April 2020 Article Archives
FASB: Don’t Make Big Changes to the Lease Standard
As we wrap up an unpredictable year, let’s explore the Financial Standards Accounting Board’s recent roundtable discussions, new guidance on lease implementation for public and nonpublic organizations, and what we can expect for non-public implementation next year. Public companies understand the new lease standard now that they have completed their implementations. For the most part, the guidance works as intended, and the standard ...
Read MoreFASB Proposes Goodwill Alternative for Private Cos., Nonprofits
The Financial Accounting Standards Board floated a proposed accounting standards update to offer an accounting alternative to make it easier for private companies and nonprofit organizations to evaluate a goodwill triggering event. Under the current rules for U.S. GAAP, goodwill has to be tested for impairment when a triggering event happens indicating it’s more likely than not that the fair value of the reporting unit is ...
Read MoreQuarterly Accounting Roundup
Dominating the accounting and financial reporting headlines in 2020 was the pandemic caused by COVID-19, which has significantly affected the U.S. and global economies and financial markets and created unprecedented challenges for many organizations. In other accounting and financial reporting news, the FASB released a number of Accounting Standards Updates during 2020, including those that: Address issues related to reference rate ...
Read MoreInternal Control Focus Critical as a Result of Pandemic Changes
For many organizations, the coronavirus pandemic has led to significant changes in day-to-day operations, working environments, and internal controls. SEC Deputy Chief Accountant Diana Stoltzfus reminded company officers of their duties related to these controls Monday during a session at the AICPA Conference on Current SEC and PCAOB Developments. She cited the requirements of the Sarbanes-Oxley Act of 2002 (SOX), P.L.
Read MoreFinal Regulations on the Meals and Entertainment Deduction
The law known as the Tax Cuts and Jobs Act (TCJA), P.L 115-97, significantly changed Sec. 274 by eliminating the deduction for any expenses considered entertainment, amusement, or recreation. The amendments denied deductions for expenses for business entertainment and increased the scope of the deduction limitation for expenses related to food and beverages employers provided. Because the Code was unclear about the deductibility of food ...
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