As we enter into another audit busy season, I have started my standard exercise of compiling a list of frequently encountered audit and accounting issues that require research, additional analysis and often times detailed disclosures and even material adjustments to my client’s financials. An oft-recurring theme is the existence of related party transactions and how such transactions are recorded and disclosed.
Below are a few frequently asked questions on this subject that merit our attention: (more…)
In a new International Practice Unit (IPU), the IRS charted audit steps its examiners should follow in reviewing the transfer pricing documentation of U.S. taxpayers that transfer and provide tangible property, intangible property, and service to foreign affiliates in exchange for payments (that is, outbound transactions). (more…)
A few months ago, I had compiled a short list of common errors encountered in the consolidation of foreign operations. Now, I wish I had simply waited a few months to publish the post as I have since come across more issues that merit a mention while consolidating financials of related entities or even preparing the separate financials of related entities. Bear in mind that some of these could apply irrespective of whether they are related to foreign entities.
It is that time of the year again when I am working on audits of U.S. companies with significant international operations, either in the form of wholly owned subsidiaries or branch offices. And my observations while performing these audits have resulted in this compilation of common errors while accounting for foreign currency, recording translation adjustments and finally the culmination into consolidated financials.
By Guest Blogger: Rob Trammell, ASL Principal
The IRS recently released a “Roadmap for Transfer Pricing Auditors.” This roadmap lays out IRS policy related to transfer pricing issues, and provides auditors with tools and detailed procedures for how to work a case.
Of course not! This is a great place to work; we treat employees like family and pay them well. Besides…we only hire people we trust!
Well…think again. Most fraud-related surveys (and many of them exist) find that schemes typically last multiple years before being discovered, not-for-profit and religious organizations are targeted more often than other entities, and perpetrators are long-time employees who rarely have been charged previously with fraud. To sum it up, “trustworthy” people can effectively steal from you. You watch the others carefully or make sure to limit their access to cash or other assets.
As I prepare myself for a presentation on the “Basics of Accounting for Lawyers” for the Practicing Law Institute in San Francisco in July, I am debating on how much detail to include in the talk. I suppose that if the attorneys know why and how we as accountants rely on their work, they would better understand our requests for information and its urgency during our audits…
Seems like everywhere I look these days, there’s an article about key issues for US companies wanting to do business in India. And if that wasn’t enough, several of my clients now have a presence in India requiring me to once again get familiar with the nuances of Indian laws and regulations. While I leave it to the other experts to opine on organization structure, relevant labor and currency laws and tax considerations, such as in Journal of Accountancy’s March 2013 article, How to Do Business in India, I’d like to share my two cents (or ₹1.09 at current exchange rates) on how an Indian subsidiary (component) impacts the financial reporting for the group by the parent US company…
This past weekend I found myself scrambling around town and my house trying to finish up my way-too-long to-do list before December 25th hits. I want things to be just perfect for my family as we celebrate one of the most important days of our year. In the accounting world, the next big date to scramble for is the night of December 31st/January 1st as calendar year-end is just around the corner. Picture this…