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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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October 12, 2020 Steve Guarini

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 an...

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