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<p>The uselessness and contents of an income statement, in particular to evaluate past performance of a company, along with providing a basis for predicting future performance, and help stakeholders assess the risk or uncertainty of future cash flows, can certainly vary company to company (Warfield, 2022). Last month, Telegram, a popular messaging application, had their income statement released to the public, shortly after the company’s financial statements were filed in the British Virgin Islands (Edwards, 2023). There’s been controversy associated with the valuation of the business. Moreover, one line item that stands out on their income statement is the Gain/(loss) on revaluation of digital assets as well. Let’s take a look below!&nbsp;</p><figure id="figure-5ozqisdorpm6jynoms"><img id="5ozqisdorpm6jynoms" src="https://cdn.durable.co/blocks/0TiutwxQazhfAmSJpWulzIWIHWT6nIx8EixCuMvdvHHbCnvNQeMdP3ztaUT9QyUU.png" alt="" title="" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 3/2; object-position: 50% 50%;" data-corners="default" data-aspect="3:2" data-caption="" data-positionx="50%" data-positiony="50%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/0TiutwxQazhfAmSJpWulzIWIHWT6nIx8EixCuMvdvHHbCnvNQeMdP3ztaUT9QyUU.png" data-mce-style="aspect-ratio: 3/2; object-position: 50% 50%;"></figure><p>(Source: Edwards 2024, Yahoo Finance)</p><p><br>After reviewing the company’s income statement, we can determine that the company chose to follow the multistep format instead of the single step format. Terry Warfield, PwC Chair in Accounting, prominent author, and a professor of accounting and information systems at the Wisconsin School of Business, explains “The multiple-step income statement is so named because it shows the several steps in determining net income.” This is different from the single-step format in which “only one step, subtracting total expenses from total revenues, is required in determining net income or net loss (Warfield 2024).”&nbsp;</p><p>Telegram provides details regarding their Revenue and Operating Expenses, which then are calculated to determine their “Operating Loss”, which is one of the subtotals, along with "Loss before income tax," before arriving at the net income or “loss for the year.” In contrast, if Telegram used the single step approach for calculating, the company would have combined all their revenues in one section and expenses in the other, to then calculate their loss for the year.&nbsp;</p><p>Furthermore, Telegram provides information regarding their Gain/(loss) on revaluation of digital assets within the section of non-operating income and expenses. In 2022 there was a loss due to the Fair Market Value of digital assets decreasing year after year. However, in 2023, Telegram shows there was a positive unrealized gain associated with the revaluation of their digital asset holdings. The unrealized gain is the delta between the Fair Market Value and the original cost basis of their digital assets, that we derived at the time of acquisition.&nbsp;</p><p>Telegram also displays their other comprehensive income for both the 2022 and 2023 fiscal years using the one statement approach rather than the two statement approach. Telegram presents their total comprehensive loss for the year, in a single continuous statement, directly after the operating and non-operating sections. In contrast, if Telegram chose to take the two-statement approach, the company would have had a traditional “Income Statement” along with a separate “Comprehensive Income Statement.”&nbsp;</p><p>Based on the financial data provided on Telegram’s income statement, stakeholders can clearly observe the risks involved with Telegram acquiring digital assets. The Gain/(loss) on revaluation of digital assets increased by approximately 120.64% year after year. Although impressive on a percentage basis, the more positive impact on the company's financials was actually because of their increase in revenue from 2022 to 2023, specifically an increase of over $114 million due to their core-operating activities.&nbsp;</p><p>Sources:&nbsp;</p><p>Edwards, Jim. "Telegram Financials: It’s a loss-making company (that holds a lot of crypto)" Yahoo Finance, 03 SEPT. 2024, https://finance.yahoo.com/news/telegram-financials-show-huge-crypto-161255172.html&nbsp;</p><p>&nbsp;Warfield, Donald E. Kieso, Jerry J. Weygandt, Terry D. Intermediate Accounting. Available from: MBS Direct, (18th Edition). Wiley Global Education US, 2022.&nbsp;</p>

