advance, Dipesh S. — Using M2, Opera’s revolutionary e-mail client: http://www.opera.com/m2/

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Question:

I was just needing help with my accounting homework.  is this the right place to ask questions?

Response:

yes next question?

Response:

I know of a web site that has maps, visual maps for first year accounting students. About half of the maps are free for the taking, the other half you can buy individually. It might help – Made some things a heck of a lot clearer for me. www.vmaps.net

Response:

Question:

I am a 3rd year university accounting student in canada. I have poured over the CA literature, the CGA literature, talked to profs, and scoured the internet. The only differences I could glean were vague (i.e. – CGA’s are more technical). For making my decision of what path to choose, I would benefit most by knowing the relevant differences between CA’s and CGA’s. Specifically I would appreciate examples of what jobs a CA would tend to hold rather than a CGA and vice versa. I am trying to get a feel for what types of jobs I might like the most as well. Thanks JC

Response:

– Hide quoted text — Show quoted text – I am a 3rd year university accounting student in canada. I have poured over the CA literature, the CGA literature, talked to profs, and scoured the internet. The only differences I could glean were vague (i.e. – CGA’s are more technical). For making my decision of what path to choose, I would benefit most by knowing the relevant differences between CA’s and CGA’s. Specifically I would appreciate examples of what jobs a CA would tend to hold rather than a CGA and vice versa. I am trying to get a feel for what types of jobs I might like the most as well. Thanks JC

Hi Jar: I may be somewhat biased (grin) but I do not think it will really matter.  Why not get both certifications?

Response:

In Ontario and some other provinces, ONLY a CA can obtain a Public Accounting Licence at present.  Legally, then, in those provinces only a CA (with a public accounting licence) can carry on business as a public accountant.  In practice, however, many CGAs do practice as public accountants with the exception that they do not do audits and do not sign audit reports. One can study many of the same courses under either program, so it is possible for a CA and CGA to have nearly identical education. However, there generally are differences in "emphasis" and specialization.  These differences probably vary in different provinces, because CGAs can practice as public accountants in some provinces but not others.  There will also be differences in work experience.  CAs MUST have extensive audit experience, while CGAs may choose different work experience. Except for the matter of a public accounting licence in certain provinces, a CA and CGA with comparable qualifications should both be capable of holding the same jobs.  However, many people are biased in favour of one designation or the other. I find it very difficult to believe you were unable to get this information with all the research you claim to have done.  Almost any CA I have ever spoken to would loudly proclaim the CA to be the best designation, while almost any CGA would equally loudly proclaim the opposite.  It’s really difficult to believe you’ve spoken to CAs and CGAs who did not express either opinion. If no-one commented on the matter of a public accounting licence, it must be because CGAs can be licensed in your province.  This information should be readily available from any practicing public accountant, any professor, and both the CGA and CA institutes in your province. – Hide quoted text — Show quoted text – I am a 3rd year university accounting student in canada. I have poured over the CA literature, the CGA literature, talked to profs, and scoured the internet. The only differences I could glean were vague (i.e. – CGA’s are more technical). For making my decision of what path to choose, I would benefit most by knowing the relevant differences between CA’s and CGA’s. Specifically I would appreciate examples of what jobs a CA would tend to hold rather than a CGA and vice versa. I am trying to get a feel for what types of jobs I might like the most as well. Thanks JC

Response:

Ontario is the LAST province which prohibits CMA’s or CGA’s from obtaining public accounting licenses. There is presently a move to have drafted and present a private bill which will change this. However, since the governing body which makes the rules and regulations for the granting of licenses is made up of 15 CA’s, and only 1 CGA and 1 CMA, things are going to be VERY slow to change. For information on CGA in Canada or other provinces, go to their websites: www.cga-canada.org, or www.cga-(yourprovince).org. I am sure if you do a search in just about any engine, you can get tons of information regarding public accounting licenses in Canada and all Provinces and Territories. This elitism in granting of public accounting licenses to CA’s only in Ontario is of particular aggravation to CGA’s and CMA’s, and potential CGA’s and CMA’s for some time. Stephanie Serba Bookkeeper (and would like to be a CGA)

– Hide quoted text — Show quoted text – In Ontario and some other provinces, ONLY a CA can obtain a Public Accounting Licence at present.  Legally, then, in those provinces only a CA (with a public accounting licence) can carry on business as a public accountant.  In practice, however, many CGAs do practice as public accountants with the exception that they do not do audits and do not sign audit reports. One can study many of the same courses under either program, so it is possible for a CA and CGA to have nearly identical education. However, there generally are differences in "emphasis" and specialization.  These differences probably vary in different provinces, because CGAs can practice as public accountants in some provinces but not others.  There will also be differences in work experience.  CAs MUST have extensive audit experience, while CGAs may choose different work experience. Except for the matter of a public accounting licence in certain provinces, a CA and CGA with comparable qualifications should both be capable of holding the same jobs.  However, many people are biased in favour of one designation or the other. I find it very difficult to believe you were unable to get this information with all the research you claim to have done.  Almost any CA I have ever spoken to would loudly proclaim the CA to be the best designation, while almost any CGA would equally loudly proclaim the opposite.  It’s really difficult to believe you’ve spoken to CAs and CGAs who did not express either opinion. If no-one commented on the matter of a public accounting licence, it must be because CGAs can be licensed in your province.  This information should be readily available from any practicing public accountant, any professor, and both the CGA and CA institutes in your province. I am a 3rd year university accounting student in canada. I have poured over the CA literature, the CGA literature, talked to profs, and scoured the internet. The only differences I could glean were vague (i.e. – CGA’s are more technical). For making my decision of what path to choose, I would benefit most by knowing the relevant differences between CA’s and CGA’s. Specifically I would appreciate examples of what jobs a CA would tend to hold rather than a CGA and vice versa. I am trying to get a feel for what types of jobs I might like the most as well. Thanks JC

Response:

In Ontario and some other provinces, ONLY a CA can obtain a Public Accounting Licence at present.  Legally, then, in those provinces only a CA (with a public accounting licence) can carry on business as a public accountant.  In practice, however, many CGAs do practice as public accountants with the exception that they do not do audits and do not sign audit reports.

I am in BC. I am surprised my profs havent mentioned this before. But then again, I pray I never live in Ontario again… One can study many of the same courses under either program, so it is possible for a CA and CGA to have nearly identical education. However, there generally are differences in "emphasis" and specialization.  These differences probably vary in different provinces, because CGAs can practice as public accountants in some provinces but not others.  There will also be differences in work experience.  CAs MUST have extensive audit experience, while CGAs may choose different work experience.

Yes. Everyone tells me there are differences in emphasis. No one (yourself included) has done anything to clarify those differences in my province. Furthermore you mention that there will be differences in work experience. I realize this, which is why I asked for specific examples of the differences in work experience in my original post. Except for the matter of a public accounting licence in certain provinces, a CA and CGA with comparable qualifications should both be capable of holding the same jobs.  However, many people are biased in favour of one designation or the other.

apparently I find it very difficult to believe you were unable to get this information with all the research you claim to have done.  Almost any CA I have ever spoken to would loudly proclaim the CA to be the best designation, while almost any CGA would equally loudly proclaim the opposite.  It’s really difficult to believe you’ve spoken to CAs and CGAs who did not express either opinion.

Of course they have. I am trying to discern the *relevant* differences, that should weigh on my choice of what designation to strive for. If no-one commented on the matter of a public accounting licence, it must be because CGAs can be licensed in your province.  This information should be readily available from any practicing public accountant, any professor, and both the CGA and CA institutes in your province.

As I am in BC, CGA’s must be allowed to do public practice because I would know otherwise by this point. After speaking with a CA firm about a job recently, he claimed that the CA’s tend to have more of an "overall business approach" , meaning that they are able to offer a larger scope of advice for business clients, compared to a CGA who would probably only focus on balancing the books. I have also heard from enough sources now that CA’s will tend to make more money. As a longer term goal,  I want to work with small businesses, doing not only accounting, but helping with financial planning, business models etc. I want to be able to guide and advise clients about all facets of running their businesses. So on the surface, I have certainly had a tendency to lean towards the CA designation. However, I have profs who are CGA’s, have read the CGA websites, and they make it seem like I can accomplish the exact same thing as a CGA. One benefit to the CGA designation is the ability to have varied jobs. While I may lean towards the CA designation, I have pressing financial concerns which will need to be addressed Another fear I have in general is regarding how much money I will be able to earn when I graduate, and how long it will take (assuming I am competent, and working for a decent firm) to make good money. I heard people telling me to expect to start at $8-10 /hour after graduating with university degree, which is scary (considering the amount of debt I am going to have to pay down). so what should I go for?

