NSAC Happenings and Latest News - Page 30
Embrace Continuous Accounting to Close the Monthly Books Faster
Accounting teams always welcome a way to speed up the monthly close process, but it's difficult with so many moving parts to account for. The challenge has contributed to the rise of continuous accounting, an approach that aims to leverage modern tech such as AI to automate processes and optimize resources while providing improved real-time accuracy. Most organizations are early in their adoption of continuous accounting principles. But there ...
Read MoreWhat Employee Fringe Benefits Are Taxable?
It’s a topic that has been in the news lately: Exactly what constitutes taxable fringe benefits for employees? Which are perfectly legal perks, and which are to be avoided? First of all, what’s the definition of a fringe benefit? Sometimes referred to as an employee benefit or perk, it’s a form of payment, which includes property, services, cash, or cash equivalent, in addition to payment for the performance of services ...
Read MoreFASB Amends Lessor Classification Guidance to Prevent Selling Losses on Leases with Variable Payments
The FASB amended ASC 842 to require lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as sales-type or direct financing leases. Lessors that have adopted ASC 842 as of 19 July 2021, the date the amendments were issued, can apply the amendments either retrospectively to leases that commenced or were modified on or after ...
Read MoreFASB Alters Accounting for Certain Leases with Variable Lease Payments
FASB issued a standard that is designed to improve the board’s lease accounting rules related to a lessor’s accounting for certain leases with variable lease payments. Under Topic 842, Leases, a lessor may be required to recognize a selling loss at lease commencement (day-one loss) for a sales-type lease with variable payments even if the lessor expects that the arrangement will be profitable overall. This accounting ...
Read MoreFASB Updates Leases Standard for Variable Lease Payments
The Financial Accounting Standards Board released an accounting standards update to help lessors account for leases with variable lease payments. The accounting standards update amends the lease classification requirements for lessors so they aren’t required to recognize a loss upfront at the start of a sales-type lease if they eventually expect to make a profit. The leases standard puts leases on the balance sheet for the ...
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