NSAC Happenings and Latest News - Page 97
Reminder About Setting Effective Tax Rates
With companies once again setting their annual effective tax rates, we'd like to remind you of some basic principles. The tax provision for the year is the same whether a company prepares only annual financial statements or interim and annual statements. The tax expense for ordinary income in an interim period is measured using an estimated annual effective tax rate. At the end of each interim period, a company must make its best estimate of the ...
Read MoreEmployers' Presentation of Defined Benefit Retirement Costs Will Change
The FASB issued new guidance that will require employers that sponsor defined benefit plans for pensions and/or other postretirement benefits to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Employers will present the other ...
Read MoreFASB Simplifies Accounting for Goodwill
The FASB issued new guidance that simplifies the accounting for goodwill impairment for all entities by eliminating the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today's goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on ...
Read MoreFASB's New Guidance on the Definition of a Business
The FASB changed its definition of a business in an effort to assist entities with evaluating whether a set of transferred assets and activities is a business. The changes will likely result in more acquisitions being accounted for as asset acquisitions rather than business combinations. The new guidance will require an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single ...
Read MoreBest Practices: 10 Competencies of Top Staff Accountants
Distinguishing yourself as a top staff accountant can lead to many rewards: more responsibilities, higher job satisfaction, promotions, and higher pay. But making your mark involves more than debits and credits. Here are 10 qualities that top staff accountants must master to set themselves apart. Accuracy. Details matter, and there is no room for error in accounting. Staff accountants must become experts at self-review by coming back to their ...
Read More