By Steve Carter, CPA, Principal
The COVID-19 pandemic created unique conditions for businesses in the Bay Area and across California. The combination of forced business closures and stay-at-home orders left many companies in uncharted waters. Some were forced to close while others had to find new ways to deliver products and services to customers. At the same time, many were searching for new lines of credit, business loans, or other ways to access working capital. It was against this backdrop that FASB made the decision to delay the implementation of ASC 842 (new lease accounting rules) by one year, starting with reporting periods after December 15, 2021. Although early adoption was permitted, many decided to delay implementation to focus on pandemic-related issues. As the recovery continues and year-end is just a few months away, businesses need to re-examine the new lease accounting rules to ensure compliance.
On November 10, 2021, the FASB Board decided not to provide a third effective date deferral of Topic 842 for entities within the scope of paragraph 842-10-65-1(b) (generally private companies and certain not-for-profit organizations). (more…)
By Steve Carter, CPA, Principal
ASL Renewable Energy Group
In March 2021, President Biden announced his $2.3 trillion infrastructure bill, The American Jobs Plan. The package targets both traditional and non-traditional infrastructure, for example, roads, bridges, and water systems as well as the caregiving industry. The Plan also calls for substantial investments in research and development and expanding broadband internet access to rural areas.
Renewable energy is a focal point of the Plan, from calls to upgrade and modernize existing electrical infrastructure to investing in electric vehicles and clean energy. Part of the Plan looks to involve the private sector while other financing options include tax credits and incentives. (more…)
By Steve Carter, CPA, Principal
ASL Renewable Energy Group
The COVID-19 pandemic has created an array of financial, operational, and production challenges for businesses across many industries. Decreasing demand for products/services, constantly changing government regulations, and erratic consumer spending have left many facing unique challenges. Unfortunately, the renewable energy industry has not escaped the pandemic’s reach. According to the International Energy Agency’s (IEA), The Impact of the COVID-19 Crisis on Clean Energy Progress, the pandemic has had an adverse impact on renewable energy investments. Although the causes for the delay are multi-faceted, how the industry recovers and thrives is largely based on government policies and expenditures to implement change. The good news is, several important tax incentives were recently extended and more are awaiting Congressional approval. We have summarized them below. (more…)
By Steve Carter, CPA, Principal
ASL Renewable Energy Group
The focus on transitioning the nation’s energy needs from existing to renewable sources is the shared mission and passion of most renewable energy companies. The process of transforming natural resources into usable energy is a confluence of science, technology, and even user behavior. However, many challenges remain to achieving the objective. One issue which has been preventing broader adoption of this energy source is the inconsistency of weather. While technology allows for very accurate forecasting, it’s not always correct, and this can create “spikes” in the availability of energy. That’s why companies are turning to artificial intelligence (AI) to help facilitate solutions. AI can help with better micro-grid management, improved reliability, and optimized energy storage. To help clients, prospects and others understand the impact of AI, ASL has provided a summary of key solutions below. (more…)
By Steve Carter, CPA, Principal
ASL Construction Group
When you see a cement mixer going down the street, or at a site getting ready to pour, do you think immediately of the effects upon our environment? I must confess, I have not. Until recently.
Cement is a major component of concrete. Cement is often referred to as the glue that holds concrete together. But cement is very harmful to our environment. One ton of cement production releases one ton of carbon dioxide (CO2) into the atmosphere. With cement production currently at 2.8 billion tons per year, and expected to only increase, that is a lot of CO2 released into our already fragile atmosphere. (more…)
By Steve Carter, CPA, Principal
ASL Construction Group
The issue of roof repairs and replacement presents an age-old dilemma for tax professionals and our clients. Generally (and most often optimally), one hopes that such repair, or even replacement costs, can be expensed in the year incurred. But the analysis required to determine what should be done is not so simple, especially with the recent issuance of the Tangible Property Regulations by the IRS.
To get to the best outcome, we need to raise insightful questions with our clients regarding their roofing system.
(more…)
By Steve Carter, CPA, Principal
ASL Nonprofit Group
Most people who know the acronym COSO (Committee of Sponsoring Organizations of the Treadway Commission) immediately think of publicly traded companies. COSO came upon the scene when Sarbanes-Oxley became a household name.
So why bring up COSO in the context of nonprofit organizations?
The recently issued Uniform Grant Guidance from the Office of Management and Budget stresses the need and importance of strong internal controls for nonprofits, and especially for those receiving federal awards and grants. Adoption of the COSO framework is not mandatory but strongly encouraged. (more…)
By Steve Carter, CPA, Principal
ASL Construction Group
During last December’s AICPA National Construction and Real Estate Industries Conference, I attended a break-out session discussing cash flow for contractors. It was outstanding! How often does one talk about how vital cash flow is to the construction business? The phrase “Cash is King” cannot be more important for contractors.
Let’s talk about what cash flows means, what goes into creating positive cash flows, and best practices to maximize cash flows. (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?