Response:

Question:

We use BusinessWorks 11.0.  Our company factors its accounts receivable.  I am wondering how to book the factoring transactions within BusinessWorks so that the specific receivable is relieved from our balance sheet at the time it is factored, but can be recovered in the event that the customer does not pay the factor in a timely fashion and we are forced to buy back the given receivable.  Your help would be very much appreciated. Thanks. Anita

Response:

Here’s what is suggested for QuickBooks, maybe it will be helpful: http://www.quickbooks.com/support/faqs/win2/1620.html

– Hide quoted text — Show quoted text – We use BusinessWorks 11.0.  Our company factors its accounts receivable.  I am wondering how to book the factoring transactions within BusinessWorks so that the specific receivable is relieved from our balance sheet at the time it is factored, but can be recovered in the event that the customer does not pay the factor in a timely fashion and we are forced to buy back the given receivable.  Your help would be very much appreciated. Thanks. Anita

Response:

Cash method or accrual method?  Generally, the factoring transaction will require a debit to cash for receipts, a debit to factoring fee and a credit to accounts receivable.  In a "buy back" situation, that’s a factoring "with recourse", which you may later have to write off as uncollectible. Most companies would use the accrual method for their allowance for uncollectible accounts by debiting the expense, frequently also referred to as "bad debt" and crediting the allowance.  This method requires an estimate of the uncollectible accounts such that the expected expense is written off rather evenly over time.  Notes to the financial statements would need to explain that allowance accounting policy and the contractual requirement of recourse for the factored accounts. At the time of factoring the account, the accounts receivable was credited and both the factor fee expense account and cash account were debited (Accounts Receivable factored less the factor fee equaled the cash received from the factor).  At the time of return of the account, I’m sure an additional fee would be due to the factor for their efforts, as well as the original amount the factor paid to take over the accounts receivable.  The original account receivable amount being returned must be debited to accounts receivable, and fees paid for the return may be debited to the factor fee expense account or just include them with the accounts receivable debit to collect them from the customer.  You would probably also want to charge them for the original discount fee to factor so credit the factor fee expense account and debit accounts receivable. When you decide the entire account, including the fees, cannot be recovered, debit the allowance for uncollectible accounts and credit the accounts receivable for the entire account balance involved. If you are using the cash accounting method, originally you debited the factor fee expense, debited the cash and credited the accounts receivable. Upon return, you’d have to debit the accounts receivable for the original amount plus any factoring fees you want to collect back from the customer, credit the cash for the entire payment to the factor, which would be for their fees plus what they had already given you to buy the account.  The difference, if any, is debited to the factoring fees expense. If you are using the direct charge-off method, rather than the uncollectible allowance method described above, at some point you may decide collection is impossible, causing you to debit Uncollectible Accounts expense, or Bad Debts expense, and credit the accounts receivable. If you should have any other questions regarding this situation, please feel Jaycee M. Rice

– Hide quoted text — Show quoted text – We use BusinessWorks 11.0.  Our company factors its accounts receivable.  I am wondering how to book the factoring transactions within BusinessWorks so that the specific receivable is relieved from our balance sheet at the time it is factored, but can be recovered in the event that the customer does not pay the factor in a timely fashion and we are forced to buy back the given receivable.  Your help would be very much appreciated. Thanks. Anita

Response:

Question:

It would seem to me that while "Rusty" and  "Susan"  are close to the target they are somewhat short in their response. Susan’s statement: " DR Receivables   500      CR Sales                          500      CR Sales Tax Liability        30

Unless the 500 is booked to Receivables already. Then it actually includes the sales tax and represents 1.06 % of the sale revenue. Thus it would be sales 471.70 and sales tax payable 28.30 end " The question stated Professor C. Thomas    500(plus tax)

So DR Receivables   530 (not 500) The question wants you to recognize the: Elements of an inventory sale and the treatment of sales tax collection. ******* * * * *  *  *   *      * 1.  The sale Debit (cash or receivables)    Credit (revenue) 2. The Inventory adjustment Debit Cost of Goods    Credit (inventory) 3. Collection of tax. Debit (cash or receivables)    Credit (The tax trust account) Remember that the "BOOK KEEPING" part of accounting is the recording of source documents in such a manner that those documents can be verified to the statements that they produce. Susan was close to target with: I agree with Ken, except I would like to see 2 separate transactions. I do not believe the "University" would allow a personal transaction to be part of their invoice. Now to the "Case" This question is an atypical academic example of an unreal world situation. In the real world you would have inventory – COG breakdown. This question fails to give a COG breakdown. BUT, "Sold merchandise that cost $1,840"  SO                                        Debit   Credit Cost of  Goods (Stuff)     1840     Inventory (Stuff)                     1840                                        ====  ====                                        1840   1840 In the real world you would have Invoice – Bill of sale This question fails to inform us if we have one or two sales invoices. I will assume two as follows: Stuff & More Stuff Sale Invoice University: Business Department Stuff                                   $1,800          Sales Tax 6%(Nil)    $        0 Total on account                $1,800 ***We have the BEST stuff                                      *  *  *   * The JE for the sale.                                        Debit   Credit Accounts Receivable       1800     Revenue                                 1800                                        ====  ====                                        1800   1800 Stuff & More Stuff Sale Invoice University: Staff Professor C. Thomas Stuff                                   $  500          Sales Tax 6%(Nil)    $    30 Total on account                $  530 ***We have the BEST stuff                                      *  *  *   * The JE for the sale.                                        Debit   Credit Accounts Receivable          530     Revenue                                  500     Sales Tax Payable                     30                                         ===   ====                                         530    530 "so i dont see why tax is relevant …" In jurisdictions where there are "sales tax" on goods (services) that tax is collected by the merchant "in trust" for the tax agency. This fact is recognized in the ledger by a liability account for the tax payable to that agency.

– Hide quoted text — Show quoted text – ok…. here’s the problem 6% sales tax on all sales except to departments of the university Sold merchandise that cost $1,840 on account to: Business Department $1,800 Professor C. Thomas    500(plus tax) im guessing the entry is either Accounts Recievable 2,330         Sales                       2,300         Sales Tax Payable         30 but its a sale, not a purchase, so i dont see why tax is relevant, or…. Accounts Receivable   2,300      Sales                         2,300 help would be appreciated on this please

Response:

ok…. here’s the problem 6% sales tax on all sales except to departments of the university Sold merchandise that cost $1,840 on account to: Business Department $1,800 Professor C. Thomas    500(plus tax) im guessing the entry is either Accounts Recievable 2,330         Sales                       2,300         Sales Tax Payable         30 but its a sale, not a purchase, so i dont see why tax is relevant, or…. Accounts Receivable   2,300      Sales                         2,300 help would be appreciated on this please

Response:

Here are the entries; DR Receivables 2,330      CR Sales                    2,300      CR Sales Tax Liability      30 You have collected sales tax on behalf of the tax department, so until you remit it, it is a liability. Ken Russell Sydney Australia

– Hide quoted text — Show quoted text – ok…. here’s the problem 6% sales tax on all sales except to departments of the university Sold merchandise that cost $1,840 on account to: Business Department $1,800 Professor C. Thomas    500(plus tax) im guessing the entry is either Accounts Recievable 2,330         Sales                       2,300         Sales Tax Payable         30 but its a sale, not a purchase, so i dont see why tax is relevant, or…. Accounts Receivable   2,300      Sales                         2,300 help would be appreciated on this please

Response:

I agree with Ken, except I would like to see 2 separate transactions. I do not believe the "University" would allow a personal transaction to be part of their invoice. Here are the entries; DR Receivables 1,800      CR Sales                    1,800        Non-taxable sale to U. DR Receivables   500      CR Sales                     500      CR Sales Tax Liability        30

