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Private Company Audits

Private Company Audit Insights

March 15, 2021 Tina Dzik

Questions Remain on How Providers Should Account for Provider Relief Fund Money

The Department of Health and Human Services (HHS) has distributed $178 billion to hospitals and healthcare providers on the front lines of the COVID-19 pandemic, thanks to the Provider Relief Fund established by the CARES Act back in March 2020. Throughout the crisis, cash was sent to various...

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February 22, 2021

FASB Issues Guidance on Debt Modifications and Restructurings to Help Distressed Borrowers

Many companies have restructured or modified their outstanding debt arrangements during the COVID-19 pandemic — some for the first time ever. In recent months, the Financial Accounting Standards Board (FASB) has received many questions about how to apply the accounting guidance on debt...

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February 02, 2021

4 COVID-19 Related Changes You Can Expect on Your Company’s Next Review

COVID-19 has changed risk considerations and the way audit planning is conducted. But many smaller businesses issue reviewed, not audited, financial statements. If you are one of those companies, below are some changes you might expect as your accountants conduct year-end review procedures.1...

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January 13, 2021

Are Your Methods of Deducting Bad Debts Still Relevant in the COVID-19 Era?

Due to the COVID-19 crisis, many companies expect to report higher-than-normal write-offs of accounts receivable (A/R) in 2020 and possibly beyond. As year-end approaches, businesses need to review their A/R ledgers for stale, uncollectible accounts that should be written off and consider whether...

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January 04, 2021

Private Company Council Clarifies Goodwill Impairment Rules

Many private companies are struggling with how to apply the goodwill impairment model in today’s uncertain, volatile conditions. And although the Financial Accounting Standards Board (FASB) has changed and simplified the accounting model for goodwill several times over the past decade...

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December 15, 2020 Beth Reho

Impairment for Non-Financial Assets — Which Should You Test First?

Are you trying to determine whether your company has impairment concerns as a result of the pandemic or due to the economic environment in general? If so, did you know you might have to look at more than just the goodwill on your books, including looking at your non-financial assets — in...

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November 23, 2020 Gino Scipione

How to Treat Debt on Your Financial Statements When You are in Violation of Loan Covenants

Nobody enjoys having to deal with debt covenant issues, but, particularly in times like these, they can be common and can have significant accounting consequences. Due to the economic hardships caused by the pandemic, many companies may find themselves in violation of one or more of their bank...

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November 06, 2020 Beth Reho

Do You Fully Understand the Impact of Foreign Currency on Your Financial Statements?

If your company has a foreign subsidiary or affiliate, at some point you will be faced with foreign currency transaction and translation adjustments. Do you know what each one represents and which financial statement(s) they impact? Do you understand how foreign currency adjustments should be...

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October 13, 2020 Tina Dzik

Q&A: Reporting Forgiven PPP Loans on Your Financial Statements

Many businesses have begun applying for forgiveness of their Paycheck Protection Program (PPP) loans, and Q4 of this year is when they will also need to decide how they will report the funds on their financial statements.   It’s up to recipients of a PPP loan, whether forgiven or not...

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October 12, 2020

Key Questions to Determine Whether Your Governance Structure is Meeting COSO Requirements

It is nearly impossible to overstate the importance of organizational governance. After all, effective governance ensures accountability, drives organizational ethics and values, and enables your business to achieve objectives.While there are numerous highly reputed frameworks that address...

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October 09, 2020 Tina Dzik

FASB Issues ASU 2020-07 to Enhance Transparency Into Contributed Nonfinancial Assets for Nonprofits

Not-for-profit organizations receive contributions in many shapes and forms. Over the years, stakeholders have expressed concerns regarding not-for-profit organizations and their lack of transparency surrounding contributed nonfinancial assets, such as fixed assets, supplies, materials and...

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October 06, 2020 Gino Scipione

3 Steps to Understanding the Interplay of Reorganization Value and Fresh Start Accounting During a Restructuring

As your entity, or any entity, begins the process of emerging from bankruptcy under a plan of reorganization, it’s important to determine whether fresh start accounting should apply to the new company. Fresh start accounting is where balance sheet items are adjusted to fair values and gives...

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September 29, 2020

FASB Issues New Guidance for Reporting Convertible Instruments

The Financial Accounting Standards Board (FASB) recently issued new guidance to simplify the accounting rules for convertible instruments and contracts in an entity’s own equity. Though narrower than initially proposed, the changes will provide investors with more comparable information...

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July 08, 2020 Tina Dzik

How to Account for Termination Benefits

In response to COVID-19, many entities have reduced employee headcount to remain in business. As a result, it’s more important than ever to understand how to account for termination benefits. This includes carefully considering which types of benefits are being provided and the overall...

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July 01, 2020 Beth Reho

Is Your Third Party Administration for Your 401(k) Plan a Trustee or Custodian?

Is your third party administrator (TPA) for your 401(k) plan a trustee or custodian? Do you know the difference? Often these words are used interchangeably but they mean something very different, and you should know the difference to ensure they are being represented properly in your plan...

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June 18, 2020 Beth Reho

Early Adoption of Simplified Goodwill Impairment Rules Could Save Companies Time and Money

With the COVID-19 pandemic being felt around the world, the impact on operations continues to be uncertain. For some businesses, their reputation, along with their goodwill recorded on the company balance sheet, may be impacted as well. The Financial Accounting Standards Board (FASB) has issued ...

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May 26, 2020

Why the Private Company Council Wants to Simplify Accounting Rules Surrounding Profits Interest Awards

Profits interest awards are a flexible type of equity compensation used by limited liability companies (LLCs) and partnerships to incentivize exceptional performance. The Private Company Council (PCC) plans to meet in the coming months to discuss ways to simplify the accounting rules that apply...

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May 15, 2020 Jason Zeman

Your Checklist to Remain Audit Ready in a Virtual World

As we all look to navigate the “new normal” brought about by COVID-19, it’s clear that figuring out the complexities of working during a pandemic will continue for the foreseeable future. Though we’re adjusting in real time, the degree of disruption, coupled by a mostly...

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February 17, 2020 Beth Reho

4 Questions Employee Benefit Plan Fiduciaries Should Know the Answers to

Are you the fiduciary of your organization’s employee benefit plan? If so, do you fully understand what that means? More often than not, many don’t. But it’s important to know what is required of you as a fiduciary and of the company to avoid any potential pitfalls, and...

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February 05, 2020

FASB Simplifies Income Tax Accounting in 6 Critical Areas with ASU 2019-12

In December 2019, the Financial Accounting Standards Board (FASB) issued a new accounting standard that simplifies income tax accounting requirements in six unrelated areas that are costly and complex.The FASB issued the changes to remove specific technical exceptions to general principles found...

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