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…)
No time like the present to prepare a game plan for the new revenue recognition standard. To ensure a smooth transition from your current approach, be sure to explore all available resources, read and review practical guidance to understand how these new standards affect your business practices and then develop your implementation strategy. A brief overview of this process is outlined here:
By Deepa Bhat, CPA, Principal
ASL Construction Group
These days, a lot of our business gets done on mobile devices, whether we are checking e-mail, tracking appointments or even reviewing plans and paperwork. Smartphones and tablets have given us the ability to accomplish as much in the field as we would at our desk. This is especially true if you are working in the construction industry as you are likely always on the go and moving from site to site.
Being able to manage your people and projects from the field may be convenient, but it also introduces new security concerns. Malware and viruses designed to steal information and, in some cases, your money are becoming more prevalent on mobile devices. Distractions at the job site can also cause you to let your guard down, leaving you vulnerable to scams and other attacks. (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…)
As we enter into another audit busy season, I have started my standard exercise of compiling a list of frequently encountered audit and accounting issues that require research, additional analysis and often times detailed disclosures and even material adjustments to my client’s financials. An oft-recurring theme is the existence of related party transactions and how such transactions are recorded and disclosed.
Below are a few frequently asked questions on this subject that merit our attention: (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…)
A recent survey conducted by the Association of Certified Fraud Examiners (ACFE) estimates that fraud losses for a typical organization amount to 5% of total revenues each year with median losses to the tune of $150,000. More than one‐fifth of such losses hit the million dollar mark. The most common type of fraud: asset misappropriation with median losses of $125,000 comprised 83% of all fraud cases reported while financial statement fraud schemes made up just 10% of the total fraud cases, but caused the greatest median loss at nearly $1 million. The frauds reportedly lasted 18 months before being detected. The most telling fact was that private companies logged the highest median loss of $180,000 in comparison to public companies, government, non-profit and other sectors. (more…)