When surety underwriters review your financial statements, they are looking for evidence of sound financial condition. Every underwriter has its own standards and expectations, but here are five key performance indicators (KPIs) many bonding companies look at closely: (more…)
By Steve Carter, Principal
What is happening when a surety questions the accuracy or timely delivery of your financial statements or criticizes the content and consistent presentation? Why all the fuss?
By Blake Larum, ASL Senior Tax Manager
The Tax Extenders Bill passed on December 19, 2014 and it has a meaningful impact on the financial statements for 2014 as well as Q1 2015. The impact of certain provisions of the bill (e.g. R&D credit, look-through provision for CFC’s, etc.) will be reflected as a discrete event in Q4. If the Company is required to prepare quarterly tax provisions none of the provisions of the bill should have been reflected in the interim provision calculations for Q1 – Q3 (assuming calendar year corporation). As such, when the annual provision is prepared most companies would receive a rate benefit for the R&D credit, look-through provision for CFC’s, etc. Note, the provisions that give rise to temporary differences (e.g. 50% bonus depreciation, Section 179, 15-year recovery period, etc.) would not generally have a rate impact because of deferred accounting concepts under ASC 740.
Discussing the terms of a new bank loan with your lender can be overwhelming. I’ve run across some loan covenant requirements lately which, in my opinion, could be better negotiated upfront by borrowers. Requesting a bank waiver for being out of covenant is much harder after you’ve already violated the covenant than when you’re still in the negotiation phase of your new loan…