Audit & Accounting Update: February 2019

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition in the consumer products industry
We have published a white paper to assist consumer products entities in understanding the new revenue recognition guidance.

Private company accounting for common control arrangements
Our white paper provides insights on private company accounting for variable interest entities under common control.

Business combinations: In motion
Our summary highlights standard-setting activities that affect the content in our Guide to Accounting for Business Combinations.

Market volatility: Consideration of goodwill impairment
Reminder: a significant drop in share price could be a triggering event for the consideration of the impairment of goodwill.

FASB proposes targeted transition relief for CECL
The FASB proposes to allow the option of measuring certain types of assets within the scope of Subtopic 326 at fair value.

 

computer, phone and pens on a desk

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: February 2019

Tax Reform

Final regs highlight actions for taxpayers using 20 percent deduction
Critical action items taxpayers need to take.


Trending in Tax

Tax issues arise when employers pay employee business travel expenses
Business travel arrangements require employers to carefully analyze and determine proper tax treatment for employees.

Why we call it business transition planning
What is the secret to a successful business succession and transition for owners? It starts with a sound plan.

The gift tax exemption coast is clear. Time to go back into the water?
Knowing that there will be no loss of the benefit of using the higher exemption before 2026, we consider some ways and means of using it.

writing in note pad and calculator out

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Audit & Accounting Update: January 2019

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

FASB Staff Q&A document: Estimating credit loss reserves
A FASB Staff Q&A addresses use of the WARM method to estimate credit loss reserves for less complex financial asset pools.

ASC 606: Disclosure checklists for public and nonpublic entities
Our disclosure checklists are intended to assist entities in complying with the FASB’s revenue-related disclosure requirements.

Monitoring inflation when applying ASC 830
The CAQ International Practices Task Force has developed a framework that may be helpful in monitoring inflation statistics.

FASB issues narrow-scope amendments to ASC 842
The FASB has addressed three issues lessors sometimes encounter in applying Accounting Standards Codification Topic 842, “Leases.”

Proposed Codification improvements for lessors
The FASB has proposed guidance for two issues lessors sometimes encounter in applying Accounting Standards Codification Topic 842.

Proposed accounting alternatives for not-for-profit entities
The FASB has proposed accounting alternatives for not-for-profit entities for goodwill and certain identifiable intangible assets.

consulting with one another using a calculator

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: January 2019

Tax Reform

New year, new law, new challenges
Complexity of the Tax Cuts and Jobs Act and technology delays at the IRS may force taxpayers to extend filings. At a minimum, taxpayers should be prepared to extend and file their returns later in the year, even if they have previously filed by the March or April 15 deadlines. Taxpayers should consult their tax adviser and make a plan to address the appropriate timing and additional steps necessary to file their 2018 returns.


Trending in Tax

Tax reform’s impact on business and professional services firms
Business and professional services firms face challenges due to tax reform, but there are opportunities to maximize the benefits, too.

Post-Wayfair misconceptions and technology companies
The Wayfair decision doesn’t just affect online retailers. Technology businesses must address resulting state sales taxes, too.

Tax deduction for pharmaceutical drug inventory
Enhanced tax deduction may be available for drug inventory contributions made to certain charitable organizations.

Nonqualified deferred compensation plan FAQs for employers
When setting up or managing nonqualified deferred compensation plans, employers should consider several key questions.

 

tax preparer typing on computer and using calculator

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Insero Names New Tax Partner

Insero & Co. CPAs has announced that Douglas D. Stark has been admitted as a partner in the firm’s Tax Department based in Rochester. He joins Insero with over 35 years of diversified tax and accounting experience serving privately-held businesses, family offices and high net worth individuals.

His areas of specialization include tax and estate planning, business acquisitions and divestitures, family office services, succession planning and wealth transfer strategies. Stark began his career at Deloitte & Touche, where he eventually became partner before making the move to private industry. He has a broad base of diversified business experience working with startups through late stage multi-generational businesses and their owners.

Douglas Stark, Tax Partner at Insero & Co. CPAs

“Doug has a wealth of knowledge to share and our clients will see a great benefit from his return to public accounting,” said Nancy Catarisano, Managing Partner of Insero & Co. CPAs. “With our firm’s growth and the increasing complexities associated with changes in tax law, we are glad to have Doug on our team.”

Stark is a graduate of Houghton College, where he earned a Bachelor of Science in Business Administration and the Rochester Institute of Technology where he received a Master of Science in Accounting.

Rochester-based Insero & Co. CPAs is an accounting and business advisory practice with five locations serving New York state. A full-service public accounting firm, Insero provides attest, tax and consulting services to government agencies, colleges and universities, non-profit organizations and businesses ranging from privately held family businesses to multi-national corporations. These clients represent many industries, including service, manufacturing, distribution, high-tech, telecommunications, education, social services and real estate. For more information, visit www.inserocpa.com.

Tax Update: November 2018

Tax Reform

IRS releases proposed regulations for Qualified Opportunity Zones
The IRS released proposed regulations and a Revenue Ruling providing guidance on the newly created Qualified Opportunity Zones.

Investing in opportunity zones under the 2017 Tax Act
Taxpayers need to consider the tax benefits (deferral and possible exclusion) of investing realized gains in opportunity zone funds.

Cushioning the double-tax blow: the section 962 election
Double tax on dividends received by United States shareholders from foreign corporations addressed via TJCA through section 962.


Trending in Tax

Capital expenditures are not meeting expectations
How tax laws affect a company’s growth and cash flow depends on management’s priorities. The key is investing for the long term.

South Dakota v. Wayfair and manufacturing: 3 misconceptions debunked
The Wayfair decision goes beyond just retail and can impact manufacturers that sell exempt to resellers or distributors.


Tax Planning

2018 year-end tax considerations for businesses
A business guide to tax considerations for 2018 and beyond to help the middle market make smart, informed decisions.


Special Interest

The Real Economy: Volume 45
Developing markets face growing risks that present a clear and present danger to middle market firms.

tax expert using a calculator to calculate tax rates for qualified opportunity zones

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Audit & Accounting Update: September 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Accounting

Proposed amendments to credit losses standard
On August 20, the FASB issued a proposal to amend the effective date of ASU 2016-13 for non-public business entities.

Changes to accounting for grants and contributions made and received
Our white paper will help financial statement preparers understand the clarifications made by FASB ASU 2018-08.

FASB proposes narrow-scope amendments to ASC 842
A recent FASB proposal addresses issues lessors sometimes encounter when implementing ASU 2016-02, Leases (Topic 842).

Two working drafts: Allowance for credit losses implementation issues
The AICPA Financial Reporting Executive Committee is requesting comment on two working drafts discussing ASU 2016-13 implementation issues.

Accounting guidance for long-duration insurance contracts
A recent ASU addresses long-duration insurance contracts, such as life insurance, disability income, long-term care and annuities.

Changes to fair value measurement disclosure requirements
Recently issued FASB ASU 2018-13 removes, modifies and adds certain disclosure requirements within ASC Topic 820.

Changes to disclosures for sponsors of defined benefit plans
ASU 2018-14 changes certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.

Accounting for costs of cloud computing implementation
ASU 2018-15 addresses the customer’s accounting for the costs of implementing a cloud computing service arrangement.

Changes to revenue recognition in the industrial products industry
Our white paper explains how FASB ASC 606 could significantly affect entities in the industrial products industry.

SEC

SEC disclosure update and simplification
The SEC recently amended certain disclosure requirements that have become redundant, outdated, overlapping or superseded.

Compliance guide: Amendments to smaller reporting company definition
A recent SEC compliance guide addresses matters related to a final SEC rule that amended the smaller reporting company definition.

aerial business computer

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: July 2018

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Substantial accounting changes for nonemployee share-based payments
We have prepared a summary of the accounting changes for nonemployee share-based payments resulting from the issuance of ASU 2018-07. The Financial Accounting Standards Board’s recently updated guidance to align nonemployee share-based payment accounting with employee share-based payment accounting will result in significant measurement changes.

Changes to revenue recognition in the construction industry
Our white paper assists in understanding the application of the new revenue recognition guidance to construction contracts and how a construction contractor could be significantly affected by the new guidance.

Leases: Impact of ASC 842 on the retail and restaurant sector
Our article discusses specific aspects of the new leasing standard that retailers and restaurant operators should consider. To understand these considerations the first step is to understand the full inventory of all contracts that would fall under the new definition of a lease. Understanding the financial reporting and operational impact is imperative also to the middle market.

Monitoring inflation when applying ASC 830
A framework is available to assist in the determination of whether a country’s economy should be considered highly inflationary. The determination of a highly inflationary economy begins by calculating the cumulative inflation rate for the three-year period that precedes the beginning of the reporting period, including interim reporting periods.

accounting achievement aerial

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.