Maryland Income Tax Law Ruled Unconstitutional
Maryland residents who pay taxes in multiple states no longer have worry about paying a double tax on business income outside of their state. In a ruling struck down this week, the U.S. Supreme Court announced that the Maryland law which double-taxes residents earning income in other states is unconstitutional. Per the Supreme Court’s ruling, the law does not offer Maryland residents complete credit for taxes they pay on income earned in other states. Due to the ruling, the state of Maryland will likely lose an estimated $200 million refunding those who tried to claim the tax credit. For more on. Read More.
Government Contractors Challenge Political Contribution Ban
The issue of transparency in the government arena is nothing new and continues to be a hotly debated topic today. How much is enough versus too much, which can then cause harm? That elusive answer remains hidden. However, as more names get thrown into the presidential candidate pool and members of Congress who are up for re-election next year start their campaigning, political contributions are going to become a hot topic, and never more so than in the government contracting industry. All government contractors seeking federal contracts must follow the Code of Federal Regulations (CFR), amongst various other regulations and. Read More.
Financial Accounting Foundation Issues Annual Report
Announced yesterday , the Financial Accounting Foundation (“FAF”) has released its 2014 Annual Report, “Building a Better GAAP” (2014 Annual Report). Centered on the Strategic Plan for the FAF, Financial Accounting Standards Board and Governmental Accounting Standards Board, the 2014 Annual Report discusses how the three organizations will work collectively to make improvements to generally accepted accounting principles. The document also features overviews of the organizations’ activities and accomplishments, listings of their advisory groups like the Private Company Council and Emerging Issues Task Force, and the 2014 management discussion and audited financial statements. “Building a Better GAAP” is currently available for download. Read More.
FASB Task Force Discusses Cash Flow Statement Improvements
Hoping to improve financial reporting transparency, the Financial Accounting Standards Board’s (“FASB”) Emerging Issues Task Force (“Task Force”) began discussions last week to address company cash flow statements. This is a long standing issue that the FASB has discussed at length. In 2014, the FASB proposed a principal approach to the cash flows statement. However, after a more thorough staff review of 2013 public company restatements, it was found that the proposal would have only prevented 10% of the 173 restatements. As a result, at the May 14th meeting, nine specific areas of Topic 230, Statement of Cash Flows, were. Read More.
FASB Makes Small Changes to Proposed Leases Standard
At its May 13th meeting, the Financial Accounting Standards Board (“FASB”) will move forward with four minor changes to its proposed standard regarding how companies disclose most lease expenses on balance sheets. Per the board’s decision, the changes to proposed Accounting Standards Update No. 2013-270, Leases, are as follows: Lessor Accounting Model—Collectability. The FASB will align the accounting lease model with its revenue recognition standard by incorporating a collectability threshold. This would require lessors to estimate the probability of their customers to make payments. Also, the FASB will adjust the accounting guidance for impairment of certain lease assets and when. Read More.
Community College Enrollment Drops
Last week, the National Student Clearinghouse Research Center (“the Research Center”) released data reflecting current enrollment numbers at community colleges. According to the Research Center, this year’s enrollment totals are 1.9 percent lower (18.6 million students) than they were in spring 2014. Most of the decline came from students over the age of 24, which experienced a 3.6 percent drop (7 million). Speaking on the decreased enrollment among students 24 and over, American Association of Community Colleges president said, “The trend of declining enrollment for community colleges is not surprising. Remembering that the majority of our students are working, it. Read More.