NSAC Happenings and Latest News - Page 72
No Delay in Lease Accounting Standard Effective Date
FASB will not be providing a last-minute reprieve on its lease accounting standard effective date, despite the concerns of financial statement preparers about the difficulty of implementing the new rules. The lease accounting standard takes effect for public companies in 2019 and for most other entities in 2020. It is designed to provide investors with more information by bringing lease assets and obligations onto lessee balance ...
Read MoreCommon Depreciation Missteps and Misconceptions: Demolition of Structures
In most cases, the demolition of a structure to facilitate construction of a new building increases the land value. Not only does the cost of demolition increase the value of the land, but also the remaining basis of the building must be added to the land value at the time of demolition. There are limited exceptions to this. Under section 280B of the U.S. Code, an abandonment loss that is unrelated to demolition is allowed. If a property owned ...
Read MoreIRS Points to New Limits on Like-kind Exchanges
The Internal Revenue Service is reminding taxpayers Monday about a change under the new tax law that limits like-kind exchanges to exchanges of real estate and similar property. Under last December’s tax overhaul, starting Jan. 1, 2018, any exchanges of personal or intangible property such as machinery, equipment, vehicles, artwork, collectibles, patents and other intellectual property generally won’t qualify for nonrecognition of ...
Read More4 Steps to Prepare for the Future of Accounting
Time is running out to start getting ready for the technology-transformed, new-world accounting profession that is evolving at an increasing pace. What changes are coming? What steps should be taken to prepare? What should I be doing now? Is it too late? As with all major evolutions, the change within accounting will not happen all at once, so it's not too late. However, the pace of change will continue to accelerate so you need to get moving ...
Read MoreAICPA Drafts Guidance on Inventory Valuation
The American Institute of CPAs' Financial Reporting Executive Committee has posted an early working draft of guidance on inventory valuation guidance, with a goal of eventually publishing a broader Business Combinations Accounting and Valuation Guide. The goal of the guidance is to describe the various considerations for estimating the fair value of inventory, in keeping with a requirement from the Financial Accounting Standards Board that ...
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