In our US financial reports we currently report receivables in terms of number of days.
However in the UK the fact that turnover is ex VAT and Receivables inclusive overstates our receivables days.
In the past I have come across UK subsidiaries reclassifying the VAT element of receivables by backing out the amount against the VAT account. Effectively showing the net receivable.
Does anyone know whether this is acceptable under US GAAP.
Thanks
Andrew Ross