Tag Archive: "#Accounting"
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ERC, to Self-Report, or not to Self-Report, that is the Question
The government developed the Employee Retention Credit (ERC) program to help businesses impacted by the COVID-19 pandemic. The Internal Revenue Service (IRS), who oversees the ERC program, set rules to make sure that only eligible businesses could receive this credit. The ERC program has been complex and has undergone changes and updates, which has made […]
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Current Expected Credit Losses (CECL)
You may not be aware, but the accounting standard ASC 326 – Current Expected Credit Losses (CECL) is now applicable for all entities. Top ten things you need to know: What is CECL? CECL requires entities to estimate and account for expected credit losses for financial assets over the entirety of the asset’s life versus […]
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Time to Update Your Development Cost Methods
For owners and contractors engaged in development projects, a key tax planning point is to match costs, and future cost in particular, with early development revenues. The IRS has just revised and restated its “Alternative Cost Method” (ACM) for taxable years beginning after December 31, 2022. This is a method of accounting supplementing cost basis […]
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In Time for the Holidays, the FASB Proposes an Accounting Standards Update Related to Common Control Leases
Keeping with the Rocky theme, on November 30, 2022, the FASB issued a proposed Accounting Standards Update (ASU) to respond to concerns associate with accounting for common control leasing arrangements. The FASB staff has been working diligently to issue this proposed ASU and they appear to follow the philosophy of Rocky Balboa in the 1976 […]
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Leases, If FASB Can Change, We All Can Change
For me, the development and implementation of FASB ASC 842, Leases played out like the plot of Rocky IV. After Rocky reclaimed his boxing championship title from Clubber Lang, he planned to relax and spend time with his family. Similarly, after the adoption of FASB ASC 606, Revenue from Contracts with Customers, it seemed time […]
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Last but Not LEASED
In our sixth installment of our lease series, we bring the series to close. Previously we covered: Overview of the standard – The Path of LEASE Resistance Lease Identification – At the Very LEASED Determining lease term – New LEASE on Life Calculating discount rates – LEASE Common Denominator Accounting alternative and policies – LEASER […]
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LEASER of Two Evils
In our fifth installment of our lease series, we cover accounting alternatives and policies. As Aristotle wrote, “the lesser evil can be seen in comparison with the greater evil as a good, since this lesser evil is preferable to the greater one.” It is a stretch to say that Leases (Topic 842) is evil, but […]
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LEASE Common Denominator
In our fourth installment of our lease series, we discuss discount rate considerations used when present valuing future obligations related to leases. Discount Rate Once the term of the lease is determined, the next logical step is to calculate the amount of the right-of-use asset and lease liability by present valuing the lease payments over […]
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The path of LEASE resistance
It always amazes me the infinite possibilities that we encounter every day. Each decision results in new opportunities and challenges. Minor decisions that we think little of could have significant implications. When setting off on any journey, it is important to plan out your path and try to mitigate obstacles, so you do not lose […]
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ERC Grants, Accounting Considerations
By now many businesses have applied for and received Employee Retention Credit (ERC) grants. Now you likely have questions regarding accounting for and reporting of these transactions. Accounting Considerations Construction entities who receive ERC grants likely analogies to one of the following accounting alternatives: IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, […]
