Investors, lenders and other users of financial statements look to income tax footnote disclosures to evaluate how a company’s operations affect its tax rate and future cash flows. While investors use the disclosure of rate reconciliation tables and total cash paid for income taxes to...
Read MoreHistorically, entities recognized a credit loss when it was probable to occur under U.S. GAAP. Now, ASU 2016-13 has removed the “probable” threshold. The current expected credit loss (CECL) model in effect for private companies for the years beginning after December 15, 2022, requires...
Read MoreDoes your company hold or transact with crypto assets? If so, chances are you have encountered the complexities of accounting for and disclosing the nature of these assets. Since cryptocurrencies are such a novel asset class, it is no wonder the Financial Accounting Standards Board (FASB) has had...
Read MoreGenerally accepted accounting principles (GAAP) did not historically provide specific guidance on how to account for the formation of a joint venture. In response to diversity in practice, earlier this year FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic...
Read MoreA solid system of internal controls for any organization translates into more reliable financial reporting and can help companies prevent, detect and correct financial misstatements. In contrast, weak controls can result in costly errors — and even fraud.And while internal controls are...
Read MoreMuch was happening back in 2016. Some might say it was a rough year, as the world dealt with the Zika virus; learned of the passing of iconic artist, Prince; and watched the Chicago Cubs win their first world series since 1908 (admittedly that was only rough for some of us). And then came FASB...
Read MoreMany commercial entities have received funding from the federal government in various forms since 2020 in response to the COVID-19 pandemic. The Department of Health and Human Services (HHS) continues to be at the forefront, funding healthcare entities specifically with Provider Relief Funds (PRF...
Read MoreManufacturers, auto dealers, distributors and retailers have experienced severe supply chain disruptions, chip shortages and idle factories resulting from the pandemic — leading some to significantly reduced inventory levels.A significant reduction in inventory may be even more concerning...
Read MoreDoes your organization have leases to account for under ASC 842, otherwise known as the new lease standard? Will the standard impact your debt covenants? What’s the best way to transition from ASC 840? Do you know what information to extract from your lease agreements to be compliant?These...
Read MoreTalk about being thankful. We had more than 350 clients and friends register for our annual fall CPE day — undaunted by the virtual format we presented in again this year. We are always truly happy to put together this day, no matter the format, to help educate clients on what they need to...
Read MoreYour acquisition has deferred revenue, which you know how to treat. But guess what? The accounting rules have changed! Earlier this year, we posted a blog about where deferred revenue “goes” during an acquisition, focusing on the complex process of writing down that revenue as...
Read MoreIn the final installment of our series on leases, we offer lessees insights into the process of transitioning from ASC 840 to ASC 842 — focusing on available transition methods, practical expedients and policy elections.As the January 1, 2022, effective date for calendar year private...
Read MoreIn the fourth installment of our series on leases, we look at the tax impact of the new standard.Tax law did not change as a result of the new leases standard, and for tax purposes leases will continue to be a true tax or non-tax lease. However, as with most changes to GAAP, there is potential...
Read MoreIn the third installment of our series on leases, we take a different perspective on the topic, focusing on the changes lessors face upon implementation of the new standard.After years of anticipation, we are finally on the doorstep of the adoption of ASC 842, Leases. For most private companies...
Read MoreThis year’s 2021 Virtual Summer CPE Series was another great way for us to reach out and help our private company clients stay on top of important issues for their businesses. We are grateful for everyone who joined us over the past couple of months, giving us the chance to speak and answer...
Read MoreMany nonprofit and commercial organizations have received funding from the federal government in various forms since 2020, from the Paycheck Protection Program (PPP) to the Provider Relief Fund (PRF) to the Shuttered Venue Operators Grant (SVOG). While these funds have been well deserved and well...
Read MoreIn this installment of our series on leases, we offer insights into ASC 842’s potential impact on your company’s debt covenants and what you should be doing now.Private companies and not-for-profits are by now aware they will have to implement ASC 842, Leases, beginning in 2022. Early...
Read MoreIn this first installment of our series on leases, we offer insights into one of the key questions in complying with the new leases standard (ASC 842) — do you or do you not have a lease to account for?A lot has changed in the world since 2016 when the FASB approved and released ASC 842...
Read MoreThe Consolidated Appropriations Act contains various COVID-19 economic relief measures. The law includes provisions that extend previous relief provided to large banks on the accounting rules related to credit loss as well as troubled debt restructuring (TDR) until January 1, 2022.Previous FASB...
Read MoreAcquiring a business means going through the process of revaluing the acquired assets and liabilities at the acquisition date fair value. And if you acquired deferred revenue as part of the acquisition, that too must go through this revaluation process. But often that reevaluation results in a...
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