Tax, accounting, auditing news - Journal of Accountancy
WEBSep 13, 2024 · A letter asks the Department of Homeland Security to add accounting to its STEM Designated Degree Program List in an effort to bolster talent acquisition. Next 20. The latest news from the Journal of Accountancy, covering accounting, financial reporting, auditing, taxation, financial planning, technology, and more.
Keep or toss? A guide to CPA firm record retention
WEBWhen determining which records should be kept or purged, consider retaining items that document or support the firm's: Client/engagement evaluation process: Such as signed engagement letters, client acceptance checklists, engagement acceptance approvals, and client disengagement letters. Administrative records: Such as fee and billing records ...
Challenges to consider in auditing revenue recognition
WEBJul 1, 2020 · FASB's new revenue recognition standard, FASB ASC Topic 606, Revenue From Contracts With Customers, is one of the most significant changes ever in U.S. GAAP. The new, principles-based standard requires consideration of a five-step framework that includes estimates on the revenue recognized for the accounting period (see the sidebar, "Independence Missteps Related to Revenue Recognition," below).
Mechanics of the new Sec. 199A deduction for qualified business …
WEBMay 1, 2018 · One of the more important provisions in P.L. 115-97, known as the Tax Cuts and Jobs Act, enacted Dec. 22, 2017, is new Sec. 199A, the deduction for qualified business income (QBI).Sec. 199A allows a deduction for up to 20% of QBI from partnerships, limited liability companies (LLCs), S corporations, trusts, estates, and sole proprietorships.. Sec. 199A creates a deduction based on an ...
5 missteps to avoid when evaluating internal controls
WEBJul 1, 2019 · Misstep No. 2: Not understanding which controls are relevant to the audit. Auditors are required by paragraph .13 of AU - C Section 315 to obtain an understanding of internal control relevant to the audit. This includes all controls assessed as relevant by the auditor and is not limited to those controls that the auditor plans to test for ...
The pros and cons of LLCs - Journal of Accountancy
WEBDec 1, 2018 · The pros and cons of LLCs. This popular entity choice serves a wide variety of purposes. By Walter D. Schwidetzky, J.D., LL.M. December 1, 2018. Image by DigtialStorm/iStock. TOPICS. The use of the limited liability company (LLC) has mushroomed in popularity over the past two decades. IRS statistics show a 66% increase in domestic LLCs between ...
Frequently asked engagement letter questions - Journal of …
WEBSep 1, 2021 · Engagement letters can help prevent a disagreement from growing to a claim. If a claim should arise, the existence of an engagement letter generally leads to lower claim severity. In a 2017 analysis, the increase in the average dollar amount of claims when engagement letters were not used ranged from 19% to 71%, depending on the firm size.
Tax compliance after M&As - Journal of Accountancy
WEBDec 1, 2017 · Tax compliance after M&As. Elections, carryovers, and debt offer plenty of issues to track following either a stock or an asset deal. Accounting for merger and acquisition (M&A) activity is a common challenge for tax compliance professionals. Since each transaction can result in unique tax issues, a one - size - fits - …
Lessee accounting for governments: An in-depth look
WEBAug 1, 2019 · Tables 6 and 7 display the presentation of lease accounts on the lessee governmentwide statement of net position and statement of activities, assuming the same facts as in Tables 1, 2, and 3.For the statement of net position, the right-of-use asset is presented similarly to other intangibles, with a delineation of the gross amount, the accumulated amortization, and the net amount.
Mastering accounting for business combinations
WEBMar 1, 2019 · Accounting for business combinations is complex and requires considering a number of areas, including the following: Identifying business combination transactions. Identifying the acquirer. Determining the acquisition date. Measuring the consideration transferred. Recognizing and measuring the identifiable assets acquired and liabilities ...
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