NSAC Happenings and Latest News - Page 121
New Leasing Standard Could Benefit Companies
The Financial Accounting Standards Board’s new lease accounting standard could have some positive payoffs for companies if they take a careful approach to implementing it. FASB released the long-awaited standard after a decade of work with the International Accounting Standards Board as one of their major convergence projects. The standard will add operating leases to the balance sheet for the first time for many companies, and they will ...
Read MoreFASB Streamlines Move to Equity Method of Accounting
The Financial Accounting Standards Board has issued an accounting standards update making it easier for companies to transition to the equity method of accounting. Stakeholders told FASB that the requirement to retroactively adopt the equity method of accounting is costly and time consuming when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence.
Read MoreHow Cooperatives Measure Earnings Affects Patronage Refunds
Patronage refunds are one of the main differentiating factors between a cooperative business and a regular corporation or other business entity. One of the major parts of the statutory definition of a patronage refund is that it is determined by the net earnings of the cooperative. The statutory definition, does not, however, state whether those net earnings are determined by federal income tax or financial accounting rules. Based on ...
Read MoreFASB Releases Lease Accounting Standard
The Financial Accounting Standards Board issued its long-awaited Lease Accounting Standard, one of the major convergence projects on which it has collaborated for a decade with the International Accounting Standards Board. The accounting standards update aims to improve financial reporting about leasing transactions and will affect all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing ...
Read MoreInternal Controls To Prevent & Detect Fraud
A recent “KPMG Fraud Survey” found that organizations are reporting more experiences of fraud than in prior years and that three out of four organizations have uncovered fraud. Below are some internal control "Best Practices" that can reduce fraud opportunities or help detect fraud. Use a system of checks and balances to ensure no one person has control over all parts of a financial transaction. Require purchases, ...
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