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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 the right...

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December 09, 2020 Syed Farooq

Half a Century Later, the SEC Modernizes its Fund Valuation Practices Framework

This blog was updated 2/17/21 It has been over 50 years since the Securities and Exchange Commission (SEC) comprehensively addressed valuation rules with respect to the fair value of investments held by registered funds. On Thursday, December 3, 2020, the SEC finalized the new Rule 2a-5 under the...

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December 08, 2020 John Cavalier

Change Management 101: How Knowing Your Stakeholders Can Make or Break Your Project

Organizations embark on change continuously, whether by choice or by necessity. However, if not managed effectively, change efforts can cause severe disruption at best, and fail at worst. One key to organizational change is stakeholder management. Too often, change efforts fall prey to lack of...

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December 04, 2020 Ray Polantz

Section 962 to the Rescue: How U.S. Shareholders Can Get a Foreign Tax Credit to Help with GILTI

Pass-through forms of business such as S Corporations and partnerships offer certain domestic tax benefits — namely, the avoidance of double taxation and the ability to claim the 20% deduction under IRC Code Section 199A. However, the global intangible low-taxed income (GILTI) provisions of the Tax...

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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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November 03, 2020 Lori Novak

SEC Continues Modernization Efforts, Adopts Rule 18f-4 – Use of Derivatives

This blog was updated 2/17/21 Last week, the Securities and Exchange Commission (SEC) continued its modernization plan, significantly altering the framework for derivatives used by registered investment companies (including mutual funds, ETFs, closed-end funds and business development companies)....

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November 02, 2020 Aly Cottam

SEC Refreshes Its “Dear CFO Letters” Practice

To address the myriad of regulations over the investment industry, the U.S. Securities and Exchange Commission (SEC) provides a variety of guidance and reference materials to industry stakeholders. As a part of that effort, since November 1994, the Chief Accountant’s Office within the SEC Division...

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October 28, 2020 Syed Farooq

SEC Modernizes Auditor Independence Rules

This blog was updated 2/17/21 Earlier this month, the Securities and Exchange Commission (SEC) continued its modernization plan and updated rules related to auditor independence requirements. Auditors must be independent of audit clients both “in fact and in appearance.” Over the past two decades...

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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, to account...

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