Unless the 500 is booked to Receivables already. Then it actually includes the sales tax and represents 1.06 % of the sale revenue. Thus it would be sales 471.70 and sales tax payable 28.30. Sue E. – Hide quoted text — Show quoted text – Here are the entries; DR Receivables 2,330      CR Sales                    2,300      CR Sales Tax Liability      30 You have collected sales tax on behalf of the tax department, so until you remit it, it is a liability. Ken Russell Sydney Australia ok…. here’s the problem 6% sales tax on all sales except to departments of the university Sold merchandise that cost $1,840 on account to: Business Department $1,800 Professor C. Thomas    500(plus tax) im guessing the entry is either Accounts Recievable 2,330         Sales                       2,300         Sales Tax Payable         30 but its a sale, not a purchase, so i dont see why tax is relevant, or…. Accounts Receivable   2,300      Sales                         2,300 help would be appreciated on this please

Response:

Question:

<< I recently ordered a bunch of Spring-blooming bulbs from Garden.com, ::snip::: << Then on Sunday I was Home Depot and saw *their* bulb prices I do this every year. Money spent in June (10% off before July 1!) is long forgotten when the bulbs arrive at the stores in Sept. It’s an addict’s form of creative accounting. I’ll spend much of the fall trying to figure out WHAT I was thinking of in June, or just finding space for new finds, tucking in bulbs under huge perennials that were twigs in early summer, carving out new spaces if needed. Spring will be beautiful, bulb catalogs will begin to arrive when the flowers are still there, 10% off before July 1!!! Betty in southern NH, hopelessly addicted.

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Have to add to Randy’s  vote. The bulbs from Van Engelen/Scheepers are the healthiest bulbs I’ve found anywhere. Experience has taught me that you can pay a lot of money for inferior bulbs. I do have the addiction, I went into an Earl Mayes for fungus spray and ended up buying some more tulips and miniature hyacinths. Carlotta   I have had mixed results from Home depot bulbs. usually I order in quantity from Van Engelen but sometimes I will still pick up a few extra from HD. The trick is to get them when the bulbs first arrive at HD – before they dry out on the shelf. They are adequate but they are never as healthy or large as what you get from a firm like Van Engelen. Randy     Hello,     I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and     paid a fair amount for them.  But I’ve had luck with Garden.com in the past,     so it didn’t really bother me.     Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to     say, *much* lower than Garden.com.  For example, they have tulips, daffs,     grape hyacinths, etc., for $9.96 for 75 bulbs.     The question is…..  With the Home Depot bulbs, does one sacrifice quality     for quantity?  I would love to naturalize bulbs, but doing that by ordering     from Garden.com will bankrupt me.     Thanks for any advice you can offer.     Stacy   —

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I have some in bloom right now.  Soft pink blossoms sticking up about 3′ in the air, no leaves in sight )

Mine are in bloom also – a vivid patch of white in the shade garden and another small clump of pink. Mine don’t grow quite so tall, tho!! ) Pam – gardengal

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  My fave fragrant plants (hyacinths!) Love Caryn           "Come into my garden, my flowers want to meet you!"

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Hi Carlotta, I ordered from Scheepers for the first time this year. $22.50 for 5 frittaliria (SP?) imperialis, $20.00 for the yellow ones, not bad! They were out of stock on the ipi tombi daffs though. Love Caryn (I got 50 delft blue hyacinths!           "Come into my garden, my flowers want to meet you!"

Caryn, 50 hyacinths? I’ve never planted them before, dithered over ordering them this year, and when I had to shorten my list I left them off. You’ll have to send me a picture of them in bloom. I bet they’re fantastic. Carlotta

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Three feet!!!!  The cyclamen that ate Boston!   )

Dang blast it.  I meant inches (but you knew that) ;- — Ann, Gardening in Zone 6a Just south of Boston, MA http://www.annzoid.com

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I am assuming you mean hardy cyclamen? I have never seen them sold as a bulb (technically a ‘corm’) – it was my understanding they resent disturbance and they are most usually available in my area as a small start – often in flower. They do form large colonies in time, so if you are patient, I’d say start with a few and leave them to spread. Not exactly ideal ground covers, as they go dormant for a good part of the year, but when they are in bloom, they are enchanting. I have some in bloom right now.  Soft pink blossoms sticking up about 3′ in the air, no leaves in sight )

Three feet!!!!  The cyclamen that ate Boston!   )

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- Hide quoted text — Show quoted text – I’ve run into a similar problem. I’d like to try cyclamen as a ground cover in the narrow space between our house and the fence. But they’re about $1.50 – $2.00 *per bulb*! I’ll probably order some for clusters instead of the whole area… Would this count as a "specialty" bulb, or would I probably be okay buying them at the orange box? Maybe try some of each to see how they do? I am assuming you mean hardy cyclamen? I have never seen them sold as a bulb (technically a ‘corm’) – it was my understanding they resent disturbance and they are most usually available in my area as a small start – often in flower. They do form large colonies in time, so if you are patient, I’d say start with a few and leave them to spread. Not exactly ideal ground covers, as they go dormant for a good part of the year, but when they are in bloom, they are enchanting. I’ve bought cyclamen corms.  They do OK in Oklahoma, but don’t spread.  Too dry, I think.  I they would be considered speciality, but if Home Depot et al. sells them cheaper, try em!

Kiki Hiott, Zonr 7, OK

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Hi Stacy,  I but LOTS of bulbs from places like Home Depot every year and don’t have any problems.  When they are so inexpensive, you can but lots and have masses of blooms that will take your breath away. The only "expensive" bulbs I buy are the ones the the large places don’t sell (species tulips and saffron crocus, for example). So I say Go for it! Kiki Hiott, Zone 7, OK – Hide quoted text — Show quoted text – Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. Thanks for any advice you can offer. Stacy

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Again according to Consumer Reports, Van Lierop Bulb Farm’s phone number 253-848-7272.  They apparently have no web site.  They are noted as being more expensive than the top-rated John Scheeper’s. Berob

– Hide quoted text — Show quoted text – Thanks for the information. I’d definitely recommend scheepers, there stuff is great, big-healthy-and reasonably priced. I’ve never heard of Van Lierop, sounds like a good company to check out. Anyone else here buy from them? Carlotta The September issue of Consumer Reports had a bulb test.  For complete details, I would recommend reading the article, but the highlights were as follows.  The top mail order source (15 were tested) was John Scheeper’s (a CR Best Buy, 860-567-0838, www.johnscheepers.com) followed by Van Lierop Bulb Farm and Dutch Gardens.  CR had this to say about Lierop: "Excellent quality and broad selection, with low prices.  Bulb specialist. Informative catalog."  The top retail source (7 were tested) was the local nursery they tested followed by Agway, Franks, and then Home Depot.  Although mail order sources and retail sources were compared separately, had Home Depot been included in the mail order ratings, it would have finished 14 out of 16. I’ve never bought a bulb in my life and don’t know how much difference this all makes, but I just thought I’d share the information. Berob Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. Thanks for any advice you can offer. Stacy

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Thanks for the information. I’d definitely recommend scheepers, there stuff is great, big-healthy-and reasonably priced. I’ve never heard of Van Lierop, sounds like a good company to check out. Anyone else here buy from them? Carlotta

– Hide quoted text — Show quoted text – The September issue of Consumer Reports had a bulb test.  For complete details, I would recommend reading the article, but the highlights were as follows.  The top mail order source (15 were tested) was John Scheeper’s (a CR Best Buy, 860-567-0838, www.johnscheepers.com) followed by Van Lierop Bulb Farm and Dutch Gardens.  CR had this to say about Lierop:  "Excellent quality and broad selection, with low prices.  Bulb specialist. Informative catalog."  The top retail source (7 were tested) was the local nursery they tested followed by Agway, Franks, and then Home Depot.  Although mail order sources and retail sources were compared separately, had Home Depot been included in the mail order ratings, it would have finished 14 out of 16. I’ve never bought a bulb in my life and don’t know how much difference this all makes, but I just thought I’d share the information. Berob Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. Thanks for any advice you can offer. Stacy

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The September issue of Consumer Reports had a bulb test.  For complete details, I would recommend reading the article, but the highlights were as follows.  The top mail order source (15 were tested) was John Scheeper’s (a CR Best Buy, 860-567-0838, www.johnscheepers.com) followed by Van Lierop Bulb Farm and Dutch Gardens.  CR had this to say about Lierop:  "Excellent quality and broad selection, with low prices.  Bulb specialist.  Informative catalog."  The top retail source (7 were tested) was the local nursery they tested followed by Agway, Franks, and then Home Depot.  Although mail order sources and retail sources were compared separately, had Home Depot been included in the mail order ratings, it would have finished 14 out of 16. I’ve never bought a bulb in my life and don’t know how much difference this all makes, but I just thought I’d share the information. Berob – Hide quoted text — Show quoted text – Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. Thanks for any advice you can offer. Stacy

