ASC Topic 326 – Current Expected Credit Losses

Give Credit Where Credit is Due For the non-public, non-financial sector, it took a while for the new standard on credit losses to get here. But it’s here now and breathing down our necks with a vengeance. CECL (pronounced cecil) was issued by the FASB in 2016. For the non-financial sector, it’s somewhat of a wolf in sheep’s clothing. Not that it was intended to be that way, but it just is. So beware. It’s a peer review “gotcha” event. As the song says, “Things ain’t what they used to be.” This article will address some CECL issues in a Read More »

AIs Impact on the Accounting Industry

Brace for Impact Tech entrepreneur Mark Cuban stated in recent years that artificial intelligence (AI) will dominate the landscape of the business world, so much so that entire industries could be relegated to near obsolescence. One such industry he mentioned happens to be near and dear to our hearts: the 7,000-year-old accounting industry. After taking a few deep pulls from my handy hyperventilation bag, it got me thinking: is that truly possible? Far be it from me to spit in the face of the “experts,” but the accounting industry as a viable employment option will most decidedly not be disappearing Read More »

ASC 606-Revenue Recognition-Uninstalled Materials

Living in a Material World We’ve worked with the revenue recognition standard under ASC 606, Revenue from Contracts with Customers, for a few years now. How’s it going? Pretty good? Well, now may be an excellent time to reexamine a somewhat dubious but significant area of the standard. This article will examine revenue recognition for materials cost related to a construction contract. Specifically, we will discuss critical factors that impact how a contractor who uses the cost-to-cost input method recognizes revenue associated with uninstalled materials. The FASB has an underlying concern that cost-to-cost revenue recognition could result in an overstatement Read More »

Secure Act 2.0

Invest In The Future On December 29, 2022, as part of the Consolidated Appropriations Act of 2023, President Biden signed the SECURE 2.0 Act of 2022 into law. The law enacted numerous new retirement-related provisions with various effective dates. Many of the provisions are designed to encourage citizens to invest in their future. The law is very extensive and complex. Below is a snapshot of a few of the provisions. Required Minimum Distributions. The law requires when you reach a certain age, required minimum distributions (RMD) must be made from tax-sheltered accounts (IRA, 401(k)s) and, therefore, be subject to tax. Read More »

Leases – A Follow-Up

Helpful Changes Made by the FASB The FASB issued the much anticipated ASU No. 2023-01 on March 27, 2023. It made changes that affect related party arrangements between companies under common control. The positive changes will help smooth the road for this part of lease accounting. The changes affect two broad areas for related party leases: between entities under common control: Terms and conditions to be considered and, Leasehold improvements. In a Nutshell: Companies with related party leases between entities under common control should elect the new practical expedient to strictly apply written terms and conditions of lease arrangements between Read More »
Show Buttons
Hide Buttons