Replies to post #31650 on CirTran Corporation (CIRX)

[MFlores]

"... no royalties shall be paid ..." Paid and accrued are two different matters. Judge Pantle said nothing about royalties not being accrued. The Cirtran Royalties due to Playboy need to be accrued on its balance sheet if Cirtran is going to recognize the revenues on its income statement. Basic accounting.

... unless the contract was never in force, in which case Cirtran has no business selling the product with the Rabbit head trademark....

[MFlores]

“The only accounting method accepted by the generally accepted accounting principles, or GAAP. is the accrual basis accounting method. This method applies the matching principle by recording revenue when it is earned and expenses as they occur. The GAAP is put together by the American Institute of Certified Public Accountants. Any accountant or CPA who presents a financial statement must follow these standards. Accrual basis is the method of accounting for revenue and expenses when they are earned or incurred, regardless of when cash actually is deposited in the company’s account.“

Surely Judge Pantle would want Cirtran to follow Generally Accepted Accounting Principles, as required by the SEC for reporting financial statements by a public company. Payments are a completely separate matter than accruals. Cirtran is required to follow accrual accounting for reporting even during the litigation. Maybe one of the reasons Cirtran has not filed since the 3rd quarter of 2014.