It is a well-known fact that best in class contractors prepare a work in progress (WIP) schedule on a regular basis. Not only does this practice allow the users of the financials, such as lenders and bonding companies, identify early warning signs, it enables contractors to better measure their progress on jobs and be proactive in seeking change orders and contract revisions. As a constant reviewer of contractor financials, I have found the following most common red flags on WIP schedules that are worth mentioning: (more…)
In the last couple of years, I have witnessed several of my private company clients reorganize their operations, through either a merger, an acquisition or a significant management member buyout. While such situations provide a great stage for all to display their accounting chops, they also present us an opportunity to consult with our clients and help them avoid an accounting faux pas or burdensome and unnecessary disclosures caused by an inadvertent accounting election. So, in no specific order, I thought I would summarize some of the unique accounting issues I’ve encountered in such situations and how to navigate them: (more…)
If you have been following Steps 1 (Identify the Contract with the Customer) through 3 (Determining a Transaction Price), of the revenue recognition update as eagerly as I have, then I am sure that you keenly await the discussion on Step 4 about the allocation of the transaction price to the performance obligations in a contract. The wait is over as we explore Step 4 in this blog post. A couple key concepts that we need to understand in this process: the allocation objective and standalone selling price. (more…)
Stories of cyber-attacks, malware, ransomware and all possible variations of data breaches have been grabbing headlines in recent months. Personally, I’ve been on the receiving end of phishing emails from several of my business contacts, unbeknownst to them, asking me to click on spurious links “recommended” by them. My colleagues Kay Filler and Nick Sabbatini wrote on the topics of ID theft and data breach risks not too long ago and offered some handy tips on the subject: ID Theft – Insider View & Technology and Connectivity: Understand and Mitigate Data Breach Risks. (more…)
It sure seems like it was a long time ago that I had anything to say on the subject of IFRS. Quite recently, a client approached me requesting assistance with the conversion of their US GAAP basis financials to IFRS to conform to their parent company’s presentation. And as I explained the key differences to them, I thought to myself, wouldn’t it be nice if I had a cheat sheet of considerations for making the switch to IFRS? To me, understanding the differences between the two standards and the advantages (or disadvantages) of one over the other can go a long way in deciding whether IFRS is the more logical choice and if so, how to plan the conversion. (more…)
San Jose, CA (November 17, 2016) – Abbott, Stringham & Lynch, one of the largest local CPA firms in the Silicon Valley, is proud to announce that Deepa Bhat has been promoted to Audit Principal and Rachel Gillespie has been promoted to Tax Principal, effective January 1, 2017.
In making the announcement, Abbott, Stringham & Lynch’s Principal-in-charge of the Assurance and Accounting Department, Carol Wagner, said, “We are pleased to welcome Deepa and Rachel to the partnership group. These exceptional leaders have the experience and proven skills to take on their new responsibilities that will considerably contribute to our growth and build our reputation for providing remarkable client service.” (more…)