Category Archives: Accounting & Auditing

Revenue Recognition Consideration for Distributors: Drop Shipments

With the Financial Accounting Standards Board’s (FASB) new revenue recognition standard, effective for December 31, 2019 year ends, much attention has been given to the basic principles of the standard, and many have observed that certain industries will be more heavily impacted than others.  Distributors generally have a simple revenue recognition pattern: revenue is typically […]

Nonprofits: Take Note of Expense Reporting Changes

Nonprofits must be on their toes nowadays. New regulatory changes are being introduced constantly, many in just the last two years, including: an updated accounting standard that requires a complete overhaul of the reporting process; a tax law that threatens future donations revenue; and, new state-wide audit requirements. It can be a lot to keep […]

New Reporting Rules Impact Nonprofit Organizations

Most nonprofit executives are focused on fundraising, service and program delivery, staff development and community relations. Ensuring the organization is well funded and staffed to provide the services needed to meet the mission statement is usually at the top of the list. So on the list of priorities, financial reporting may sometimes fall lower on […]

Supreme Court Ruling Affects Online Retailers, Without Physical Nexus, to Collect Sales Tax

For the past 25 years, businesses have relied on Quill Corp. v. North Dakota for not imposing sales tax collections when their business lacked an in-state physical presence. After much debate, the highest court ruled in favor of South Dakota on June 21st in South Dakota v. Wayfair, Inc. The Supreme Court stated that Quill is […]

Changes to Depreciation Under Tax Reform

Calculator - Taxes

The Tax Cuts and Jobs Act (TCJA), signed into law in the final days of 2017, contains many changes that impact depreciation rules. While these changes are largely positive, there are some potential pitfalls taxpayers should be aware of. First-year bonus depreciation The TCJA increases the bonus depreciation percentage from 50% to 100% for qualified […]

NAIC Announces Adoption of INT 18-01: Updated Tax Estimates under the Tax Cuts and Jobs Act

On February 8, 2018, the Statutory Accounting Principles Working Group (SAPWG) for the National Association of Insurance Commissioners (NAIC) met via conference call to discuss INT 18-01: Updated Tax Estimates under the Tax Cuts and Job Act (the Act). Three issues were discussed: Reporting and updating estimates related to the Act Reporting Changes to Deferred […]

Pennsylvania Changes Audit Requirement Thresholds

The nonprofit industry in Pennsylvania will see a few changes after Governor Wolf’s recent legislative signing of Act 71 of 2017. Act 71, signed into law by Governor Wolf in December of 2017, raises the annual contribution levels that will trigger an automatic audit for a nonprofit organization. The new limits will take full effect […]

New FASB Lease Accounting Standard Changes Effective 2020

Financial Statements

By now, most accountants, and many other financial professionals, are aware that a significant change is coming in lease accounting. Considering that almost all entities, for-profit and nonprofit alike, lease vehicles or equipment or real estate, this update will have a far-reaching impact. The existing Financial Accounting Standards Board (FASB) lease guidance, dating back to […]

Contracts Present a Challenge When Adopting the New Revenue Recognition Standard

Revenue recognition is a complex accounting area that companies cannot afford to get wrong. The new revenue recognition standard, ASU 2014-09, Revenue from Contracts with Customers (Topic 606) goes into effect on December 15, 2017, for public entities and other entities one year later. The countdown is on, and it’s causing a lot of apprehension […]

Developments in Indirect Cost Rate Audits for Architectural and Engineering (A/E) Firms

In early October 2016, I had the opportunity to travel to Chicago, Illinois to interact with some of the authorities responsible for aiding in development of the most current American Association of State Highway and Transportation Officials (AASHTO)-Audit Guide.  Speakers, Dan Purvine and Jerry Jones, ensured no state Department of Transportation members were present so […]