By Guest Writer, Maverick Esser, with an Introduction by Steve Carter, CPA, Assurance & Advisor Principal
ASL Renewable Energy Group
For some reason, I found myself really struggling with finding an interesting topic for this edition of the ASL Advisor. I was hoping to somehow discover a timely topic that impacts us all, yet offers some form of viable solutions to the critical, if not dire, challenges facing our global environment.
In one of my Managerial Accounting classes at Santa Clara University, I was fortunate to have an extremely bright and talented young student who is looking at our world with a unique vision of practicality. In addition, even more exciting and hope raising, he is finding ways to put solutions into action! (more…)
By Steve Carter, CPA, Principal
The COVID-19 pandemic created unique conditions for businesses in the Bay Area and across California. The combination of forced business closures and stay-at-home orders left many companies in uncharted waters. Some were forced to close while others had to find new ways to deliver products and services to customers. At the same time, many were searching for new lines of credit, business loans, or other ways to access working capital. It was against this backdrop that FASB made the decision to delay the implementation of ASC 842 (new lease accounting rules) by one year, starting with reporting periods after December 15, 2021. Although early adoption was permitted, many decided to delay implementation to focus on pandemic-related issues. As the recovery continues and year-end is just a few months away, businesses need to re-examine the new lease accounting rules to ensure compliance.
On November 10, 2021, the FASB Board decided not to provide a third effective date deferral of Topic 842 for entities within the scope of paragraph 842-10-65-1(b) (generally private companies and certain not-for-profit organizations). (more…)
By Steve Carter, CPA, Principal
ASL Renewable Energy Group
In March 2021, President Biden announced his $2.3 trillion infrastructure bill, The American Jobs Plan. The package targets both traditional and non-traditional infrastructure, for example, roads, bridges, and water systems as well as the caregiving industry. The Plan also calls for substantial investments in research and development and expanding broadband internet access to rural areas.
Renewable energy is a focal point of the Plan, from calls to upgrade and modernize existing electrical infrastructure to investing in electric vehicles and clean energy. Part of the Plan looks to involve the private sector while other financing options include tax credits and incentives. (more…)
By Steve Carter, CPA, Principal
ASL Renewable Energy Group
The COVID-19 pandemic has created an array of financial, operational, and production challenges for businesses across many industries. Decreasing demand for products/services, constantly changing government regulations, and erratic consumer spending have left many facing unique challenges. Unfortunately, the renewable energy industry has not escaped the pandemic’s reach. According to the International Energy Agency’s (IEA), The Impact of the COVID-19 Crisis on Clean Energy Progress, the pandemic has had an adverse impact on renewable energy investments. Although the causes for the delay are multi-faceted, how the industry recovers and thrives is largely based on government policies and expenditures to implement change. The good news is, several important tax incentives were recently extended and more are awaiting Congressional approval. We have summarized them below. (more…)
By Steve Carter, CPA, Principal
ASL Construction Group
The issue of roof repairs and replacement presents an age-old dilemma for tax professionals and our clients. Generally (and most often optimally), one hopes that such repair, or even replacement costs, can be expensed in the year incurred. But the analysis required to determine what should be done is not so simple, especially with the recent issuance of the Tangible Property Regulations by the IRS.
To get to the best outcome, we need to raise insightful questions with our clients regarding their roofing system.
(more…)