July 2019 Article Archives

FASB to Propose Delaying Effective Dates for 4 Major Standards

Published on July 19, 2019

FASB plans to propose delaying effective dates for four key standards for certain groups of financial statement preparers after a series of votes taken at a board meeting.

The plan to delay effective dates for certain companies for accounting for leases, credit losses, hedging, and long-duration insurance contracts is FASB’s response to the burden placed on preparers by the board’s ambitious standard-setting activities.

Coupled with the recent implementation of a highly challenging revenue recognition standard, FASB’s numerous new rules have created significant difficulties, especially for private companies whose financial reporting staffs have limited capacity.

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Microsoft Is Making Windows 10 Passwordless

Published on July 19, 2019

Microsoft is planning to make Windows 10 PCs work without passwords. While the company has been working on removing passwords from Windows 10 and its Microsoft Accounts for a number of months now, the next major update to Windows 10 next year will go one step further. You’ll soon be able to enable a passwordless sign-in for Microsoft accounts on a Windows 10 device. This means PCs will use Windows Hello face authentication, fingerprints, or a PIN code. The password option will simply disappear from the login screen, if you decide to opt in to this new “make your device passwordless” feature.

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IRS Finalizes Rules for Truncating Taxpayer SSNs on W-2s

Published on July 19, 2019

The Internal Revenue Service has issued final regulations for allowing employers to truncate taxpayer identification numbers on wage and tax statements to help protect employees from identity theft. The regulations allow employers to voluntarily truncate employees’ Social Security Numbers on copies of the Form W2, Wage and Tax Statement, furnished to employees so the truncated SSNs appear in the form of IRS truncated taxpayer identification numbers. The regulations also clarify the application of the truncation rules to Forms W-2 and add an example illustrating the application of the rules.

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FASB Opens Second Segment Reporting Study

Published on July 19, 2019

The Financial Accounting Standards Board said it’s looking for public companies to take part in a study focusing on potential improvements to the segment disclosure requirements.

This is the second study conducted by FASB on segment reporting. This one will concentrate on the information disclosed by each reportable segment. The original study last year focused on improving the aggregation criteria and process for determining the reportable segments.

For this second study, FASB is looking for public companies that apply the disclosure requirements in FASB Accounting Standards Codification Topic 280, Segment Reporting. Participants will be asked to give information on the operability of various potential improvements to the segment disclosure requirements and to identify any potential unintended consequences.

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BKD Dons a White Hat to Hack Clients

Published on July 19, 2019

The BKD Red Team stands ready to embarrass their clients — but all in the name of security. BKD Cyber, the cybersecurity arm of Springfield, Missouri-based Top 100 Firm BKD, has assembled what it’s calling its Red Team -- a digital attack simulation service that emulates the actions a hacker might take during a cyberattack. This service comes at a time when the accounting profession is on high alert for cybercrime, in the wake of several high-profile events.

BKD Cyber offers a number of cyber services including risk assessment, regulation compliance and incident response. The organization also offers penetration testing, where their professionals attempt to break into a business’ networks and assess their security strength; and “white hat” services, a colloquial term for “good hackers” that combat the activities of criminal hackers.

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Get Private Companies Ready for the New Revenue Standard

Published on July 19, 2019

Auditors of private companies are reviewing clients’ efforts to prepare for filing financial statements under the new revenue recognition standard in early 2020.

In the five years since FASB adopted its landmark guidance in Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), companies large and small have had to race to implement the standard by its effective date.

Public companies began complying with the standard with their regulatory filings for the first quarter of 2018. Now the focus has shifted to private companies, which, in little more than half a year, are going to prepare their first set of annual financial statements with the new standard. Private company financial statements for interim reporting periods will have to comply with the standard in 2021.

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