We’ve all been there. In a meeting to discuss a significant change that is occurring we sense that we should say something. But what? This scenario closely aligns to what many firms are encountering as they audit the first round of not-for-profits that have implemented ASU No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. […]
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The 2018 Yellow Book Provides Slight Relief from the CPE Requirements
While the Yellow Book has been around since 1972, it was the 1988 revision of the standards which first established specific hourly CPE requirements for auditors working on Yellow Book engagements. The genesis of the CPE requirements stems from auditing history and experience as much as anything. When auditors leave college, they typically have little […]
Retirement Plan Increases for 2019
IRS announced the 2019 COLA adjustments to retirement plan limits on November 1, 2018 in Notice 2018-83. Elective deferrals for 401(k), 403(b), etc. plans rise from $18,500 to $19,000, plus $6,000 for those age 50 or older. The limit on defined contribution accounts increases from $55,000 to $56,000. The definition of a key employee in […]
The 2018 Yellow Book- Keeping it Under Control
Detecting a finding provides information. Detecting what caused the finding leads to transformation. Under the 2018 Yellow Book, findings may involve: (1) a deficiency in internal control (2) noncompliance with provisions of laws, regulations, contracts, or grant agreements; or (3) instances of fraud. Regardless of the type of finding identified, the root cause of a […]
Let Me Say This Another Way: Restating Net Assets for ASU No. 2016-14
ASU No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, is effective for fiscal years beginning after December 15, 2017. With limited exceptions, the amendments in ASU No. 2016-14 are required to be applied on a retrospective basis in the year that ASU No. 2016-14 is first applied. A retrospective application entails the application of […]
The Auditor’s Declaration of Independence
When in the course of human events it becomes necessary for auditors to implement the 2018 Yellow Book (i.e., financial audits for periods ending on or after June 30, 2020) it is important that they not overlook a new requirement found in the Yellow Book’s quality control requirements. Under the 2018 Yellow Book, at least […]
The Latest on Deductions for Business Grub
Since TCJA passed last December, we have heard from a multitude of professionals with varying levels of concern regarding the continued existence of the food and beverage deduction in light of the fate of entertainment expenses. Well, Notice 2018-76, issued October 3, 2018, clarifies that taxpayers generally may continue to deduct 50% of the food […]
FASB Issues Long-awaited Lease Simplification Update
With the effective date of Topic 842, Leases, right around the corner, the FASB recently issued two new ASUs that update the lease accounting guidance originally issued in 2016. Both of these updates are effective at the same time as Topic 842. In July, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, […]
Still No Bonus Depreciation for Qualified Improvement Property
Much has been written about Qualified Improvement Property (QIP) lately. QIP is defined as any improvement to an interior portion of a building that is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. QIP does not include any improvement for which the expenditure […]
House Republicans Release Phase 2 of Tax Plan
On July 24, 2018, House Republicans released their outline of Tax Reform 2.0. Interestingly, the outline commits to improving the tax code every year and likens the process to upgrading apps on a phone. Three main points are discussed. Making the individual and small business tax cuts of the Tax Cuts & Jobs Act permanent […]