Hot Topics Article Archives - Page 36
New Accounting Standards Seem to Drive Up Audit Costs
The survey, by FloQast, a provider of close management software for accountants, and Dimension Research, asked controllers and senior accounting professionals at small, midsize and large companies about their audit costs in the wake of the revenue recognition and leases standards, also known as ASC 606 and ASC 842 after their positions in the Accounting Standards Codification. It found that 45 percent of the companies surveyed said they are ...
Read MoreFASB Updates Accounting for Income Taxes
The Financial Accounting Standards Board has released a new Accounting Standards Update aimed at reducing the cost and complexity of accounting for income taxes. Part of the board’s simplification initiative, ASU 2019-12 removes certain exceptions to the general principles in Topic 740 – “Income Taxes in GAAP,” and means organizations don’t need to determine whether these exceptions apply for a given ...
Read MoreYear-end Accounting and Disclosure Reminders for Reporting Under the New Leases Standard
As they prepare for year-end reporting, entities that adopted the new leases standard should carefully review their accounting and disclosures in areas that require significant judgment, estimates and changes in practice. These areas include determining whether a contract is a lease or contains a lease, determining the discount rate to use for new or modified leases, and identifying lease modifications and reassessment events. Entities should be ...
Read MoreHow Safe Are Password Managers?
A password manager stores all your passwords and automatically fills them in your web browser and mobile apps. But is trusting an app with your passwords and storing them all in one place a smart idea? Yes, yes, it is. We recommend everyone use a password manager, which is far superior to other ways of keeping track of your passwords. Here’s why they’re a safe choice. Password Managers Are Safer Than the AlternativeA password ...
Read MoreLease Accounting: Keep Pushing Ahead
In February 2016, FASB issued new lease accounting requirements in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under its core principle, a lessee recognizes a right-of-use (ROU) asset and a lease liability on its balance sheet for most leases, including operating leases. This is expected to have a significant impact on most entities' balance sheets, considering how prevalent and routine leasing is to most businesses. FASB ...
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