Nov 16th Update—The Senate Finance Committee passed its version of the Tax Cuts and Jobs Act (TCJA) by a party-line vote of 14-12.
Nov 16th Update—The U.S. House of Representatives passed the Tax Cuts and Jobs Act bill, H.R. 1, by a vote of 227–205, on Thursday afternoon, with all Democrats and 13 Republicans voting no.
On November 9th, the Republican plan for tax reform took one step forward and two steps back. The House Ways and Means Committee approved H.R. 1 the, “Tax Cuts and Jobs Act” while the Senate’s Joint Committee on Taxation released their plan for tax reform. The goals of both the House and Senate are to cut individual and business tax rates and simplify our tax system but they have taken very divergent positions on many politically charged issues. To further complicate tax reform, the Senate plan has introduced some significant tax law changes that are not considered in the House plan. Today the Senate announced the inclusion of a provision to repeal the “individual mandate”, enacted as part of Obamacare, requiring taxpayers to have health insurance. (more…)
By Josh Cross, Senior Audit Manager
Now that all of the performance obligations (Step 2) of the contract have been separately identified, it’s time to determine a transaction price. Seems easy, right?
ASC 606 defines the transaction price as “the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes).” On the surface this sounds like an easy step for your entity to identify the price you are selling a product for, but in practice we know that not all transaction prices are fixed at the onset of the contract. When calculating the transaction price, an entity needs to consider all of the following: (more…)
Stories of cyber-attacks, malware, ransomware and all possible variations of data breaches have been grabbing headlines in recent months. Personally, I’ve been on the receiving end of phishing emails from several of my business contacts, unbeknownst to them, asking me to click on spurious links “recommended” by them. My colleagues Kay Filler and Nick Sabbatini wrote on the topics of ID theft and data breach risks not too long ago and offered some handy tips on the subject: ID Theft – Insider View & Technology and Connectivity: Understand and Mitigate Data Breach Risks. (more…)
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…)
The Republican promise of tax reform in 2017 took a huge step forward yesterday when Republican lawmakers released a framework for tax reform, announcing that their goals are to cut tax rates, simplify the Internal Revenue Code, and provide a more competitive environment for business. The framework generally reiterates proposals made by President Donald Trump in April. (more…)
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.
By Josh Cross, Senior Audit Manager
The landscape of nonprofits is changing and ironically it is looking a lot like the for-profit start-up world. These social entrepreneurs are using the same methods and ideas used by the most successful start-ups in the marketplace today and most of it is centered on harnessing the power of technology. (more…)