Private Company Advocacy Group Seeks Additional Revenue Standard Guidance
As private companies prepare to comply next year with the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard, the American Institute of Certified Public Accountants’ Private Companies Practice Section (“PCPS”) seeks relief from the accounting changes. In its January 17 letter to the FASB, the PCPS requested permission for private companies to use less constricting interpretations for certain aspects of FASB Accounting Standards Codification 606, Revenue From Contracts With Customers. The PCPS believes the FASB’s landmark standard impacts private companies by requiring strong consideration of recognition and measurement disparities and disclosure differences for specific conduit debt obligors. Accordingly, the PCPS. Read More.
Phil Shechter Discusses Tax Reform with South Florida Legal Guide
In a recent interview with South Florida Legal Guide, Cherry Bekaert’s (“the Firm”) Phil Shechter, CPA, discusses the impact of the Tax Cuts and Jobs Act on both individual and business taxpayers. Shechter, the Firm’s National Leader of Litigation Support Services, provides general information on tax reform affecting individual tax rates, mortgage interest deductions, small businesses and pass-through entities. Read Phil’s full interview on the South Florida Legal Guide website. Additionally, if you seek guidance on forensic and litigation matters, Cherry Bekaert’s Forensic & Litigation Advisory Services team is ready to help.
Government Could Shut Down Again Thursday
With the current stopgap spending bill expiring in two days, Congress is scrambling to avoid another government shutdown. The House will vote today on another short-term continuing resolution that would fund the government until Thursday, March 22. Lawmakers continue to negotiate on a budget for the 2018 fiscal year, but disagreements exist regarding proposed increases in defense, non-defense, and infrastructure spending. Other budget disputes involve funding for Dreamers/Deferred Action for Childhood Arrivals (DACA), hurricane and wildfire emergencies, and community health centers. No agreements have been reached on such matters. Meanwhile, the White House wants anomalies (i.e., additional funding) included in. Read More.
Drug Companies Want FASB to Postpone Lease Standard
Nine pharmaceutical companies seek a one-year delay in the effective date of Accounting Standards Update No. 2016-02, Leases (Topic 842). In a letter to the Financial Accounting Standards Board (“FASB”), the companies said the new guidance for embedded lease agreements creates complications in implementing the standard before the 2019 effective date for public companies. Specifically, the pharmaceutical companies face issues with meeting the lease standard’s requirement of determining the fair value of an embedded lease contract. Drug makers regularly work with third-party manufacturers to make medicine or medicine ingredients. The contract could include an implicit asset that might be identified. Read More.
FASB Issues Staff Q&A Documents on Tax Reform
Four recently issued Staff Q&A documents from the Financial Accounting Standards Board (“FASB”) address implementation topics associated with the Tax Cuts and Jobs Act. The documents follow the January 11 issuance of a Staff Q&A that addresses whether private entities and nonprofits can apply Staff Accounting Bulletin No. 118. The new Staff Q&As are as follows and are accessible on the FASB’s Accounting for the Tax Cuts and Jobs Act website: Whether to Discount the Tax Liability on the Deemed Repatriation Whether to Discount Alternative Minimum Tax Credits That Become Refundable Accounting for the Base Erosion Anti-Abuse Tax Accounting for Global Intangible Low-Taxed Income
FASB Proposes Tax Cuts and Jobs Act Guidance
A proposed Accounting Standards Update has been issued reflecting provisions resulting from the Tax Cuts and Jobs Act. The Financial Accounting Standards Board’s (“FASB”) proposal addresses concerns over present Generally Accepted Accounting Principles requiring companies to amend deferred tax liabilities and assets after changes to tax laws or rates. The proposed amendments are expected to reduce the stranded tax effects related to the corporate income tax rate change and improve the helpfulness of information shared with financial statement users. According to Proposed Accounting Standards Update No. 2018-210, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects. Read More.