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Could someone pls. recommend a good mail order catalog to order bulbs.  I have gotten several and do not have any idea which to choose.  thanks

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Garden.com = MB! — Founder of SIAR in 1971 / Founder of IAR in 1995 Current President of SIAR http://www.starlords.org – Hide quoted text — Show quoted text – Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices. Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. Thanks for any advice you can offer. Stacy

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I’ve run into a similar problem. I’d like to try cyclamen as a ground cover in the narrow space between our house and the fence. But they’re about $1.50 – $2.00 *per bulb*! I’ll probably order some for clusters instead of the whole area… Would this count as a "specialty" bulb, or would I probably be okay buying them at the orange box? Maybe try some of each to see how they do? While we’re at it, any recommendations for what I can place, cheaply, in the remaining space? I’ve got two areas…one that’s 5×30 or so and another that’s about the same size, but with a 3ft or so path through the center. Thanks! Heather – Hide quoted text — Show quoted text – Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices. Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. The difference in prices in bulbs is often to due to grades – higher priced bulbs are usually a better grade, indicating larger sizes, fresher, better quality, etc. If you are buying specialty type bulbs, I would go with mail order or a local specialty bulb supplier. The mass merchandisers like HD are fine if you want to buy in quantity for naturalizing, at least for the more common things like daffs and grape hyacinths. Tulips in my area are pretty much a one time shot, so less expensive is good in that case. For lilies, unusual bulbs or particular narcissus and tulip cultivars, I use mail order. Pam – gardengal PNW zone 8

Before you buy.

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Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me.

The difference in prices in bulbs is often to due to grades – higher priced bulbs are usually a better grade, indicating larger sizes, fresher, better quality, etc. If you are buying specialty type bulbs, I would go with mail order or a local specialty bulb supplier. The mass merchandisers like HD are fine if you want to buy in quantity for naturalizing, at least for the more common things like daffs and grape hyacinths. Tulips in my area are pretty much a one time shot, so less expensive is good in that case. For lilies, unusual bulbs or particular narcissus and tulip cultivars, I use mail order. Pam – gardengal PNW zone 8

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Generally speaking, you do not sacrifice quality. It’s a question of economics– Home Depot can afford to carry a massive inventory and thus cut a break on the price from their supplier. I have yet to see any poor plant material arrive at Home Depot– although at the height of the season their staff does tend to let things go to hell, at least in my area. Thus, if you can get your things soon after they arrive, you’re fine. I’ve seen huge disparity in prices for bulbs online, as well as through catalogs– some places are outright robbery, some are very decent. An all-around good supplier I think is Brent & Becky’s Bulbs. — David J. Bockman, Fairfax, VA (USDA Hardiness Zone 7) Bunabayashi Bonsai On The World Wide Web: http://www.bunabayashi.com – Hide quoted text — Show quoted text – Hello, I recently ordered a bunch of Spring-blooming bulbs from Garden.com, and paid a fair amount for them.  But I’ve had luck with Garden.com in the past, so it didn’t really bother me. Then on Sunday I was Home Depot and saw *their* bulb prices.  Needless to say, *much* lower than Garden.com.  For example, they have tulips, daffs, grape hyacinths, etc., for $9.96 for 75 bulbs. The question is…..  With the Home Depot bulbs, does one sacrifice quality for quantity?  I would love to naturalize bulbs, but doing that by ordering from Garden.com will bankrupt me. Thanks for any advice you can offer. Stacy

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Question:

I thought some of you might enjoy a recent experience I had.         My daughter will be teaching pre-kindergarten this next year.  SWMBO and I visited her family last weekend (she lives a couple of hundred miles away), and TD (the daughter) wanted some help in getting her classroom ready – some other person had taught in the room last year and had left the room in a mess.  So she, SWMBO and I went up one afternoon to put in a couple of hours or so.  First, TD wanted the height on an adjustable table lowered.  I asked, "got a screwdriver around here?"  Of course not!!  So off I went to the maintenance guy’s closet and borrowed one.  Some time later, I had a need for a pair of pliars – Yep, same answer, so back to the maintenance guy.  A bit later, had a need for a skill knife to cut a piece of carpet. Yeah, you guessed it!         That evening, I made a trip to a nearby Lowe’s.  Purchased a small tool box, and a few basic tools and supplies – hammer, regular pliars, channel locks, screwdrivers, a skill knife, a small plastic box which I filled with several sizes of nails and brads, a glue gun, etc.  Only cost me about 60 bucks.  Went back to TD’s and presented it to her – told her if her husband or any of the three kids wanted to borrow any of the contents to say "NO!! – go get your own".  Actually, she’ll keep it in her school room.          Last evening, she called and wanted to tell me about her tool box. The latter part of the week, she had been in her schoolroom most every day working.  She heard one of the other teachers say she needed a screwdriver, so she said, "just a moment".  The next few days, several teachers had heard about "Laura’s tool box" and were wanting one of their own.         Well, I started to feel proud and a bit egotistic about the whole thing, and then the thought hit me:  TD is 43 years old – and has been married for some 20 years.  Instead of me depending upon her husband to take care of all her needs and tool/repair education, why didn’t I do this when she was in public school or when she went off to college 25 years ago. Think about it!!                                                             Regards,  Roy Hickman

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- Hide quoted text — Show quoted text -I thought some of you might enjoy a recent experience I had.        My daughter will be teaching pre-kindergarten this next year.  SWMBO and I visited her family last weekend (she lives a couple of hundred miles away), and TD (the daughter) wanted some help in getting her classroom ready – some other person had taught in the room last year and had left the room in a mess.  So she, SWMBO and I went up one afternoon to put in a couple of hours or so.  First, TD wanted the height on an adjustable table lowered.  I asked, "got a screwdriver around here?"  Of course not!!  So off I went to the maintenance guy’s closet and borrowed one.  Some time later, I had a need for a pair of pliars – Yep, same answer, so back to the maintenance guy.  A bit later, had a need for a skill knife to cut a piece of carpet. Yeah, you guessed it!        That evening, I made a trip to a nearby Lowe’s.  Purchased a small tool box, and a few basic tools and supplies – hammer, regular pliars, channel locks, screwdrivers, a skill knife, a small plastic box which I filled with several sizes of nails and brads, a glue gun, etc.  Only cost me about 60 bucks.  Went back to TD’s and presented it to her – told her if her husband or any of the three kids wanted to borrow any of the contents to say "NO!! – go get your own".  Actually, she’ll keep it in her school room.         Last evening, she called and wanted to tell me about her tool box. The latter part of the week, she had been in her schoolroom most every day working.  She heard one of the other teachers say she needed a screwdriver, so she said, "just a moment".  The next few days, several teachers had heard about "Laura’s tool box" and were wanting one of their own.        Well, I started to feel proud and a bit egotistic about the whole thing, and then the thought hit me:  TD is 43 years old – and has been married for some 20 years.  Instead of me depending upon her husband to take care of all her needs and tool/repair education, why didn’t I do this when she was in public school or when she went off to college 25 years ago. Think about it!!                                                            Regards,  Roy Hickman

My really sad comment on this story is that in the District where I work your jaunt into the classroom as well as any use by your daughter of the tools which you purchased for her would have been met with a grievance from the custodial/maintenance union – which they clearly would have won – and subsequent possilble discipline against the teacher involved. Dave Hall

