When deciding how much time you should spend studying for the CPA exam, there a three things to consider: your academic background, how long you have been out of college and the type of work experience you have. All of these will factor in when you’re creating your study plan. But how do you know […]
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FASB issues ASU: Amendments to the Consolidation Analysis Explained
On February 18, the Financial Accounting Standards Board (FASB) issued the Accounting Standards Update (ASU) No. 2015-02. This update was designed to improve certain areas of consolidation guidance for reporting organizations that are required to evaluate consolidating certain legal entities. This update applies to public, private and not-for-profit corporations when deciding if they should consolidate […]
Limited Liability Companies Electing Status as S Corporations: The Unstable Hybrid
Written by Guy Schmitz J.D., LL.M. When advising on choice of entity, practitioners will sometimes recommend that a client form a limited liability company, which then elects to be taxed as an S corporation. There are good reasons for this recommendation, all touching upon state taxation. Whether the federal election is automatic at the […]
Jack Surgent Explains Changes to IRAs in the Proposed Budget for 2015
Catch up on all of President Obama’s proposed changes to IRAs in the proposed budget for 2015 from Surgent Chairman Jack Surgent. These proposed changes include: Limiting the ability of taking stretch payments to anyone other than a non-spouse. Currently, individuals are able to leave money in their IRA to children or grandchildren. Limiting […]
What the future holds for the accounting industry in 2015
Last month, President of Accountants Advisory Group Joseph Tarasco spoke with Forbes.com about what changes we might see in the accounting industry this year. Tarasco shared his predictions for what might take place in 2015 and identified critical industry trends. Fee pressures, rising staff labor costs and lack of quality staff will force firms […]
AICPA Issues Four Auditing Interpretations Addressing SAS No.126
On January 24, 2015, the AICPA Auditing Standards Board (ASB) issued four auditing interpretations to address issues related to the SAS No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted) (AICPA, Professional Standards, AU-C Section 570). In 2014, the FASB released Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure […]
Substantiation 101
Written by Guy Schmitz J.D., LL.M. We all recognize the importance of substantiating expenses, but it still helps to remind ourselves of that importance (from time to time) so we can remind our clients. Clients bemoan the complexity of the Code, and they are right. A review, however, of any of the daily or […]
More Than an Extender Act
Written by Guy Schmitz J.D., LL.M. Commentators have wisely emphasized the extender provisions of the recently passed federal tax legislation because the extender provisions are the bread and butter of any tax practice. There are, however, other provisions that merit attention, including a new savings provision designed to meet the financial needs of disabled persons […]
FASB Drops Extraordinary Items – When Will It Be Tested On The CPA Exam?
The concept of extraordinary items was dropped from U.S. GAAP by the FASB on January 9, 2015, as a result of the adoption of Accounting Standards Update (ASU) No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. Accountants and other financial professionals had […]