Deregulatory Bills Clear the House Financial Services Committee
On October 12, the House Financial Services Committee approved almost two dozen financial deregulation bills. The measures included bills that allow more investors to participate in private stock offerings, expand the JOBS Act, and update the Dodd-Frank Act’s systemic risk designation process for banking institutions. Several of the House-approved bills include the following: The Fostering Innovation Act of 2017 expands small company exemptions from the auditor attestation requirements of the Sarbanes-Oxley Act of 2002. The bill exempts a company from Section 404(b) compliance for an additional five years after losing its emerging growth company status, provided that the company remains. Read More.
Topics: Acquisitions, and Brokerage Simplification Act, Deregulation, Dodd-Frank Act, Encouraging Public Offerings Act, Fair Investment Opportunities for Professional Experts Act, Fostering Innovation Act, House Financial Services Committee, JOBS Act, Market Data Protection Act, Micro Offering Safe Harbor Act, sales, Sarbanes-Oxley Act "SOX", Securities Act of 1933, Securities and Exchange Commission "SEC", Small Business Mergers, Systemic Risk Designation Improvement Act, Systemically Important Financial Institution "SIFI", Taking Account of Institutions with Low Operation Risk Act
What Will Be the Impact of the Construction Worker Shortage?
The construction industry has a big problem that’s costing businesses and consumers alike, adding thousands of dollars and delays to almost every project. On the surface, things should be great. Business is booming. Homebuilding and large-scale construction projects are in demand. However, the problem is – there aren’t enough people to do the work. That has everyone asking, what will be the impact of the construction worker shortage? How We Got Here There’s a shortage of skilled labor in construction right now, because: The construction workforce is aging. Not enough young people are choosing careers in construction to replace retiring. Read More.
Audit Guides Help IRS Review Nonprofit Organizations
The Internal Revenue Service (“IRS”) wants to help nonprofits and their tax preparers avoid the possibility of being audited. Available for download on the IRS website are Audit Technique Guides for nonprofits exempt under IRC Section 501(c)(3) and other IRC Section 501(c) sub-sections. Used by IRS staff members, the guides give insight into what the IRS examines when deciding whether to audit tax-exempt organizations. More on the IRS’ Audit Technique Guides is available on the Nonprofit Quarterly website. Need help with audits? Contact a member of our Education or Nonprofits group.
FASB Task Force Addresses Cloud Computing Accounting Issue
The Financial Accounting Standards Board’s (“FASB”) Emerging Issues Task Force (“EITF”) has resolved a longstanding accounting issue concerning the costs for setting up various types of cloud-managed business services. During its October 12 meeting, the EITF affirmed that customers of cloud computing arrangements must account for them similarly to a software license for a large business application with Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software. Last week’s decision could lead to an accounting change to U.S. GAAP. If so, the final amendment will allow companies to capitalize more costs related to installing cloud services such as employee training and creating interfaces. Read More.
Topics: Cloud Computing, Cloud Computing Arrangements, Emerging Issues Task Force "EITF", FASB, Financial Accounting Standards Board "FASB", Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40), U.S. GAAP
Court of Federal Claims Reverses OHA Decision finding Affiliation
Veterans Technology, LLC (“Vet Tech”) is a joint venture whose stock is owned 49 percent by a company named MDW and 51 percent by Defense Acquisition, Inc. (“DAI”). MDW was formed in 2012 by four individuals who were then employed by Paradigm Technologies, Inc. However, on January 30, 2011, ECS Federal, LLC (“ECS”), acquired Paradigm, but the acquisition did not close until January 1, 2012. Subsequently, Paradigm became a wholly owned subsidiary of ECS during calendar year 2012, and all Paradigm contracts were subsequently novated to ECS. Shortly after Paradigm was acquired by ECS, the four employees informed ECS of. Read More.
FASB Working to Update Definitions for Revenues and Expenses
Efforts have begun to update several financial statement definitions in the Financial Accounting Standards Board’s (“FASB”) Conceptual Framework, a guide used to help the board establish consistent accounting standards. In particular, the FASB is working to revise the definitions for revenues and expenses, as both terms use similar language in their descriptions under Statements of Financial Accounting Concepts No. 6, Elements of Financial Statements: a Replacement of FASB Concepts Statement No. 3 — Incorporating an Amendment of FASB Concepts Statement No. 2. The FASB will look into defining revenues as either inflows or other improvements to assets of a company,. Read More.