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– Hide quoted text — Show quoted text – I thought some of you might enjoy a recent experience I had.         My daughter will be teaching pre-kindergarten this next year.  SWMBO and I visited her family last weekend (she lives a couple of hundred miles away), and TD (the daughter) wanted some help in getting her classroom ready – some other person had taught in the room last year and had left the room in a mess.  So she, SWMBO and I went up one afternoon to put in a couple of hours or so.  First, TD wanted the height on an adjustable table lowered.  I asked, "got a screwdriver around here?"  Of course not!!  So off I went to the maintenance guy’s closet and borrowed one.  Some time later, I had a need for a pair of pliars – Yep, same answer, so back to the maintenance guy.  A bit later, had a need for a skill knife to cut a piece of carpet. Yeah, you guessed it!         That evening, I made a trip to a nearby Lowe’s.  Purchased a small tool box, and a few basic tools and supplies – hammer, regular pliars, channel locks, screwdrivers, a skill knife, a small plastic box which I filled with several sizes of nails and brads, a glue gun, etc.  Only cost me about 60 bucks.  Went back to TD’s and presented it to her – told her if her husband or any of the three kids wanted to borrow any of the contents to say "NO!! – go get your own".  Actually, she’ll keep it in her school room.          Last evening, she called and wanted to tell me about her tool box. The latter part of the week, she had been in her schoolroom most every day working.  She heard one of the other teachers say she needed a screwdriver, so she said, "just a moment".  The next few days, several teachers had heard about "Laura’s tool box" and were wanting one of their own.         Well, I started to feel proud and a bit egotistic about the whole thing, and then the thought hit me:  TD is 43 years old – and has been married for some 20 years.  Instead of me depending upon her husband to take care of all her needs and tool/repair education, why didn’t I do this when she was in public school or when she went off to college 25 years ago. Think about it!!                                                             Regards, Roy Hickman

Nice one, Roy! I’ve done the same thing for the significant women in my life. [A long- time girlfriend, ex-wife, present wife, step-daughter.] I had a lot of fun compiling the tool-kits, the gifts were genuinely appreciated and I also got to use the tools myself from time to time, in emergencies. And guess whose best chisels NEVER got BORROWED to open a can of paint! Cheers Before you buy.

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Not to mention prosecution for bringing deadly weapons onto school property! Kevin — Don’t die wondering! – Hide quoted text — Show quoted text – My really sad comment on this story is that in the District where I work your jaunt into the classroom as well as any use by your daughter of the tools which you purchased for her would have been met with a grievance from the custodial/maintenance union – which they clearly would have won – and subsequent possilble discipline against the teacher involved. Dave Hall

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My daughter is in college and last year moved into an off-campus apartment with a couple of other girls.  My "house-warming" gift to her was a small collection of basic-survival tools.  A couple of screwdrivers, pliers, adjustable wrench, hammer and a small assortment of nails and screws. – Hide quoted text — Show quoted text -I thought some of you might enjoy a recent experience I had.        My daughter will be teaching pre-kindergarten this next year.  SWMBO and I visited her family last weekend (she lives a couple of hundred miles away), and TD (the daughter) wanted some help in getting her classroom ready – some other person had taught in the room last year and had left the room in a mess.  So she, SWMBO and I went up one afternoon to put in a couple of hours or so.  First, TD wanted the height on an adjustable table lowered.  I asked, "got a screwdriver around here?"  Of course not!!  So off I went to the maintenance guy’s closet and borrowed one.  Some time later, I had a need for a pair of pliars – Yep, same answer, so back to the maintenance guy.  A bit later, had a need for a skill knife to cut a piece of carpet. Yeah, you guessed it!        That evening, I made a trip to a nearby Lowe’s.  Purchased a small tool box, and a few basic tools and supplies – hammer, regular pliars, channel locks, screwdrivers, a skill knife, a small plastic box which I filled with several sizes of nails and brads, a glue gun, etc.  Only cost me about 60 bucks.  Went back to TD’s and presented it to her – told her if her husband or any of the three kids wanted to borrow any of the contents to say "NO!! – go get your own".  Actually, she’ll keep it in her school room.         Last evening, she called and wanted to tell me about her tool box. The latter part of the week, she had been in her schoolroom most every day working.  She heard one of the other teachers say she needed a screwdriver, so she said, "just a moment".  The next few days, several teachers had heard about "Laura’s tool box" and were wanting one of their own.        Well, I started to feel proud and a bit egotistic about the whole thing, and then the thought hit me:  TD is 43 years old – and has been married for some 20 years.  Instead of me depending upon her husband to take care of all her needs and tool/repair education, why didn’t I do this when she was in public school or when she went off to college 25 years ago. Think about it!!                                                            Regards,  Roy Hickman

Posted Via Uncensored-News.Com – Still Only $9.95 – http://www.uncensored-news.com  With Servers In California, Texas And Virginia – The Worlds Uncensored News Source

Response:

Nice of you two to take a dump on a refreshing story! — Daniel Willard Spirits Apprentice "It’s only my opinion!"

Not to mention prosecution for bringing deadly weapons onto school property! Kevin — Don’t die wondering!

– Hide quoted text — Show quoted text – My really sad comment on this story is that in the District where I work your jaunt into the classroom as well as any use by your daughter of the tools which you purchased for her would have been met with a grievance from the custodial/maintenance union – which they clearly would have won – and subsequent possilble discipline against the teacher involved. Dave Hall

Response:

Nice of you two to take a dump on a refreshing story!

I am sorry if this bothered you. I agree with providing children with basic tools as a good idea. I did so with both my son and daughter when they turned 16 and started driving. Basic tools included the hammer, pliers, set of SAE and metric wrenches, screwdrivers, jumper cables, etc. which would suffice for emergencies on and off the road. However, that in no way obviates the reality that in many workplaces, including a majority of school districts (such as the one in which I am currently employed and in which the maintenance department indirectly reports to me), the senerio described would get the employee in trouble. Maybe this will give second thoughts to those about to bring their toolboxes to work in a union environment. I do not agree with such work rules, but many of us, especially in our youth, are unaware of such contract rules and can get into trouble. I myself was called into the Partner-in-Charges office of the large Accounting office I used to work for a year or so into my career because I was so "stupid" as to put together a little computer cart in my office ( this was a kit that required all of a screwdriver to put together). I was told in no uncertain terms that I was to never do such things and  that the union for the 40 story office building maintenence department had filed a grievance because some custodian had walked by and seen me doing this nasty deed. They won the grievance of course. Apparently I had screwed some guy out of 4 hours of overtime for this 15 minute task. Again, I am sorry that my original comment troubled you. I tried to keep it low key. Dave Hall

Response:

And not to mention that you pay the high taxes that pay the salary of the maintenance guy who should have been doing the job. — Larry Bailey Illegitimi non carborundum

Not to mention prosecution for bringing deadly weapons onto school property! Kevin — Don’t die wondering!

– Hide quoted text — Show quoted text – My really sad comment on this story is that in the District where I work your jaunt into the classroom as well as any use by your daughter of the tools which you purchased for her would have been met with a grievance from the custodial/maintenance union – which they clearly would have won – and subsequent possilble discipline against the teacher involved. Dave Hall

Response:

Not to mention prosecution for bringing deadly weapons onto school

property! Not to rain on the party, but Kevin is correct here.  We had an 11 or 12 year old boy killed in Houston when a fellow classmate drove a screwdriver into his head less than a year ago.  What Roy did should be an acceptable practice for any dad to his daughter.  I don’t want to take this post to a political level, but if the kids in that classroom get access to that tool box (skill knife, screwdrivers, etc.) the sweet under-paid and under-appreciated teacher will have liability written all over her.  I say she keeps the tools in the trunk of her car and take them out on an "as-needed" basis.  Just my .03 worth!  (inflation got the extra penny!) — Jim Mc Namara Future Collectibles www.futurecollectibles.com

Response:

Nice story and good job on helping out the school! They need all the help they can get and were ever they can get it from. And remember, it’s never to late to pass on the value of basic handywork. You just might have started TD on becoming a This Old School person, hahaha. Bernie – Hide quoted text — Show quoted text – I thought some of you might enjoy a recent experience I had.         My daughter will be teaching pre-kindergarten this next year. SWMBO and I visited her family last weekend (she lives a couple of hundred miles away), and TD (the daughter) wanted some help in getting her classroom ready – some other person had taught in the room last year and had left the room in a mess.  So she, SWMBO and I went up one afternoon to put in a couple of hours or so.  First, TD wanted the height on an adjustable table lowered.  I asked, "got a screwdriver around here?"  Of course not!!  So off I went to the maintenance guy’s closet and borrowed one.  Some time later, I had a need for a pair of pliars – Yep, same answer, so back to the maintenance guy.  A bit later, had a need for a skill knife to cut a piece of carpet. Yeah, you guessed it!         That evening, I made a trip to a nearby Lowe’s.  Purchased a small tool box, and a few basic tools and supplies – hammer, regular pliars, channel locks, screwdrivers, a skill knife, a small plastic box which I filled with several sizes of nails and brads, a glue gun, etc.  Only cost me about 60 bucks.  Went back to TD’s and presented it to her – told her if her husband or any of the three kids wanted to borrow any of the contents to say "NO!! – go get your own".  Actually, she’ll keep it in her school room.          Last evening, she called and wanted to tell me about her tool box. The latter part of the week, she had been in her schoolroom most every day working.  She heard one of the other teachers say she needed a screwdriver, so she said, "just a moment".  The next few days, several teachers had heard about "Laura’s tool box" and were wanting one of their own.         Well, I started to feel proud and a bit egotistic about the whole thing, and then the thought hit me:  TD is 43 years old – and has been married for some 20 years.  Instead of me depending upon her husband to take care of all her needs and tool/repair education, why didn’t I do this when she was in public school or when she went off to college 25 years ago. Think about it!!                                                             Regards,  Roy Hickman

