A fter a nearly 10-year collaboration to develop a converged standard on leasing, on Jan. 13, 2016, the IASB issued IFRS 16, Leases, and on Feb. 25,…
Accounting for Leases under the New Standard, Part 2
Lessor Accounting, Changes in Lease Terms, Practical Expedients, and Preparation Tips
In contrast to the lessee model, the lessor model under FASB's new lease accounting standard has three different types of leases: operating, sales-type, and direct…
Much has changed since the PCAOB began its inspection program in 2004. In just the last 10 years, the number of auditing firms registered with…
Accounting for Leases Under the New Standard, Part 1
Definition and Classification of Leases and Lessee Accounting
In Brief The new lease accounting standard, released by FASB in early 2016, represents one of the largest and most impactful reporting changes to accounting…
Marketers’ Methodologies for Valuing Brand Equity
Insights into Accounting for Intangible Assets
Many companies exhibit a discrepancy between their tangible book value and their market value. For example, global brand expert Kevin Keller cites PepsiCo, which had…
In Brief Corporate sustainability reporting is becoming more widespread with each passing year, and with that growth comes the need for companies to back up…
In Brief As more and more companies begin to devote serious attention to sustainability reporting, many different systems of rating the depth and effectiveness of…
Recent Trends in Reporting Non-GAAP Income
An Example from Social Media Companies
In May 2016, the SEC issued new Compliance and Disclosure Interpretations (CDI) and modified others to revise its guidance on the reporting of non-GAAP financial…
New York State recently adopted a “first-in-the-nation” set of cybersecurity compliance requirements that impact any businesses or organizations that report to the Department of Financial…
The Chief Information Security Officer
The New CFO of Information Security
Traditionally, CPAs have considered the chief financial officer (CFO) as the guardian of a business's organizational data. It was and remains the CFO's responsibility to…
The Computer Crime Research Center defines cyber-crime as “the commitment of crime using electronic technology means.” It can be a theft of assets, a destruction…
If it is not already on the schedule, CPAs should remember to talk to business clients about withholding on payments to nonresident aliens. A withholding…
Historically, bankruptcy of governmental units has been rare, but in recent years large municipal units such as Detroit, Mich., Jefferson County, Ala., San Bernardino, Calif.,…
In Brief Many strategies exist for transferring wealth from one generation to the next without running afoul of the estate tax. Most of these, however,…
Rules for Tax Deductions On Charitable Contribution
Chief Counsel Advice
It has become common practice for some businesses to advertise that they will donate a certain percentage of their sales proceeds to altruistic causes or…
Vacation Vouchers and Other Benefits as Incentives
Special Tax Considerations
Consider the following scenario: a taxpayer enthusiastically informs his CPA that his old family car was donated. Upon further inquiry, the CPA is satisfied that…
State and Local Government Pensions at the Crossroads
Updating Accounting Standards Highlight the Challenges
In Brief Underfunding, questionable investment decisions, imperfect assumptions on future market returns, declining interest rates, and the structure of defined benefit plans have created a…
Internal Control Deficiencies in Local Government
Evidence from School Districts
Internal controls are a vital component of any financially healthy organization, and public school districts are no exception. In New York, the Office of the…
Preparing the Statement of Cash Flows Using the Direct Method
Illustrating a Simpler Approach
FASB's Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, removes the requirement that not-for-profit (NFP) entities that choose to prepare the…
AICPA Proposal Raises the Ethical Bar
Incorporating International Standards into the Code of Professional Conduct
In February 2017, the AICPA's Professional Ethics Executive Committee (PEEC) agreed to propose modifications to the Code of Professional Conduct that would require certain actions…
Developing Ethical Leaders for the Accounting Profession
Finding Inspiration from the Coast Guard Academy
The public relies on professionals. Medicine, teaching, law, accounting, the military, the clergy, and public safety, among many others, have all been regarded as honorable…
Applying the AICPA’s Professional Standards to Tax Practice
Best Practices for Minimizing Risk and Penalties
The AICPA's Statements on Standards for Tax Services (SSTS) are now an authoritative part of the Code of Professional Conduct. As such, they are now…
Forensic Accountants and Calculation of Value Reports
Recent Court Observations
Litigation matters often require that the value of specific assets or business be determined. The standards by which such valuations are arrived at can be…
Reporting of Discontinued Operations
Past, Present, and Future
In April 2014, FASB issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which is effective…
Applying the Equity Method under ASU 2016-07
Another Milestone in FASB’s Simplification Initiative
In March 2016, FASB issued Accounting Standards Update (ASU) 2016-07, Simplifying the Adjustment to the Equity Method of Accounting. This update was issued as part…
After years of anticipation, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued their final standards on lease accounting.…
FIN 46(R), Consolidation of Variable Interest Entities—An Interpretation of ARB No. 51, was issued in December 2003 in response to accounting scandals in which certain…
In Brief State legislatures and tax departments sometimes find out-of-state professional athletes who play games in their states an irresistible source of taxable income. Tennessee,…
A Snowbird Must Carefully Plan Its Flight
Establishing Tax Residency under the Laws of New York and Florida
In Brief New York residents sometimes relocate to Florida to take advantage of that state's more lenient tax laws (not to mention more moderate climate).…
Some people love him. Some people hate him. Regardless of what anyone feels about him, New York City real estate mogul and TV reality show…