Digital Assets and Performance: A Look at Telegram's Income Statement

<h2>Celebrating a Milestone: Rx Balance Solutions LLC Closes 2023 Successfully</h2><p>As the financial year draws to a close, Rx Balance Solutions LLC is excited to announce the successful completion of its 2023 period close and tax submission using Stoic Bookkeeper. This achievement marks a significant milestone, reflecting the hard work and dedication of our team. The company has not only met its financial objectives but has also set a strong foundation for future growth.</p><p>Completing a period close is no small feat, particularly in the ever-evolving landscape of the healthcare industry. Our finance team has worked tirelessly to ensure that every detail was meticulously handled, ensuring compliance with all regulatory requirements. This dedication underscores our commitment to maintaining the highest standards of financial integrity.</p><figure id="figure-smqxvojubgm6k0wvzo"><img id="smqxvojubgm6k0wvzo" src="https://cdn.durable.co/getty/1phwQn4vLTy6AZihRaHBzuSG6vVY2nKzGmu66eFXIsj61y7CagVGqTICSEsOjqpp.jpeg" alt="teamwork celebration" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/1phwQn4vLTy6AZihRaHBzuSG6vVY2nKzGmu66eFXIsj61y7CagVGqTICSEsOjqpp.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Key Achievements of 2023 / 2024</h3><p>The past year has been one of growth and innovation for Rx Balance Solutions LLC. We have introduced new services aimed at enhancing client experience and have seen a remarkable increase in our client base. These achievements have been pivotal in enhancing our market position and driving financial success.</p><p>Some of the key highlights include:</p><ul><li>Properly filing for Tax Extension for 2023</li><li>Expansion into new markets, broadening our service reach to the healthcare industry. Onboard new customers.&nbsp;</li><li>Implementation of QBO to streamline operations. The client previsonsly used Turbo Tax, and we decided to move to QBO.</li><li>Chart of Accounts Set-Up<br></li><li>Keeping track of customers and vendors.</li><li>Basic Accounts Recievable - Sending out Invoices, and mathcing paid reveneue to outstanding invoices due.&nbsp;</li><li>Categorizing Expenses.<br></li><li>Rules Automation, and sharing best practices for expense managment.</li><li>Strengthened partnerships with key stakeholders in the healthcare sector.</li><li>Partnered with leading CPA Firm to review all categorization and submission of tax filings.</li><li>Working closely with Licensed Tax Professional for Quarterly Tax Estimates</li><li>BOI Filing (2024)</li></ul><h3>Efficient Tax Submission Process</h3><p>One of the most critical components of our period close was the timely and accurate submission of taxes. At Rx Balance Solutions LLC, we recognize the importance of transparency and compliance in tax-related matters. Our finance team employed state-of-the-art software tools to ensure that all tax obligations were met efficiently and effectively.</p><p>The successful tax submission not only reflects our operational excellence but also our dedication to responsible corporate governance. By adhering to strict compliance standards, we continue to build trust with our clients and partners.</p><figure id="figure-vg8l64kia8m6k0x2x4"><img id="vg8l64kia8m6k0x2x4" src="https://cdn.durable.co/getty/a65U64bepfU8tvFfZVCaTK1etDTS0BQbNvOP61IixXkk6N4bJn8mnj0mpySyceZk.jpeg" alt="tax documents" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://cdn.durable.co/getty/a65U64bepfU8tvFfZVCaTK1etDTS0BQbNvOP61IixXkk6N4bJn8mnj0mpySyceZk.jpeg" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Looking Ahead</h3><p>With the 2023 period close behind us, we are poised to embark on a new chapter filled with opportunities and challenges. Our focus remains on delivering exceptional value to our clients while fostering an innovative and inclusive workplace for our employees.</p><p>In the coming year, we plan to further enhance our service offerings and continue exploring new avenues for growth. By leveraging cutting-edge technology and deep industry expertise, we aim to maintain our competitive edge and deliver sustained success.</p><h3>A Heartfelt Thank You</h3><p>We would like to extend our heartfelt gratitude to Rx Balance Solutions LLC, and our Stoic Bookkeeper partners who have played a pivotal role in our success. Your unwavering support and trust are the cornerstones of our achievements.</p><p>- Christopher Wade, MBA (Founder of Stoic Bookkeeper)</p>

Rx Balance Solutions LLC: Successful Period Close and Tax Submission

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Digital Assets and Performance: A Look at Telegram's Inco...

Rx Balance Solutions LLC: Successful Period Close and Tax...