To continue the discussion of the ASC 606, Step 2 of the revenue recognition process requires examining what the seller has promised to do for the customer, and if there are multiple promises, whether these promises should be accounted for separately or combined. This examination determines the performance obligations which are the basis for the revenue recognition. (more…)
CPAs Talk Tech Biz
Revenue recognition is getting a lot of attention since ASC Topic 606 “Revenue from Contracts with Customers” was first issued in 2014. Since that date, we have had several posts on our blog that focus on some of the details and changes related to the new standard. As we get closer to implementation, it is time to take a closer look. (more…)
“Debt issuance costs” are costs incurred that would not have been incurred had not an entity procured a new debt instrument – in other words, incremental costs directly related to the new financing. The FASB Accounting Standards Codification (ASC), interestingly, does not define “debt issuance costs”, although the FASB issued two Accounting Standards Updates (ASUs) in 2015 related to presentation of debt issuance costs, with effective dates for nonpublic companies for financial statements covering fiscal years ended in December 2016 or later. (more…)
CA Governor’s Office of Business and Economic Development reminds businesses about upcoming August 21st deadline for applications for California Competes Tax Credit.
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.
Tax credit agreements are negotiated by Governor’s Office of Business and Economic Development (GO-Biz) and approved by a statutorily created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
It sure seems like it was a long time ago that I had anything to say on the subject of IFRS. Quite recently, a client approached me requesting assistance with the conversion of their US GAAP basis financials to IFRS to conform to their parent company’s presentation. And as I explained the key differences to them, I thought to myself, wouldn’t it be nice if I had a cheat sheet of considerations for making the switch to IFRS? To me, understanding the differences between the two standards and the advantages (or disadvantages) of one over the other can go a long way in deciding whether IFRS is the more logical choice and if so, how to plan the conversion. (more…)
The growth of internet based e-commerce sales and companies offering software as a service has been phenomenal in recent years. The U.S. Commerce Department estimates that e-commerce sales increased from $229 billion in 2012 to $390 billion in 2016. This has impacted traditional retail sales which serves as the base for sales tax revenue and is an important factor in apportioning income of multi-state businesses. Unfortunately, tax rules have not kept up with this changing trend. Federal legislation has not addressed many of the issues created by the digital economy so states have been free to adopt their own rules. As states are anxious to find new revenue sources they have adopted some aggressive tax generating rules. (more…)
Selling a business may be a natural progression for your company as discussed in Parts I and II of this series by Senior Tax Manager, Naila Sharifova. As Naila explained, there are tax considerations for your company and shareholders which impact the amount of income generated by the sale. But whether you are selling a startup with intellectual property or you are selling your company as part of your retirement plans, the acquirer will want to review your company’s financial statements to determine what they are willing to pay for your company. (more…)
According to the Association for Finance Professionals (AFP) annual survey for 2016, 74% of finance professionals indicated that their organization experienced actual or attempted payments fraud during 2016. This level is the highest since 2006 and follows decreases from 2009 through 2013 when the statistic started edging up again from 60% to 62% in 2014 and blasted to 73% in 2015. (more…)
Based on an IRS investigation, taxpayers numbering only in the 800’s in each of the years 2013 through 2015 reported a transaction description likely related to Bitcoin on the form used to report capital gains or losses from property transactions. In 2013, the IRS issued guidance to say that virtual currency transactions were property transactions, rather than currency transactions, and followed that up with practical guidance in April 2014 in their Virtual Currency Guidance, Notice 2014-21. (more…)