Response:

Apparently the school in question was not union or the maintenance man would not have loaned his tools.  The teacher would have filled out a work request and submitted it to the board and they would have written a work order to the maintenance man and he would get the things done, in time for next year. My $.03 Not inflation, it’s taxes. My father and I have had several union discussions.  He was and I’m not.  One question was inflation. Do unions cause inflation?   My answer:  A three year contract with 10% a year built-in automatically causes the industry (and every value-added process in between the raw material supplier and the consumer.) involved to raise their prices each year. Dad’s answer:  The workers are just catching up to last year’s inflation, not causing next year’s. Needless to say it was never resolved and we dropped it because of family love that might be lost.

Response:

My wife is also a teacher. We put together a basic toolbox for her. Unfortunately, everyone in the department now knows about it, so about every 2 years we have to restock it… Loyd

Response:

My wife is also a teacher. We put together a basic toolbox for her. Unfortunately, everyone in the department now knows about it, so about every 2 years we have to restock it…

When the Buckhorn STDN shut down, one of the guys in our Range put together a took box for me after all the good stuff had been picked over by the folks with a real use for it.  I got a set of eight Snap-On screwdrivers, a Snap-On quarter-inch socket set, about five "C" clamps, two or three pairs of dikes, three hammers (from tack to large), a variety of colors of electrician’s tape, a utility knife and a couple of boxes of blades, an electrician’s knife and scissors, three sizes of Crescent wrenches, a pair of Vise-grips, a twist of lock wire, a six-inch steel rule, a clump of cable ties, and a couple of pairs of pliers, all fitted into a snappy little metal tool box.  Since this is all NASA property, it’s available to anyone who needs it, but I’m very stern about getting things returned. I’ve filled in some of the gaps, like tiny screwdrivers, small and needlenose pliers, a tape measure (from the tool crib), lubricants for squeaky chairs and sticking locks, a set of allen wrenches, and a few other things.  Others have also contributed to it, now that there’s a central place to keep such things. This tool kit gets called upon at least once a month and usually more frequently.  When we moved into this building with modular furniture, it suddenly became even more popular as everyone customized their cubicles.  We do have a contractor who will do all the little repairs and assembling that the kit helps with, but using that service requires a work order and several signatures, as well as a wait for anything that’s not an emergency. There’s only one thing that puzzles me and that’s what the pliers with the curved jaws that don’t meet.  No one I’ve asked has been able to identify them, but current thinking is that they’re for holding cable fittings. — Mary Shafer Senior Handling Qualities Research Engineer NASA Dryden Flight Research Center, Edwards, CA

Response:

If the curved jaw pliers are adjustable and lined with nylon type material they may be for amphenol connectors. – Hide quoted text — Show quoted text – Tool list snipped There’s only one thing that puzzles me and that’s what the pliers with the curved jaws that don’t meet.  No one I’ve asked has been able to identify them, but current thinking is that they’re for holding cable fittings. — Mary Shafer Senior Handling Qualities Research Engineer NASA Dryden Flight Research Center, Edwards, CA

Response:

Tool list snipped There’s only one thing that puzzles me and that’s what the pliers with the curved jaws that don’t meet.  No one I’ve asked has been able to identify them, but current thinking is that they’re for holding cable fittings. If the curved jaw pliers are adjustable and lined with nylon type material they may be for amphenol connectors.

No, solid metal, no adjustability, no lining.  I’d say the diameter of whatever they’re intended to hold is about half an inch, but the maximum opening is 0.75" and when closed the gap is 0.25".  The jaws are 1.25" long, with an ogival curve for the last 0.5, and smooth, not serrated.  The overall length of the pliers is 5.25".  There are markings, "Utica tools" and "K56305" on one side and "319-B" on the other side.  I guess I need to see if Utica has a web site and to check MSC’s site, too. — Mary Shafer Senior Handling Qualities Research Engineer NASA Dryden Flight Research Center, Edwards, CA

Response:

See! I knew there had to be a story here. Thanks for sharing! 8^) — Daniel Willard Spirits Apprentice "It’s only my opinion!"

– Hide quoted text — Show quoted text – Nice of you two to take a dump on a refreshing story! I am sorry if this bothered you. I agree with providing children with basic tools as a good idea. I did so with both my son and daughter when they turned 16 and started driving. Basic tools included the hammer, pliers, set of SAE and metric wrenches, screwdrivers, jumper cables, etc. which would suffice for emergencies on and off the road. However, that in no way obviates the reality that in many workplaces, including a majority of school districts (such as the one in which I am currently employed and in which the maintenance department indirectly reports to me), the senerio described would get the employee in trouble. Maybe this will give second thoughts to those about to bring their toolboxes to work in a union environment. I do not agree with such work rules, but many of us, especially in our youth, are unaware of such contract rules and can get into trouble. I myself was called into the Partner-in-Charges office of the large Accounting office I used to work for a year or so into my career because I was so "stupid" as to put together a little computer cart in my office  this was a kit that required all of a screwdriver to put together). I was told in no uncertain terms that I was to never do such things and  that the union for the 40 story office building maintenence department had filed a grievance because some custodian had walked by and seen me doing this nasty deed. They won the grievance of course. Apparently I had screwed some guy out of 4 hours of overtime for this 15 minute task. Again, I am sorry that my original comment troubled you. I tried to keep it low key. Dave Hall

Response:

Some would argue that, without the protection the union provides, the "human cost" would be even greater than the adjustment for inflation. I think "union" is just another cost passed onto the consumer.  You have a choice.  Put your money where your convictions are. Kevin — Don’t die wondering!

– Hide quoted text — Show quoted text – Apparently the school in question was not union or the maintenance man would not have loaned his tools.  The teacher would have filled out a work request and submitted it to the board and they would have written a work order to the maintenance man and he would get the things done, in time for next year. My $.03 Not inflation, it’s taxes. My father and I have had several union discussions.  He was and I’m not.  One question was inflation. Do unions cause inflation? My answer:  A three year contract with 10% a year built-in automatically causes the industry (and every value-added process in between the raw material supplier and the consumer.) involved to raise their prices each year. Dad’s answer:  The workers are just catching up to last year’s inflation, not causing next year’s. Needless to say it was never resolved and we dropped it because of family love that might be lost.

Response:

Mary, the pliers with the curved jaws that don’t meet are probably cable connector pliers, used to tighten and remove MS style screw lock or bayonet lock type connectors.  In general they will have cushioned jaws so as not to break the surface coating, but the pads do get lost.  They save a lot of blisters and knicked knuckles.  They’re used a lot on avionics LRU’s (Line Replacable Units).                 Don – Hide quoted text — Show quoted text – My wife is also a teacher. We put together a basic toolbox for her. Unfortunately, everyone in the department now knows about it, so about every 2 years we have to restock it… When the Buckhorn STDN shut down, one of the guys in our Range put together a took box for me after all the good stuff had been picked over by the folks with a real use for it.  I got a set of eight Snap-On screwdrivers, a Snap-On quarter-inch socket set, about five "C" clamps, two or three pairs of dikes, three hammers (from tack to large), a variety of colors of electrician’s tape, a utility knife and a couple of boxes of blades, an electrician’s knife and scissors, three sizes of Crescent wrenches, a pair of Vise-grips, a twist of lock wire, a six-inch steel rule, a clump of cable ties, and a couple of pairs of pliers, all fitted into a snappy little metal tool box.  Since this is all NASA property, it’s available to anyone who needs it, but I’m very stern about getting things returned. I’ve filled in some of the gaps, like tiny screwdrivers, small and needlenose pliers, a tape measure (from the tool crib), lubricants for squeaky chairs and sticking locks, a set of allen wrenches, and a few other things.  Others have also contributed to it, now that there’s a central place to keep such things. This tool kit gets called upon at least once a month and usually more frequently.  When we moved into this building with modular furniture, it suddenly became even more popular as everyone customized their cubicles.  We do have a contractor who will do all the little repairs and assembling that the kit helps with, but using that service requires a work order and several signatures, as well as a wait for anything that’s not an emergency. There’s only one thing that puzzles me and that’s what the pliers with the curved jaws that don’t meet.  No one I’ve asked has been able to identify them, but current thinking is that they’re for holding cable fittings. — Mary Shafer Senior Handling Qualities Research Engineer NASA Dryden Flight Research Center, Edwards, CA

Response:

Mary, the pliers with the curved jaws that don’t meet are probably cable connector pliers, used to tighten and remove MS style screw lock or bayonet lock type connectors.  In general they will have cushioned jaws so as not to break the surface coating, but the pads do get lost.  They save a lot of blisters and knicked knuckles.  They’re used a lot on avionics LRU’s (Line Replacable Units).

