Real Estate & Construction
FASB Makes Technical Corrections to Accounting Guidance
Amendments to key parts of U.S. GAAP were announced this week by the Financial Accounting Standards Board (“FASB”). Issued as Accounting Standards Update (“ASU”) No. 2016-19, Technical Corrections and Improvements, the amendments relate to several topics in the FASB Accounting Standards Codification. FASB Chairman Russell Golden says the changes are narrow in scope and should be easy for reporting entities to understand and implement. The following amendments in ASU No. 2016-19 impact all reporting entities: Subtopic 715-30, Compensation—Retirement Benefits—Defined Benefit Plans—Pension, and Subtopic 715-60, Compensation—Retirement Benefits—Defined Benefit Plans—Other Postretirement, and Topic 944, Financial Services—Insurance. ASU No. 2016-19 advises uniform use. Read More.
Topics: Accounting Standards Codification, Debt Restructuring, Defined Benefit Plans, Fair Value Measurement (Topic 820), FASB Technical Corrections, Financial Accounting Standards Board "FASB", Financial Instruments (Topic 825), Goodwill, Insurance (Topic 944), Intangibles, Liability Arrangements, Not-for-Profit Entities (Topic 958), Other Postretirement Employee Benefit Plans, Real Estate, Transfers & Servicing
Final Overtime Rule on Hold
A November 22 preliminary injunction has blocked the Final Overtime Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay. The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely. Read More.
Cherry Bekaert RECon Professionals Discuss PATH Act
Cherry Bekaert’s Michael DeSiato , David McCullum and Ron Wainwright, Jr. , collaborated on an article for Construction Executive in regard to the Protecting Americans from Tax Hikes (PATH) Act. The article, “Three Major Ways the PATH Act Impacts Construction,” describes how construction companies will be affected by the provisions of the bill, as well as highlighting three tax-savings opportunities the PATH Act presents. Check out “Three Major Ways the PATH Act Impacts Construction” at the Construction Executive Web site.
FASB Issues Lease Accounting Standard
Today, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The long-awaited guidance is intended to improve financial reporting for leasing transactions. The FASB estimates that there is over $1 trillion of off-balance sheet operating lease commitments for SEC registrants based on a 2005 Securities and Exchange Commission report. The new guidance will require lessees to recognize a right of use asset and related lease liability. Using the classification similar to Topic 840, the ASU identifies financing leases and operating leases. Financing leases would recognize amortization and interest expenses, while operating leases would. Read More.
FASB Begins Next Phase of Business Definition Project
After issuing Proposed Accounting Standards Update (ASU) No. 2015-330 , Business Combinations (Topic 805): Clarifying the Definition of a Business, the Financial Accounting Standards Board (“FASB”) recently moved forward with the second phase of its business definition project. On Monday, November 23rd, the accounting board began discussions on clarifying the accounting for partial sales and retained interests in real estate transactions and similar deals. No decisions were made because most FASB members need more time to focus on complex issues before taking any formal action. In particular, the FASB has to consider ASU No. 2014-09, Revenue From Contracts With Customers. Subtopic 610-20, Other Income—Gains and Losses from the. Read More.
Treasury Department Proposes Changes to Carried Interest Rules
Addressing the complication of determining when an arrangement between a partnership and partner establishes a “disguised payment for services,” the Treasury Department has issued proposed tax regulations that would prohibit the fund arrangements some observers describe as an abusive use of the carried interest rules. Per the proposed changes, a taxpayer must prove a significant entrepreneurial risk is present to avoid the distribution being regarded as a disguised payment for services. The Real Estate Roundtable, which has a history of opposing Congressional carried interest proposals such as a recent amendment that was rejected by the U.S. Senate, has its Tax. Read More.