As we head into another busy tax season, I am mentally preparing myself to answer questions from my contractor clients on how they stack up within their industry and against their peers. Lucky for me, I have access to industry benchmarking data that makes my client conversations productive and informative. In addition, as a bonus, the benchmarking reports provide a deep insight into the Company’s present and, often, their future. (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…)
When surety underwriters review your financial statements, they are looking for evidence of sound financial condition. Every underwriter has its own standards and expectations, but here are five key performance indicators (KPIs) many bonding companies look at closely: (more…)
By Steve Carter, Principal
What is happening when a surety questions the accuracy or timely delivery of your financial statements or criticizes the content and consistent presentation? Why all the fuss?
By Blake Larum, ASL Senior Tax Manager
The Tax Extenders Bill passed on December 19, 2014 and it has a meaningful impact on the financial statements for 2014 as well as Q1 2015. The impact of certain provisions of the bill (e.g. R&D credit, look-through provision for CFC’s, etc.) will be reflected as a discrete event in Q4. If the Company is required to prepare quarterly tax provisions none of the provisions of the bill should have been reflected in the interim provision calculations for Q1 – Q3 (assuming calendar year corporation). As such, when the annual provision is prepared most companies would receive a rate benefit for the R&D credit, look-through provision for CFC’s, etc. Note, the provisions that give rise to temporary differences (e.g. 50% bonus depreciation, Section 179, 15-year recovery period, etc.) would not generally have a rate impact because of deferred accounting concepts under ASC 740.
Discussing the terms of a new bank loan with your lender can be overwhelming. I’ve run across some loan covenant requirements lately which, in my opinion, could be better negotiated upfront by borrowers. Requesting a bank waiver for being out of covenant is much harder after you’ve already violated the covenant than when you’re still in the negotiation phase of your new loan…