I don’t think these ever had pads (I’m going to have to take these home tonight and scan them in and put them up on a Web site, so we’ll all be wondering about the same thing) but after searching all the pliers pages in the McMaster-Carr catalog, I’m now convinced they’re either connector pliers or for installing and removing domed lamp covers. Utica, now Cooper, Tool didn’t recognize the number, either. — Mary Shafer Senior Handling Qualities Research Engineer NASA Dryden Flight Research Center, Edwards, CA

Response:

My really sad comment on this story is that in the District where I work your jaunt into the classroom as well as any use by your daughter of the tools which you purchased for her would have been met with a grievance from the custodial/maintenance union – which they clearly would have won – and subsequent possilble discipline against the teacher involved. Dave Hall

Why don’t you drop all your crap about unions.  No one cares. Tom

Response:

Why don’t you drop all your crap about unions.  No one cares. Tom

oooooh! Touchy. Dave Hall

Response:

Why don’t you drop all your crap about unions.  No one cares. Tom oooooh! Touchy.

Au contraire, Tommy. People do care ‘cuz unions suck. Unions probably drive the price of homes up $50k only to give us worse workmanship and materials as a result. (unions: BTDT once only.)       The more we gripe,      *  http://www.diversify.com/stees.html the longer God makes us live. *  Graphic Design – Humorous T-shirts

Response:

– Hide quoted text — Show quoted text – Why don’t you drop all your crap about unions.  No one cares. Tom oooooh! Touchy. Au contraire, Tommy. People do care ‘cuz unions suck. Unions probably drive the price of homes up $50k only to give us worse workmanship and materials as a result. (unions: BTDT once only.)       The more we gripe,      *  http://www.diversify.com/stees.html the longer God makes us live. *  Graphic Design – Humorous T-shirts

        Well, since my wife got fired by the damn TEAMSTER’s (she worked for them in one of their offices) when she was on maternity leave to have our son, and just after buying a new house and 2 vehicles…no big deal…it only put us in the hole and struggling for 3 years before we ultimately had to file bankruptcy….so it goes without saying, I’m no fan of unions……

Response:

After many delays I am just about ready to break ground on the new workshop. Its a 1026 sq ft free standing building with 10 ft 2 X 6 walls and scissor ceiling trusses to make it eaven higher. The idea is to use in the slab radiant heat but today I had a couple of people question if that would be sufficient. I am in the Vancouver British Columbia area so the winters are not that bad. Does anyone have any experience with radiant heating? Grizzle

Response:

This is a popular option here in northern Alberta – I have worked in several shops with in floor heating. The only "problem" is the recovery time if you have a large overhead door open in -30

Question:

Most, if not all, 386 and 486 machines are not y2k compliant. Regards, AL

Many 486’s were systematically designed to self-destruct. Does anybody remember how they nickeld and dimed us, building millions of machines with a BIOS that was incapable of more than 528Meg Hard drives?  We are supposed to believe the designers never imagined that hard drives would be manufactured bigger than that? Then, they proceeded to build tens of millions more machines which would only run 1 Gig. hard drives. Altogether, they built over 100 million machines incapable of running more than a 1 Gig or 2 gig hard drive.  This is one of the clearest cases of collusion betweein Microsoft and Intel.  Mickey made the FAT and the OS incapable of scaling, and Intel lead the pack of motherboard designers who made the hardware incapable. Both Microsoft and Intel *need* to destroy older machines and push them out of the market because there is a historical process that has run for many years, and will always exist:  - first, creative people create whle new paradigms like windowing     operating ssytems, internet, etc.  - nothing happens until a huge institution like IBM, Microsoft or Intel     blesses it as a standard, and therby reaps $Billions in profits     by selling it  - then the small software developers and inventors find better ways to     do the same thing, for $5 or maybe free in the case of linux. In effect, historical processes make their products worthless within 3-5 years.  In fact, the newer, smarter, smaller software like internet email, or linux samba, or opera browser run *SO MUCH BETTER* and faster, that Intel and Microsoft fear the possibility that these lightweight solutions can run just fine on a 486.  DOS databases like Fox/Clipper another example. It’s really pre-destined… Microsoft *MUST* build ever larger, more bloated stuff to sell to their corporate clients because the gol darned microprocessors are always getting faster, and somebody might steal their high-end market. But where they sinned is trying to screw the little guy and make it uneconomic or impossible for anything except Win9x or WinNT to coexist with Windows or microsoft networking.  They thoroughly squashed every 3rd party DOS vendor, EMM/memory manager vendor, network provider, or windowing manager like DesqView because they KNEW that most small businesses preferred the faster performance and stability of those solutions.   Some may disagree but I believe Microsoft intentionally zeroed in on each of these providers, DR DOS, Novell, Lantastic, Quarterdeck, etc. and made whatever changes were necessary, as often as necessary, to make sure those couldn’t run with Win 3.1 or Win95.  And to this day, they are still doing it to many vendors who are absolutely crucial to a healthy competitive market in accounting software:  Pervasive/Btrieve, Sybase, Borland and every other vendor of lightweight databases for example.  Netscape, Sun/Java, W3C standards, etc.   And these powerful companies hire teams of lawyers to claim patents and copyrights on everything in the natural universe.  If you don’t beleive me go to http://www.uspto.gov/patft/ and search for ACCOUNTING and DATABASE for example, or try your own terms.  There are many fine ideas in there, but most of these claims are doing nothing but restraining others from using perfectly obvious and practical things.  Case in point is FASB’s copyrights on GAAP.   aww shit why am I complaining… waste of time…. and it isn’t good for one’s image.  CPAs are supposed to be polite.   The successful CPA will always dress well, wear a happy, confident facial expression, and never speak ill of anyone, Todd

Response:

Regardless of what you do with the software, a hardware fix is in order. Most, if not all, 386 and 486 machines are not y2k compliant. Regards, AL – Hide quoted text — Show quoted text – I can almost appreciate your philosophy, considering I’m driving an ‘83 BMW with 190K miles (I just moved up from an ‘82 Volvo with 220K). How about this strategem. 1) On the last business day of 1999, print all balances to hard copy. 2) Reset the computer clock as if it were 1900.  A transaction posted on Jan 1, 00 should work the same for 1900 or 2000, considering there are no carryovers from the previous century. 3) Enter the starting balances. 4) If it doesn’t work, sue SAGE because the software SHOULD be 1900 compatible. Be aware there is some problem with the LEAP DAY, typically Feb 29. I suggest you invest some of the money you saved on software to upgrade your hardware. Regards, www.cpaccess.com I have a wholesale business with about 15 invoices per day. We have a 386 clone processor with8 mgrm. We operate 6 workstations. It almost never happens that all workstations are on the same program. We use Mas90 software program 1.5x, dos version.It has worked quite well for us. We have to update to y2k and this is the problem. 1.Sage says that all Mas90 programs are y2k compliant, which I assume includes 1.5x. I understand that the program has to be adjusted so that instead of the year saying 99 it says 1999 and the year saying 00 it says 2000. Is this correct and how can it be done? 2. If  (1) is impossible or impractical, is there a way of buying a new Mas90 program without major hardware adjustments? Our Mas90 supplier tells us that the new software will not run on our present hardware. We would need new fileservers and other equipment to the tune of 17K plus software, plus labor, plus teaching. We can’t afford it. 3. If both (1) and (2) cannot be worked, will Peachtree,dos version, work on our equipment, and be y2k compliant? What is involved in changing fromMas90 to Peachtree. Any help will be most appreciated. 836 0336. Kurt Stern Before you buy.

