The recent changes in stock compensation for non-employees will reduce complexity and should also smooth volatility in recognizing associated compensation costs in the income statement. These changes were issued in June 2018 and are first effective for private companies with calendar year 2020, although early adoption is permitted. (more…)
CPAs Talk Tech Biz
Way, way back in 2002, the FASB responded to the Enron debacle by issuing the infamous accounting standard referred to as FIN46. While the noble goal was to curtail the ability of companies to keep potential liabilities off their balance sheets (off-balance sheet risks), the pronouncement probably created more angst than any other standard for nonpublic companies. In addition, the requirement to consolidate commonly owned entities that met the definition of a “Variable Interest Entity” with the primary operating entity financial statements often convoluted the financial reporting for users, both internal and third-party. (more…)
“Clean up” of accounting guidance is always needed to adapt to changing times. Businesses enter into transactions, both on the initiation and the receiving end, not envisioned decades ago. Computer hosting arrangements (“cloud computing”) is one such example. This post deals with only the customer end of a cloud computing arrangement. (more…)
About two years ago, my post, FASB Shines a Light on “Going Concern”, summarized new disclosure rules that, for the first time, placed GAAP disclosure requirements on company management when preparing financial statements, based on their required consideration of the entity’s ability to continue as a going concern. The earlier post summarizes those new requirements. Since then, existing independent auditor/accountant reporting requirements were updated to respond to the changes required of management. Without reconsidering these changes here, I wondered whether any interesting observations could be made based on management’s and auditor’s responses to these new rules, which were first effective for calendar year 2016 and fiscal year 2017 financial statements. (more…)
So you now hold cryptocurrency in your business, perhaps because you’ve decided it is an advantageous medium of exchange, or you might hope to profit from an upswing in value. Clearly, your holdings are an asset of your business, but how should you display them on your balance sheet and at what amounts? (more…)
Maybe companies got off easier than might have been, as this new law was passed in late-June 2018 in lieu of a potentially more restrictive November 2018 ballot initiative, when the initiative’s backers were convinced to throw support behind the passage of this law, instead. (more…)
To address the second part first, the accounting for the acquisition is dramatically different, depending on whether assets or a “business” is acquired. The following table summarizes some key differences. (more…)
Accounting guidance for situations when stock awards (stock options, restricted stock units and other equity-based instruments) are modified after the original grant date has been in place for a long time – with the original literature that covers fair value calculations and determining how much and when compensation expense is recorded. What hasn’t been clear for a long time is when the rules for how to handle modifications need to be applied to changes in stock awards. (more…)
Likely, you saw plenty of headlines as the final May 25, 2018 deadline approached. Just more alphabet soup? You may have ignored the article content as soon as you discovered that this was the name of European Union (EU) legislation.
What is it?
General Data Protection Regulation – protects data and privacy for EU residents (individuals), who are referred to as “data subjects”. Provisions cover collection, protection and retention of personal data. (more…)