# accounting standards rounding

October 28, 2011 at 11:46:50
Specs: Macintosh
 Is there an accounting standard with regard to rounding in calculating a bill if the result is a fraction of an integer which must be rounded to an integer?

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#1
October 28, 2011 at 13:29:20
 Integers have no fractions. Check the GAAP. Unless otherwise specified money amounts are usually specified in cents.

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#2
October 30, 2011 at 03:33:03
 I've always been told that usual accounting rules say that 0.5 and above would be rounded up, 0.49999.... and below would be rounded down."I've always been mad, I know I've been mad, like the most of us..." Pink Floyd

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#3
October 30, 2011 at 07:42:18
 I've seen some IEEE documents (early 2000's) where some say that the standard should be Odd numbers round up at .5 and Even numbers round down at .5 - or maybe it was the other way a round.Either way, that method eliminates the overweight to rounding up. Normally there are 5 situations when you round up (0.5 - 0.9) but only 4 to round down (0.1 - 0.4).By using the odd and even method you introduce a bit of randomness that may even things out over the long term.Click Here Before Posting Data or VBA Code ---> How To Post Data or Code.

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#4
October 31, 2011 at 02:54:24
 As I remember it .5 is rounded to the closest even number, hence 1.5 = 2 and 2.5=2NigelMobo: Asus P7P55D LEOS: Microsoft Windows 7 Professional OEMCPU: Core i5 750 @ 2.67 GHzRAM: Corsair Dominator DHX+ DDR3 1600MH 4GBGPU: Sapphire 4870 D

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#5
October 31, 2011 at 05:44:51
 That's basically what I said when I brought up the IEEE "suggestion" (which may even be a standard in some instances).However, I believe that the most commonly used method is that .5 always gets rounded up.Try these in Excel, OOO3 Calc, etc. You'll get 2 and 3 respectively.=ROUND(1.5, 0)=ROUND(2.5, 0)Click Here Before Posting Data or VBA Code ---> How To Post Data or Code.

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#6
October 31, 2011 at 12:41:13
 In some jurisdictions taxes are rounded down because you can't collect more than the specified rate.

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#7
October 31, 2011 at 13:17:29
 Must be why Excel has the ROUNDDOWN function. ;-)Click Here Before Posting Data or VBA Code ---> How To Post Data or Code.

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#8
October 31, 2011 at 13:56:33
 Since the OP specifically adressed accounting standards and since you DerbyDad added "or maybe it was the other way a round", I wanted to confirm your statement. However I'm in Europe, and this may not be valid worldwide.NigelMobo: Asus P7P55D LEOS: Microsoft Windows 7 Professional OEMCPU: Core i5 750 @ 2.67 GHzRAM: Corsair Dominator DHX+ DDR3 1600MH 4GBGPU: Sapphire 4870 D

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#9
November 1, 2011 at 12:03:17
 Maybe the problem is that accountancy is nothing to do with pure mathematics, hence the rounding up/down issues, and has already been stated, it will probably be different within each financial sector, so the OP is best pointing his question at whichever authority is governing his situation."I've always been mad, I know I've been mad, like the most of us..." Pink Floyd

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