Before you buy.

Response:

I have a wholesale business with about 15 invoices per day. We have a 386 clone processor with8 mgrm. We operate 6 workstations. It almost never happens that all workstations are on the same program. We use Mas90 software program 1.5x, dos version.It has worked quite well for us. We have to update to y2k and this is the problem. 1.Sage says that all Mas90 programs are y2k compliant, which I assume includes 1.5x. I understand that the program has to be adjusted so that instead of the year saying 99 it says 1999 and the year saying 00 it says 2000. Is this correct and how can it be done? 2. If  (1) is impossible or impractical, is there a way of buying a new Mas90 program without major hardware adjustments? Our Mas90 supplier tells us that   the new software will not run on our present hardware. We would need new fileservers and other equipment to the tune of 17K plus software, plus labor, plus teaching. We can’t afford it. 3. If both (1) and (2) cannot be worked, will Peachtree,dos version, work on our equipment, and be y2k compliant? What is involved in changing fromMas90 to Peachtree. Any help will be most appreciated. Kurt Stern

Response:

I don’t know about fixing 1.5, and I wouldn’t ok 17k as minimum necessary, but I’ll vouch your current system won’t work. Mike,. – Hide quoted text — Show quoted text – I have a wholesale business with about 15 invoices per day. We have a 386 clone processor with8 mgrm. We operate 6 workstations. It almost never happens that all workstations are on the same program. We use Mas90 software program 1.5x, dos version.It has worked quite well for us. We have to update to y2k and this is the problem. 1.Sage says that all Mas90 programs are y2k compliant, which I assume includes 1.5x. I understand that the program has to be adjusted so that instead of the year saying 99 it says 1999 and the year saying 00 it says 2000. Is this correct and how can it be done? 2. If  (1) is impossible or impractical, is there a way of buying a new Mas90 program without major hardware adjustments? Our Mas90 supplier tells us that the new software will not run on our present hardware. We would need new fileservers and other equipment to the tune of 17K plus software, plus labor, plus teaching. We can’t afford it. 3. If both (1) and (2) cannot be worked, will Peachtree,dos version, work on our equipment, and be y2k compliant? What is involved in changing fromMas90 to Peachtree. Any help will be most appreciated. 0336. Kurt Stern

Response:

That is amazing!  I can’t imaging spending that kind of money!  I don’t know about Peachtree, but we use DACEASY.  It is simple to use and works very well for our service based business.  There are add-on modules for Payroll, JobCost, etc. Patti

– Hide quoted text — Show quoted text – I have a wholesale business with about 15 invoices per day. We have a 386 clone processor with8 mgrm. We operate 6 workstations. It almost never happens that all workstations are on the same program. We use Mas90 software program 1.5x, dos version.It has worked quite well for us. We have to update to y2k and this is the problem. 1.Sage says that all Mas90 programs are y2k compliant, which I assume includes 1.5x. I understand that the program has to be adjusted so that instead of the year saying 99 it says 1999 and the year saying 00 it says 2000. Is this correct and how can it be done? 2. If  (1) is impossible or impractical, is there a way of buying a new Mas90 program without major hardware adjustments? Our Mas90 supplier tells us that the new software will not run on our present hardware. We would need new fileservers and other equipment to the tune of 17K plus software, plus labor, plus teaching. We can’t afford it. 3. If both (1) and (2) cannot be worked, will Peachtree,dos version, work on our equipment, and be y2k compliant? What is involved in changing fromMas90 to Peachtree. Any help will be most appreciated. 0336. Kurt Stern

Response:

I can almost appreciate your philosophy, considering I’m driving an ‘83 BMW with 190K miles (I just moved up from an ‘82 Volvo with 220K). How about this strategem. 1) On the last business day of 1999, print all balances to hard copy. 2) Reset the computer clock as if it were 1900.  A transaction posted on Jan 1, 00 should work the same for 1900 or 2000, considering there are no carryovers from the previous century. 3) Enter the starting balances. 4) If it doesn’t work, sue SAGE because the software SHOULD be 1900 compatible. Be aware there is some problem with the LEAP DAY, typically Feb 29. I suggest you invest some of the money you saved on software to upgrade your hardware. Regards, www.cpaccess.com – Hide quoted text — Show quoted text – I have a wholesale business with about 15 invoices per day. We have a 386 clone processor with8 mgrm. We operate 6 workstations. It almost never happens that all workstations are on the same program. We use Mas90 software program 1.5x, dos version.It has worked quite well for us. We have to update to y2k and this is the problem. 1.Sage says that all Mas90 programs are y2k compliant, which I assume includes 1.5x. I understand that the program has to be adjusted so that instead of the year saying 99 it says 1999 and the year saying 00 it says 2000. Is this correct and how can it be done? 2. If  (1) is impossible or impractical, is there a way of buying a new Mas90 program without major hardware adjustments? Our Mas90 supplier tells us that the new software will not run on our present hardware. We would need new fileservers and other equipment to the tune of 17K plus software, plus labor, plus teaching. We can’t afford it. 3. If both (1) and (2) cannot be worked, will Peachtree,dos version, work on our equipment, and be y2k compliant? What is involved in changing fromMas90 to Peachtree. Any help will be most appreciated. 836 0336. Kurt Stern

Before you buy.

Response:

Question:

I’m not an accountant, but I’m trying to understand the key differences between these two types of accounting/reporting of a life insurer’s financials.  Can anyone either provide me with some information or point me to a good source of information? Thanks.

Response:

|I’m not an accountant, but I’m trying to understand the key differences |between these two types of accounting/reporting of a life insurer’s |financials.  Can anyone either provide me with some information or point me |to a good source of information? Regarding life insurance financials, statutory and GAAP accounting principles have two different philosophies.  Statutory accounting is balance sheet (claims paying) oriented.  That is, the principles embodied are to obtain a conservative estimate of current surplus for regulators to give them early warnings that an insurer will have difficulties meeting their obligations to policyholders.  GAAP accounting is income sheet oriented.  This is more geared to giving stockholders a reasonable idea of how their investments are faring.  Recently, mutual life insurers, owned by the policyholders, were required to file under GAAP as well as stautory accounting.  This has little to do with taxes since the IRS requires yet a third (though similar) accounting treatment. While there are many differences between GAAP and statutory reserves, the key difference is that GAAP seeks to match revenues with expenses while statutory doesn’t.  Primarily, there is an entry known as DAC (deferred acquisition costs – primarily commissions).  The insurer pays out hefty initial commissions to agents and hopes to get those amounts back as policyholders pay their premiums.  However, policyholders can surrender their policies before the insurer can recoup its investment (surrender charges are not sufficient for this).  GAAP allows insurers to recognize DAC as future income in the form of an asset; statutory doesn’t. On the liability side, statutory life reserves, the principle liability of a life insurer, are calculated based upon conservative mortality tables and interest rates. GAAP reserves are based on an actuary’s best guess (so to speak). This is all in the name of emphasizing current surplus (you may get a billion dollars tomorrow, but you can’t pay claims today).                         – sbj –

Response:

Statutory accounting is meant to be fiscally conservative.  It’s use is mandated by the state insurance departments that oversee the industry.  The primary concern is ensure that a company does not overstate the strength of it’s financial position and possibly expose insureds to the risk of the company not being there when the time comes to pay out on its contracts. Generally Accepted Accounting Principles (GAAP) developed in the non-insurance business world.  They are maintained under the guidance of the Financial Accounting Standards Board (FASB) which attempts to keep these principals current as the business world constantly changes.  Both systems attempt to present consistent statements of the company’s financial position so that the reader of their reports can expect certain practices to be followed that avoid some of the unscrupulous representations that were made in the early days of industry. There is a movement now, referred to as "codification," whereby the two systems are trying to resolve their differences as they apply to insurance companies. The actual mandating of this new set of principles is still at least a few years away. I am not an accountant, but this is the way I’ve had it explained to me by the financial folks at our company.  This certainly is subject to anyone else’s correction and elaboration. Joe DeMonte

Response: