/Tag: GAAP

Disclosing Critical Audit Matters In Audit Reports During COVID-19

By |2020-08-19T17:08:24+00:00August 19th, 2020|Categories: Audit & Accounting, COVID 19|Tags: , , , |

Starting in 2019, auditors’ reports for certain public companies must contain a new element: critical audit matters (CAMs). The requirement was in effect for audits of large accelerated filers (with market values of $700 million or more) in fiscal years ending on or after June 30, 2019. It goes into effect for smaller public companies [...]

COVID-19 relief: Short-term loan modifications aren’t Troubled Debt Restructurings

By |2020-06-12T16:42:48+00:00June 10th, 2020|Categories: Audit & Accounting, COVID 19|Tags: , , , , |

During the novel coronavirus (COVID-19) crisis, financial institutions may be working with struggling borrowers on loan modifications. A group of financial institution regulatory agencies, after consulting with the Financial Accounting Standards Board (FASB), has issued a joint statement. The guidance confirms that, for borrowers that are current on their loan payments, short-term modifications due to [...]

Choosing between using GAAP or tax-basis for your business

By |2020-03-01T04:14:39+00:00November 11th, 2019|Categories: Articles, Blog|Tags: , , , , |

Most businesses report financial performance using U.S. Generally Accepted Accounting Principles (GAAP). But the income-tax-basis format can save time and money for some private companies. Here’s information to help you choose the financial reporting framework that will work for your situation. What they are GAAP is the most common financial reporting standard in the United [...]

Don’t overlook intangibles when valuing your business

By |2020-04-06T22:30:49+00:00September 3rd, 2019|Categories: Blog|Tags: , , , , , |

The average company’s balance sheet understates its value by 80%, according to Sarah Tomolonius, co-founder of the Sustainability Investment Leadership Council. Why? Intangible assets aren’t recorded on the balance sheet under U.S. Generally Accepted Accounting Principles (GAAP), unless they’re acquired from a third party. Instead, GAAP generally calls for the costs associated with creating and [...]

Should environmental, social and governance matters be reported in public companies

By |2019-05-31T19:33:59+00:00March 18th, 2019|Categories: Blog|Tags: , , , , , , , , , , |

Environmental, Social, and Governance (ESG) Securities and Exchange Commission (SEC) Chairman Jay Clayton recently said that public companies shouldn’t be required to disclose information concerning environmental, social and governance (ESG) matters in their financial statements using a standardized format. Right now, these disclosures are voluntary and unstandardized. Disclosing ESG The SEC is a [...]

New revenue recognition standard causes significant work for private companies

By |2020-04-07T22:45:55+00:00February 5th, 2019|Categories: Blog|Tags: , , , |

Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) must comply with the landmark new revenue recognition standard in 2019. Many private company CFOs and controllers report that they still have significant work to do to meet the demands of the sweeping rules. If you haven’t started the implementation process, it’s time to [...]

3 financial statements you should know

By |2017-05-24T13:42:02+00:00April 7th, 2017|Categories: Audit & Accounting|Tags: , , , , |

Successful business people have a solid understanding of the three financial statements prepared under U.S. Generally Accepted Accounting Principles (GAAP). A complete set of financial statements helps stakeholders — including managers, investors and lenders — evaluate a company’s financial condition and results. Here’s an overview of each report. 1. Income statement The income statement (also [...]

Reporting contingent liabilities

By |2016-11-12T00:56:03+00:00November 14th, 2016|Categories: Audit & Accounting|Tags: , , |

Deciding whether to disclose pending litigation, a government investigation or another contingent liability is a highly sensitive matter, especially for public companies. Investors and other stakeholders want information about impending risks that may affect your company’s future performance. But you want to avoid alarming investors with losses that are unlikely to occur or disclosing your [...]

Private Company Update: Accounting for Goodwill

By |2017-05-24T13:42:30+00:00February 5th, 2014|Categories: Business Advice, International Tax|Tags: , , , , , , , |

In mid-January, 2014, the FASB (Financial Accounting Standards Board) issued an ASU (Accounting Standards Update) to U.S. GAAP (Generally Accepted Accounting Principles) that provide private companies with alternatives related to accounting for goodwill. The goal is to create simplification in accounting and a reduction in application cost for private companies. Intangibles-Goodwill and Other relates to [...]

Big GAAP vs. Little Gap – An Update

By |2017-05-24T13:42:41+00:00August 27th, 2012|Categories: Articles, Audit & Accounting|Tags: , , , , , |

In May 2012 the Financial Accounting Foundation (FAF) announced it was creating a Private Company Council (PCC) to improve the process of setting accounting standards and identifying and voting on differences in U.S. GAAP for private companies.   The two primary responsibilities of the PCC will be: To determine whether exceptions and modifications to existing [...]

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